Ethics

This paper talks about the recommendations proposed for Energy Cooperative and Clean Power Company. The paper has been divided into parts where in both cases have been discussed giving special emphasis to the ethical concerns if any regarding the companies being discussed. It also discusses the effect on stakeholders of these and supports the chosen argument with appropriate and relevant theory after which recommendations for each case has been talked about.

Case 1 Energy Cooperative
Statement of Ethical Concerns
The directors are practicing on unethical dimensions through informing their personal clients that they are directors of the company  when in real the company has had stated the position of these people being that of a self-employed consultant.

Effect on Stakeholders
This hangs over the realm of deception as other self-employed consultants who dont portray themselves this way, their position and reputation along with ways of working may get affected. Apart from the effect on other members of the cooperation through this, the deception might just even harm the companys own interest and functioning efficiency. Customers will get disappointed if they do not get the adequate service (education) that they desire due to internal conflicts within the company resulting from the deception. Another effect on a stakeholder would be alternative energy companies who work with Energy Cooperative that could possible think twice about doing business with the company.

Application to Course Material
Since this ethical issue is that of deception, Kants categorical imperative is relevant here since Kant talked about the duty of people and this being pure so as to not provide any harm to anyone. Since this is a non-profit organization, it is important that Kants theory is applied and no personal gain is taken out of the company. Twisting words, as is being done by the Directors hence violates this theory on a huge extent (McPhee, n.d.).

Another pertinent theory would be that of MILLs Theory of Utilitarianism, since it talks about total social utility or benefit of things from a holistic perspective. Hence, if approached from the other members point of views, the act is unethical because the cost of lost potential business is greater than the gain (Philosophy Pages, n.d.). The Rights theory too states that if the board members represent themselves to personal potential customers as directors of the co-op, the other members do not have the same chances and opportunities thereby depriving others of their rights and the directors of their true duty (Rights Theory, n.d.). The justice based theory in decision making tells us that personal gain through representing oneself as a member when in fact one is not removes the opportunity that others may have available to work effectively and fairly (Justice Theory, 2002).

Recommendation
Recommendation for Energy Cooperative to tackle the ethical issue that I propose is that members should vote and decide which cooperatives stay and who do not, and before this is done a proper final warning be sent out. But, before these all those who breached the statement that they signed before appointment should be penalized and fined legally, after which the above proposition be implemented to ensure nothing of this unethical business takes place in future.

Case 2 Clean Power Company
Statement of Ethical Concerns
The company wants to move out of their current area  physically by including more sites to its areas of operations. The proposed new location however has its repercussion, negative since we can clearly see that the area will need development by changing the tropical feel to it from that to a location that has infrastructure, well-built operational capacity and electric power and lines possessing capability. Also, choosing which employees go where is again unethical since their opinions need to be taken into account as well.

Effect on Stakeholders
This might raise issues in regard with environmental concerns, harm to local people and other surroundings of the location and the site which means removing the tropical feel from the area. Self-directing sewerage lines into river is another ethical concern since it means deploying natural resources by putting in waste and corrupting the water resource that people in the area use or even drink from

Application to Course Material
CSR means different things to different people  for Friedman it is anything that is unprofitable for societal concern related people, it is hypocritical window-dressing. Theories tell us that the welfare costs although being high in CSR Environment efforts, companies like Clean Power could really use the recommendation of Good management, and borrowed virtue according to the model mentioned in the Economist to reap benefits arising from increasing social welfare. A very important stakeholder  society and the community hence would stay protected and feel cared for and respected by the company if it does the above by Policy Lifecycle component for instance and not throw waste in the river. (Maxwell and Lyon, 2007)

The third ethical concern related to choosing which employees go where is again unethical since their opinions need to be taken into account as well. Change is a difficult thing to handle for most employees and proper training and mentoring sessions at least need to be carried out so that employees morale does not go down if they are made to feel forced through the managements decision. A sufficient part our businesses main asset and corporate social responsibility is that of our human resource which should not be forgotten at all times.

Recommendation
Recommendation to better handle change related conflicts for employees, would be that that appropriate change management theories be put into practice. This will not only prevent talent from leaving the company but also prove lucrative by employees feeling motivated after the training and discussions so that they know that their say too is important in the company to the management. This will, according to theory lead to maximum contribution, development and retaining of motivated, productive employees. During organization related changes, management needs to hence here too give attention to employee development and not only focus on the business day to day demands so that organization really moves forward in all arenas of its corporate social responsibility to a key stakeholder  its employees. (Papmehl, 2002)

As the Director of Corporate Development I would suggest the company could expand its horizons by going into timber salvaging so that the tropical side to the site is not affected negatively and the company is able to make profits by having CSR Developments and Business functioning simultaneously (Accountability21, 2009). ESIA is an authority the company should be in correspondence with to gain from CSR and Environmental theories that stress on the benefits of environmental certification, which will help understand the stakeholders  employees, community and the company itself of its environmental commitment (CSR Developments, n.d.). However, it needs to properly seek approval from all those people living in the vicinity area about the developments the company is seeking before going ahead with the project. As far as the disposing waste in the river is concerned, a committee should be set up that explores other options that do not come out as unethical as this one and not be harmful to the environment, community, people and surroundings of the companys location in this case.