I used to think that politics was my way of fulfilling my goal of becoming a substantial leader, but aftercareful thought, I’ve fallen in love with the prospect of becoming an entrepreneur. A founder of 3-4 small businesses in the past, I’m innately confident in my abilities to launch a good idea off the ground.
I believe that having understanding and executing foundational Corporate Social Responsibility and Business Ethics is fundamental to a company’s development. This in itself is the sole job of a company’s founder, to stimulate sustainable, substantial growth. Companies like Wells Fargo and Bayer have had many ethical controversies; however, they’ve all come at times when both have been household names. No small company could ever get away with wiping out segments of Native American reserves like WF or use opiates as a substitute for aspirin like Bayer.
One of the topics of discussion that struck me was identifying a formula to deal with ethical decision making. What are the facts? What are the issues based on the facts/is this a crisis/ Pros and Cons for each? Select the perceived best options, and finally implement said option while managing consequences.
As a quantitatively inclined student, a formulaic approach to vastly qualitative issues- such as ethical dilemmas- gives me the ability to rationalize future ethically involved strategies, like PR. This would’ve been helpful when dealing with situations in my construction company, TorontoBrickWorks, when clients hadn’t paid me for the job I completed. It would’ve put me in a situation to better handle my accounts receivables, while protecting them from putting down my skills as a handy man, which happened twice on jobs that my team and I were working on.
Another area of the course that has catalyzed my curiosity has been the Theories of Ethics in Chapter 2- more specifically Teleological and Utilitarianism theories. Your customers- especially now in the age of transparency- want to know every business’ value proposition and that it has a purpose that helps shape its future/vision. Whether that be deliver the cheapest product like Wal-Mart or support globally impoverished regions like the Good Coffee Company, everyone buying your product holds you to that standard. If you keep to your value system and deliver on your services, what goes around comes around- and in turn you’ll reach the segment of the market that you naturally exploit.
Organizations will first benefit from the lower Directors and Officers liability (DnO) cost from an ethically inclined executive/individual. It’ll lead to less turnover- as employees will understand that I’m moral and fair. Investors will also be happy, as they know they are in good hands. If in a public company, it’ll make shares rise. If in a private company, I’ll have a longer leash with investors. More importantly, however, is the fact that my decision making will integrate within the company, making the entire company understand ethical dilemmas better- bringing a sense of understanding of how to deal with crises in insightful and thorough manners.
For the purpose of the analysis of stakes for each stakeholder I will rate power, legitimacy and urgency on a scale of 1-5. Victor has significant financial, legal, moral and interest based stakes. His bonus is on the line, depending on how successful and safe the mines are that he is managing. He could legally be inclined to leverage a union to help put him in favour with his employees.
Morally, he’s obliged to do what’s right: should he fire the new female engineer due to miner biases? If everything were to remain constant, but he’s able to maintain his current relationships with each of the said stakeholders- this would be optimal. Victor has the most power, as he is the main/sole decision maker. The legitimacy is quite high, as the consequences will directly influence all stakeholder’s view of him. The urgency seems to be high, as he can’t fall asleep- affecting his mental health- due to the overwhelming pressure from multiple parties.
His employer stakes are financially, legally and interest based. Financially, they would like to keep costs low. The impending potential of a union creates a legal bind in the organization and the mining company would prefer if there were no union to keep these costs low. The power of the employer is high due to the influence they have over the decision maker, Victor. Legitimacy is medium due to the fact they are obligated to be profitable for shareholder’s; however, a higher labour cost to help support worker safety should also be in their interest as well. Urgency is low (2) due to the fact that the status quo is potentially their best outcome.
The CAN/AM Mining Council have significant moral, and legal stakes. They are attempting to create a safer environment for miners after the recent accident, while also having legal stakes due to their idea of unionizing. The power of The CAN/AM Mining Council is moderately high as Victor wants to keep his relationship up as he finds their ideas valuable about how they can help each other’s firms. Legitimacy is high as they are looking towards helping worker safety in the mines. Urgency could be argued to be high, as there was a recent mining accident; however, as mining has been a significant part (over 20% in 1971 and 8% now) of their current GDP- this implementation of union could’ve been made long ago.
The two troublemaking miners have financial stakes from potentially being fired, legal stakes- as they are not in their probationary phase and no cause for fire from the case, and interest based from the fact that unionizing will give them even more power to voice their displeasures. They have low power as Victor sees them as troublemakers and doesn’t seem to view them as significant players in the decision. Their legitimacy is medium as they currently work for the company and this is their livelihood, yet it is understood that the company may be better off without them. Urgency is high due to the fact that this decision has the chance to change their lives.
The miner victor meets with monthly has a noteworthy set of stakes- as his are representative of the other miners at the firm. His stakes are moral (amoral) and interest based because of him having a disregard for the new woman in the workplace. His interest based stake comes from his intent on showing his peers that he influences the manager’s, victor’s, decision making. Showing that he should be the advocate for the miners at the company.
His power is significant as he is in Victor’s mind when he tries to fall asleep, as Victor understands he represents the community of miners working at Victor’s company. His legitimacy is low because his argument against having the new engineer has no backing if being objective about the situation. His urgency is low objectively; however, high in his mind because other miners will be putting pressure on him to get some results.
The recently hired female engineer has financial, rights based and interest based stakes. She is the main stakeholder with a rights based claim due to anti-discrimination in the workplace- a basic right for any employee. Her power in the decision is medium high because the board and local community support her- after coming back to her local community since completing her university degree. It seems as though the publicity is good for the company, and therefore- even as a subordinate to Victor- has influence over his strategy/decision with regards to dealing with the current situation.
Her legitimacy is the highest out of any stakeholder due to the basic right of not being discriminated against in the workplace due to being a woman, something not to be taking lightly by the self-proclaimed ethical man, Victor. Her urgency is high because she is in the latter stages of her probationary period, which allows employers to terminate employees based on unsatisfactory performance on the job.
The woman being interview have financial and interest based stakes; however have very little power and legitimacy due to them not being directly tied to the company at this point.
The local community have moral and interest based stakes. Their interests lie in not only keeping the female engineer at the company, but also having her flourish. Their power is moderate because community impacts Victor’s decision as to whether or not to keep the female engineer. Their legitimacy is high because they are advocating on moral grounds to have the female at the company. Their urgency is low because it doesn’t actually impact their individual lives about the decision.
