Emerging Business Themes

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Module Name: Emerging Business Themes

Contents:
A- QUESTION 1 page 1- Definition ………………………………….......................................... 2 2- Ethical Dimension to Corporate Decision Making………………….…. 3 3- Five Barriers to an Ethical Organization…………………………....….. 4-5 B- QUESTION 2

1- Climate Change- Ford Motor Company..…..................................... 6 2- Ford’s Greenhouse Gas Emissions…………………………..…..……. 6 3- Climate Change Risk and Opportunities………………………...…….. 7 4- Physical Risks………………………………………………………....…. 8 5- Supply Chain Risk………………………………………….…….……..... 8 6- Ford Climate Change Strategy…………………………………………. 8 7- Product Sustainability Process…………………………………..……….. 8 C.QUESTION 3

1- Ford Motor Company Stakeholders……………………………..….….. 9 2- Employees………………………………………….………………………….... 9 3- Customers……………………………………………….…………….….. 10 4- Dealers………………………………………….……………..….……….. 10 5- Suppliers……………………………………………………………...….. 10 6-Investors……………………………………………………………….….. 11 7- Communities…………………………………………………………...……….. 11 D- Bibliography………………………………………………………....……. 12

A- QUESTION 1
1- Definition
Business ethics is a form of professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. The definition of Ethical stance defined by Johnson and Scholes as: ‘the extent to which an organization will exceed it minimum obligations to stakeholders and society at large. There are four possible ethical stances existing and are stereotypes for any organization.(1) The first ethical stance is short-term shareholder interests; a company who stick very close to laws and regulations which are in place. They give and do only what they are obliged to, this usually causes problems with long-term financial decisions. The second stance is longer-term shareholder interests - a company who are very focused on building and maintaining reputation in relation to its financial success. They take into consideration all stakeholders and how they can affect the organization in the future. The third stance is multiple stakeholder obligations - relating to a company taking wide consultation with all stakeholders. This is a very slow process and not a good stance for a fast moving and growing company. The last stance is shaper of society - companies who focus on communities and want to build them up; this stance puts the financial interest second and is usually related to charitable organizations.

2- Ethical Dimension to Corporate Decision Making
Ford Motor Company is one of the competitive motor companies in the world. In 1970s, the compact car Ford pinto, became a famous for its tendency in rear-end collisions to leak fuel and explode into flames. More than 20 people were killed or injured before the Ford Motor company issued a recall to correct the problem. The decision process behind the Pinto’s launch revealed that under intense competition from Volkswagen and other small car manufacturers, Ford has rushed the Pinto into production. Ford’s engineers had discovered the potential danger of ruptured fuel tanks in crash tests, but the assembly line was ready and Ford’s leaders decided to proceed. This is an evidence of greed, callousness and unethicality. (2) Looking to their decision, it take into account a growing understanding on how cognitive biases distort ethical decision making, and come to a different conclusion. In our mind, the executives involved in the Pinto decision, were making an unethical choice. It is because they thought of it is as purely a business decision rather than an ethical one. The problems are already highlighted to Ford’s leaders, but, in those days, safety was not popular in Ford. Problem meant delay on a Pinto. Production must go to achieve sale target. We don’t believe that Ford’s leaders or executive in...
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