Reference no: EM133108939
Exercising Your Ethics
Getting Caught Out In The Cold
The Situation
You are the owner of a small company that provides heating oil to residential and business customers in Central Canada. The business has been in your family for several generations, and you are a well-respected member of the community.
Although the business had once provided a steady income for you and your family, increased energy efficiency and a move away from oil heat have cut your profits to almost nothing in recent years.
The Dilemma
After the retirement of your long-time marketing manager, you've hired a recent college graduate named Seema. She has analyzed your firm's financial position, as well as the most up-to-date demographic and market information. In the prior heating season, oil prices were quite high, and your customers became accustomed to paying more than $1.15 per litre. You've done your research, though, and know that it's very likely that the price that you must pay suppliers will be much lower this winter because of an increase in the supply of heating oil as more and more customers in other geographic areas switch to natural gas. While you're hoping to pass these cost savings on to your customers, Seema is recommending just the opposite. She proposes that you send out a "special offer" to your customers, allowing them to lock into a price of $1.05 per litre for the upcoming heating season, although you think that you could sell profitably at a much lower price. She believes that many of your customers will jump at the opportunity and that you will be able to make a significant profit during the upcoming winter. On the one hand, it would be nice to generate a large profit and rebuild your savings, but on the other hand, you're wondering if this is really the right thing to do.
Go to the discussion board and watch the Ted Talk: Is Business Ethics an Oxymoron? (Mohammad Ali) https://www.ted.com/talks/mohammad_ali_is_business_ethics_an_oxymoron
Post your answers to the following questions:
1. What would you do if you were faced with the situation outlined in the case Getting Caught Out in The Cold? Explain your reasoning.
2. What role do you think ethics plays in doing business? Explain your reasoning.
3. Can businesses operate ethically and still be successful? Explain your opinion.