Ethical Behaviour

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1. Ethical behaviour (20 marks)
a. Discuss ethical issues that impact on Cirque du Soleil as an organisation. Your discussion must consider at least TWO conflicting viewpoints on ethical behaviour.
The Organisational structure of Cirque du Soleil is based on recognizing the value of the performers. The artists are recognised as representing the value of the Company. They ensure that the organizations values are reflected in all its business and management decisions. Cirque du Soleil has a healthy working environment establishing an open, safe, creative and friendly environment enabling their employees and artists to continue creating and performing in a safe, stimulating environment. Cirque du soleil sets out its environmental commitments and objectives policy in 2006. Since then they have taken environment as a factor in every Organization decisions. They commit on involving more in social responsibilities by creating several projects for the society, adopting a proactive environmental policy based on sustainable development.

Although Cirque du Soleil is really involved in Social responsibilities it faces some ethical challenges. One of them was a discriminatory lawsuit with one of the performers in the circus who tested HIV positive and who was not allowed to work as the risk of getting hurt and possibly infecting others performer. They also had other performers with HIV +ve but Cirque made a statement that in these case the risk was high. The other performers filed suit against cirque for discrimatory charges. It was settled with the implementation of specials training program for HIV positive employees. (We dream business, 2011)

2. Social responsibility (20 marks)
a. Expand on the explanation of the three major perspectives on corporate social responsibility as outlined in the text book pp. 73-74. b. Discuss which (if any) of the three major perspectives is most aligned to Cirque du Soleil. Justify your answer.

Invisible Hand

The term is an economic term following Adam smith. Invisible hand is a view holding that the entire social responsibilities of a corporation can be summed up as “make profits and obey the law”. The Invisible hand is a metaphor for the way a free market functions to regulate itself. The components that appear to govern the market place are self interest, supply and demand and competition. Manufacturers price their goods and services trying to compete with each other and the consumer help control the price by either buying or not. The manufacturer finds a common point where he can charge enough to make a good profit while not killing the demand for his product because the consumer finds it too expensive.

The Hand of Government:

The HAND OF GOVERNMENT “is a view arguing that the interest of society is best served by having the regulatory hands of the law and the political process rather than the invisible hand. Guide the results of corporation endeavours” (Galbraith 1962; 1975)

This means that the Government has control over the organisation which controls the possible negative action of firms regarding employees, customers and the Community.

Hand of Management:
The hand of management assign the corporation an important role in setting moral behaviour and developing a corporate conscience which means Managers and Corporations are expected to protect and improve society welfares and also advance corporate economic interest.

The Perspectives that is most aligned to Cirque du Soleil is The HAND OF MANAGEMENT. Cirque du Soleil is really involved in Society welfares. They created several projects for the society, adopted a proactive environmental policy based on sustainable development and established an open, safe, creative and friendly environment enabling their employees and artists to continue creating and performing in a safe...
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