Monthly Archives: September 2014

More Harm than Good?

BC Hydro wants to construct a dam and a 1,100-megawatt hydroelectric generating station on Peace River in northern BC – an area that lies right on the heart of the Tsilhqot’in First Nations reserve. Although in Canada we occasionally hear about the disputes between the aboriginal people and the government, I think that in order for us to truly understand the situation, we need to put ourselves into the shoes of the aboriginals. If you had a home that was in your family possession for many generations and someone wanted to come and build a project on – without your consent- what would your reaction be? In my opinion, the government is taking advantage of aboriginals because of the fact that they have little power and wealth. If a wealthy individual lived in a place where BC Hydro wanted to construct a dam, they would most likely have to go through a lot more persuasion and possibly give financial incentive.

This new project would flood 83 km of land as it is constructed, harming and destroying farmland and natural habitat. Additionally, it will directly affect the aboriginal people that live near the future construction site. The project would cause a significant negative effect on fishing, hunting, and prevent them from using the area for ceremonial practices. Liz Logan, the delegation member of the Fort Nelson First Nation strongly believes that the project would cause more harm than good and explains why the land is important to the aboriginals: “It’s our church, it’s our store, it’s our school. We have elders’ gatherings there annually,” 

Also, aboriginals aren’t uninterested in pushing the economy forward with new projects, it is just simply that they want to do it in a way that doesn’t disturb their culture and the nature around them. Both the chiefs have stated that their communities want to support projects that incorporate wind, solar, and geothermal power. In order for this project to advance, I believe that BC Hydro must appropriately talk to the First Nation chiefs and discuss and learn how to cooperate with the aboriginal people’s wants and needs.

 

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Nike’s Sweatshop Controversy Resolved due to Operations NOT Ethics

–Comment on Micheal Mauro‘s Blog Post–

While Nike’s sweatshop controversy was publicized and scrutinized heavily from 1991 to 2000, there are many other famous brands in North America still using sweatshops as a method of paying lower labor wages and cutting production costs. Some of these brands include GAP, Walmart, H&M, Victoria’s Secret and more. However, Nike’s situation was special because it was so heavily publicized. Unlike Nike, many of these brands – some that I have mentioned – are not receiving nearly the same amount of criticism that Nike had to endure.  If one looks at what happened to Nike, it might seem as if good business ethics is the best and only way to have a successful business : In summary, during the 1990’s Nike was a company losing profit and consumers due to their unethical business propositions. However, Nike has now begun to show the global market how ethical behavior is beneficial.” [1]

 However, in reality, Nike’s business turned around because they handled the controversy appropriately – not because they suddenly implemented good business ethics. The Operations team in Nike impressively figured out the best way to handle the situation given that they were under the public eye. Now, if any of these other companies suddenly find themselves in a huge sweatshop controversy like what Nike had, will they be ready to handle it with the same amount of precision and skill?

 

[1] – Micheal Mauro 

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South Korea’s Sewol Tragedy Affecting the Economy

Businesses are very easily affected by the environment that surrounds them. For South Korea, the Sewol Ferry Disaster that occurred on April 16th, 2014, proves this theory to be true.

A ferry with 476 passengers – mostly high school students – left for Jeju Island, a popular Korean tourist destination. However, when the ferry started to slowly sink to its side at the southwest coast of South Korea, no significant rescue attempts were made to save the students and passengers trapped inside until it was fully submerged. This ferry accident is not merely just an “accident”. Many South Koreans believe the disaster occurred because of the evils in South Korean government (read more here) which makes the situation harder- or virtually impossible- to simply move past.

South-Korea-Ship-S_2883646b[1]

With the South Korean citizens mourning the losses of this tragic and unjust incident, the South Korean economy took a hit in many sectors:

Tourism – Many field trips and school events were delayed, and some tour companies had half of their reservations canceled as of April 18. Also with School Boards banning school trips, more than 70,000 airline tickets were cancelled 

Retail – With retailers avoiding marketing to pay respects to South Korean citizens, many major retail companies have seen a great decrease in sales. For CJ O Shopping, a large South Korean retail company, sales fell a record of 20% after the disaster.

Entertainment – Many South Korean television shows and dramas were put on hold to not only pay respects, but to allow more air-time for the news. This critically affected the media sector of the Korean economy, as they waited for weeks to resume normal scheduling.

With external factors being able to damage companies significantly, it is up to each company to be prepared to handle emergency situations with care and knowledge.

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[1] – Photo

 

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September 15, 2014 · 3:37 pm

Running a Business on Ethics Alone

Lisa Mah’s Blog

The fashion company, Honest By  seems like they have a great approach to business from the ethical view-point. Personally, I appreciate the company for trying to do business differently than most companies. According to my research, Honest By started up in 2012 and have been on the market since. However, although the idea of transparent business process of making and producing products sounds great, it seems that they are not very well marketed in terms of brand name – other than the fact that Jennifer Lawrence wore a Honest By dress in 2013.

Honest-By-650x355 [1]

From a purely profit-driven point of view, I believe that this company will need to market the brand more, while continuing to do business in a more ethical way. If Honest By believes that they can make profits JUST by having a more ethical business method, they could run into serious problems. In conclusion, I do not think customers will start purchasing from this brand because of their more ethical approach to business.

[1] – Photo

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Class 3: Business Ethics

Freeman’s stakeholder theory – a theory that states that suppliers, consumers, employees, communities and financiers, all have to be equally valued in order for the business to be successful, is a theory that is not being practiced with the $250 billion company, Walmart. Starting on September 29, all Walmart employees will have to follow a new dress code: a collard white or blue shirt with black or khaki pants.

original                                                                                                                          [1]

 

Although the employees do not have to buy this new “look” from Walmart, they will however, have to get it elsewhere and/or pay for it themselves. Keep in mind that the majority of Walmart employees are often not the most financially well-off: “Walmart claims to… pay an “average, full-time hourly wage” of $12.92. But those earning closer to the minimum wage may fall below or just above the federal poverty level.” [2] Although there is a mixed response coming from Walmart employees regarding the new uniforms, there are loud cries of complaints. Simply put, many employees do not have the $30-$60 to invest in these new “uniforms” for work, when they are barely making  enough salary for their living costs.

In my opinion, I believe that the company will enforce these new uniforms regardless of the fact that some of their own employees cannot even afford it. Walmart has been under scrutiny multiple times throughout the recent years and it is this type of business practice that shows negligence to their employees and community that will ultimately destroy the trust of stakeholders, creating a future risk of decline in the company.

 

[1] – Photo

[2] – Jillian Berman, The Huffington Post

 

 

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