Introduction
Sometimes, there are cases in which the most morally correct conclusions might initially appear evident. The described situation introduces the readers to an honest manager from a small community and his seemingly egotistical boss, and the subjective reading of this narrative forces them to side with the sympathetic protagonist. However, in business and economics, aiming for objectivity is beneficial, and a more in-depth analysis of the presented case is crucial in achieving this goal.
Discussion
First, it is essential to determine the stakeholders of Ardnak Plastic Inc. Stakeholders are those individuals or groups of people whose support and participation are vital for an organization. In Something’s Rotten in Hondo, they are represented by George and Bill, but also by the Environmental Protection Agency (EPA), the community of Hondo, George’s family, and the Mexican government (Fraedrich, 1992). Since all of these separate entities play their parts in the conflict regarding Ardnak, it is necessary to address their interests individually.
In the text, there is little information provided about Bill’s background. Therefore, the readers can only assume he is driven by self-interest based on the reduction of financial losses. There exists an ethical theory that advocates for such an approach: the theory of ethical egoism. It ultimately claims an action is morally fair if it is based on pursuing one’s benefits or desires (Fascia, 2019). Additionally, there is another stakeholder with interests aligned with Bill’s.
The Mexican government is relatively detached from the case’s narrative, yet it significantly influences the situation. It supports Bill’s idea to relocate Ardnak to avoid problems with the EPA but requires the new staff to be hired among the Mexican locals (Fraedrich, 1992). The Mexican government here pursues the goal of improving the lives of the country’s citizens by providing additional workplaces.
The EPA also has a responsibility toward the country it belongs to. Initially, the fines that are assigned to Ardnak are the starting point of the conflict; still, it is essential to understand that impacting the income of companies prompts a more environmentally friendly behavior (Romero et al., 2018). Being an ecological organization, it is tasked with the challenging job of maintaining the environment to ensure the health of the country’s citizens.
Despite being separate stakeholders, George’s family and the community of Hondo pursue the same interests. Their goal is to keep Ardnak from relocation to ensure a stable socio-economic situation in town. All of them, including George himself, are motivated by utilitarianism, the pursuit of the greater good for the largest number of people (Fascia, 2019). Notwithstanding, George finds himself in slight opposition to his community’s notion of doing whatever it takes to keep Ardnak in Hondo. He deems it unethical to participate in environmental pollution through fraudulence since it will affect many people. However, George realizes that relocating Ardnak will result in similar environmental damage while also devastating the Hondo community.
Many ethical approaches can be taken to view this situation from different perspectives. Each stakeholder has their own interests in mind, and all of them are morally fair in their particular ways. Whether the decision-maker’s responsibility to provide for their family outweighs their ethical responsibility to company stakeholders is a question that might be challenging to find the correct answer to. It depends entirely on the ethical theory applied to the situation. Acting in the interest of one’s family might follow the ideas of ethical egoism while considering the responsibility to other stakeholders aligns with the ethics of duty or “Theory of Justice” (Fascia, 2019). The aforementioned ethical relativism is essential in figuring out the most objective approach to issues as complex as this one.
Conclusion
In conclusion, it is vital to state that observing cases from various sides is crucial in business and economics. There are often many figures in play, and everyone has their reasons to act in a certain way. One true answer to the ethical questions that such cases raise might not exist, but it is necessary to keep asking them since it aids in building a more objective perspective.
References
Bajrami, D., & Demiri, B. (2019). Ethical relativism and morality. ILIRIA International Review, 9(1).
Fraedrich, J. (1992). Something’s rotten in Hondo. Arthur Andersen & Co.
Fascia, M. (2019). Business ethics [PowerPoint Slides]. Web.
Romero, J. A., Freedman, M., & O’Connor, N. G. (2018). The impact of Environmental Protection Agency penalties on financial performance. Business Strategy and the Environment, 27(8), 1733-1740.