- 20 Marks
CSME – May 2023 – L1 – SA – Q4 – Ethics in Business
Exploration of ethical stances and CSR implications for business startups with social goals.
Question
Richard and his wife, Rachael, have just retired as top-level managers from one of the biggest oil companies in the country. They have earned substantial personal wealth and have ample investments in several blue-chip companies. Rachael, a food technologist passionate about healthy living, convinced Richard to start a company to produce organic drinks and foods from only natural ingredients. She also suggested that the company adopt environmentally friendly manufacturing processes and consider the wellbeing of all employees and other stakeholders.
The primary reason for establishing the company is to fulfill a passion, build a sustainable, socially impactful business, and not aggressively pursue profit. Hence, both Richard and Rachael are happy to just break even initially and later record minimal profits.
As an expert in business ethics, you are required to:
(a) Identify the alternative ethical stances available to Richard and Rachael and the ones implied in the scenario. (4 Marks)
(b) Discuss Gray, Owen, and Adams’s classification of groups of people and their views of the relationship between business organizations and society. (14 Marks)
(c) Which of the classifications in (b) above is relevant to Richard and Rachael? (2 Marks)
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