Aishwarya VermaAIR 4 · CSE 2021 · 271 wordsTheir whole copy
Opening
The following case highlights the deterioration of business ethics that leads to labour exploitation, environment degradation due to internationalisation of the supply chain.
Body · points
(a) Yes, company A should be held responsible for lapses made by individuals in its supply chain due to following reasons:
(i) By increasing the spread of company, the profits of company would also have increased, this makes them morally obligated towards the issues caused by the spread of company.
(ii) Company is using the international resources of a particular territory therefore it should ensure that the benefit should be shared equitably.
(iii) Environment is a global common good that has transboundary nature. Hence responsibility towards it cannot be evaded by citing the jurisdictional limitations.
However such allegations must be investigated thoroughly to determine the extent and the measures to be followed.
(b) Customers should take into account the ethical track record of companies because:
(i) A mechanism of social accountability can be enforced on the companies.
(ii) Their responsibility towards various sectors can be highlighted to them.
(iii) Equitable distribution of benefits can be ensured. Eg: CSR can ensure that Companies "give back" to society.
(iv) Ethical standards of the companies can be improved.
(v) Sustainability and responsible behaviour towards environment can also be ensured.
(vi) Global harmony among nations can be ensured. Eg: Concept of Common but differentiated responsibility - fruits of development shared by all.
Close · a summary
Thus responsible consumer can contribute manifold in ensuring the business ethics of companies.
Companies like Tata group are known for strong ethical values which is reflected in the consumer trust and is beneficial for long term sustainability of the company.