Judge Rules Against Joint Employer Responsibility in Minimum Wage Case

The franchise joint employer battle continues, now spreading to the massage franchise sector.

Last week, a California judge ruled that Massage Envy is not the employer of massage therapists in franchised locations. As a result, only franchisees, not the franchisor, could be held responsible for alleged wage violations.

“These rulings reinforce IFA’s [International Franchise Association] view that recent moves by the NLRB [National Labor Relation’s Board] general counsel to broaden the definition of joint employer and make new law run counter to the long-held understanding of the franchise business model and established law,” Robert Cresanti, the IFA executive vice president of government relations & public policy, said in a statement. “Should brand companies and local franchise owners, be considered joint employers, it will substantially impact growth and job creation in what promises to be the fastest growing business sector in the US economy.”

The decision falls in line with an that Domino’s could not be held liable as a franchisor in a former employee’s sexual harassment case. However, it seemingly opposes the NLRB’s decision to hold both McDonald’s franchisees and the corporate franchisor accountable in complaints against the chain.  

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The NLRB first made its controversial decision to deem McDonald’s a joint employer in employees’ complaints in July 2014. The labor board doubled down on its definition of joint employer in December, issuing complaints against McDonald’s franchisees and McDonald’s corporate as joint employers in .

As seen by these apparently opposing decisions, the responsibilities of franchisors are currently being hashed out on a case-by-case basis. In both the Domino’s and Massage Envy cases, the decisions left room for franchisors to be held responsible for misconduct at franchised locations if it could be proved that the franchisors were somehow involved in employment practices.

“[We do not] mean to imply that franchisors, including those of immense size, can never be held accountable for sexual harassment at a franchised location,” notes the decision in the Domino’s sexual harassment case.

On the other hand, the NLRB has refrained from providing further commentary or explanation for their McDonald’s joint employer decisions, despite franchise industry . As a result, it is difficult to discern what franchises could be affected by the decision, which could be specific to McDonald’s or completely change the franchise model across the industry. 

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Corporate Social Responsibility

Now a days no any company can survive and stay in competition without Corporate Social Responsibility, it is abbreviated as CSR and is also describes as “corporate citizenship” that promotes optimistic changes in the environment and promotes social wellbeing.The concept of CSR was started in 1950s and now it has been growing immensely and it is considering as a part of business ethics (Singh, 2014).

Johansson, et.al (2015) discussed that the scope of CSR has been changed from the acceptance of environmental wellbeing to become a necessary part of the strategic planning of any organization.Many companies are adding CSR as the part of their long term strategic planning but the motives behind them are different.

In this new era it has become essential for organizations to cope up with the problems that are directly or indirectly related to the stakeholders (Karagiorgos, 2010), that is why Singh (2014) probes that the main purpose of every firm to carry out CSR activities is to maximize the shareholders wealth.

According to Martins (2015) the contemporary concept of CSR is that companies must have to conduct those activities which bring the positive changes in the environment, are according to the law, socially acceptable and, most important, increase the company’s financial performance. Alinoor (2016) states that if firm will be socially responsible, abiding the law and working for the environment then it means that they are improving their performance which leads to profitability.

According to Ingley et al., (2010), In this highly competition era firms must have to perform according to the approach, that includes social justice, economic prosperity and environmental quality, which is known as “Triple Bottom Line Approach”. CSR includes all the economical, social and environmental actions which are taken by the firm to maximize the stakeholders’ wealth and improves the firm’s financial performance.

According to Malik and Kanwal (2016) in today’s dynamic business world, where competition is too high, business uses CSR as there competitive advantage because Mehralian, et,tl., (2016) states that it help companies to provide value to its stakeholders which ultimately results in achieving organizational goals and assist them to sustain.CSR is one of the most important activities which are performed by all companies and specifically food industry.

The stakeholders of food industry are employees, shareholders, NGOs, debt providing institutions, suppliers, wholesalers, retailers, agents, government, raw material providers, farmers, consumer and general public, which expects that company is responsible to bring environmental and social changes in society by eliminating the negative impact their operations and by contributing towards the society.

Pakistan is a developing country; food industry is one of the largest and fastest growing industry of Pakistan, but still the concept of CSR is unclear and not understood by many companies because they believe that by spending on CSR will decreases the profit ratio of the firm which will affect firm’s financial performance. Therefore, this research is conducted to identify the effect of CSR on firm’s financial performance.

This research is conducted to show that CSR is not only performed for social and environmental wellbeing but it is also conducted to improve the firm’s financial performance and maximize the stakeholders’ wealth. It also helps firms to remain in sustainable competitive advantage.

This study will be helpful for developing countries like Pakistan because in developing country there were fewer contexts on CSR and financial performance. Due to this research companies will be more focus towards CSR, especially evidence from food industry. This research will assist to decision makers and policy makers by formulating strategies for socio-economic aspect as well as for the sustainable growth especially for food companies.

The objectives of this study are: To investigate the effect of CSR on firm’s financial performance.To investigate the impact of CSR on ROA (return on asset).To investigate the effect of CSR on (return on equity).To investigate the impact of CSR on EPS (earning per share).

Hypothesis

There is significantly positive impact of CSR on firm’s financial performance.  There is significantly positive impact of CSR on ROAH3: There is significantly positive impact of CSR on ROE.H4: There is significantly positive impact of CSR on EPS.

The focus of this study will be limited to food sector. This research finding shows the impact of CSR on financial performance including ROA, ROE, EPS of food industries, which are listed in Karachi Stock Exchange. The food industries which are selected for this research are Engro Food, Mitchells Fruit Farms, Nestle Pakistan and National Foods, which are listed in KSE. The survey of this research excludes all food companies which are not listed in KSE and also excludes all food companies which are not mentioned above. This survey also excludes all other industries as well.

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Wal-Mart and Corporate Social Responsibility

Walt-Mart, despite of its success for being the giant retailer in the market, has been unethical towards its workers in terms of not giving the intended wage rate and health benefits to its workers. From the small retail store in Arkansas to being a renowned giant retailer not only domestically but also internationally, certainly Wal-Mart has already reached its peak of success. Wal-Mart has been the choice of every consumer in the market for they are the only store to provide the cheapest products in town.

In fact, this is the secret ingredient of Wal-Mart’s success for the past decades – setting prices relatively lower as compared to its competitor to attract more price conscious consumers. Because of this unique strategy, Wal-Mart has been able to acquire impressive growth for the past decades and become one of the successful multinational companies here and abroad. Last 2002, Wal-Mart was able to top the Fortune 500 which ranks all multinational firms around the globe in terms of profitability and sales volume (Hayden et al 7).

To think that Wal-Mart was able to attain such recognition means great on the part of its management. Its relative large size and market share, Wal-Mart has been able to have more bargaining power to its suppliers to have more price discounts to give them enough room for further lowering down their prices by the time they display goods on the shelves of their stores. This serves to be one of the sources of Wal-Mart’s ability to offer cheaper prices.

The other way of Wal-Mart of achieving price competitiveness would be to offer lower wages to their employees to make operational costs relatively low as compared to its competitors. This strategy of Wal-Mart makes them to be the target of criticisms and primary concern of government authorities especially those coming from the Federal Labor Relations Authority an organization that protects the welfare of every workers of the country. This is the gloomy reality inside Wal-Mart.

Every worker must tolerate their minimum wages despite of the fact that they have to work round the clock and always on call even on weekends and this what makes Wal-Mart unethical to its workers. The fact that Wal-Mart’s management do not provide its workers the right wage rate and enough working benefits is already enough ground for the said company to be deemed unethical despite of the benefits that it provides consumers and in the economy as a whole.

Let us further examine the said operational strategy of Wal-Mart and see if this company indeed is being unethical to its workers. According to the book of Ciulla et al entitled Honest Work: A Business Ethics Reader, composed of various articles concerning ethical business performance, it says there that one of the social responsibility of a certain business firms is to increase its profit (Ciulla et al 300).

To some extent this defend the side of Wal-Mart since through paying their worker based on the minimum wage rate and not providing all the worker with necessary benefits increase the profitability of the company. But the main argument of the said article “Social Responsibility and Stake Holder Theory” is on how a business firm would achieve the said goal on ethical means. Given that it is the role of the businesses to increase their profit but that does not give them the right to deprive the rights of their employees.

Certainly there are still other ways on how to minimize their operational cost other than sacrificing the welfare of their employees. Morality is the main concern if ethics is the topic at hand and certainly the under provision of necessary benefits and paying on minimum its workers would be enough to say that Wal-Mart is immoral in that sense since it is their responsibility as employers to ensure the safety of their workers as well as it is the responsibility of Wal-Mart on the society as a whole to pay their workers at the right amount no more no less.

I am not suggesting that Wal-Mart would start to put premium on their worker, what I am trying to suggest here based on the book of Ciulla would be to at least provide that workers should really be getting from working into the company to think that these workers are always on call and would have to work round the clock. Moreover, it is also discussed in the book of Ciulla regarding the importance of integrity, friendship and Olaf principle between the relationship of the management and workers.

When we say integrity, especially for the case of businesses, it is simply following all the rules and policies being implemented by the government as well as keeping promises of the management towards the employees especially during the hiring period. One of the primary things that make Wal-Mart attractive to interested workers would be their great working benefit packages from health insurance down to good compensation and fast career development not to mention the housing benefits that the company provides to their associates.

Truly, Wal-Mart packages are tempting especially for those who are in need of job but once an applicant become part of the company, he/she will eventually discover that it would be really very hard on his/her part to receive those benefits since even those who are already working on Wal-Mart for many years have not yet receive the working benefits that they should receive by the time they set their foot on the production area of Wal-Mart. In short, the management did not keep their promises.

Moreover, Wal-Mart has also been the place for gender biases since there are a lot of women on the top positions of the company as compared men even if there is enough reason to promote a woman manager based on its performance. In this regard, Wal-Mart already breaks its promise regarding providing a better career for its employees and workers. It was identified that only 45 percent of Wal-Mart’s total employees and workers was able to receive their health insurance as compared to other retail companies that was able to give more than 90 percent of their employees and workers health insurance.

If other retail companies can afford to provide their employees and workers with enough compensation why is it that Wal-Mart seems to be having a hard time to comply on what they should be providing into their workers and employees. Dishonesty is among those immoral qualities that not only companies must not posses but also to other individuals that handles welfare of a group of people like politicians.

Once a promise is given, an individual must make it true and if there is any barrier for the said promise not to be given on time it is still the responsibility of those who gave the promise to explain what happened in to inform the other person that he/she did make effort to make the said promise true. It would be better on the part of Wal-Mart to if the management would explain to their employees and workers the reasons of delay of their working benefits and assure them that the management will still have the intention, if they really intend to, to provide those benefits if just so happen that something came up and postponed its provision.

By explaining things to its constituents would make the situation for Wal-Mart lighter. This is the limit of my argument, I assumed that Wal-Mart have really no intentions of giving their workers necessary working benefits. But certainly, my assumption is plausible in a sense that Wal-Mart has been carrying the reputation of not paying their employees right and under providing working benefits for the past decades and it would be very hard to expect Wal-Mart to change dramatically from being dishonest into being truthful on every promise that they will make.

Remember, there are a lot of worker is at stake here and even these workers can tell how Wal-Mart is sincere on its promises especially when it comes to paying their workers. In this regard, based on the concept of integrity, Wal-Mart is certainly unethical on performing its business operation. Please take note that even there are employees of Wal-Mart that receives higher wages and bonuses as well as profit sharing, still their number are not that significant enough to cover those employees and workers that did not paid by Wal-Mart generously.

In short, the number of those employees and workers that receives higher wages and working benefits are fewer as compared to those employees and workers that receive minimum wage rates and no working benefits such as health insurance. The last but not the least concept that would verify the unethical actions of Wal-Mart towards its workers would be based on the article on Ciulla’s book discussing fairness and justice as an important concept in making business transactions. In this concept, Wal-Mart’s ethical condition can be tested on choosing between economic justice and low prices.

Certainly, what Wal-Mart did choose was the latter making the management truly unethical towards the welfare on not only of the workers but also the suppliers of the giant retailer since this would mean demanding for higher discounts on various goods It is the suppliers that comes into Wal-Mart since it would be a jackpot on the side of the suppliers to supply the largest retail store in the market and this what gives Wal-Mart enough bargaining power to negotiate for higher discount rate to further lower down the prices of their goods relative to their competitors.

Economic justice is simply giving what other people should really receive. The only draw back in this argument would be if Wal-Mart would say that the lowering of prices would then eventually lead to the increase of wage rate of their workers since the lower their prices is the more customers would come into their stores making their sales volume and profit to raise dramatically.

However come to think of it, Wal-Mart has already been one of the top gainers of the retail industry and recognized as the number one multinational company in terms of profit volume but the wage rate of their workers still remain untouched for the past years and this problem still be the main concern of various labor unions and federal agencies that are concerned on the welfare of workers and employees under Wal-Mart.

Therefore, even if Wal-Mart has already become the most profitable company in the market, still, improving the wages of their workers comes last into the list of their priorities and this really would make Wal-Mart unethical on performing its operations in the market. After presenting three concepts that would test how ethical is Wal-Mart on performing its business transaction it is already clear that Wal-Mart has been unethical to its workers despite of the success that the company attained for the past years.

Works Cited

Ciulla, Joanne B. et al “Honest Work: A Business Ethics Reader. ” Oxford University Press, 2006. Hayden, Patrick et al “Wal-Mart: Staying on Top of the Fortune 500 – A Case Study on Wal-Mart Stores Inc. ” April 2002. Public Affairs and government Relations Strategy. ” 25 February 2008 <http://mike-pereira. com/subpage/docs/Wal-Mart-CaseStudy. pdf

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Sociology Global Socio Cultural Responsibility

They will do this for two rounds. After the have made their lists, with the entire class, I will ask the students for some of the similarities they found and some of the differences and make a list of these. Than we will discuss the similarities and differences they gathered. Which differences were most common among people, which differences were most/ least important, were the differences physical characteristics. Period #3 Needs: The last period I will explain the meaning of responsibility in a community.

I will also have the students do a community building activity that will help them understand the concept and importance of social responsibility in there community. I will than explain the importance of being aware of global issues that take place and how as a class they can contribute to helping others even f they are not located close to them. The community building active¶y’ will start after I explain the importance of community and what it means. Ill divide the students into small groups of three and provide them with presented scenarios to act out. The skits will provide them with examples of ways to help another student. An example would be a student helping another student with something because they may be disabled. After the groups have practiced their skits I will ask for two volunteers to perform their skit in front Of the class. I will than ask them questions such as, how was this group lawful to another student who was different? If you were in the situation would you do the same thing?

Next I will ask the students to raise their hands and give me ideas of things they could do to help members in the class, in school or in the community. Some ideas would be picking up trash, cleaning the white boards or donating olds clothes they don’t need anymore. To end the lesson on Global Socio-cultural Responsibility I would ask the students to review what we went over: the three qualifications of social responsibility, the aspects of cultural responsibility and how they demonstrated a sense of Ewing a responsible member of a community in the classroom.

Last I will talk to my students about setting up a Penal. Assignment #1- Part #2 period #1 First lets start off with the question of what is social responsibility? These two words explain the idea that every person is responsible for society as a whole, not just individually, not just in the state of Florida or even the United States but all around the world. This means that each day we need to act and behave in the most appropriate ways that help us all be better people but we also need to consider how Our actions and behaviors affect the rest of society coolly and globally.

How can you be a socially responsible student? The following are three qualities that describe a socially responsible second grade student at Sarasota Elementary: 1 . Someone who contributes positively to the classroom and school community An example would be holding the door open for your classmates on the way to lunch or helping pick up trash around the classroom. 2. Solves conflicts in peaceful ways An example would be a student who uses kind words to speak to another student if they happen to get into an argument. . Values diversity Diversity means a variety of something. Valuing diversity means we need to be aware of all of the differences among our classmates and other people in the world. The important thing to remember is that these differences are what make us who we are and we should be open to different things and never tease someone if they seem different from what we are used to. Showing that you value diversity is very simple!

Here are a few ways you can show that you appreciate the differences that makes each of us special: never make fun of people who are different from you in any way, next time you go out to dinner with your parents ask them if you can go somewhere with food room another culture, treat everyone how you would like to be treated and last believe in yourself and be proud of the different things that make you who you are! Period #2 Second we will discuss the cultural part of Global Socio-Cultural Responsibility. What does the word culture mean?

Culture means the different attitudes, behaviors, knowledge, values, traditions and customs that a society or a social group all share. These differences come from all around the world and are the “glue” that keeps a group of people together. Pizza is a food item that is part of the Italian culture, SST. Patrick Day is a national loudly and part of the Irish culture and the American flag is part of the American culture. For all of us to have cultural responsibility we have to honor diversity in our world.

Honoring diversity means that instead of focusing on the flaws, we need to focus on the good. In order to honor diversity among cultures we need to be aware of how some members of cultural groups might feel about certain issues like, family, religion or traditions. Period #3 The last part towards understanding Global Socio-cultural Responsibility is realizing the importance of community. Community is a group of people ho acknowledge the deep connections they have with one another, respect each others differences, and work as a group in making decisions.

A community of people also has a common purpose and each person is responsible for his or her own actions but when you are part of a community it is important that everyone supports each other’s growth. As a class, we can all create our own community. This might all be a lot to take in but in light of what we have learned today I think it would be a very fun and good idea for each of you to start writing to a Penal. This will help you learn about other ultras and other countries and allow you to be more globally aware of things that are going on in places other than just here in the united States.

It will be a good way for you to really learn the true differences of other students your age plus it’s always nice to have another friend! Assignment #2 From age three to eighteen attended private Catholic schools. Attending a private Catholic school for almost my entire life, up until right now, I was always very sheltered. There wasn’t really any racial diversity in my school and very little religious diversity. Having attended a small, private, Catholic school y entire life definitely made one of the biggest impacts on my development.

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Corporate Social Responsibility Assignment

You don’t have to look very far in today’s climate to be faced with an ethical decision whether it be buying your groceries, choosing a car, or how much of your waste you recycle. These decisions are also happening at a Corporate level, companies like the Co-op, HSBC & the Body Shop’s success are built on the back of their ethical standing. At a recent overnight stay at the Jury’s hotel, a tent card in the room spelled out what the company was doing across all of its hotels to reduce its carbon footprint. Ethics and values are important components of most professions.

Ethics provide a moral compass, whilst values reflect those things to which we attach worth, those things that matter most to us and drive our behaviour. Some people and organisations have a stronger moral compass than others. Ethics don’t always comply with peoples values. Values tend to be more narrowly focused. They can be either ethical or unethical. For example companies may each have a mission to drive their environmental protection policies but the overall mission is to maximise profit for its shareholders. The two may be in conflict.

Ethical considerations are often wide ranging and relatively global in their appeal. We are all increasingly seeing a moral imperative to protect the environment. Ethics are often dependant on national culture. For example, in the UK bribery is culturally frowned upon where in some countries it is the way that business is done. Companies based in these countries have an ethical dilemma. Do they stick to the rules of the game and use the bribe to secure contracts or do they loose those markets?

Analysis of Milton Friedman

At first sight, it would seem that the words of Friedman point towards a capitalist system which focuses purely on money and nothing else. However, after extensive reading of the topic, it would seem that Friedman was certainly right when he suggested that “there is one and only one social responsibility of business” since the qualifiers which are given for this are quite extensive. It can be shown that “the rules of the game, free competition” and not deceiving the employees are not only rules which keep business from exploiting others; they are also good business decisions for companies like GE and many others (Colvin, 2006).

Of the three qualifiers to making profits, the first one is the process of “staying within the rules of the game”. These rules have certainly changed drastically over time and the idea of exploiting workers for all they are worth is clearly not within the rules. It would seem that neither ethics nor social responsibility has a lot to do with it. The case of being good to employees makes fundamental business sense (Torrington and Hall, 1995).

In the long term, employees who are secure in their jobs are likely to work harder and be more productive than employees who feel insecure in their employment. Similarly, employees who are paid well and rewarded with bonuses for good performance and motivational rewards will naturally perform better than employees who are only given a basic salary and no chance to increase their income as a direct result of the hard work they put in for their company (Boxall and Purcell, 2003).

For individuals there may be times when the applied ethics and values of the organisation conflict with the ethics or values that the individual holds. This may present a bigger problem when the individual has responsibility (for example as a Manager or L ; D Professional) not only will that individual need to model the behaviour associated with the organisations ethics and values, but also ensure others do so to. At these times of conflict there may be an issue of real conscience with which to deal. Does the person stay and influence the organisation or leave?

At times when your personal values and organisational values or ethics seem to clash the existence of professional instituted ethics and values through codes of practice can prove useful support, either to allow you to stand back and be more objective when things have become overemotional or to have the reassurance that you are not alone in your belief system. ethical dilemmas for individuals working in the Human Resources Department where the interests of the organisation as a whole may be in conflict with the interests of individuals working for the company. Karen Legge (1978) descibes this conflict as Deviant Innovator.

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Odwalla’s Responsibility Towards E. Coli Outbreak

The success of an organization depends on the reputation it creates in the market which helps it to strive in the stiff market competition. The reputation of a company or an organization depends entirely on its public relation strategy, corporate social responsibilities, business management strategies and adherence to business ethics. For instance Odwalla Inc. fresh fruit and vegetable based beverages producer managed to create a negative impact to the reputation of its company which it had worked hard to persevere in the past decade in a p of one month, after it was discovered that a batch of the products it supplied was contaminated by E. Coli 0157:H7 bacteria. From the conducted inspections that followed after the outbreak which led to the death of one child and hospitalization of about 66 people it is quite clear that Odwalla Inc. was entirely responsible (Whitmore & Bachorik, 1996).

The E. coli contamination can be attributed to the corporate social irresponsibility stimulated by the management strategies that the company has implemented. In the process the company failed to regulate its operations as required in order to monitor and ensure that stipulated business ethics, international norms and the country’s laws are adhered to. Corporate social responsibility demands involvement of the employees, customers and the community at large in decision making through contribution of ideas, comments or grievances.

Therefore, a business enterprise is supposed to consider the importance of its stakeholders by placing it among its priorities to enable employee engagement and increased profit margins (Sen et al. , 2006). Odwalla Inc. failed to listen and act promptly towards complaints forwarded by their customers. The company had received a plethora of letters informing them that consumption of their products had made them ill before the outbreak of E. coli bacteria in the apple juice product. About sixty people had become ill from consuming Odwalla juice products that were contaminated with salmonella.

The army had also previously rejected the offer of Odwalla to be supplying them with juice products after their conducted safety research revealed presence of bacteria in the products. Never the less this act did not deter the operation of Odwalla as the company did not take a step of investigating the claims aired by the army (Whitmore & Bachorik, 1996). Moreover, the advice given by the head of the company’s safety team of modifying the production procedure to increase its safety was ignored and refuted.

Dave Stevenson had suggested the utilization of chlorine rinse to act as a precautionary act that would destroy bacteria because the company did not pasteurize its products in believe that pasteurization reduces the flavor of the juice and kills about 30% of required nutrients and enzymes. This is because in spite of the company using millions to upgrade the safety of its plants a relatively small percentage of bacteria were still evident for example Listeria monocytogenes in the production lines.

Instead the senior executives preferred to use acid wash (phosphoric acid) claiming that chlorine had a strong taste that would be left in the products. Furthermore, the warning given by Odwalla chemical suppliers which discouraged the company from depending on the acid wash as a sanitization option because it only killed about 8% of E. coli fell on deaf ears. The suppliers had also advised the company to use the acid wash together with chlorine so as to increase the efficiency of its sanitization process and reduce the after taste that would be left by the use of chlorine alone.

Also the senior executives ignored the warning given by the company’s safety team of not utilizing the lot of apples that had been delivered because they were rotten and one had been infested by worms, an ignorance that later severely cost the company (Whitmore & Bachorik, 1996). The outbreak of E. coli bacteria can also be attributed to the poor business management strategies that the company had implemented. The decision making strategies used by the leaders of the company jeopardized the safety of the company, employees and customers (Crane & Matten, 2007).

For instance the leaders failed to implement good communication strategies in both directions of the company hierarchy system because they failed to listen to their subordinate staff for example warnings and advices from the safety team were ignored. The policies of the company were not followed to book because safety flaws were evident for example the company adorned poor employee hygiene and sanitization procedures. The citrus processing equipment was poorly maintained as it had become a favorable environment for breeding bacteria depicted by the presence of the black rotten curd.

The collected fruits have not properly cleaned a fact that can be attributed to the presence of E. coli bacteria which are found in the intestines of cows. Thus the bacteria could have only contaminated the fruits from the cows’ feaces after fallen fruits came into contact with feaces from cows that grazed near the orchards farm (Whitmore & Bachorik, 1996). The company can also be held accountable for the outbreak of E. coli bacteria because of breaking ethical codes by overshadowing the importance of fulfilling safety demands with fulfilling product demand.

It is quite evident that the company did not put first the safety of the community and its employees because it strived to increase its profit margins by providing more products into the market at all costs (Crane & Matten, 2007). For instance the company failed to observe industry safety regulations by not pasteurizing its products a regulation implemented by other manufacturing companies because they believed heat reduced the quality of products which it saw as a drawback to its total sales.

In the event of increasing the quantity of products produced and satisfying its greed the company accepted and used decayed fruits from suppliers a behavior that is ethically wrong as it is a risk factor to the health of people. In the process the company was responsible for the death of one child, hospitalization of others and permanent damage of body organs for example the kidney to affected patients thus denying them their rights to life.

The company also assumed that the acidic conditions it used as a safety mechanism would curb the possibility of bacteria survival which was proved wrong by the presence of a relatively small percentage of bacteria. Therefore, the company acted unethically because it failed to fulfill it purpose of conducting proper research that would have enabled it to devise production mechanisms that were effective and still maintain the quality of its products for instance flash pasteurization (Whitmore & Bachorik, 1996).

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Corporate Social Responsibility – Malden Mills

Corporate Social Responsibility accounts for the boundaries of ethics, social concerns within which corporate personnel’s should contain themselves in dealing with society. The demarcation between right, wrong, good, evil has been placed in every single human by Lord but the educational, societal influences do mould this sense. Even then, no factor can endow any man with the license to remain oblivious of ethical responsibility. Human existence is sacred as a whole; be it family, education, health, business.

What matters the most are the intentions and foundations from which good will and trust should sprout for all. Usually those involved in financial, corporate market consider money making to be their born right. If analyzed in this perspective, then all other field holders of life can place an equal claim. And what will be the effect on masses when the entire functionaries of a society set profit solely as their priority? Many opponents can put forward Malden Mill’s bankruptcy as a logical conclusion of such measures. The failure suffered by Malden Mills was neither a leadership failure nor a result of ill-placed noble intentions. State involvement and a little more practical deliberation from the administration could have saved an organization worth-saving. Yet no failure of whatever magnitude can ever undermine acting morally. If someone wishes to, then we should be prepared to grant license to all in want of money to act dishonestly with daring pride. Equally let teachers, health practitioners, lawyers along with brother business-men to become a little-less socially responsible. And who will determine the degree of deviation from being responsible should be well pondered by them.

The execution of socially responsible and considerate behavior is a must for every person in the business sector. But usually an entirely opposite approach is observed. The management involved always gets pleased with profit-amassing steps and those outside this circle will be benefited only once their concerns are addressed. Thus an overall caring behavior is essential in envisaging a responsible policy guarding the interests of all, regardless of the company’s boundaries.

A key measure in helping out any business body to reform their policies is undoubtedly the considerate role of its leader from the company’s platform. The critical decision by any company of limiting its interests, moral duties and responsibilities until its own borders or not, requires an exceptional, visionary wisdom and planning from its leader. This task is central to his role and from the rostrum of pure ethical abiding values; he should work for the benefit of all. The healthy effects then spread in the whole organizational body. Ultimately the society gets benefited at large.

Society and the functionaries within it are inter-related. They complement one another and become useless alone. Every company or business body should be concerned in the first place with what constitutes values. Employment of values with a moral guard earns respect and benefit for it in the longer run. Indeed it is the very essence of being a human when we analyze that whether our efforts will bring any comfort to those around? Moral righteousness should be the trademark of every company. Without it distrust and ill-will start prevailing attacking the very fabric of any society. Any business infra-structure imbued with socially responsible, caring concerns do ensure personal and professional success.

Guarding of fellow human’s interest is an undeniable obligation upon all which no individual or any larger body of humans can deny or usurp. Thus it is highly incumbent and mandatory upon every individual to obey a code of ethics in dealing with fellow humans. The doer of good today certainly reaps the best tomorrow. Every such single effort ultimately strengthens the fabric of whole human society which promises benefit equally for all.

Work Cited

  1. Gini, Al and Alexei M. Marcoux. “Malden Mills: When Being a Good Company isn’t Good Enough.” Gini, Al and Alexei M. Marcoux. Case Studies in Business Ethics. New Jersey: Pearson Prentice Hall, 2006. 432-438.

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