W4 Discussion Analysis
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Discussionpostsw4.docxPost #1 Patricia McCarthy Week 4: Case Studies
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As we move from one scenario to another it is clear the importance of ethics in all aspects of an organization. Deciding how issues in human interests should be resolved and for improving joint advantage of those individuals living in groups are moral methods that allow business owners to put together business techniques and work out moral issues (Ferrell, et al., 2019). Founder of Seattle’s Theo Chocolate’s, Joe Whinney believes that everyone within the supply chain, even the coca farmers, should benefit from his chocolates. The supply chain of an organization impacts several different parties and I believe today many consumers are wanting to know how the products they are purchasing are produced; ethically made. Consumers and society will be inclined to hold an organization accountable for its own as well as its providers’ immoral practices (Gonzalez, 2016). Joe Whinney also believes that his customers will be willing to pay more for the chocolates knowing that is benefiting the cocoa farmers. I believe that some people, regardless of the benefits to others, will buy the chocolate despite the cost. I think it comes down to the taste of the chocolate if it’s a great chocolate then people will buy. I also believe that it comes down to the relationship with the customers. When customers and business have a good relationship the increase in cost is something minor. Organizational standards of decency and reliability are a piece of a moral atmosphere that manufactures trust and responsibility among individuals in a buying exchange (Gonzalez, 2016). Being from Washington I have never tried Theo Chocolate’s and as chocolate fanatic I will be giving it a try.
Going through the case study it was very surprising on how many ethical issues they were involved in. It is upsetting to see how an organization that is so large with so much potential be affected by bad decisions. Managers failed this organization. Managers are should be a model of great individuals, diligent workers and effective decision-makers that have a powerful impact on others; while at the same time creating positive favorable organization culture and a great business environment (Zarezankova & Potevska, 2017). Even though they were involved in so many issues every organizations deserves a second chance to redeem themselves and it seems that they are heading in the right path. CVS has learned from their unethical practices and have started to implement new strategies that will help them achieve the ethical culture that should have been practiced from the start (Ferrell, et al., 2019). In the end I think it will come down to the customers and if they can overlook their flaws and see what they are working towards.
Ferrell, O.C., Fraedrich, J. & Ferrell, L. (2019). Business ethics: Ethical decision making and cases. Cengage.
Gonzalez-Padron, T.L. (2016). Ethics in the supply chain: follow-up processes to audit results. Journal of Marketing Channels. 23(1/2), 22-33. doi: 10.1020/1046669X.2016.1147341
Zarezankova-Potevska, M. & Potevska-Kolevska, V. (2017). Enhancing business ethics through social responsibility. Economic Development. 19(1/2), 265-278. Retrieved from www.ebscohost.com
Post #2 Donald Lockett
W4 Discussion - Video Case Study
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Question 1:
From my own personal opinion, this would be considered or classified as a bona-fide win, win for all parties involved. However, for the most part, to be able to help out or assist another country in times of hardship and need, takes a huge step in showing how a company is worried about equality pay in each individual. For years, this practice has been overlooked. According to Di Lorenzo, & Scarlata (2019), “Despite the moral, ethical and economic relevance of inequality’s implications and the call for having a better understanding of how organizations deal with it, the relationship between income inequality and social entrepreneurship has been overlooked.” Not many companies can say that they are worried about pay inequality. Now, this one little candy company can be a huge example for many other companies. Not only is this company helping other unjustly countries in times of war and despair, but they are helping their employees by offering higher pay rates. The employees and farmers are working together to make a very productive way of living. The company has also teamed up with several investors so there would be in place, a creation of a dependable export market. By offering the farmers of these cacao plants two to three times greater pay for the cacao, they are helping them with quality of life as well as spurring some of the economic problems in which they are enduring and suffering from.
References
Di Lorenzo, F., & Scarlata, M. (2019). Social Enterprises, Venture Philanthropy and the Alleviation of Income Inequality. Journal of Business Ethics, 159(2), 307–323. https://doi.org/10.1007/s10551-018-4049-1
Question 2:
When I first started reading this particular case study, I was shocked to read all the cases it had totally about ethical issues. It set the pace for the rest of the article. For example: by reading the negative issues with CVS. I was drawn away from the positive acts in which they are trying to change. If I had read the positive views first, I might have a different opinion about the company. I feel, even though this is my own opinion, a company as large as they are, their number one priority or goal should have been its customers and their information. With the rise of identity theft, personal information is especially important and vital to most consumers. Knowing, personal information was not properly cared for, what would make a consumer think it would not happen again. After all they are a billion-dollar company. It seems they are quick to make cases go away, yet not quick enough on fixing the problem. When looking at how I compare my own personal ethics regarding the issues at hand. I have to say, my personal information is particularly crucial and important to me. I have to insist and declare, I would think twice before going back to CVS. (The decision was based on the ethical issues the company CVS has presented.) Post #3 Nathan Javins
Discussion Week 4
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QUESTION 1
I found the video to be a warming story based on the views that all the philanthropists take an interest in an impoverished country and want to make a difference on both the economy and the bottom line of each of their companies. Joe Whitney’s moral philosophy greatly enhanced his company which in business is the correct answer, but he has gone a step further to ensure he maintains his corporate citizenship and social responsibility to others by also greatly enhancing the people of the Dominican Republic of Congo (DRC). Additionally, it displays the enhancement and cohesion between Ben Affleck and Joe Whitney to unite their abilities to enhance the people of the DRC. In this video it is readily apparent that Joe Whitney wants to do what is right by the DRC population which in turn raises his social responsibility both in the DRC and within the U.S. due to consumers being willing to pay extra to assist the people in the DRC vastly enhancing the quality of life. One can also deduce that by investing in the DRC, raising the CSR outside of the organization and raising stakeholder interests that Joe Whitney does not necessarily want to raise his political influence, but his morals are assessed to be in the proper place.
As another article claims that corporate social responsibility is a political claim it directly contradicts what I think the Theo Chocolate Company is attempting to do (Lampert, 2016). If this was the case then there would not be so many investors interested in this type of CSR nor would they be interested in the moral ethics it provides for an organization, regardless of the type of organization. In my opinion, organizations have a social responsibility to more than just themselves as defined by “social” responsibility. Social responsibility is defined and implies that an organization has a responsibility to itself, its stakeholders, employees, supply chain personnel and the consumer to not only take care of each other but must find a way to manage all impacts it has within its organization. Which this may conflict with some views thus forcing individuals to believe they are doing it for political gain although there may be no political gains. Therefore, only some of the organizations are remaining diverse and enforce CSR for political gain whereas the majority of organizations see the importance of gaining social status within a given area thus causing the bottom line to increase which at the end of the day is the most important part of business.
REFERENCES
Lampert, M. (2016). Corporate social responsibility and the supposed moral agency of corporations. Ephemera: Theory & Politics in Organization, 16(1), 79–105.
QUESTION 2
As CVS implemented its strategies to further achieve an ethical culture to benefit stakeholders it also provided an invaluable service thus compounding its social responsibility (Ferrell, Fraedrich, Ferrell, 2019). As CVS began to voluntarily remove products from its shelves in West Virginia which were precursors to the manufacturing of methamphetamine it greatly enhanced the social view of its organization which caused its value to increase conversely increasing the stakeholder value. As the company continues to reduce its overall footprint it remains the largest pharmacy in the U.S. (Ferrell, Fraedrich, Ferrell, 2019).
As its CSR grew and the consumer saw the care that was being taken to protect them is what made it one of the largest suppliers in the country. Just as Joe Whitney and others saw a way to impact people beyond his business, CVS was able to impact a much larger population while maintaining stakeholder growth. Joe Whitney impacted an impoverished country whereas CVS impacted the local population to increase the views of the population and show that business did care about the people. These types of business models are growing across the business world and can greatly enhance stakeholder and local support if applied appropriately.
Being in the military we are always concerned with the impression we have on the surrounding area that is why it is imperative we provide as much transparency as we can due to first impressions being lasting. One example of how we display our social responsibility to the public is by transporting our equipment not only within National standards but within local standards. We do this by coordinating with exterior agencies to ensure we are within compliance. Rarely do we fall out of compliance due to not only conforming to National and State standards, but we have our own regulations to follow which are much more stringent than other standards. Therefore, when we place equipment on the highways shared by others we must meet and coordinate through National, State and military agencies to ensure compliance. A second way we ensure social responsibility is by taking care of what we use for example, we regularly conduct training and operations using areas outside of the confines of an installation so we are tied to the responsibility of taking care of the environment so civilians can enjoy the areas as well. We must remain vigilant to the needs of the environment as well as the populace utilizing the areas. Our living conditions in the field are minimalistic at best but we do not harm the environment due to our regulations which is compounded by the meeting of standards across specific exterior organizations. Additionally, if we were to negatively impact the environment we report the incident to the respective agency and own up to our actions.
REFERENCES
Ferrell, O.C., Fraedrich, J., Ferrell, L. (2019). Case 19, CVS: “Fired Up” about Social Responsibility; Business Ethics: Ethical Decision Making and Cases, Twelfth Edition. Cengage, 20 Channel Center Street, Boston, MA 02210. Post #4 Cody Lasseigne
Week 4 Discussion
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During the case study video, I enjoyed hearing about the philanthropic efforts put forth by Joe Whinney, Ben Affleck, and other philanthropic investors. I think that Joe Whinney and his efforts to improve the lives of the people of the Democratic Republic of the Congo (DRC) is truly inspirational. The way that he executes his business strategy not only positively affects the DRC but also ensures that all members of the supply chain benefit from his efforts. After reviewing the case study, I believe that the business model of Seattle’s Theo Chocolate company is rooted in a hybrid of the philosophies of deontology, justice, and virtue ethics. While I agree with all of these philosophies and their intentions focusing on the “right” as the greater good of society as a whole, I feel that the business model may carry many risks and may not be sustainable. The market is a battleground of businesses competing for power and depleting natural resources from a backdrop of economic recession and a stressed environment (Smit, 2013). From the video, Joe Whinney’s business model and strategy rely on consumers to be willing to pay higher prices for their chocolate to meet their economic objectives. Assuming people will pay additional costs is a significant risk because everyone was affected during the economic recession. As a result, many consumers could have replaced their philosophical outlook of utilitarianism with egoism. Egoism underpins the capitalist structure and focuses on not sacrificing the individual’s long-term self-interest (Overall, 2016). For a simplified example, if I am going to purchase a hammer and I have to choose between two hammers that have all of the same specifications, if one of the hammers costs double because of a cause they support, I am going to purchase the cheaper hammer. Consumers today may be more focused on fit, form, and price when making purchases and spending less money on a product that meets their own needs rather than the philanthropic efforts of the manufacturer. Why would someone focus on other people when they are struggling to meet their own self-interest or to pay their own bills? In my opinion, Joe may be projecting his ethical philosophies onto the market, which could lead to failure. Not to say that his intentions are not good and that consumers are not willing to pay extra for a good cause; it is just a risk that he, his shareholders, and supply chain constituents are taking.
References
Overall, J. (2016). Unethical behavior in organizations: empirical findings that challenge CSR and egoism theory. Business Ethics: A European Review, 25(2), 113–127. https://doi.org/10.1111/beer.12110
Smit, A. (2013). Responsible leadership development through management education: A business ethics perspective. African Journal of Business Ethics, 7(2), 45–51. https://doi.org/10.4103/1817-7417.123078
The CVS case study was an interesting read. I did not realize the vast amount of services CVS provides and the positive changes the company has made over the years. In my opinion, the focus of acquisitions, expansion, and shareholder wealth maximization through increased market share during the early 2000’s led the company down a negative path from which it had to recover. The shareholder focus led to a lapse of enforcement of the existing ethics programs within the company. The lack of enforcement of the program began the ethical descent and negative publicity of the corporation’s indiscretions such as the 2008 civil lawsuit, 2009 HIPAA Privacy Violations, 2010 death of a shoplifter, and the 2012 oxycodone over distribution. There are a couple of notable points that I would like to address. The first of which is that CVS did have an ethics program prior to 2008 but it was not highly reinforced. Ethics programs should not have to be implemented or enforced by a third party, such as the FTC mandating a Corrective Action Plan associated with the seven guidelines, because the program should be strong and interwoven into the fabric of the company and enforced internally. Although the guidelines forced CVS’s hand to reevaluate their operating procedures which in turn has led to many positive outcomes, it leads me to wonder if the company was not caught when they were, would they be as successful as they are today? The other point is the role CEO Larry Merlo had on the efforts of CVS. Leadership plays a significant role on the impact of ethical decision making and for an ethics program to be successful, support from upper leaders is paramount (Ferrell et al., 2018). After conducting further research into CVS and their leadership, I found that Larry Merlo became the CEO in 2011 (CVS Health, n.d.). Larry Merlo inherited many of the problems and negative publicity of the organization. Even though the FTC mandated the seven guidelines in 2009, the organization was still committing unethical acts. Once Larry Merlo was appointed as the new CEO, the company began to implement stakeholder oriented programs and change the face of the company. A strong leader is a key element in the implementation and effectiveness of an ethics program. To relate the case study with my own personal assessment results, I scored the highest on perseverance, honesty, and character. I feel that a strong leader needs to hold these values to a high standard to accomplish anything. For example, if Larry Merlo was not a person with a strong character and lacked the perseverance to overcome the unethical behaviors of CVS, the organization would not be on the seventh spot of the fortune 500 listing.
References
CVS Health. (n.d.) Larry J. Merlo. https://cvshealth.com/about/leadership/larry-j-merlo
Ferrell, L, Ferrell, O.C., & Fraedrich, J. (2018). Business Ethics: Ethical Decision Making and Cases (12th ed.). Cengage. Chapter 03: Emerging Business Ethics Issues.
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