Techfite Company has successfully established itself in the markets based in Britain and America. The company has managed to break through obstacles that would be expected in its establishment especially in a new country. Through initiatives and good leadership, they have managed to appeal to their employees and fostered success in the business. The company has implemented proper compensation and remuneration for the employee’s efforts. It has also created a good rapport with the community around by suggesting to fund important social development programs. The company, however, still has challenges in delivering its expected contribution to the immediate business community. Techfile is also unable to meet the remunerations of most of her employees, focusing on the benefits of other stakeholders like major executives. The challenges present are of ethical and social obligations the company fails to meet. Techfile needs to focus on the issues surrounding these challenges as they might affect its profitability and ability to work in the current markets.
The company has the obligation to create and maintain a conducive workplace. This policy requires that the company takes consideration of the complexity of its workforce and that they all work towards achieving the company’s goals (Du Bruyn, n.d.). Techfite has a diverse workforce from the United Kingdom and the United States and aims at realizing a balanced environment and fostering qualities such as integrity, trustworthiness, and industriousness. The company is also expected not to tolerate employees or situations that would discriminate on one’s political, ethical or religious beliefs. Every entity is expected to maintain the conducive workplace environment.
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The organization has a mandate to share information with its stakeholders. The stakeholders include investors, employees, customers, and their immediate environment. The company is obligated to disclose any critical information that can potentially affect any of the stakeholders. Decisions that alter already present agreements should be disclosed in a timely manner. This information, however, is limited to the company’s liability.
The third policy is in observance of stipulated employment laws. The company is expected to uphold the various labor laws in the countries where it conducts business (United States Department of Labor, n.p.). This includes but is not limited to rules pertaining to salary, hiring, firing and, remuneration. The company, as well as the employees, are expected to adhere to these standards.
Legal issues include all procedures, permitted practices, equipment and language stipulated in the constitution or a written code of conduct. Ethical issues, on the other hand, are not bound by any written laws but are judged based on morality. It is based on perceived fairness and equality. For instance, it is not illegal for Techfite to employ more part-time than full-time employees in order to reduce costs since there is no law against it but it is unethical since these persons need remuneration for their efforts, part of which is to attain full employment and the incentives that come with it such as medical insurance.
The organization has the mandate to ensure equal remuneration of its employees regardless of their position in the company. Equal pay includes wages, non-salary payments, bonuses, and incentives. Techfite faces a major challenge in this sector as most of the executives get their big bonuses but other junior employees are not compensated. Another ethical issue that presents itself is the misuse of resources. It is noted that while employees are unable to obtain their required share of profits and wages, the top executives get paid their bonuses in excess amounts. The company also encounters a conflict of interest in its delivery. Every institution, business entity or otherwise, has an obligation to its corporates (executives, investors) and other stakeholders (employees, customers). There is an inherent conflict between these two sides which defines the purpose of the company (Should Corporations Serve Shareholders or Society?: The Origins of The Debate, 2011). While it is prudent to balance the two sides, most companies like Techfite find it hard, preferring the corporates instead. The company has chosen to favor the corporates and issue them with bonuses at the expense of the other stakeholders. This imbalance in the provision of resources could affect the company’s ability to conduct business efficiently since the consumers and laborers are not considered. The company, although voluntary and not bound by any law, should provide amenities or contribute to their immediate society under corporate social responsibility. Techfite has failed to fulfil this ethical obligation by not funding the town’s projects it pledged to.
The ethical officer has the mandate to ensure that there are proper ethical guidelines and that all members of the company, the stakeholders and the management adhere to these regulations. The officer is also responsible for the creation of an ethical-adherent environment among the employers and employees. This entails training these personnel in ways to promote and adhere to ethics in their practice. The ethical officer also acts as a source of ethical knowledge pertaining to the business and is answerable in any context for instance when the chief executive officer calls him/her for counsel on ethical issues. The ethical officer therefore ensures compliance by monitoring the company’s compliance to external rules for instance government policies, and overseeing internal adherence (Sineriz, 2018). He or she must also report to the relevant authorities both within the company and externally in case of a breech.
Corporate social responsibility refers to attempts by a company to assess the current environment they operate in and take initiatives to improve conditions that are of benefit to the people and the environment. Techfite has deliberately assigned to fund and aid in activities for the good of the town they operate in in America. They have, however not been able to deliver their promises and might not be able to in the current financial situation of the company. The company, also fails to communicate their inability to meet their social responsibility in time. Techfite has an obligation to the workforce in the town, most of the residents are happy when the company is established as they are promised of better opportunities. The company, however, fails to pay the employees their wages and full-time salaries. This is a failure. These issues can potentially jeopardize Techfile’s reputation as a reputable and socially involved company.
Techfile can salvage its position by meeting the community or the city council, explaining to them why the expected funding may delay and draft a plan to ensure that the plan is achieved in the long run. By holding meetings and social campaigns in various media, Techfile can reach the community and restore their trust in them. Techfile can also engage the community in environment preservation activities such as planting trees and cleaning parks. These activities appeal to the community ethically (since they have a right to be informed of decisions that might affect their expected agreement) and meets their social responsibility since the funding is beneficial to society. Activities such as planting trees and cleaning the parks also ensure environmental sustainability.
References
Du Bruyn, S. (n.p.). Is your work environment conducive or constraining? Retrieved from https://peopledevelopmentmagazine.com/2014/08/26/work-environment-conducive/
Should Corporations Serve Shareholders or Society?: The Origins of The Debate. (2011). Corporations and Health. Retrieved from http://www.corporationsandhealth.org/2011/04/06/should-corporations-serve-shareholders-or-society-the-origins-of-the-debate/
Sineriz, M. H. (2018). Qualifications for Ethics Officers. Retrieved from https://bizfluent.com/info-7975526-qualifications-ethics-officers.html
United States Department of Labor. (n.p.). Summary of the Major Laws of the Department of Labor. Retrieved from https://www.dol.gov/general/aboutdol/majorlaws
