RISK MANAGEMENT ETHICS AND MORALS
A market exists for age restricted communities but the likely backlash from people offended by the rules governing such properties may ruin the reputation of the company (Lennon, 2008). This could precipitate boycotts of the companys properties and open the door to numerous lawsuits. One of the rules prohibits underage people from visiting and staying with relatives in these communities. In the event that the owner dies, the property cannot be transferred to the spouse if they are under the stipulated age. Such draconian conditions make the company an easy target for those opposed to such settlements (Hopkin, 2010). The moral and ethical considerations regarding such ventures make it an unwise investment.
Controlling all aspects of a business operation increases the risk of abuse of position and the likelihood of the company exploiting the consumer (Borodzicz, 2005). This business model maximizes profits in the hands of the owners and reduces overheads due to economies of scale. However the general public would consider the company mean spirited because of denying other market players an opportunity to share in the companys success and make money from partnering with it. From an ethical point of view, the company will be best advised to open up various distribution channels and invite businesspersons to manage them on the companys behalf. This will ensure more people benefit from the companys operations.
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