Business ethics speaks to the established set of acceptable codes of conduct that guides the day-to-day activities of employees within and without their organization. That is, business ethics is about upholding behavioral and moral standards that an organization deems applicable to its business activity and which are consistent with its mission and vision. In certain cases, however, it may happen that an employee violates one or more of the codes and that does not go without moral and ethical implications for the employee in question and the organization he or she represents. In the case study, one of the ships belonging to MKD Company is reportedly leaking and spilling oil on the shores of Belize, which in turn is likely to cause the death of some of the world's most prestigious coral reefs. The captain of the ship is yet to report the matter to the management and reports emerging are only from the media, essentially resulting in an ethical issue.
As a company that claims to exercise ethical behaviors towards its employees, MKD Company is likely to cover three aspects of ethical behavior that includes integrity, accountability, and transparency (Illies & Reiter-Palmon 2007). Integrity is the virtue of being honest in dealings all the time, whether within the workplace or elsewhere. Accountability, on the other hand, is equally an important component of workplace ethics that involves taking responsibility for one's actions. Finally, transparency is all about openness and the ability to present information with utmost honesty and clarity and avoid ambiguity.
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Given that the captain of the ship in question is yet to make any formal report to the company and the information is now coming from a third party, the general public is likely to start reading insincerity with regard to MKD's environmental stewardship commitment (Illies & Reiter-Palmon, 2007). The general public is likely to interpret the current scenario as an indication of lack of attention to environmental concerns arising from a possible lack of a value system that compels employees to be accountable for their actions or a framework for meeting environmental goals.
In the wake of the oil spillage onto the shores in Belize, MKD Company has several approaches to approach the issue at hand, including taking an obstructionist, defensive or accommodative approach. Furthermore, the firm could still have taken proactive measures to curb the occurrence of the scandal. With an obstructionist approach, the company would attempt to cause obstruction of justice to the people of Belize and their environment through unscrupulous tactics such as avoiding the media and refusing to take responsibility for what happened (Illies & Reiter-Palmon, 2007). A defensive stance would encompass complying with the law on environmental sustainability to avoid any legal implications without a particular commitment to the cause. Accommodative stance would encompass MKD Company taking measures to ensure it not only complies with regulatory measure but also focuses on leveraging community resources to establish a long-term framework for environmental sustainability. Finally, a proactive measure would encompass establishing sustainability measures to comprehensively address all concerns in a way that is not reactive, rather mitigating issues.
Pricing over Profit Maximization
When entering a new market, the most important objective is to gain market share and not to generate profit immediately. Gaining market share may take time and without an appropriate strategy in place, it may end up being just too difficult. Pricing as a strategy can help an organization to penetrate a new market by focusing on sales volume from which it will be in a position to gain familiarity with consumers (Doane et al., 2012). A pricing strategy that is not very high and not very low could help a company improve the supply of its products in a local market, thereby become a known brand.
References
Doane, M., Froeb, L., Werden, G., & Zimmer, D. (2012). Pricing and Market Concentration: A New Estimation Strategy. SSRN Electronic Journal. doi: 10.2139/ssrn.2034464
Illies, J., & Reiter-Palmon, R. (2007). Responding Destructively in Leadership Situations: The Role of Personal Values and Problem Construction. Journal of Business Ethics, 82 (1), 251-272. doi: 10.1007/s10551-007-9574-2
