Recommendations for Energy Co-OperativeIt is recommended that the Board of Directors for Energy Co-Operative not approve the member’s request for each board director to announce to their personal clients that they are representing the company. This is a conflict of interest as the Board was initially designed to include members who have their own company interests and are only providing third party and external stakeholder advice. Ethical concerns with respect to the proposal focus on misleading their personal clients who may be under the impression that they are representing their own companies rather than Energy Co-Operative. As detailed in the course material, different ethical theories such as Beneficence and Least Harm focus on how individuals have an obligation, when assisting or serving others, to make decisions that benefit their clients and that do not mislead them and ultimately, cause extensive harm. However this proposal has the potential for harm to be caused to respective clients who are paying these directors for adequate representation under their respective company names and not necessarily Energy Co-Operative.
Furthermore, I have chosen this recommendation as it ensures that the respective Directors do not violate the initial conditions of the Board and that Energy Co-Operative remains a highly ethical and respectful organization. Its reputation can potentially be harmed or devalued if clients determine that they are providing misleading information and are being dishonest. It will positively affect the stakeholders in this case, as clients will continue to maintain positive relationships with the respective directors and the reputation of the board and each director will be maintained. The Board was originally developed to combine and collaborate the ideas of well-respected representatives from a variety of diverse companies. This will effectively be violated if they are forced to solely represent the interests and values of Energy Co-Operative rather than their own companies.
Recommendations for the Clean Power Company
It is recommended that the Clean Power Company move to the new location in the Dominican Republic but don’t release sewage into the Chavon River and continue to fund the local schooling project. This will cause some irritation and disagreement amongst investors and key stakeholders but will provide a long-term investment and add value to local communities and the global reputation of the Clean Power Company. Furthermore, the company has a social responsibility to adhere to global environmental and corporate requirements that ensure that it provides the natural environmental with cleaner and more efficient solutions and processes. By preserving the Chavon River, the company can provider a greater and cleaner contribution to the environment and local community of the area in a new country with a reputation to uphold. Ultimately, the future development and global success of the company relies on its prosperity and reputation in this new location.
Ethical concerns with respect to this recommendation focus on the environmental condition of the Chavon River and the prosperity of the new local community and its children. The company has an ethical obligation to respect the welfare of these stakeholders and ensure that it provides a worthwhile and ethical contribution rather than one that will only benefit itself. In addition, this recommendation will positively influence all stakeholders involved whether in the short or long term. It will provide a cleaner solution for the natural environment and local community overall and will in turn, provide a key asset for education and children currently and in the future. The company’s investors will also benefit from this recommendation in the future. There are three main ethical theories pertinent to this case and which have been covered extensively in the textbook material including the theories of Justice, Least Harm and Utilitarianism.
- Rainbow, C. (2002). Descriptions of Ethical Theories and Principles. Davidson College, Retrieved from http://www.bio.davidson.edu/people/kabernd/indep/carainbow/theories.htm Accessed on 06 August 2015.
