Download now
Excerpt from Essay:
African-American MOTHERS AND THEIR CHILDREN
Ethical Concerns in Gumdrop Northern
The Executive Official, ABC Organization
Ethical Concerns in Gumdrop Northern
It has come to my attention that the activities and capabilities of the Gumdrop Northern are generally not up to specifications. The company besides afflicting the American citizens, particularly the military, offers lacked a feeling of corporate interpersonal responsibility to both all their employees, buyers and the environment. Notably, the business world faces the idea of corporate social responsibility in all aspects of business undertakings (Bitektine, 2011). In a large assortment of issues, corporations receive motivation of to behaving in a socially responsible fashion. In the modern-day world, company businesses concentrates on the interest from the society through taking responsibility for the effect of their activities on workers, shareholders, communities and clients in all areas of their procedures (Bitektine, 2011).
Nevertheless, this can be contrary to what Gumdrop Upper is doing for all its stakeholders. Predominately, the corporation focuses on earnings gain, as opposed to corporate responsibility, obligation and quality. The behavior employed by the corporation top management is being concerned and more considerably questions the ethical principles of the company. From this point of view, this comunicacion cites 3 principal moral issues facing the company, their solutions and recommendations.
The ethical issues illustrate insensitive company that functions to get profit upkeep while breaking ethical specifications and statutory requirements. More significantly, I wish to show the basis of moral issues and their influence on corporate stakeholders and the citizens.
Analysis of peaked Facts of the watch case
Gumdrop Northern, a long term military ammunitions manufacturer and contractor, employed a staff of 105 employees and collected significant profits of 500 billion dollars per year. The employees received a substantial earnings package for the business congratulations. However , you’re able to send bumper revenue were because of clandestine businesses that included manufacturing of landmines. The corporation manufactured landmines contrary to the international treaties and law, and exported these to Iran and Afghanistan in which these products set at risk lives of many persons, particularly children and soldiers. Besides their illegal production of defective landmines, Gumdrop manufactured substandard products, armored vehicles and body battle suits, in spite of getting a handsome shell out from their clients. Evidently, the entire body armor has not been protective enough and the firm despite knowing the missing elements chose to not add flak jackets in order to avoid injuries.
Much more, the company armored vehicles although sturdy and strong at the top and sides had a slender steel linen on their under sides, an aspect that made the vehicles susceptible to IED explosions. After their very own unscrupulous activities were exposed, the company laid off some of its employees to evade the legal requirement of collective negotiating agreement. In order to avoid paying the families of people wounded and those who also died because of the company’s defective devices, Gumdrop management submitted for personal bankruptcy. The company continued performing it is devious activities in Colombia and Argentina where that established good links with contractors. The company shifted all its assets to foreign banks in order to maintain its share benefit and revenue. Gumdrop executives bribed the officials focused on environmental regulations, labor laws and regulations in order to allow the company to conduct their business efficiently. More so, the corporation enjoyed minimal business constraints notwithstanding the hazards Gumdrop businesses posed to people and the environment.
Ethical Issue 1: Infractions of International Treaties and Law
Gumdrop Northern Business sold faulty armor to the United States’ military. The Company knew particularly well that their products had been defective yet chose not to inform the militants about the need for flak jackets. The business concealed this pertinent info for trepidation of dropping the deal. Because of the dependence on immense revenue, the company disregarded the considerable advantage and value of disclosure to be able to reap initial profit rewards. The need for large profit plus the company’s greed instigated many legal actions put forward by service members, families damaged both immediately and indirectly by the business defective products and the United States army.
More so, the business illegally made and released landmines to rebels operating against the interest of the American in the Arab world. The illegal business contributed enormously to the large profits understood by the Company. Notwithstanding the high profit margins obtained from the landmines, the organization manufactured also defective landmines. Notably, landmines are extremely dangerous and create a threat to children and troops attempting to flower them (Pike, 2010). Presented their hazards, the foreign law outlaws landmines. Consequently , despite the immediate profit profits, the company experienced legal problems from development and providing of landmines.
With admiration, to Gumdrop Northern, revenue gain is known as a short-term enticement given that there were other serious consequences of behaving unethically. Firstly, the company gained almost nothing by screwing up to tell the value of additional flak jackets. It can be evident which the company through its sale of defective items experienced initial benefits, which in turn jeopardized it is prospective functions in the United States. It truly is evident the company’s buyers paid handsomely for armored vehicles and body shield. Therefore , through concealing essential information about the weaknesses with their products, the organization lost a substantial and useful marketshare besides seizing it is operations in the United States.
They should possess disclosed to their customers the necessity for additional flak jackets. More so, the company should have sought to get advice off their clients and also other agencies, a piece that would possess helped them better their products and solutions, hence long term gains maintained uninterrupted operations. The proceed to evade law suits and investigations by switching to Colombia and Argentina demonstrates poor management in the company. The move was rather unneeded and silly given the record a record of the company.
It is evident that the poor goods the company acquired by the United States Army and the substandard landmines got into the hands of the Argentineans. The same way, these products were risky in the United States they would be even more dangerous in Argentina and Columbia, plus the company being questioned and held responsible.
The strongest advice would be to accept the managers and administrators of Gumdrop North to justice for various crimes determined. This will be produced possible through talks involving the Argentina govt and the Us government.
Moral Issue two: Employees Layoff
To remove the organization from NOTIFY Act, Gumdrop Northern Board of Directors decided to layoff 5 personnel without reason besides rendering early retirement living benefits to 5 others to create their work force down to 95 from a hundred and five. The layoff of 15 employees helped in removing prior recognize of layoffs and closure. This step helped the company in nullifying the needs and accountability completely to its employees merely by eradicating the requirement of the ALERT Act. The Act helps to protect employees via sudden termination and drawing a line under of firms. The ADVISE Act applies to businesses employing more than 100 employees (U. H. Department of Labor, 2003). The WARN ACT essential Gumdrop to offer suitable warning announcement of 60 days regarding their very own shift to another country because the business had much more than 100 staff.
Through disregarding some staff, the company clear itself from WARN Work obligations (U. S. Division of Labor, 2003). Furthermore, bankruptcy announcement made by the very best executives also rid the business from the legal cases it confronted. However , this step offered the organization short-term benefits of leaving the region and evading lawsuits but how about the business functionality in the international land. The board properly crafted the move to Argentina. The country was a valid option as there are simply no extradition bylaws and no worker’s unions. The move to Argentina shows just how poor you can actually management was. While the maneuver yielded short-term benefits, the corporation would fall because of its inexperienced management group that are not able to handle issues and issues facing the business now in addition to the future.
Instead of shifting to a different country in which their unethical activities would surface, the business should have produced a proper supervision team to manage the issues facing the company in the United States. Such actions should have allowed the company to manage its issues and continue its operations in the United States.
Honest Issue 3: Environmental Risk and Bribery
Gumdrop Northern highly rewarded officials in Argentina and Colombia, a technique that allowed the company to violate labor and environmental laws in the area. They also bribed officials in order to enjoy little business limitations. The chemical substance and light from the development of the armors and landmines posed a significant risk for the natural environment. The Columbia and Argentinean govt officials overlooked the harm Gumdrop firm was appearing to their populations and the countrywide environment. They viewed the harmful chemicals and the radiation affecting environmental surroundings as little price to pay for the reduced rates they acquired for military equipments. The apparatus enabled these to fight union activists, medication dealers and insurgents. The countries received these immediate benefits from Gumdrop Company although they encountered long-term effects to their natural environment.
Instead of accepting the bribes from Gumdrop Company, the Argentina and Columbian federal government officials should have allowed the business to put up measures and strategies to
