4
Business Problems
Business Problems
Child Labor
Globalization affects how issues such as the use of child labor are analyzed. With globalization, there is increased competition between different brands. For instance, companies in the luxury industry have experienced high levels of competitiveness. Consequently, they opt to use every available strategy to gain a competitive edge. Some of them decide to find ways of reducing the cost of production (Rooyen, 2019). They achieve that by seeking out cheap sources of labor. Unfortunately, such actions lead to the utilization of child labor by such companies. An example of that is Primark which has been embroiled in cases of using child labor. Another company that has used child labor is Nike. To such companies, being competitive and achieving profitability take primacy over conducting businesses ethically. In their case, being ethical is a luxury they cannot afford. Practicing ethical business will reduce the company’s market share and profitability. Therefore, opting for unethical practices such as the use of child labor is perceived as a means to an end. The problem of child labor will occur in third-world countries where many global companies opt to outsource their manufacturing processes.
Ethical Dilemmas and Temptations
There is a difference between aspects of temptation and ethical dilemma. In the case of temptation, it is when one is faced with situations of right versus wrong. While the individual might be tempted to choose the wrong alternative, there is an option to select the right choice. On the other hand, an ethical dilemma is when a person is confronted with two right options (Corporate Finance Institute, n.d.). That creates indecisiveness when selecting the best alternative.
I have experienced temptation when managing a business. At the end of the year, I was supposed to offer employees bonuses because of their hard work. Even so, there was an instance where I was tempted to withhold the benefits, use them for other initiatives, and lie to employees the business was experiencing a cash flow problem. Fortunately, I opted out of the temptation to be dishonest. In another instance, I experienced the ethical dilemma of spending time with my friends or caring for my elderly family members. I had not seen my friends in a while, and we wanted to catch up. However, I felt guilty of absconding from my duty to take care of my family. In this situation, I opted to apply deontology and let duty to my family take precedence. I decided that time with my family would bring me the most joy in the long term.
Future Business Dilemmas
An issue facing 21st-century businesses is aggressive competition, often resulting in companies employing harmful tactics. To illustrate, there are businesses willing to exploit workers to lower their production costs and increase profitability levels. In many cases, the laws put in place cannot prevent aggressive competition between businesses. That creates a hostile business environment. The question that ought to be asked is, “what do businesses seek to achieve through the use of aggressive competition techniques?” Answering this question will be based on assessing the motivation of businesses that compete aggressively. The answer will possibly be centered around increasing profitability and seeking a reputation. Delving into this issue will make people aware of the consequence of aggressive competition. The media will play a critical role in spreading this message. Over and above, it will aid to ensure companies consider employees and societal welfare when developing strategies to help them compete.
References
Corporate Finance Institute. (n.d.). Ethical dilemma – Definition, how to solve, and examples. https://corporatefinanceinstitute.com/resources/knowledge/other/ethical-dilemma/
Rooyen, G. V. (2019, April 12). Reduce your costs and gain a competitive advantage. Entrepreneur. https://www.entrepreneur.com/article/328889
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