Organizational Design and Theory, Article Critique Example

Abstract

This paper examines the concept of ethical dilemmas in Organizational leadership. Particular emphasis on a critique of the article put forward by Will Law and Eileen Davenport entitled “Organizational Leadership, Ethics and the Challenges of Marketing Fair and Ethical Trade” (Davenport, 2008).  The paper is divided into three sections (i) Ethical Background in Business (ii) Critique of Article and (iii) conclusions.  How important are ethics in the context of organization and business leadership?

Ethical background in business

Business has a responsibility to conduct itself in a fair, equitable and professional manner exercising a responsibility to its shareholders. The conditions to employ women and children, particularly in third world overseas locations, are such that it should ensure a safe, hygienic and environmentally safe workplace. It must pay a remuneration that is equitable to the value of the work done i.e. consider the organic fair trade producers of Coffee in Africa and South America. They have a duty of safety to their employees to ensure that they are not ill-treated or made to work long hours. Children in the Cocoa and Chocolate industry of Africa have been cited as one area where child slave labour has been employed “Young boys and some girls, between the ages of 11 to 16, are sold into slave labour and forced to work on cocoa farms, to harvest the nut that produces the brown gold” (Thomas, 2010). 

Business Organizations need to conduct an audit of their operational practices in order to ensure they are not faced with these types of ethical dilemmas. The shoe Company Nike did not realise its extent in the use of child labour, particularly in Cambodia and Pakistan and had to make a series of adjustments “The multi-billion dollar sportswear company Nike admitted yesterday that it “blew it” by employing children in Third World countries but added that ending the practice might be difficult” (Boggan, 2001).  Certain measurements have been put in place by the US Government “Antitrust laws were developed to make sure businesses compete fairly while providing quality services and products to consumers. These laws were created at federal and state government levels.” (Adkins, 2010). Firms can also use vendor surveys and only do business with those firms that adopt a similar code of business ethics.  Helplines and websites are other useful means of soliciting information about unethical practices and in addition, educating employees on the standards and ethical behavioural practices that are expected from them.

Critique of article

The article evaluates those current practices for marketing fair trade labelled products. The concept of those organizations who are mission driven in order to provide ethical practices in their respective organizations. Focus on non-profit organizations like zoos and aquaria that blend conservationism in with their marketing mix.

The problem is that there are still an increasing number of businesses that are unaware of their ethical responsibilities in the marketplace.  This includes a lack of fair trading practices or exploitation and the use of cheap child or female labour, particularly in third world countries.  The problem has manifested itself in a wide range of commercial products including that of textiles, chocolate, coffee and tea plantations etc.

The impetus for change has largely come about by the work of the ‘Fair Trade Movement’ and the anti-sweatshop movements. These pushing for reforms in the use of child labour, unfair and unethical business practices, predominately in third world countries and in addition animal welfare.  Some large Companies have supported this and quickly used the ‘Fair Trade’ image to promote the sale of their goods. One such example being that of the coffee giant ‘Starbucks’ – “Starbucks stores in the UK and Ireland (NASDAQ: SBUX) today began serving 100% Fair-trade Certified and Starbucks™ Shared Planet™ verified coffee in all of their espresso-based beverages” (Kyme, 2009).  Despite this there are certain flaws in the approach and the so called “ethics gap” whereby for example; consumers are not putting ethical considerations like Fair Trade at the centre of their buying or consumer spending. Concepts of “price, quality and brand are seen to override ethical concerns.” (Davenport, 2008). Fair trade statistics provide the following current picture:

• Over 1.5 million Fair-trade producers and workers in 58 countries
• Around 3000 traders of Fair-trade certified products in over 73 countries
• 60 countries where Fair-trade certified products are available
• €2.3 billion (US $3.62 billion) sales in 2007 – a 48% increase from the previous year Source: (Fair Trade Foundation, 2009).

Conclusions

It is clear that many organizations are making concerted efforts to improve business ethics with regard to fair trading and equitable use of labour. There is still however a great deal more to be accomplished and particularly in the garment and textile industries in such areas as India, South East Asia and Africa.  Certain countries like China still make this difficult to accomplish where outside intervention in the areas of human rights is neither welcomed nor supported.  China being a major exporter of clothing and textiles world-wide is able to produce inexpensive goods because of its use of child and low pay production programs. The use of branding is an important concept in terms of getting the message over to consumers, however there is still the need to increase consumer education in this regard through the media and other reporting channels.  Companies must become complacent in this regard and must continuously evaluate their operational practices in order to ensure that they are maintaining an ethical sense of behaviour in the market place.

Works Cited

Adkins, M. C. (2010, 10 19). What international strategies do US Companies use to force ethical codes. Retrieved 10 21, 2010, from e-how: http://www.ehow.com/list_7361158_interorganizational-use-enforce-ethical-codes_.html

Boggan, S. (2001, 10 20). Nike Admits to Mistakes Over Child Labor . Retrieved 10 21, 2010, from Common Dreams: http://www.commondreams.org/headlines01/1020-01.htm

Davenport, W. L. (2008). Organizational Leadership, Ethiocs and the challenges of Marketing Fair and Ethical Trade. Journal of Business Ethics, 1-11.

Fair Trade Foundation. (2009, 4 17). Fairtrade flows against the tide. Retrieved 10 20, 2010, from Fair Trade Foundation: http://www.fairtrade.org.uk/press_office/press_releases_and_statements/april_2009/fairtrade_flows_against_the_tide.aspx

Kyme, I. (2009, 9 2). Starbucks Serves up its First Fairtrade Lattes and Cappuccinos Across the UK and Ireland. Retrieved 10 21, 2010, from Fairtrade Foundation: http://www.fairtrade.org.uk/press_office/press_releases_and_statements/september_2009/starbucks_serves_up_its_first_fairtrade_lattes_and_cappuccinos.aspx

Thomas, L. (2010, 6 7). .Child Slave Labour And The Chocolate Industry. Retrieved 10 21, 2010, from The Tropic Post: http://www.tropicpost.com/child-slave-labour-and-the-chocolate-industry/