It is very important from the organization’s point of view that they shift to the other country. This will help them in being competitive and survive in the business. Since the decision is business oriented and does not involve any bias, it does not raise any ethical issues on the forefront. On the background one may see the potential ethical violations that the company might make by moving into the new country. We will be looking at corporate social responsibility of the organization from different perspectives:
Management of the companies is responsible towards the legal aspect of the situation. So many employees might lose their jobs. The company is violating their legal rights by moving its operations to a different country and not providing any warning. An organization which is socially responsible should at all cost avoid any such legal battles. It is very important for the organization to be clinically labeled as a corporate socially responsible entity.
The region will face economic crisis. Ethically this is the wrong way to make this maneuver. Moving to a different geographical region altogether may leave them economically vulnerable. It might be the case that the majority of the region might be economically dependent on the operations of The Clean Power Company. In the business sense, the company might be right moving to different region but the company should also consider the means to survive in this location as well. Management is compromising ethical issues but is winning on business ethics.
Some of the ethical concerns that are arising due to this relocation are stated below:
1. As the company will be relocating to the different country, what will happen to the current employees?
a. Severance issues
b. Livelihood Issues
c. Economic issues
2. Setting up a new plant in a new country and using the nearby land to dispose of sewage waste.
a. How’s the legal system in that country?
b. The company should be looking into constructing a proper sewage disposal mechanism. If they are, how will it harm or damage the new environment?
Management of the company has shown past history of philanthropic acts. The company is socially responsible as an organization and as part of this relocation plan, management plans to build a new school to address the overcrowding and the lack of basic necessities, technology, and space for the students. Management also plans to be a corporate partner for the development of the underdeveloped areas in the community. This act of the company suggests that company is very active in philanthropic activities for the community at large.
We had a look at all of the four key aspects for an organization to be called Corporate Socially responsible organization. In the next part we will have a look from the eye of the stakeholder in the case. In this section we look at all the stakeholders, there ethical concerns and the possible decisions that they can take.
Each stakeholder’s case should be clear. The biggest stakeholders in this case are the people of region. The whole economy of the region depends on this plant and hence relocating it will harm them in a bad manner. These problems can be solved by considering all the stakeholders and how they are affected. This will give us a proper holistic view of the situation. Considering the ethical theories the management should make the decision which maximizes the overall good of the greatest number of individuals.
1. The alternatives are rare and if one is looking at minimizing the loss then the maximum benefit is in keeping the plant.
2. Clean Energy Corporation needs to look forward for ways to keep majority of the people concerned happy in this case.
Researchers employing the positivistic paradigm assume that social reality lies within the domain of the research and has to be measured to understand it.