Sanford Ltd Business Essay

Topics: Ethics, Business ethics, New Zealand Pages: 6 (2184 words) Published: October 12, 2013

Contents

1. Introduction
Sanford Limited is one of New Zealand’s largest and longest established fishing companies, which harvests, farms, processes, stores and markets quality seafood from the offshores of New Zealand. . Sanford Ltd. supports the utilization of seafood from New Zealand’s marine environment as well other waters in which the company operates in. The fishery Company leases its fishing quota to foreign charter vessels (FCV) that fish in our exclusive zone, but operate in such slave like conditions, employment abuse has become a major dilemma for Sanford Ltd. Failure to pay minimum wages correctly, long hours and violence against employees such a physical and sexual abuse is causing a dark stain on the company and New Zealand’s reputation. As an independent consultant conducting a report into this matter, forming a solution to this dilemma is key to avoid implications on Sanford’s stakeholders. 2. Discussion:

2.1 Relevant aspects of the business environment
Law is a relevant business environment that is important to the dilemma Sanford is facing. The law in New Zealand is very clear about minimum wages and the treatment of workers. With the minimum rights and obligations that apply by law employees must give written consent before deductions can be made from their wages. . The FCV’s that Sanford employ are in breach of this New Zealand law and Sanford could soon be held responsible with recommendations the government are considering made by the ministerial inquiry into the mistreatment on charter vessels. There are financial penalties for not complying with employment laws, of up to $10,000 for individuals and $20,000 for companies. An employer could be fined or prosecuted for not complying with workplace health and safety laws. . It is important that Sanford considers these possible changes, because they could take the fall for the actions of another company. Another aspect of New Zealand business environment is the Socio-Cultural environment. New Zealand’s population could have a great impact on Sanford limited as the treatment of the employees on the FCVs conflicts with their values and customs. Sanford could possibly face a major loss in customers as a ShapeNZ Fairfax Business and Consumer Survey showed more than two-thirds of shoppers would ditch their favourite brand if it did wrong by people or the environment. . This could have huge implications for Sanford if the New Zealand population reacted this way. “The trust of the public is hard to gain and all too easy to lose.” . New Zealanders’ wish for both economic growth and protection for the environment, which they value highly but they also are very strongly against abuse of any sort in the gain of a company making profits. Sanford needs to be aware of this as conflicting information about the employment could shoot down prices if consumers stop by from them.. 2.2 Stakeholder interests

The employees of the FCV’s Sanford employ are the company’s primary stakeholder, as without them filling Sanford’s quota, there will be no produce for Sanford to sell. The treatment of these employees however is the cause of the business dilemma Sanford is facing. Inhumane work conditions, incorrect and low paid wages and the abusive treatment the employees such as rape and violence is threatening Sanford’s reputation and many employees are trying to escape these FCV’s as they believe they are treated like slaves. An Indonesian fisherman who survived a Korean boat quoted, “We were trapped into modern slavery… we are paid and trapped… but we are treated worse than slaves”. . This abuse puts Sanford in jeopardy of losing their most important stakeholder. Another primary stakeholder is Sanford’s customers. Sanford is in danger of losing their customers by the mistreatment of the employees on the FCVs. As a consumer you want to buy products that are not tainted and have a good reputation. If customers were to find out they were purchasing fish from...

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