Farmers are TABLE to sustain as well as he local economy due to consumers having disposTABLE income. From an economic standpoint consumers are TABLE to afford normal goods. If production is moved families will be forced to cut expenses down to bare necessities. If production is moved Mega Foods is creating the greatest good for herself or himself as defined in Morehouse (2013) as ethical egoism. Ethical egoism is common in some business contexts in which a company and its employees make decisions to achieve its goal of maximizing profits (Morehouse, 2013). 1.
Identify and specifically describe 3 to 5 major ethical issues you would encounter in the process Of formulating your commendation. In your response, please justify or support why you feel that each of the issues have ethical implications. The decision to outsource jobs is a pertinent ethical issue. The average tenure of the people working at the Orchard, GA plant is 10 years with several nearing retirement. Mega Foods will affect more than the 125 people on payroll. Those 125 people all have unique circumstances. One person may be caring for a large number of family members while another person’s wife may have cancer or be terminally ill.
Moving production will negatively impact hundreds of shoulder and trickle a domino effect on other local businesses. The housing market, car dealerships and retail stores will be greatly impacted; making Orchard, GA a desolate place. Without the ability to find a job within their communities that is commensurate to their old salaries, domestic workers will be forced to relocate. Much similar to the devastation Detroit faced after automobile companies sent production overseas. Secondly, Frostbites lack of labor regulations provides incentive for plant managers to abuse the workforce in attempts to increase profits and their bonuses.
Frostbite has far fewer protections than U. S. Workers that are related to the health and safety of workers. Not meeting minimum safety requirements can result in haphazard working conditions. Increased accidents, absenteeism and legal ramifications can all result from not meeting Ash’s safety standards. Without OSHA overseeing working conditions, employees may work extended hours per week in unbearTABLE conditions. Nikkei and Gap are both companies that suffered massive legal suits, tarnished reputations and tremendous profit losses due to labor exploitation.
In the event that a major fatality is publicized that proves the company is negligent in safety standards; public outrage will directly impact the company’s bottom line. The last major ethical issue I foresee is the quality of the production inputs. Frostbite does not have regulations that require regular food inspections. Without being aware of the types of chemicals and pesticides used on food products, can result in legal ramifications due to corporate negligence. The chemicals used may have adverse reactions to others ingesting the chocolate. Food sickens roughly 48 million per year.
Each year thousands of people are hospitalized due to contaminated food. Mega F-odds has maintained sTABLE profits from ailing a quality product. It is important to maintain a culture that upholds food safety. 2. Identify and specifically describe 3 to 5 issues related to corporate social responsibility that would encounter in the process of formulating your recommendation. In your response, please justify or us port why you feel that each of the issues have implications related to social responsibility Corporate social responsibility is emerging as a top element in the sustainability off company.
Tom’s shoes, Ben and Jerry and most recently Struck are class act examples of properly utilizing corporate accessibility. After completing my analysis, there are several corporate social responsibility issues that may arise. Orchard, Georgia is a small rural community with a population of 5000 people. Mega Foods, not only employs 125 people of that community, but also purchases raw products from local farmers within the community. Moving plant operations from Orchard, GA to Frostbite poses severe corporate social responsibility issues.
The use of raw products from local farmers reduces the need for foreign imports, minimizes transportation costs, and reduces carbon emissions from transport vehicles. Reducing carbon emissions helps to preserve the environment. Also using raw products from local farmers shows our support for small businesses. We are boosting the economy in Orchard, GA by supporting many families that survive off of modest farming income. Using local products also ensures fresher ingredients and provides the company the ability to readily inspect products for maximum quality.
I fear that moving plant operations will hurt the company’s “buy local” reputation and product quality. Mega Foods will be viewed negatively as a company with no compassion for local business and is driven by greed. Several studies prove that consumers will pay more for a product if the company demonstrates corporate social responsibility. .Mega Foods must maintain responsibility in respect to environmental standards. Americans have become more environmentally aware of the negative repercussions gas emissions has on the environment. If Mega Foods Inc. Ere to move production to Frostbite, the company runs the risk of succumbing to lower environmental laws. With production in Frostbite, it is harder for the company to monitor plant processes. Increased emissions from plant facilities can harm the environment sparking outrage among the public. Lastly, Mega Foods is currently paying its employees well over minimum wage. The average Frostbite worker is projected to make 2. 00 an hour. Mega Foods chocolates can be boycotted due to allegations of utilizing sweatshop labor to manufacture its candies. 3.
Identify and specifically describe 3 to 5 major global trends that are specifically influencing Mega Food to consider relocating operations of the Orchard facility to the country of Frostbite. In your response, please be specific in stating why or how each Of the global trends is directly impacting Mega Food. To maintain imitativeness, corporations must actively seek talent and innovation. A great majority of the workers in Orchard are all approaching retirement age. The workers in Frostbite have an improved skill level and will receive ongoing training.
More companies are employing high skilled low wage workers. Many college graduates are willing to work for nominal pay just to get their foot in the door. This improves the company’s competitiveness by increasing innovation at a fraction of the cost. Mega Foods Inc. Recognizes that there is growth in emerging markets. Leading emerging markets are anticipated to rive global progress. Geographical distance is no longer a deterrent in this global world and all competitors have equal opportunities for success. As the economies in the emerging markets grow, so will Mega Foods Inc. Hence justifying moving plant operations to Frostbite. Lastly, the demographics Of the Orchard plant’s workers provide a bleak outlook on the company’s future there. The Silver Tsunami, as it is commonly referred to, is a problem globally. Many employees at the Orchard plant will retire soon, producing major talent deficiencies. The average worker there has been there 10 years r more with several nearing retirement. To maintain profitability, it may be in Mega Foods Inc. Best interest to recruit young innovative talent. 4.
Summarize 3 to 5 major challenges that Mega Food would encounter if they chose to relocate the operations of the Orchard facility to the country of Frostbite. Fifth decision were made to relocate to Frostbite, Mega Foods faces several challenges. First there is a need for several expatriates. Expatriates are highly skilled, but many fail due to not being TABLE to properly adapt to the new area. Proper training on all aspects of Frostbites culture is ITIL to a smooth transition into their market. Also, attracting the right candidates for positions poses another challenge.
Mega Foods Inc. Must study the culture and learn what motivates the workers there. The company will have to be strategic in its performance management tactics to ensure optimal employee satisfaction. Mega Foods Inc. Must also study the political environment in Frostbite. When relocating to an emerging market, political relations can impact how that Country does business; resulting in decreased incentive to relocate production there. Lastly, foreign workers will need to rain in Western culture and language to ensure optimal customer service. 5.
What would be your official recommendation to Mega Food? Please support your answer by providing a rationale that incorporates appropriate concepts covered in your business courses. My official recommendation would be to keep the Orchard, GA plant open. At this time there is too much risk involved in moving plant operations to Frostbite. Mega Foods Inc. Can suffer serious litigation in respect to labor laws and environmental standards. The risk of contaminating food and possible fatalities can bankrupt the company. Mega Foods Inc. Wholesalers are located within the United States.
Keeping production within the United States allows Mega Foods Inc. To supply products to the wholesalers at a lower cost and more efficiently. The ability to get the product on shelves quicker increases profits. Another method to help increase profitability is to assess the current performance strategy and revise it to increase motivation. Promoting quality alongside quantity is key in achieving higher profits. To mitigate brain drain issues, Mega Foods should began to recruit younger workers and offer early retirement packages to errors near retirement to help trim payroll costs.
Mega Foods has distinguished themselves as supporter of local business and company that supports the American economy. More companies are bringing production back to the United States due to capital being tied up in big shipments for weeks across the ocean. Being located in Georgia offers the company the ability to ensure a fresh quality product to consumers. 6. Quite often, leaders and managers are required to make decisions under conditions Of uncertainty. This hypothetical case contained very limited information.
If you loud have access to 3 more types of additional information for this case, what is the nature of the information you would find helpful. Please justify your answer. To provide a more efficient recommendation a few unknown pertinent facts must be answered. First, I’d like to know is if the employees near retirement would receive their full pension in the event of the plant closure? Also, could current employees be offered the opportunity to go as expatriates? This would help lessen the ethical dilemma of whether or not the plant closure would seriously weaken the Orchard, GA economy.
