Corporate_Social_Responsibility__Clean_Power's_Ethical_Issues

INTRODUCTION Question A: What is Clean Power's corporate social responsibility for each ethical issue you have identified in this case' CORPORATE SOCIAL RESPONSIBILITY I. LEGAL Clean Power has a plan of action to me the corporate social needs of the greater community in the Dominican Republic. The company plans to hire the locals, use solar energy, and build a school for the youth in the community. On the other hand Teltec the “seller” plans to maintain the roads and dump raw sewage in the beautiful and clean Chevron River. This now becomes an environmental violation. The community and wild life alike can be affected by this. The legal ramifications could subject Teltec and Clean Power to fines from the Environmental Protection Agency (EPA). In a litigation suit Clean Power would be named as a co-defendant because they went into the business agreement with Teltec knowing the foreseeable violations. The Clean Water Act requires owners and operators of pollution sources to maintain records, use monitoring equipment, and sample pollutants on an ongoing basis. Regulations determine how much of what type of pollutant a business can emit. The EPA has the authority to inspect the premises of any pollution source. If the EPA finds a violation of any of its standards or programs, the agency has the authority to notify the offending party and the interested state. If the state fails to take enforcement action, the EPA may either issue an order requiring the business to comply with the EPA’s rules or it may sue the business in court. The EPA has the authority to levy fines and criminal penalties against the business. wing that this was a violation (e-guide p.4) II. ECONOMIC Clean Power has the corporate social responsibility to be profitable for its employees who are the stakeholders as well as the shareholders and stockholders environmental stakeholders and everyone who has an interest in Clean Power. The company can profit economically by hiring the local residents for cheaper wages than they would pay United States employees. This may not be the best move in the long run if the company is sued for environmental violations. The main goal is that Clean Power stays profitable. III. ETHICAL Clean Power has a good business plan to support their stakeholders in the Dominican Republic and Chevron community but this means nothing if the company doesn’t address the environmental issues surrounding Teltec dumping raw sewage in the Chevron river. This clearly creates an ethical dilemma. The other ethical issue is the company moving from the United States to the Dominican Republic. This would result in the lost of many jobs or the company’s employees in the United States. The Director of Corporate Development has many ethical considerations to look at. The sell of the land from Teltec should come ‘hazard free” in all and should not come not create any economic or legal issues. Stakeholder managers should ensure that Clean Power remains morally and environmentally ethical to its stakeholder, stockholder members. Clean Power also has a responsibility to ensure profitability to all its investors, share holders and stock holders. Clean Power would be taking a huge financial risk in moving the company to the Dominican Republic and should consider how the shareholders feel about this. IV. PHILANTHROPIC Clean Power has a moderate philanthropic agenda to help the Dominican Republic Chevron community in hiring the townspeople, building schools and providing technology to an under developed town. Question B: Stakeholder Management: Customers, Employees, Environment, Shareholders and Stakeholders V. What are the above stakeholders' interests for each ethical issue or concern you identified' a.. LEGAL: Stakeholders have an interest in any illegal business practice the owners make in the land and environment Teltec sells to Clean Power. ` b. ECONOMICS: Stakeholders would be concerned with Clean Power’s move to the Dominican Republic and what employees would keep their jobs or lose their jobs VI. What are the stakeholders’ responsibilities for each ethical issue or concern you identified' a. Stakeholders have a responsibility to be educated consumers in Clean Powers relationship with Teltec. b. Stakeholders should address the manager, CEO and Board of Directors about the harm to the environment of putting raw sewage in the clean Chevron river. c. Stakeholders managers should be concerned with any potential toxic tort causes of action.. VII. What are the possible decisions the corporation could make for each ethical issue or concern, and what are the possible effects on the stakeholders' There are two main Ethical Issues: a. ECONOMIC: Under utilitarian theory, Clean Powers stakeholder managers knowledge of Teltec’s threat to the Chevron River and the surrounding environmental stakeholders and the willingness to do something about it, if that were the decision might allow the (end) cleaning up the environment and stopping the contamination (to justify the means) pouring waste into the Chevron. b. LEGAL: Justice Theory: Under the justice theory managerial decision makers would be concerned about the individual rights of the employees, Dominican Republic community and that these stakeholders are not exploited by Clean Power. Clean Power would want to avert any environmental hazards. CONCLUSION In conclusion, every effective manager must monitor the interests of the environmental stakeholder as well as the impact of the business’s actions on the stakeholder. All managers should be aware of laws that regulate the relationship between the environmental stakeholder and the business, yet the manger must also apply ethical decision-making processes to all actions and decisions. Even in the absence of legal liability, the ethical manager makes decisions that can stand up to the ethical theories(e-guide p.8). References Justice Theory: p. 11 Retrieved data 17 May 2011from http://www.kucampus.edu.eguide_LS312_chapter8pdf.html The Law: p. 3 Retrieved Clean Air Act Retrieved data 17 May 2011from http://www.kucampus.edu.eguide_LS312_chapter8pdf.html Utilitarianism: p. 3 Retrieved data 17 May 2011from http://www.kucampus.edu.eguide_LS312_chapter8pdf.html Retrieved image 24 May 2011 from http://www.bocachicabeach.net/altos_de_chavon.html