Assignment Instructions
MKD Transportation owns and operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize. If true, some of the world’s most beautiful coral reefs could be in danger. On the other hand, the captain of the ship in question has not notified the company of any problem, and cleanup could be very costly. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin cleanup.
- Managers at MKD claim to exercise ethical behavior toward their employees. Describe three (3) matters this behavior might cover.
- What might the general public begin to think about MKD’s responsibilities toward the environment? Provide one (1) example.
- If MKD adopts an obstructionist stance, how will the company respond to this media report? Provide one (1) supporting fact.
- If MKD adopts a defensive stance, how will the company respond to this situation? Provide one (1) supporting fact.
- If MKD adopts an accommodative stance, how will the company respond to the media and demands by the government of Belize and environmental groups? Provide one (1) supporting fact.
- How might this situation have been different in the event that MKD had initially adopted a proactive stance to social responsibility? Provide one (1) supporting fact.
- Describe one (1) example of a situation in which a company might adopt a pricing objective other than profit maximization. Provide two (2) supporting facts.
Sample Answer
Introduction
Business ethics is the established set of moral values and company standards of conduct in a company, or organization, these vary from one company to another( Leung, 2008). Business ethics exemplifies the company’s codes of governance; it demands on the morality standards and behavior patterns expected of the employees and the company at a hole. Business ethics can be perceived in terms of the microenvironment and macro environment of a company.
Ethical behavior towards employees entails
Ethics and behavior are a vital part of employment, as they assist the company to be profitable. Every Company has certain guidelines and rules to which its employees must adhere. MKD Transportation Company has its own code of ethics that its employees adhere to. For instance, MKD Transportation Company expects its employees to be accountable and responsible for their actions. The employees are expected to be present when on scheduled work days, arrive on time, be honest when things go wrong, and remain professional while solving the problem (Leung, 2008). Also, MKD Company expects its employees to be upright, honest, and do the right thing all the time.
For example the captain of the ship in question was supposed to express integrity, and be honest to the executives; report the ship has a leakage. Similar to this, the employees are expected to be committed and dedicated to their work and responsibilities. Committing to excellence is a vital requirement from every employee; performing duties at the best and finest level, they should be prepared and well informed. Finally, MKD management expects its employees to abide by the laws; rules, regulations, and the guidelines of the code of conducts of the company. They are also expected to abide by the laws of the country.
MKD responsibilities towards the environment
The MKD management has set policies to protect the environment, the company aims at implementing these policies. The company commits to protect the environment by complying with the environmental acts, and regulations (Carroll, 1999). The Company also provides necessary information to its employees to meet its environmental goals. In this scenario, MKD management needs to acknowledge and accept their part that they have caused a problem in the environment, since the general public is made up of customers that are served by the company. The company should take responsibility of the damage that the ship has caused; taking charge for the clean-up costs, seal the breach on the ship to contain the oil, then the MKD management should get the ship on shoreline as promptly, and quickly as possible.
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Obstructionist stance of MKD management
An obstructionist stance is a move toward social responsibility in which companies do as little as possible to solve any environmental or social problems (Kelleher, 2008). The companies go against ethics and laws that are stipulated, and do everything in their power to avoid being penalized for their mistakes. If MKD Company took an obstructionist stance, the managers will engage in illegal and unethical behavior to hide from the general public, the media, and the stakeholders. An example of an obstructionist stance is a tragedy that occurred in California that involved two girls. The accident was caused by a defective from Enterprise Company; the company knew about the defect but chose to rent out the car without repairing it. The car caught fire as the two girls were driving, and got hit by an oncoming truck, and the girls died on the spot. However the company refused to be held accountable for the tragedy.
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Defensive stance of MKD Company
The defensive stance is a social responsibility in which companies do everything that the law requires of them but do not solve any environmental or social problems. Managers of these companies depend on legally established rules to take minimum stand towards social responsibility (Wołczek, 2014). These managers argue that their companies have done nothing wrong despite negative outcomes. If the MKD Company will take a defensive stance, the managers will deny that one of their ships is leaking oily substance off the coast of Belize. Phillip Morris Company is a tobacco company, which has taken a defensive stance to social responsibility. It places warning on the cigarettes packs but do not advertise the dangers, and risks involved with the cigarettes. Fearing the consumers will not buy the cigarettes.
Accommodative stance of MDK Company
An accommodative stance is approach toward social responsibility in which companies meet their ethical and legal responsibilities, and provide information and knowledge without protecting the information (Kelleher, 2008). These companies accept social responsibilities, and also satisfy legal, ethical, and legal criterion. Managers of these companies make choices that balance the interest of the shareholders, and the stakeholders. An example of an accommodative stance is of managers who give their Muslim employees permission to celebrate Ramadan with their families. If MKD adopted accommodative stance, it will take responsibility and be accountable to the damages the ship has caused, and immediately begin clean up.
Proactive stance of MDK Company
The proactive stance is where companies view themselves as citizens in the country, and proactively seek for opportunities to the country, and the society (Wołczek, 2014). Managers of these companies are willing to sacrifice, and promote the interest of the stake holders and stockholder using the companies’ resources. The companies meet all the requirements of social responsibility, including flexible performance. The situation of MKD Company would have been different if initially they had adopted proactive stance. The management would have used it’s concentrated on prevention measures, and also enlighten the community about its services and products.
Pricing objectives
Pricing is the only element of the marketing mix that generates revenues, the other element; product, place, and promotion constitute costs. Pricing objective is a goal that a company sets to determine the cost of its product or service. Managers decide the objectives of pricing before determining the price of the product or services (Lanzillotti, 1958). Market penetration is the initial stage of entering the market, the manager’s sets a comparatively low price; the company may even sell its products without a profit. In this objective, the company is interested with growth. The unit cost of production and distribution declines when the volume of sales accomplish a scrupulous goal.
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For example, the Turkish conglomerate that sales dishware, washing machines, refrigerators, and freezers, entered Germany. The company lowered its price, in order to benefit from the world’s lead market. The product design will improve and permit to perform better at the new market. Another example of a company that entered the market with penetration pricing is Samsung, the company entered the market through lowering the price of its products, and it was able to take away the smart phone market from Apple Company. Micromax also took penetrated the Smartphone market, overpowered Samsung.
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