The product defect information gotten from Doug is a sign to investigate the issue, as it has a direct impact of the product sales and customers’ feedbacks in case the defect has been found. Thus, an investigation of the issue should be made and the results should be presented to the management, along with the ways of fixing it. At the same time, there are several serious pressures that have an effect on the decision to look for the defect issue. First, is that a sales guy who obtained the position of a sales representative before was released from the duty when he/ she had reported the amount needed to be spent to fix the defect that the Zero Pedal had to the top management who demanded to see the calculations if the management decided not to repair the bike. Second is that it is not required for a new salesperson to lose this job position, as he/ she has the liability to support his/ her spouse and young child. These two pressures should be considered in making a decision whether to present possible ways of solution of the defect issue or not. To arrive at a solution to the problem, it is required to take into account ethical considerations and responsibility before customers who will purchase the product from a new salesperson. The best option is to take a chance and create a comparative report, including the costs of “not fixing” the bike and the cost to fix the defect of one bike. Additionally, this report should be supported with solid arguments of why the defect should be fixed and how the company may benefit from it.
From legal and ethical standpoints, it is not recommended to purchase the right for the Zero Pedal to be presented in the sports equipment storehouse. If the management decides to go with this option, it may be considered as bribery and have an impact on the company’s reputation and future sales. The board should present its option in the way of providing a credit to the sporting group chain for acquiring the product or offering some items as sponsoring for the chain’s employees so they could drive, promote and test it. It can be one of the options of how to avoid a special fee. Another option is that Green Move may announce this sports good chain an official Zero Pedal reseller and provide a discount to them. In this case, both parties will be considered as those who can negotiate win-win terms to each of the parties and do a fair business.
While there is a delay with resolving the defect issue, Green Move should use the profitability analysis to analyze security risks that the bikes may have. Because the bike is not “gas powered”, its production cannot be limited under the National Highway Traffic Safety Administration, which makes the product entirely unregulated. Additionally, the bikes accelerate dangerously when the solar batteries are exposed to temperatures exceeding 100 degrees Fahrenheit for four consecutive hours. If the defect impacts one of the company’s customers, causing dangerous situation for people’s lives, the product and the company who designs it will be subjected to a critique by the community, and government will penalize it and may even ban the production of bikes, or provide additional charges. This is why it is paramount for the management to start considering the ways of how to fix the defect and what resources should be sent on it, both financial and production.
The situation itself is complicated, as the company’s reputation is at a stake. This is why Robert should consider different options of how the company can take advantage on the chosen option. This question requires reviewing both external and internal factors. There are two options can be considered. The first one is when Robert decides to terminate the agreement because of implementing a child labor practice at the manufacturer. Another one is when Robert decides to accept the existence of the issue and provide steps on working conditions improvement. The first option is not recommended, as it can negatively reflect on the company’s reputation. The company could not be able to just say that it was not informed about this fact, as well the fact that working conditions required by the laws of Bangladesh were not in compliance with the US law policies. The community could not just accept this argument and make the company responsible for not monitoring it. This is why the second option would bring more benefits to the company’s reputation, as well as strengthen its position on the local and international areas. Robert should develop an appropriate policy to ensure competitive working conditions for outsourced employees at the Solar Group.
The following factors should be taken into account when developing the appropriate standard for working conditions:
- Technical factors that reflect the level of automation and mechanization of production processes, as well as the fullest use of equipment and rational organization of the workplace. Additionally, the use of electronic computing and control engineering, along with availability and serviceability of collective means of protection, security and other hazardous zones should be considered among the technical factors.
- Ergonomic factors that characterize the establishment of the correspondence speed, power, visual and other psychological human capabilities in this process. It also includes the consideration of introduction of rational models of work and rest, the reduction of the amount of information, along with the neuro-emotional and psychological stress, as well as a profession selection.
- Aesthetic factors that reflect the aesthetic satisfaction of human needs and sold in art-design solutions jobs or tools, along with the working environment.
- Sanitary and hygienic factors that indicate the status of occupational health in the workplace like air quality, the level of harmful substances and radiation, and others.
- Organizational factors that characterize the mode of work and leisure activity in the organization, discipline and forms of work organization, job security uniforms, footwear and other personal protective equipment, state control over the labor process and for the protection of labor, as well as the quality of employees’ professional training, and others.
- Psychological factors that reflect tensions and severity of labor, moral and psychological climate in the team, including working relationships with each other.
- Economic factors that include the technical equipment of labor.
In order to calculate the wages of workers, Robert could use a tariff system, which is a set of standards by which wages of different groups and categories of workers, depending on their skills, the complexity of the work, the nature and intensity of work, conditions of performance and type of production are regulated (Treviño & Nelson, 2011).
If the company does not react on the claim at all, the blog can have a negative impact on the company’s reputation. However, if Robert posts a response back to the blogger’s claim and describes that the company has provided the necessary steps to improve the working conditions, but has not given up with the issue, the company may end up in an advantageous position. The benefit will be that the company values its workers and does the best to ensure a better working environment for them, as well as treats every employee.
From the standpoint of ethical considerations, Victor should provide a bid on the property lease, but include only one envelope sent a government department, categorized as “property lease bid”, but not the one that was asked to be sent to the real estate curator, categorized as “facilitation”. This is due to the fact that if Viktor includes the second envelop, it can be considered as a bribe and may have an influence on the company’s reputation. Including the second envelop may be considered by the community the fact that the company cares only about its annual income and can do whatever it takes to get the property. However, Viktor may discuss the terms set by the Russian government with the Green Move management, seek for other countries that can grant better options without giving a bribe to get the needed facilities and compare the guarantees given by different parties involved in the agreement of getting the lease. Additionally, offering a bribe to get an advantage is not legal in any democratic country in both law regulations and code of ethics.
To decide if Green Move should grow its operation in Russia, it is necessary to consider different factors. Some factors refer to what is the economic environment in that country, as well as the government’s law policies, political conditions and investment environment. Another task is to investigate the market environment, establish the barriers for entering a new market, along with the company’s strengths and weaknesses to be able to forecast the future sales and outline potential customers. By doing this, the management of the company will be able to estimate all the cons and pros, including legal and ethical effects of some actions. However, considering the request to send the offer to the property manager to “keep the process of the lease issue moving”, Green Move should look for other opportunities in other neighboring countries in case the management is interested in the expansion within that area.
Assuming that Robert has not improved the work situation at the Solar Group will bring the organizational issues. First, it will be reflected negatively on the company’s reputation and reduce the company’s credibility. Second, there is a change for the company to have problems when seeking for another outsourcing company, as this record will be known all over the globe and not every company may agree to cooperate with it. Third, this fact can increase the employee turnover, as it will show that company does not treat its personnel well.
The fact that Viktor has signed up a lease agreement for the location in Russia and paid $2,000 to the real estate curator may have a negative impact on the company’s goodwill and profit. In international practice, bribery is usually hidden and it can be difficult to prove that fact. However, in the laws of many countries, bribery is considered a criminal offense. Some countries treat all issues related to bribery as the goal for getting profit or benefit to the briber. Others consider it as the bait for acquiring extra profit or property. In the USA, the definition of bribery is associated only with the violation of administrative ethics by civil servants in the legislative, executive and judicial areas. In case the fact of offering a bribe is proven, when money or other benefits have been offered or received for an unlawful purpose, it does not matter if the act has been actually committed. The only thing that will matter then is the company’s reputation and the limit of trust to it. The effect will be predictably negative and will affect all the levels of the company’s operation, including the stock price for the company’s shares at stock exchange, along with the customer’s purchasing power and additional penalties from the government. After that, there is a possibility for the company not to return it to the previous level of trust, not mentioning the future sales (Treviño & Nelson, 2011).
Among the Green Move, short term steps are the issue with the improvement of working environment at the Solar Group to ensure proper conditions as qualitative so quantitative to the personnel, as well as additional location for the company’s expansion. Understanding that it is not easy to resolve these problems at once, the board of directors can consider them in both short and long terms by outlining immediate questions that needed to be handled in those relations and then continue to improve steps to create the corporate responsibility policies. The company’s long terms goals are the improvement of the working conditions and the work on fixing the issue the Zero Pedal has in warm climates.
The government plays an important role to ensure the most appropriate and beneficial ways for the companies to run their businesses. It is up to the government to establish the law that could consider all scenarios for business operations, as well as to describe the terms when businesses may violate the law and the consequences of the violation. To prevent organization from attracting illegal ways to run the business, the government should attract businesses with sponsorship campaigns or subsidies for the operation, and others.