Issues in Business and Society Research Assignment (Case Study Sample)

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Issues in Business and Society
Introduction
Ethics play a critical role in business. The concept of ethics is so broad that it touches almost every decision within an organization. An ethical approach involves the consideration of what is right and what is wrong. It is a decision weighing factor that depends on the personal and (or) organizational perception of what is acceptable or unacceptable. Therefore, business ethics are mainly determined by one's perspective on right and wrong. Consequently, because of differing perspectives, ethical behavior is varied from one organization to the next. This essay will look into the ethical issues affecting decision-making in Patagonia. The organization is an environmentally oriented outdoor apparel manufacturing company. The paper will analyze the traditional ethical perspectives that cause conflict among managers regarding the implementation of a new environment initiative. Further, recommendations about how to counter the ensuing conflict will also be discussed.
Ethical issues within the case
First, sustainability remains a moral issue of contention in the implementation of the proposed initiative because it will increase production costs. The plan involves the development of repairable apparel that can repeatedly be recycled. Further, when the garments are worn out, the consumers will be advised to return them to the company or switch them for other recycled clothes. The identity of the organization is characterized by environmental preservation. Patagonia has evidently made a mark in the sector by donating 1% of its revenue towards environmental initiatives. Additionally, the firm also makes contributions towards environmental causes and organizations. Therefore, the ethical issue of sustainability has had significant influence in the running of the business. As such, the increase in production costs to support more steps towards sustainability threatens to throw the organization out of business. Therefore, the issue remains whether the initiative is right or wrong for the organization.
Second, the proposed strategy involves creating awareness about the dangers of over-consumption. Therefore, the firm will need to tell consumers only to buy what they need. According to standard business concepts, marketing requires encouraging customers to buy more not less. Therefore, the success of the organization is based on how well it does in the market compared to the financial performance of its competitors. However, the issue of consumer advocacy creates an ethical dilemma. In this concept, organizations are supposed to do what is best for the consumer. Its products and marketing strategies should ensure that the interests of the consumers are placed first. Thus, the dilemma remains whether to tell consumers to think critically before buying outdoor apparel or whether to market the company's green products to increase sales.
Identification of Stakeholders
Stakeholders refer to the various factors, people or groups of people affected by the operations of an organization. First, the shareholders consist of the most commonly identified group of stakeholders. Various investors have placed their funds in the business expecting a profitable return. Therefore, the decision-making process has to consider the outcome's impact on its shareholders. Secondly, the consumers are also affected by the operations and products of the business. The company's responsibility towards the customers is to meet their demand for quality and satisfying products. Therefore, the implementation of the initiative should ensure the satisfaction of consumers. Finally, the environment is a significant shareholder and is the main subject of the proposed initiative. The ethical issue of sustainability requires that companies give back to the society by promoting development and reducing the negative impact on the environment. Patagonia has tried to fulfill this obligation through the continuous reduction of its carbon footprint.
Ethical Traditions/Perspective causing conflict among managers
The traditional role of the business is to be profitable. As such, holding traditional perceptions on ethics in the contemporary society is bound to cause operational friction. One such example is the perception held by operations and research managers in the company. Mathematical algorithms about operations of a business equate success to profitability. As such, a director with this perspective would not approve the implementation of a sustainable initiative that jeopardizes the profit margin. Similarly, marketing managers are concerned with the channel relationships and the company's ranking compared to the competition. As such, managers in this position worry that Patagonia's positive impact has led the competition towards a similar green production approach. The competitors will soon catch up in increasing market share. Therefore, implementing the proposed plan would risk the business position compared to competitors.
Further, a traditional logistic approach would seek to establish a fast and efficient logistic function for the firm. Therefore, the proposed logistic function involving extensive coordination of consumer's used up products increases expenses and complicates the logistic function. Finally, there is the torch-bearing manager who stays faithful to the mission of the founder. In this case, this manager seeks to implement further sustainability regardless of the financial repercussions. As long as the production process continues to reduce the company's carbon footprint and the products ensure the consumers' rational decision making. Therefore, Patagonia's conflict is caused by the traditional profitability perspectives held by the operation, marketing, and logistic managers against the concept of further sustainability.
Recommended actions
First, the managers need to understand the role of sustainability in the organization. The fact that sustainability is the identity of the company indicates that the management should ensure its maintenance and continuous development. Through the creation of responsible consumers, the company may acquire even more market share that will be attracted by the concept and durability of Patagonia products. However, it is also imperative to understand that for the organization to have an impact on the environment, it has to be operational. Thus, the concept of sustainability should not be implemented to excessive levels that may cause the collapse of the business. Therefore, it is recommended that the organization invest in further leadership and management training to ensure they understand the importance of striking a balance between the two approaches. <...