Sana Nabi Kirti Siddapur Mandanna Tm Rohan Nair Sudipta Sar

GROUP 8

Sana Nabi Kirti Siddapur Mandanna TM Rohan Nair Sudipta Sar

ETHICS CASE STUDIES

BIG BUSINESS EMBRACES FARE TRADE A CASE ON ETHICAL SOURCING AND BUYER SELLER RELATIONSHIPS

FAIR TRADE

Form of ethical sourcing that delivers a guaranteed price to growers in developing countries. With many at risk from the fluctuating prices of international commodity markets, growers in the fair trade system are offered income stability at a livable wage and benefit from “social premium” to fund development of projects.

FAIR TRADE  Direct Purchasing  Long term relationships  Product Accreditation

DEVELOPMENT IN FAIR TRADE  First fair trade product : Max Havelaar Foundation in the Netherlands in 1988 on coffee outsourced from Mexico.  Product range: fruit, tea, wine, clothes, footballs, flowers etc.  Social premium has helped farmers to fund education, training projects and health care.

Sales of Fair Trade Products In UK

2000

2003

2005

Coffee

15.5

34.3

65.8

Tea

5.1

9.5

16.6

Bananas

7.8

24.3

47.7

CRITICS  Fair trade is a cynical attempt to cash in on the growing market, rather then a genuine commitment on the fair trade ideals  Non Fair Trade Banana plantation growers they are paid one penny for every pound worth of bananas sold in the Tesco.

CRITICS Biggest winners aren’t always the farmers but can be retailers who charge a huge mark-ups on fair trade goods while promoting themselves as good corporate citizens. - Wall street Journal.

DISCUSSION QUESTIONS Arguments for and against the Involvement of Big business in fair trade from the point of view of  Suppliers  Supermarkets

SUPPLIERS VIEW POINT For - gaining better wages than before - social premium for funding projects, health care & education. Against - No Fair wages.

DARWIN’S NIGHTMARE

LOCATION

LAKE VICTORIA  Lake Victoria directly and indirectly provides a livelihood for their households as well as myriad traders, boat builders, gear artisans, transporters, and others who offer support services connected with the fisheries.

STAKEHOLDERS

RETAILERS

FISHERMEN

STATISTICS Kenya

Tanzania

Uganda

Landings

104,000

120,0001

159,000

Exports (fillets)

16,493

18,000

13,500

Exports (live equivalent)2

49,500

54,000

40,500

% export utilisation

47

45

25

Export value (US$million)

49.0

53.5

37.9

STATISTICS CONTD…..

SOCIAL IMPACT     

Family split Lawless Fish cities Only factory owners gained People ate the sundried leftover. Arms trade became easier

ECOLOGICAL IMPACTS  Smaller native fishes vanished – impact on bio-diversity  Overfishing  Deforestation  Industrialization  Human pollution

OTHER EXPLOITATION  African people were exploited for Diamond in Sierra Leone for crude oil in Libya, Nigeria & Angola

What could have been done  The engagement of NGOs, communities, private sector had a useful role for development, management & sustainable utilization of fisheries.  Role of the Govt - Regulatory body for fish exports - Export can be limited

Good Luck!

Arthur Anderson – Conflict of Interest

Conflict of Interest  Decisions to be made about whose interests to advance?  Definition - A conflict of interest occurs when a person’s or organization's obligation to act in the interests of another is interfered with a competing interest that may obstruct the fulfillment of that obligation

Arthur Anderson – Conflict of Interest

 One of the Big 5 accounting firms – 85000 employees till 2002  In 2001 Enron admits to concealing a loss of $586m  In 2002 WorldCom overstated their earnings by $7.7 Billion – the biggest accounting fraud in Wall Street  Guilty of obstructing justice in 2002 for shredding documents to conceal the Enron case  Accenture – the consulting division of Anderson provided financial consulting and other value added services

A Beautiful Deal  Supplier1–Beauty to go(Past Relationships)

 Supplier2–Real Cosmetics (Savings 7% on costs)

Questions • What are the ethical issues at stake here? • What ethical theories might be of help in deciding a course of action

• How would you proceed?

THANK YOU