Zip-6, like other beverage companies, uses cola nuts that are sourced from buyers or distributors who purchase these from local small farmers in lesser developed countries. Recently, Ravi received a letter from a human rights group alleging that some of these local “buyers” were unfairly compensating the small growers for their crops and urging Zip-6 to only purchase “Fairtrade” certified ingredients for use in their products to ensure that these small growers receive a fair price for their crops. Some Zip-6 managers have pointed out that Fairtrade cola nuts are somewhat more expensive although they represent only a small component of the product cost. Ravi is considering this carefully since Zip-6 has long-established relationships with some of these buyers. Checklist: You are advising Ravi; after reviewing the supplemental Ethics PowerPoint Presentation and learning about Fairtrade at:http://www.fairtrade.net/ Copyright ©2011 Fairtrade Labelling Organizations International, e.V. Respond to the following in an informative essay: Which of the specific ethics approaches below would you recommend to guide him in his decision making regarding what to do about the buyers’ compensation to small growers and possible change to Fairtrade cola nuts, and why? Philosophical Approaches to Ethics (choose one): Consequential, Nonconsequential, and Virtue Ethics Theories How would you advise Ravi to respond to this request from the human rights group? Explain.
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Ethical Approaches
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Approaches to Ethics: The Case of Zip-6 Company
There are increased pressures on firms to participate in sustainable business models (Sloan, Legrand, & Hindley, 2015, p. 267). In as much as the major goal of business remains to be profit, companies must assess their actions. Firms must ensure their businesses meet the present needs without compromising future needs. One strategy of attaining sustainability is through the use of sustainable supply chain processes. Such processes ensure that products/services that are consumed are sourced in a manner that creates a shared value among all the players in the product/service chain.
Sustainable developments are prompted by several factors that include evolution of standards, pressures from regulators and consumers themselves (Sloan, Legrand, & Hindley, 2015, p. 267). Sometimes the buyers in the supply chain may be involved in unethical business processes, which may prompt pressure from civil groups on companies to cancel businesses with such suppliers. For instance, the suppliers may buy products that are processed with the aid of child labor or they may under pay the primary producers of a particular product. Such cases may require the managers to make informed ethical decisions. Many philosophical approaches to ethical decision making are available to the managers. In the case provided, the consequential ethics theory would be recommended for Ravi in making decision regarding the use of cola nuts from its buyers or distributors……………………….……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
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