BUSN119 Business Ethics & GCE Assignment – marks, worth 15% Prof. Shanker (Shanks)Seetharam Name of student Student ID CENTENNIAL COLLEGE | BUSN 119-001 for the review of Professor Shanker Seetharam 0 Page 1 of 7 Introduction The essay below moves along a path of examining a story, relating it to Ethics, our dilemmas as Global Citizen , the rights of a consumer, Prof. Shanks lecture points on GC& E, Equity issues and finally our understanding of this complex set of issues. Management, Stakeholders & Ethics There are many dilemmas that arise in the realm of business. As enterprise grew it quickly began to divide in application based off the core values of its players. What players you may ask? People. In the Story of Stuff (Priggen, 2009) video the host Annie Leonard explains how the model of business currently works off an unsustainable linear model. Leonard (Priggen, 2009) takes on a journey through the lifespan of a product, from collect materials to build the product to the point that it is disposed of it. Along the way exposing different difficulties that arise because of the application of the philosophy. The Story of Stuff (Priggen, 2009) opens the viewer to many dilemmas that can occur in the business world. Through a web of connections that affect every stakeholder. The owners’ group seeks to be profitable quarter over quarter, but with a linear model the resources of the countries and their governments can not continue to provide without affecting the well being of the communities and planet. It is difficult to make people want to put up capital in your company and help it grow if you have low margins or high production cost. To increase margins, venture capitalist pressure businesses to move your production overseas to gain larger returns and take your business from small business to MNC, but by removing the employment you may struggle to have a market to sell your now margin rich product to. Owning groups must understand that resources are limited and that to be effective global citizens they must find ways to balance growth expectation and using sustainable and renewable sources. A great dilemma exists between being profitable and giving your workforce a living wage. Over coming by outsourcing to gain cheaper labour cost to the owners will then affect your workforce because they will eventually not be able to afford you products. You also don’t build loyalty. So how do you retain talent? Do you offer them better wages and focus your marketing to be able to afford them, or do you adhere to their code of ethics and hope they stay because of the employee’s values and morals? Perhaps be seen as a morally socially responsible company? The Dilemma as a Global citizen : As a global citizen an understanding that not only are workforce your stakeholders, but they are also a resource, your clients, and your community. Always reaching for profit over equity can only lead to a collapse of the system. You cannot sell to people who do not have their fair share. If all Business-to-Business operation continues to cheapen their products in order to entice other business to buy from them, then we will continue to overuse our natural resources. This was highlighted by the radio example Leonard (Priggen, 2009) uses in the Story of Stuff, where she Page 2 of 7 educates the viewer on how a radio costs more than the retail price, but through levels of shortcutting stakeholders the product can be sold below cost. By adjusting the system so that each member in the chain of a product pays a price equal to the proper process or manufacturing cost, then even though products will be more expensive, the consumer will have made enough salary to pay for it. Adopting a system where we pay for what we get will ensure we are global citizens that care for ourselves and our fellow man. Consumer issues: What about when you are trying to take care of your consumer, but are harming them at the same time? Leonard (Priggen, 2009) points out in the Story of Stuff where a safety standard, a chemical that makes things like pillows flame resistant, but the chemical is toxic to humans. What is more important, safety in a fire at the cost of a health issue that might arise through continued exposure? One of the hardest dilemmas to overcome is one that has equal negative aspects on both sides of the argument. This topic can be furthered, like how does a firm keep their products from expiring or wearing too quickly? they add chemical preservatives and coatings. Now the product last longer, but the chemicals can negatively affect the customers and environment in the long run. We as global citizens can continuously strive to overcome dilemmas found in Leonard’s (Priggen, 2009) pillow example by not always accepting norms, once the flame-resistant chemicals are found to be toxic, shifting to find new solution. It’s our duty to find a balance, but focusing on favoring the natural and human resources over profits and margins. Prof Shanks lecture points: Prof.Shanks talked of Caste system in India as an example of ethics. Of patriarchal local support in China. Of how powerful leaders have tried to change issues of Equity. Of how some leaders get extra ordinary powers because of their popularity that leads to abuse of power. The difference between Equity and Equality. He gave the example of bringing one size blue colour shoes for all students which is equality but not correct. Vs if he brought different sizes and different colours shoes for all which is equity but always harder to achieve. He talked of examples in India on corruption. He showed the Corruption index and talked of how this goverens imagery about Coountries and their leaders worldwide. Prof Shanks talked of the Nestle debacle. How this large consumer packaged goods firm talked to millions of women worldwide assuring them that Nestle Baby foods was a healthy choice instead of mothers milk. This unethical practise resulted in several thousand children dying. Of course the company was sued for millions. Besides money the company lost its reputation. I wonder what it would have meant to be an employee of Nestle in those years of shame! Or the case of Bridgestone tires that were shredded on roads in Middle east because the rubber in those tires were not designed to withstand extreme heat and speed. And the cover up by the company. Global citizens should conduct business with a commitment to using practices that are healthy for the local environment, not by increasing profits or pricing with methods that are not completely ethical, but legal. We should manage profitable businesses that provide a reasonable Page 3 of 7 cost to the customer and help to provide tax dollars and community philanthropy funding. We can find an equilibrium between governments responsibility to its citizens and its responsibility to attract and retain business investment. We can do this by focusing on tackling dilemmas head on and putting each other first. Ethics in Practice Patagonia truly embodies many of the philosophies needed to ensure sustainability of the planet’s resources. I discovered the brand Patagonia while I worked as a Warehouse Manager for SportingLife Inc. I was quite aware of how popular this brand is, I would estimate that Patagonia took up 10 to 15 percent of our outerwear storage. When the remainder was housing such giants as Canada Goose, The North Face, and Columbia, I can assure you that this percentage was quite high real estate for our business. It is shocking to find out Patagonia is such a responsible company. One can deduce that Patagonia are finding the right balance between quality and social responsibility. They often overshadowed the demand for less environmentally responsible competitors like Arc’teryx, Helly Hansen, and Karbon. Since I have left SportingLife Inc., I noticed that today (Feb 2021) SportingLife Inc. website (SportingLife Inc., 2021) lists Patagonia as their 3rd most popular brand. So, with that much presence we can deduce that Patagonia is a global leader in the market for outdoor enthusiast apparel. Complexities of Patagonia Case From their own website (Patagonia, Inc., 2021) the first thing you witness is an article bring awareness to a black bear initiative titled (Wynn-Grant, 2021) Black Bear, Black Liberation https://www.patagonia.com/stories/black-bears-black-liberation/story-95900.html before any mention of marketing strategies. Just after the Black Bear article link, we can see a ribbon for Patagonia’s different lines of products. What is the first line you can choose? Like most apparel companies, do we see the men’s line link, nope. Patagonia first link is to their Used Gear line (FYI the next is Women’s and third is Men’s). Patagonia’s link opens a pop-up window to direct you to a Patagonia initiative called WornWare (Patagonia Inc. (WornWare), 2021) https://wornwear.patagonia.com/ with a caption (Patagonia, Inc., 2021) “What's Cool About Used? Buying used extends a garment’s life by about two years, which cuts its combined carbon, waste and water footprint by 73%”. Patagonia is clearly focused on being a GCE leader. My breath was taken away when I watched a video at the WornWare (WornWare, 2021) site explaining how the program works https://youtu.be/cMgfVenLRSI. Patagonia has been the first company I have ever seen to dismantle the concept of planned or perceived obsolescence. Through doing so they have been able to overcome the dilemma of how you can make profit for your owning group and still be conscience toward being sustainable and forthright. Patagonia is a known member of ImpactSpace (ImpactSpace, 2021), what’s ImpactSpace? According to ImpactSpace’s website (ImpactSpace, 2021) they state “ImpactSpace tracks investments in solutions to environmental and social challenges. We are the open database for the impact investing market.”, which means that members to the site are completely transparent with their data to investors regarding how they conduct business and the cost of their philanthropy and environmental initiatives/policies. Page 4 of 7 This combination of sustainable practices, using recycled and eco-friendly textiles aligned with a commitment to manufacturing (weather that is making new clothes or offering a Philanthropic laundry/repair service to have worn Ethical clothing made suitable for reuse/resale), Legal lastly providing transparency to Economic stakeholders on the practices has made Patagonia’s use of Carroll’s pyramid resemble more of a trapezoid shape. Weighing each level more equally important. Before looking into the Patagonia business model, I honestly thought that you could not be an industry leader and be highly ethical. In my time of managing a Patagonia resellers warehouse, I thought that Patagonia were just like any other outerwear brand. Seeing how much Patagonia weighs social responsibility while giving equal part being profitable has raised my standards. I honestly do not think I can just shrug my shoulders when I hear of a company that just keeps reaping resources and exploiting its stakeholders, specifically the workers and communities. This project has really made me want to hold corporations accountable by not investing, whether that is by not purchasing their products, by not working for corporation that do not hold my values, or by challenging government officials do increase sustainable and fairness standards. By recognizing that if a corporation has the product made in another country, that they should treat the employees fairly and give them a living wage, and if a corporation collects resources from another country then researching them to see if they are doing so responsibly and ethically. If I do not change and support businesses like Patagonia, then how can I expect any change from consumers and corporations. I think a big portion of the problem is that corporations are only reflections of societies values, if we strengthen our values, then corporations will do as they have always done and produce products that align with our values. My first step is to go to WornWear (Patagonia Inc. (WornWare), 2021) and shop, corporate thrift is such a great idea toward sustainability. Reflection on Ethics Is it our Moral compass? In the Chapter on Ethics, Prof. Shanks used this phrase quite often. It becomes relevant in here In our era where time is limited, we often support companies that make our lives easier, even if they are not practicing completely ethically. We often can just bury our heads in the sand and justify our decisions by attributing the gained time to spend with our families and personal interests. We need to understand that we can no longer just accept that we must work too hard just to consume more. I have learned that adhering to the norms is not the only way for society to function. Corporations can act responsibly, but we must change our approach and recognize how who we work for, the products we buy, and our critical processing of messages are what has got us to where we are today. It will be us, future businesspeople that will be the paradigm shift needed to break the parasitic approach to how we manage the world resources. We have already started to see a shift in corporations, as a result of the age of information a company can no longer be successful and grow without having a strategy for philanthropy. Even the idea of being a global citizen is relatively new concept that was birthed from the impending crisis on humanity Page 5 of 7 and nature. I am reminded of UK rapper The Streets (Skinner, 2008) Lyric from the song The Way Of The Dodo “It's not earth that's in trouble, It's the people that live on it, no no, Earth'll be here long after we've all gone the way of the dodo” (0:25-0:36). Corporations and stakeholders are made up of people and it is people’s responsibility to take care of the planet and each other, without global citizenship centered around equity and sustainability as the basis of our future, we will become extinct. What are your responsibilities to being a Global Citizen? So, either you are a part of the problem or you are part of the solution. As a future businessperson and global citizen, I will commit to creating a strong set of values that is rooted in utilizing sustainable practices and a strong desire for human equity. After taking The Story of Stuff Projects quiz, I was introduced to notion that I am a “Builder”. It is my responsibility to create, whether that is building eco-friendly community spaces in my part of the world or finding ways to design collectives to spread knowledge to every level from local to global. I will recognize that each role from within any organization I am part of I can apply entrepreneurial, philanthropic, and empathetic mindsets to combined success and humanity. Being a builder is part leadership, part commitment. My skills are not only for me, they are most rewarding when used to help others. Do my homework before I shop I will personally focus more on supporting those who are transparent with their business and reflect the values I hold dearest. I will take the time to research the companies I shop with, I will reward those who have made a positive impact on my community, my country, and my world. I will reject the companies, mighty and small, who exploit our resources, both natural and human. I might be paying more as a result, but without a commitment for change we can not sustain the planet. I will not allow governments, including my own, to put people in a position where they can not have access to the same privileges I have, even if that means losing some. I will respect the planet by using resources I have until they are worn out, not disposing of them when I feel the need to “keep up with the Jones’”. I will not reward those with more privilege to continue to act selfishly and only advance their own interest at the expense of others. I will offer myself to my community more, replacing media interaction with social interaction. I will not give my time to organizations that do not recognize a need to give back. I will offer my talents to companies that have a vested interest in the planet and the community. Prof. Shanks on Global issues and GC&E Outcomes Prof. Shanks talked in detail on the Rights of Women and how they evolved over the years and decades. Education is the key to empower women. The big difference is between Equity and Equality. You create equal opportunities to both genders in all incomes and after some decades you build equity between genders, age groups and races. Prof. Shanks mentioned how the Caste system in India has slowly eroded over the decades because of push back against discrimination based on birth place and family status. He also focussed on global issues of hunger, unbalanced distribution of wealth and explotation of labour in several developing countries. Page 6 of 7 Prof. Shanks on Corruption Perceptions Index On Ethics and global bribery, Prof. Shanks highlighted a global study that highlights the plight of corruption that dogs the business world in several countries. There are local and government laws that prevent Canadian firms from being involved in such unethical norms The Corruption Perceptions Index (CPI) is an index published annually by Berlin-based Transparency International since 1995 which ranks countries "by their perceived levels of public sector corruption, as determined by expert assessments and opinion surveys." The CPI is published by Transparency International, an organization that seeks to stop bribery and other forms of public corruption. A country's score can range from zero to 100, with zero indicating high levels of corruption and 100 indicating low levels. Transparency International launched the index in 1995, and today it scores 176 countries and territories. It is published annually. The 6 GC&E Outcomes ( Must be expanded and explained as it relates to you for at least more than a page. Details for each point must be explained based on GCE at Centennial College, Prof.Shanks explainations, plus your own explainations to these outcomes It certainly made me aware of the six GC&E Outcomes: Centennial’s distinctive GCEI educational experience integrates the principles of global citizenship, social justice and equity into the curriculum and prepares students to succeed in the global marketplace 1. Identify one’s roles and responsibilities as a global citizen in personal and professional life. 2. Identify beliefs, values and behaviours that form individual and community identities and the basis for respectful relationships. 3. Analyze issues of equity at the personal, professional and global level. 4. Analyze the use of the world’s resources to achieve sustainability and equitable distribution at the personal, professional and global level. 5. Identify and challenge unjust practices in local and global systems. 6. Support personal and social responsibility initiatives at the local, national or global level Conclusion : We must think globally to develop innovative solutions to current world issues. We must recognize diverse perspectives. Enhanced our capacity to understand and integrate multiple viewpoints Strategically Communicate and Cooperate and engage effectively in complex situations across diverse groups. Understand our Personal and Social Responsibility. Understand one’s role in addressing local and global inequities. Finally a sense of Empathy and Global Citizenship and responsible citizenship through actions that advance social change Page 7 of 7 . . References ImpactSpace. (2021, February 28). Retrieved from ImpactSpace: https://impactspace.com/ Patagonia Inc. (WornWare). (2021, February 28). WornWare. Retrieved from Patagonia: https://wornwear.patagonia.com/ Patagonia, Inc. (2021, February 28). Retrieved from Patagonia: www.patagonia.com/home/ Priggen, E. (Producer), Leonard, A. (Writer), & Fox, L. (Director). (2009, April 22). The Story of Stuff [Video]. Retrieved from https://www.youtube.com/watch?v=9GorqroigqM Skinner, M. (2008). The Way of the Dodo. Vice Records. SportingLife Inc. (2021, February 28). Retrieved from SportingLife: https://www.sportinglife.ca/ WornWare (Director). (2021). How Does Worn Wear Work? [Video]. Wynn-Grant, D. R. (2021, February 28). Black Bears, Black Liberation. Retrieved from Patagonia: https://www.patagonia.com/stories/black-bears-black-liberation/story-95900.html