Green Department Of Business Law And Ethics Sawyer Business

Green Movedepartment Of Business Law And Ethicssawyer Business Schools

Green Move is a startup company focused on environmentally friendly transportation products, with its ownership and management comprising founders Robert, Lewis, and Viktor, all MBA alumni. The company is incorporated in Delaware, backed by a mixture of stock ownership from founders, relatives, board members, corporate officers, outside investors, and significant government funding. Its innovative product, the Zero Pedal, a solar-powered bicycle, recently gained popularity, especially in the northeastern U.S., with plans for expansion and going public.

This case involves numerous ethical, legal, and strategic issues across product safety, supply chain, international expansion, and corporate governance, requiring a thoughtful analysis from multiple perspectives.

Paper For Above instruction

Introduction

Green Move exemplifies a modern startup operating at the intersection of innovation, ethics, and regulatory compliance. The innovative nature of the Zero Pedal, combined with its rapid growth prospects and strategic alliances, raises complex questions about product safety, supply chain ethics, international business conduct, and corporate governance. Addressing these issues requires applying ethical frameworks, legal standards, and risk management strategies to ensure sustainable growth and corporate responsibility. This paper explores the ethical dilemmas and strategic considerations faced by Green Move across four key domains: product safety, supply chain ethics, international business conduct, and organizational integrity.

Part A: Product Safety and Ethical Decision-Making

The learning of a potentially dangerous defect in the Zero Pedal, specifically its tendency to accelerate dangerously when exposed to high temperatures, presents immediate safety concerns. The pressures include legal compliance, customer safety, company reputation, and personal integrity. The ethical obligation to protect consumers must be balanced against corporate pressures to ignore or conceal defect information to avoid costly modifications or regulatory hurdles.

Applying the utilitarian model emphasizes minimizing harm; thus, the optimal decision involves disclosing the defect to relevant authorities, such as the Consumer Product Safety Commission (CPSC), and initiating corrective measures promptly. This approach aligns with ethical standards promoting consumer safety and corporate accountability. Legally, withholding defect information may constitute violations of product safety laws and consumer protection statutes under the Consumer Product Safety Act or Consumer Product Safety Improvement Act (CPSC, 2021). Ethically, hiding such information risks endangering consumers and damaging the company's reputation if the defect becomes public through sources like Doug or external regulators.

Regarding the ‘special’ $5,000 fee for shelf placement, this creates ethical and legal concerns related to bribery and unfair trade practices. Offering or accepting such a payment may violate anti-bribery laws like the Foreign Corrupt Practices Act (FCPA, 1977) or U.S. Federal Trade Commission regulations against bribery and unfair competition (FTC, 2020). Legally, paying a bribe undermines fair market practices and exposes the company to sanctions, while ethically, it compromises integrity and trustworthiness.

The question of applying cost-benefit analysis to safety concerns depends on whether the benefits of concealing or ignoring defects outweigh potential costs—such as legal liabilities, recalls, or reputation damage. While initial costs of addressing safety issues may seem high, neglecting safety could lead to catastrophic consequences, including lawsuits, regulatory penalties, and loss of consumer trust. The risk of unregulated product operation, combined with the defect, underscores the importance of proactive safety measures over reactive, profit-driven approaches.

Part B: Supply Chain Ethics and Corporate Responsibility

The ethical dilemma surrounding the Solar Group involves allegations of poor working conditions and violations of expectations set forth in Green Move's contract. While Bangladesh’s labor practices are legal within local jurisdiction, they often violate internationally recognized standards of worker safety, dignity, and fair wages. The exposure of factory conditions, if true, presents a conflict between corporate ethical standards and legal compliance.

Robert must consider whether to terminate or renegotiate the contract. Termination might serve justice and integrity but could disrupt the supply chain and harm company operations. Instead, engaging with the supplier to implement better labor standards, auditing practices, and transparency measures aligns with corporate social responsibility and long-term strategic interests. Applying the stakeholder model emphasizes balancing the interests of factory workers, shareholders, consumers, and the community.

The appropriate standard involves applying international labor standards, such as those established by the International Labour Organization (ILO, 2019), which emphasize the abolition of child labor, safe working conditions, and fair wages. While these standards are difficult to enforce universally, they serve as a moral benchmark for corporate conduct.

The blog’s exposure could significantly impact Green Move’s brand reputation, revealing perceived hypocrisy if the company claims environmental responsibility while neglecting fundamental human rights issues in its supply chain (Bloom and Malhotra, 2019). Transparency and proactive engagement with suppliers to improve labor practices are crucial to maintain consumer trust and corporate integrity.

Part C: International Expansion and Ethical Considerations

Viktor’s intention to lease property in Russia under conditions involving a “facilitation” payment raises significant legal and ethical concerns. Offering a bid combined with an untransparent facilitation fee can constitute bribery under the Foreign Corrupt Practices Act (FCPA, 1977), which forbids foreign bribery by U.S. companies and their subsidiaries. Ethically, engaging in such practices compromises the company’s integrity and may undermine its standing both domestically and internationally.

Viktor should refrain from including the facilitation payment in his bid and instead pursue legal and transparent negotiation strategies. Failing to do so risks legal sanctions, damage to reputation, and undermines corporate governance principles rooted in transparency and fairness. Long-term, expansion into Russia should adhere to international anti-corruption standards and establish clear compliance protocols.

Regarding expansion, the decision must apply a strategic assessment considering legal risks, operational efficiencies, corporate social responsibility, and geopolitical stability (Klein et al., 2020). If the environment supports ethical operations, compliance, and sustainable growth, expansion can proceed; otherwise, it warrants a cautious re-evaluation.

Part D: Organizational and Governance Challenges

The ethical breaches—such as paying bribes, neglecting product safety, and failing to address labor issues—likely stem from organizational issues including weak corporate governance, lack of ethical leadership, and pressure to prioritize short-term financial gains over ethical standards. These issues create residual risks, including civil liabilities, criminal charges, reputational damage, and loss of stakeholder trust.

Residual risks include potential litigation from injured consumers, regulatory fines, and criminal liability for corporate officers involved in bribery or safety violations. Addressing these requires implementing robust compliance programs, internal audits, whistleblower policies, and ethical training (Bambacas and Patrickson, 2019).

Short-term measures include establishing an ethics committee, revamping corporate policies, and conducting internal investigations. Long-term goals involve embedding a corporate culture rooted in ethical principles, transparency, and accountability. Governmental agencies have a role in enforcing regulations, imposing sanctions, and promoting corporate responsibility initiatives to prevent such breaches (OECD, 2019).

In conclusion, Green Move’s rapid growth and strategic ambitions must be coupled with a strong ethical foundation and robust compliance measures. Ethical leadership, transparent operations, and stakeholder engagement are vital for sustainable success.

References

1. Bloom, P. N., & Malhotra, N. (2019). Ethical consumerism: what is it, who does it, and what does it mean for business? Journal of Business Ethics, 156(2), 334-348.
2. Consumer Product Safety Commission (CPSC). (2021). Understanding the Law: Consumer Product Safety Act. Retrieved from https://www.cpsc.gov
3. Foreign Corrupt Practices Act (FCPA). (1977). U.S. Securities and Exchange Commission.
4. Federal Trade Commission (FTC). (2020). Concerning Fair Competition and Anti-bribery Regulations. FTC.gov.
5. International Labour Organization (ILO). (2019). General Survey on Core Labour Standards. Geneva: ILO.
6. Klein, R., McCarthy, J., & Lee, T. (2020). International Business Ethics and Compliance. Business Ethics Quarterly, 30(3), 341-363.
7. Organisation for Economic Co-operation and Development (OECD). (2019). Due Diligence Guidance for Responsible Business Conduct. OECD Publishing.
8. U.S. Consumer Product Safety Improvement Act (CPSC). (2021). Public Law No: 112-28.
9. United States Department of Justice (DOJ). (2022). Criminal Division: FCPA Enforcement.
10. World Bank. (2018). Bangladesh Labour Market Overview. World Development Report.