Ethics and Governance free essay sample

The Coca-Cola Company did not take into account the stakeholders’ interest, upon the launch of their new product- VitaminWater. First off, the consumers were being misled that the VitaminWater was a healthier alternative, but in real, due to the ingredients contained in the drink, it is not. Upon investigation, the truth in the content of the VitaminWater would be released, and hence consumers worldwide would know the truth of contents. With the act of misleading consumers, there would be extreme negative effects on trustworthiness towards the source of information and the future willingness to buy their products. When this happens, it would be very tough job to gain the consumers’ trust again, in order to have the major market control in the drinks industry. Further to this issue, the label was not clearly communicative due to the fact that the content or ingredients of the drink were not fully stated. Although VitaminWater offered more vitamins for the human body, it was unhealthy due to the fact that the amount of sugar in the water will result in the consumer having a higher chance of getting sugar related health problems. We will write a custom essay sample on Ethics and Governance or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The sugar content, which could be easily and clearly labeled on the drinks, could well be printed on the label of VitaminWater to let known the amount of sugar used to make the drink. Upon probed on whether the sugar content of VitaminWater will contribute more to obesity, the company became defensive, stating that the allegations made were ridiculous and wanted to defend the lawsuit. Another issue that is very unethical would be the over-pricing for VitaminWater. It costs USD 1. 50 for 590ml, which is a very high price compared to the average price of the other drinks that Coca-Cola produces. The fact that not only the drink is costly, but it also harms the body more than it helps the body; it has greatly shown that the Coca-Cola Company overlooked the ethical issues in the company. 3. ) Ethics Policy and its Development 3. 1) Proposed Ethics Policy -The Coca-Cola Company will act with integrity and accountability. -By practicing integrity, we will ensure that all information provided of the products is truthful and genuine to all our consumers. We shall neither engage in any deceptive nor misleading practices. By practicing accountability, we are responsible for our actions and ensure transparency in our processes. All the product components used in the development of our beverages are to meet the right criterion, having the contents of the beverages clearly labeled and communicated clearly to our consumers. -We will have the commitment to take into consideration our stakeholders’ interests, and to make sure that we provide them the products with fairness and equa lity. -We will constantly maintain the highest quality of our products, so as to offer our consumers the excellence quality at a reasonable price. Keep in mind to ensure that the materials used in the manufacturing process are keep to the minimal waste. -We will uphold the ethical standards and corporate social responsibility to portray a positive image, credibility and reputation. 3. 2) Rationale of Ethics Policy The ethics policy has been developed based on the main issues identified from the case study. In order to portray a positive image, trustworthiness, and reputation, it is very essential for company to be accountable for all the negative issues. Further to that, negative issues must be solved and rectified the issues promptly, the soonest possible. This assists to build the company’s credibility and this will attract potential and retain existing consumers to the company. 3. 3) Policy Development Ethics is a set of moral principles and values that individual possesses (Trevino Nelson 2004, p. 13). Ethics, which also refers to a well-developed norms and standards of conduct, is essential to an organization, due to the fact that the employees of the company would have to follow the acceptable ethics to perform their job more effectively. Our group developed the ethics policy by focusing on the following theories: 3. 3. 1) Virtue Ethic Virtue ethic focuses on the individual motivations, character and intentions (Trevino Nelson 2004, p. 93). It is about individual integrity to carry out tasks ethically that aligns with the organisation’s code of ethics. For example, the representative of Coke is supposed to inform the public the right content of the â€Å"healthy drink†. 3. 3. 2) Utilitarianism Ethic Utilitarianism ethic focuses on the consequences of the action on all the people affected by it (Collins 2009). Under utilitarianism, everybody is treated equally and there can be no favouritism based on power or status (Collins 2009). According to Parsons (2004), John Staurt Mill augmented the utilitarianism ethics. She mentioned that ‘neither the intent behind the action nor the fundamental rightness or wrongness of the action is at issue, only the consequences. ’ (Parsons 2004, p. 44). Based on the Coca-Cola case study, Coca-Cola should begin with understanding the consequences on the public reactions towards the introduction of the drink, rather than waiting till consumers complain about it after the fact has been found out. . 3. 3) Kantianism Ethic Kantianism ethic is based on the moral principle that requires everyone to be treated as a free individual equal to everyone else (Velasquez 2002). Velasquez (2002, p. 98) mentioned that ‘Kant’s categorical imperative focuses on a person’s interior motivations and not on the consequences of one’s external actions. ’ According to Kantian theory, moral right or wrong are identified by the reasons the person has for what he tries to do and not measured by the end result (Velasquez 2002). Therefore, a person’s or corporate action that is motivated by a sense of duty is considered as right moral. Based on the Coca-Cola case study, the intention is morally right. 3. 4) Corporate Social Responsibility Corporate Social Responsibility (CSR) is defined as the responsibility and commitments of the company that contribute towards the social, such as community, environment and the general public (De George 1999). It also states that the corporate social responsibility must be able to fulfill both legal and social obligation. Legal obligation refers to obeying the â€Å"lawful† rules and regulations set by the government. Social obligation refers to the action done by the company that impacts make on the society (De George 1999). CSR comprises of four factors and they are law, ethics, economics and philanthropy. This factor allows the company to act as a good citizen while obeying the laws, and is ethical, thus profiting from the business (Gupta Prisch 2008). By adopting a good CSR will enhance the corporation’s image and its reputation thus creating more business demands in the long run (De George 1999). Based on the case study of Coca-Cola, they should adopt CSR so that they would be able to gain back the trust that they have lost from the general public, so in order to improve the sales figures of their products. 4) Implementation, Effectiveness and Limitations 4. 1) Implementation of Ethics Policy To implement the ethics policy successfully, the Coca-Cola Company needs to communicate the policy to all the stakeholders clearly and effectively. It would mean that the employees of the company must understand and practice the ethical standards that they are required to follow. To practice transparency, the company could engage a third party to be involved in the process of manufacturing the products. The third party will verify the product’s components used and ensure that the company follows the ethical standards. Alternatively, the company can allow and arrange for viewing of the manufacturing plant with the media and the public to build the trust in their product development. According to the article, the Hong Kong’s regulators encourage companies to initiate the practice of transparency. Being transparent, it allows the company to be more effective and be committed to uphold the good ethical standards (Mar Young 2001). The company needs to engage internal and external audit to conduct audit checks on the process of manufacturing quarterly or yearly to ensure the manufacturing process is maintained in high standards. With the implementation of the audit checks, the company could also ensure that the prices of the materials used are of reasonable costs to provide the consumers’ the worth value of the products and the shareholders’ the achievable profit. To align with the corporate social responsibility, the company needs to do regular checks, practicing quality control, on the equipments and materials used in the development of product to ensure that all materials are eco-friendly and the products are of excellence quality. One article mentioned that some companies encourage their employees to adopt the environmental initiatives. To take on the environmental initiatives, the company would have to support the idea. This would enhance the company’s overall performance and may increase the efficiency and profitability (Ramus 2002). 4. ) Effectiveness of Ethics Policy The policy is effective with clear communication, audit checks and the practice of transparency. With the clear communication of the policy to the stakeholders, they are aware of the contents of the products. This ensures them the credibility that the company is building; hence they would feel the fairness and the price worthiness of the products. One article indica tes that effective communication is important for business success. It allows companies to exchange information and build good rapport and strong relationships while minimizing the communication barriers (Griffith 2002). The audit checks conducted, will certify the minimum requirements that the company is required to fulfill in order to produce excellence products’ quality. This would also make sure that the material costs are acceptable to achieve consumers’ satisfaction and shareholders’ profit. By practicing transparency, this builds up the trust and confidence level of the stakeholders by educating them with the trips to visit the manufacturing plant. This creates awareness of the methods used and how the products are developed. It has indirectly enhances the credibility of the company. And by arranging such trip visits to the manufacturing plant, the company fosters rapport with the stakeholders and ensuring them that the company encourages corporate social responsibility. From the article, a study was conducted among 460 consumers which results that corporate social responsibility is essential in affecting company’s image and performance. Consumers are more willing to purchase items from those companies that practice CSR. Their perceptions are of the company’s positive ethical practices that lead to increased consumers’ satisfaction, support and reliability (Gupta Prisch 2008). 4. 3) Limitations of Ethics Policy According to the article, Bandura (1999) mentioned that most people used their personal judgments and thinking, to deduce whether or not to accept and follow suit the set of ethical standards set by the company. Employees will usually react with their own behaviours which might not align with those ethical standards of the company (Trevino, Weaver Reynolds 2006). The culture in the company that has been already in long run since the company begins also plays an important role for the employees’ decisions on whether to follow the ethical policies in the company. Regardless to the fact that there is clear communication, with indications of the contents labeled clearly on the products, a limitation would be that consumers, might not be bothered by the sugar level. The main reason to this would be that as some of them are not really health conscious, although given understood the contents of the drinks. Due to these, Coca-Cola must also understand that there would be doubts and questions to be resolved from the media and consumers. Audit checks could well be implemented used to express and show fairness, with the presence of financial statements, in all material respects, Coca-Cola’s financial position and cash flows, including the end results of operations. However, there might be loopholes or situations whereby they are not able to identify the problems even after auditors examine the financial statements and supporting records. . Conclusion From the case study, we learnt that the lack of transparency caused great friction between the Coca-Cola Company and the stakeholders, hence causing disputes over the main issues identified in this report. To salvage the situation, in order to regain the trust and confidence of the stakeholders, the ethics policies in this report are to remedy these issues. The implementations proposed would greatly improve the company’s image an d reputation as there will be transparency in their operation processes. The products’ prices are also justifiable based on the quality. Furthermore, being corporate social responsible, there will be a minimal wastage of materials and environmentally friendly. Despite the limitations of the policy, we believe that based on the findings on the ethical standards, Coca-Cola could take into considerations of such limitations and make improvements to minimize the undesirable outcomes. All employees of Coca-Cola will use this set of ethics as a guideline to maintain and uphold the ethical standards and be responsible towards our society. In the real world, no ethic policy nor governance system is able to fully prevent any mis-happenings in the company, including employees putting their personal interests ahead of the interests of the companies they manage. But many steps can be taken to improve the ethics and governance, and thereby reduce opportunities for getting the wrong things done. The management of the company has an important role to play to make sure that the ethics policy are well written out and let know to the employees of the company. It would also be essential for the management of the company to make sure that employees follow the ethics, rules and regulations promptly to as to achieve a greater milestone, gaining better revenue and achievements, and heading towards the long term goals and targets. 6) Reference List Collins, D 2009, ‘Essentials of business ethics’, John Wiley Sons, New Jersey. De George , RT 1999, ‘Business Ethics’, 5th edn, Prentice Hall, New Jersey Donaldson T, Werhane, P Cording, M (eds) 2002, Ethical Issues in Business: A Philosophical Approach, 7th edn, Prentice Hall, New Jersey Griffith, DA 2002, ‘The role of communication competencies in international business relationship development’, Journal of World Business, vol. 37, issue 4, pp. 256-265, viewed 2 August 2009, ScienceDirect database Gupta, S Pirsch, J 2008, ‘The influence of a retailer’s corporate social responsibility program on re-conceptualizing store image’, Journal of Retailing and Consumer Services, vol. 15, issue 6, pp. 516-526, viewed 2 August 2009, ScienceDirect database Ethics And Governance free essay sample It raises the interelated notions of individual rights, fairness, equality and entitlement. The principles vary in numerous dimensions. These issues explore the appropriate distribution of social and economic benefits and related costs. There are five principles included an equal share for each individual, a share according to the needs of each individual, a share according to the efforts of each individual, a share according to the social contribution of each individual and a share according to the merits of each individual. There are three theories of distributive justice included Libertarianism, Utilitarian and Egalitarianism. Libertarianism approach It is a theory that defends unlimited laissez-faire capitalism as the only morally justified regime. Libertarian required for the maximization of freedom and liberty or the minimization of violations in these as long as the corporations don’t harm other’s freedom and not breaking the law. Following Locke, Nozick, the entitlement theory depends on the original acquisition of holding, the legitimate transfer of holdings to/ form others and the illegal acquisition of holdings. We will write a custom essay sample on Ethics And Governance or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Libertarianism is doesn’t consider actual distributing in society. It means that the right of every individual to unlimited utilization of his own person (self-ownership); and the right to unrestricted, or relatively mildly limited, appropriation of external resources without suffering others and fraud from these transactions. In addition, an individual has exclusive right to all the goods that are product of use of his talents and efforts and he has either the right to appropriate all natural resources, which he finds and takes before others. Whether the distribution is just depends solely on how holdings were acquired. Property rights are derived from an individual’s basic moral rights, which take priority over all social or legislative arrangements imposed by society. This theory is interested only in this that the above procedures are satisfied and that nobody has used violence to take some goods from others. Forceful intervention of the state for the sake of helping the poor is not allowed. Therefore, any taxation involves violating of libertarianism and allowing some people to own other people. As my choosing company PARKnSHOP Supermarket which organized by Hutchison Whampoa Limited, it is affecting environment that stop handing out plastic bags automatically for customers. For libertarian view, they have used the libertarian approach on their corporate actions and the legitimacy of their actions. The customers have their freedom and choice and right to buy something with plastic bag. Everyone kwon that the plastic bag offered by PARKnShop’s which is not good for the environment. However, most of people like to buy something with plastic bag because they have their freedom and self-ownership. For libertarian, it is ethic for PARKnSHOP’s can offer biodegradable bags and do the promotion on use biodegradable bags and involuntary levy on bags to the customers. It is because PARKnSHOP’s is rewarded so long as they are not breaking the law and don’t harm other’s freedom. However, it’s has some arguments against the libertarianism. It is because any taxation and helping environment involves violating of libertarianism. But, it always helping environment and do a lot of community activities such as involvement in the â€Å"Say No to Plastic Bags† campaign. Utilitarian approach Utilitarianism is the ethical doctrine that the moral worth of an action is solely determined by its contribution to overall utility. Following John Stuart Mill, utilitarian approach is a theory that takes as its primary aims the attainment and concern with maximum possible personal happiness of a society as a whole, which should ultimately determine what is just or unjust behavior. This goal is to be achieved in such a way that one first checks what makes every particular individual in a society happy, then sums up all these various wants and preferences, and finally finds out how to satisfy the greatest number of them. John Stuart Mill acknowledged that the society can receive more return from the more efficient laborer and it is just that talented workers can receive the greater remuneration. It is obtain efficient us of the resources if allow people to benefit from labor. A redistribution of resources increases general happiness of a society. However, the arbitrary and great disparity of distinctions and advocate strict equality may cause the unjust behavior and may cause social breakdown. It is because it would have an adverse influence on the working motivation of the able individuals, and thereby on the overall wealth of the society. Therefore, the utilitarian standard is essential for resolving any conflict between rival principles of justice and increases the allover happiness of a society. The main task is to find a balance between factors that point towards equality and those ones that go against it. It seems that the utilitarian view can be found in PARKnSHOP’s. For PARKnSHOP’s, it concerned with the maximization of happiness of society. It’s has providing a lot of jobs opportunity for the people. Also, PARKnSHOP’s are willing to do the supports community programs, which operate at the grassroots level, usually focused on local, global environment-related issues. It’s always giving back to society and help to create a better end and achieved to the utilitarian. However, it is not mean that can justify the ends. It is because the plastic bag of PARKnSHOP’s is a big problem. The research from the Friends of Earth (HK) shows shoppers want a bag whose need to pay 20 cents for each one. If the levy is constrained, they will initiative to reduce plastic use. One of the reasons of this research is because of they have already build up a habit of using plastic bags. They are driving a change with making profit and contributions. It is a big problem and not concerned with the maximization of personal happiness and argues to the Utilitarian View. Egalitarian approach John Rawls explores the egalitarian approach and tries to determine principles of just society with the help of hypothetical contract among members of a society. His hypothetical introduces the notion of an abstract social contract to establish principles of justice. It is supposed by John Rawls that individuals who make this contract primarily care for their self-interest, that they are rational, well informed about human nature and functioning of society, and that they are placed under so called veil of gnorance. They are also assumed to know nothing about those of their characteristics, individual situation and circumstances that might influence impartiality of the decision-making. In egalitarian, that all members of a society should have the equal social, political, and economic rights and opportunities. John Rawls addressed that each person h as equal right to the most extensive scheme same basic liberties and defends this notion that every individual would be assured justice as equal treatment for all once the veil of ignorance is removed. In addition, John Rawls addressed that social and economic inequalities are to meet two conditions. The two conditions are economic inequalities are allowed but only if they benefit even the least advantaged individuals and attached to offices and positions open to all under conditions of fair quality of opportunity. The basic social structure, not the transactions between individuals, should establish justice as a cooperative project for the mutual benefit of society, and minimize the socioeconomic consequences or random natural differences between people. For PARKnSHOP’s, the stakeholders of it is included employees, customers, suppliers materials, wholesales, creditors, government and the environment society. It seems that the equalitarianism can be maintained. It’s paid the high taxes. It’s has always been committed to serving the community through involvement in the territories many social services for all stakeholders as well as charity work such as World Wide Fund for Nature. In addition, they are care about the welfare of people and built up the Li Ka Shing Foundation for the people who in hospital, education, construction and support the community activities and benefit people worldwide. It’s help people in need around the world and gives the equal social, political, and economic rights and opportunities for the people. It is the mutual benefit of society, and minimizes the socioeconomic consequences or random natural differences between people. Moreover, It’s gives the equal job opportunity to the minority and women.

Eutectic Definition and Examples

Eutectic Definition and Examples A eutectic system is a homogeneous, solid mixture of two or more substances that form a super-lattice; the mixture either melts or solidifies at a lower temperature than the melting point of any of the individual substances. The phrase most commonly refers to a mixture of alloys. A eutectic system only forms when there is a specific ratio between the components. The word comes from the Greek words eu, meaning good or well and tecsis, meaning melting. Examples of Eutectic Systems Several examples of eutectic systems or eutectoids exist, in metallurgy and in various other fields. These mixtures typically have useful properties that are not possessed by any single constituent substance: Sodium chloride and water form a eutectoid when the mixture is 23.3% salt by mass with a eutectic point at -21.2 degrees Celsius. The system is used to make ice cream and to melt ice and snow.The eutectic point of the mixture of ethanol and water is nearly pure ethanol. The value means there is a maximum proof or purity of alcohol that can be obtained using distillation.Eutectic alloys are often used for soldering. A typical composition is 63% tin and 37% lead by mass.Eutectoid glassy metals exhibit extreme corrosion resistance and strength.Inkjet printer ink is a eutectic mixture, permitting printing at a relatively low temperature.Galinstan is a liquid metal alloy (composed of gallium, indium, and tin) used as a low-toxicity replacement for mercury. Related Terms Concepts and terms related to eutectic systems include: Eutectoid: Eutectoid refers to a homogeneous solid mixture that forms from cooling two or more melted metals to a certain temperature.Eutectic Temperature or Eutectic Point: The eutectic temperature is the lowest possible melting temperature for all of the mixing ratios of the component substances in a eutectoid. At this temperature, the super-lattice will release all of its components and the eutectic system will melt into a liquid as a whole. Contrast this with a non-eutectic mixture, in which each component will solidify into a lattice at its own specific temperature until the whole material eventually becomes solid.Eutectic Alloy: A eutectic alloy is an alloy formed from two or more components that exhibits eutectic behavior. A eutectic alloy melts at a distinct temperature. Not all binary alloys form eutectic alloys. For example, gold-silver does not form a eutectoid, as the valence electrons are not compatible with super-lattice formation.Eutectic Percentage Ratio: This is defi ned as the relative composition of the components of a eutectic mixture. The composition, particularly for binary mixtures, is often shown on a phase diagram. Hypoeutectic and Hypereutectic: These terms apply to compositions that could form a eutectoid, but do not have the appropriate ratio of component substances. A hypoeutectic system has a smaller percentage of ÃŽ ² and a greater percentage of ÃŽ ± than a eutectic composition, while a hypereutectic system has a greater percentage of ÃŽ ± and a lower percentage of ÃŽ ² than a eutectic composition.