Chapter Five : Ehtics , Nget Soun Group January 8, 2009
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The Nget Soun group plans to start their own soup and rice business. The group wants to use the loan to for plates, tables, and chairs to help start up her business.
Ethics is about doing the right thing. To be a respected company they will have to be ethical to the people of Roka Village which is where they are located. This business should feel obligated to be ehtical simply because it is the right thing to do. Being ethical could create a great public image and would surely increase profits with popularity. Being socially responsible will tend to bring in big profits in the long run.
A good start to being ethical is making sure that the money they receive from the loan is used soley to get the business started. Once they get on the right foot and start to build profits, they could look into helping their economy and society. Taking social responsibility means not only caring about maximizing profits but also using the socioeconomic view to help improve their society. As a company develops new technologies, they should not only think about how it can build profits but how it can benefit society. They should also take into consideration if it will have a negative impact on the world and should weigh the benefits with the potential risks.
The Nget Soun Group must also have solid values so that they can evolve into a business that consumers respect. Although it may sometimes be easier in the short term to take unethical shortcuts to build your business quickly, building the trust of your employees and customers takes time and will eventually lead to a company that people want to work for and a brand that consumers trust. Once the company gains the trust of consumers, they can also influence them to help out the society as a whole.
Treating all employee’s and customers with the same amount of respect is also important. The managers decisions and actions should be fair and positive to employees. Good managers, in turn, have employees who mirror their behavior when dealing with customers. When employers share the same values as their employess in a business, it will help employees be more committed to their work and more loyal to the company. This is important to keep employee turnover at a minimim to keep hiring costs low.
Influencing marketing efforts may not sound like it could do alot but their are plenty of examples that prove different. In chapter 5 we read about Avons Production Inc. , their commiment to breast cancer increased their profits 4.9 million. if the Nget Soun group decides to push for these extra efforts it could help them a very long way in becoming successful. Since the village the Nget Soun group is located in is poor, they could market one free meal per week to those who can’t pay. This would probably make people more likely to think of them as an ethical business and would also make them want to support the business some day when they can afford to pay.
As you can see, a good and successful business will always be more popular, successful and profitable when their business philosophy is strongly based in ethics.
The success of business’ like walmart, target , and kmart completely contradict your last paragraph. Those three places, among other popular stores, have been accused of unethical and underhanded practices. Yet they continue to be hugely profitable and popular. Its backwards but true.
I liked all of the managment skills and technique that you used to explian your chapter however, I was a little confused about your recipent and what they needed the money for. I would have liked to know alittle more about them.
When dealing with a rice and soup company in a poor part of the world giving things our for free is not going to be a possibility. The business themselves is also going to be quite poor considering the fact that they have asked Kiva for a loan to begin this business. When taking ethics into consideration in a part of the world that is poor, I assume that their sorrounding are not taking ethics into consideration. Therefore, when attempting to sell rice and soup they must get the highest quality products for their least amount of money. They must do this behind the scenes by any means possible. Ethics here in America and ethics in this part of the world are not applicable. It is every man or woman for themselves fighting for a scarce amount of money being spent. Once they establish themselves near the top of the food chain this is when you can begin thinking about community and the people. Majority of businesses fail, it is cut throat until you are esbtablished and secure and even then there is going to be people trying to pull you back down the mountain you have conquered. Survival of the fittest, then think about any sort of ethics.
I agree with Josh, business in these parts of the world are not going to be able to practice the same business ethics that we in America practice. When a place like the Roka Village is this poverty striken you can’t expect a whole lot of social responsibility. To even be in business in a place like this, prices are going to have to be dirt cheap because of the lack of money. With the prices being dirt cheap, profits are going to be low. They are not going to be able to help the community out too much in comparison to the example of Avon.
I agree that a success company needs good ethics. Except the idea of giving one free meal a week to get customers to keep comung is not a good idea. The reason is because it takes money to make a business and to pay the employess. Also if the customers were smart they would send one of their family members to get something from the resturant then send another to keep getting free food.
I agree I found out that going green actually gets you more green. That is, being enviromentally responsible usually results in more profits. As you said ethics are very important to a company, a business can either sink or fail just because of ethics. Almost all companies have some type of ethics. And your idsea about one free meal was excellent especially considering the enviroment they are operating in.