Introduction to Business - Essay Example

Date:  2021-06-22 12:21:15
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Ethical behavior involves acting consistently with what is taken as good values. Honesty is an ethical behavior. The Managers at MKD could insist that the captain is an honest person and so cannot hide the leakage. That if indeed the ship was leaking the captain could be compelled by honesty to report the leakage immediately. This is to suggest that the company puts a lot of trust in its employees. Honesty is a facet of the moral character. Where honesty reigns, the employees will do the right thing always (Bierman, 2006).

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Fairness is another ethical behavior. The moral standards for most decisions that affect workers in a company are established by fairness. This virtue requires Managers treat their employees fairly. They could contact the captain about the leakage. If the captain could be fired without being heard, then this becomes unfair.

Individual rights involve respecting the rights of another person. It is a moral principle defining mans freedom of action in a social context. This is yet another ethical behavior. A person has a right to fair hearing in any case. The company respected the freedom of action by its employees. It, therefore, means freedom from physical compulsion, coercion or interference (DesJardins, 2014).

The public might conclude that MKD does not care about environmental protection. The report that their ship is leaking and the fact that they are taking the report lightly implies that their quest to maximize profit does not mind about Social Responsibility. Marine life is very important, and so all companies should value and conserve water. This is a responsibility which compels companies to satisfy the public. If the public conceives a notion that a particular company is polluting water, then the public might shun goods or services of such a company (Needle, 2010).

Obstructionist stance involves trying to block and stop what is going on to avoid responsibility. The company could try to obstruct the media from reporting the leak. This can be done through monetary inducement to convince reporters to drop the report. The company could also threaten the media with legal action if they report conflicting information.

Defensive stance is the situation where the company remains neutral. Such a company thinks that profits are more important than social responsibility. It argues that there was no wrong doing on their side despite the negative report. The company could ensure that it complies with the law to block any legal action against them by others. An example is some of the companies which manufacture cigarettes. Had it not been for the laws that require them to put warning labels on cigarette packets, these companies could go ahead to advertise smoking (Needle, 2010).

Accommodative Stance is a case where the company chooses to accept responsibility for the negative outcomes. Such a company believes that social responsibility is as important as profits. The company meets its legal and ethical requirement and remains open as to why they take specific actions. The company undertakes to mitigate the problem created. The company could accept to clean the leakage despite the high cost of doing it and may also compensate the country of Belize for the coral reefs destroyed.

A proactive stance is an approach where the company acts in advance to prevent such a problem from occurring. It does not wait and only responds to a situation that has happened. Initiating change within the organization is willing. Social responsibility is a priority. Such company is ready to contribute to the benefits of group and stakeholders.

The company could ensure that their ships and tankers are constantly serviced to prevent leakages. The company could also put in place surveillance mechanism to arrest a situation if need be before causing damage.

PART B

Survival strategy is a situation where a company may adopt a pricing objective other than maximizing profit. A company may be facing intense competition from other companies. Their goods or service may not be moving as fast as possible. The company could be facing a bleak future in terms of sales. The company may have to lower their prices to survive. Survival is a short term objective to enable a company wade through tough times. This pricing should be such that the price exceeds the variable cost and cover some fixed costs. Otherwise, any price less than that will bring down the company. The company must adapt to the challenges and find ways of adding value so that it can withstand the competition.

A company may want to increase its market share. The pricing will greatly determine market penetration. It is possible to lower the price if the company feels it can achieve lower unit cost with higher volumes. The more a company sells its products or services, the lesser the unit cost since the cost will be spread over many units. This strategy is advantageous if consumers are price sensitive. Lower prices will discourage the entry of new competitors. Such a move requires that the company strikes a balance between volumes and ability to meet its obligations. It doesnt make sense to sell large volume if the proceeds can run the company or if it takes a very long time realize the return on investments (Needle, 2010).

References

Bierman, L., Gaspar, J. E., Hise, R. T., Kolari, J. W., & Smith, L. M. (2006). Introduction to business. Boston, Mass. [u.a.: Houghton Mifflin.

Needle, D. (2010). Business in context: An introduction to business and its environment. Andover: South-Western Cengage Learning.

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DesJardins, J. R. (2014). An Introduction to Business Ethics. London: McGraw-Hill Education - Europe.

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