Does shareholder interest outweigh stakeholder interest….or are they the same?

In business decisions involving ethical dilemmas, the choices may be clear, yet on many occasions managers struggle to determine the correct course of action. As you learned in this course, there are many theories that guide ethical choices, and decisions can be defended from more than one perspective. It is critical for leaders in organizations to be able to weigh both sides of an ethical dilemma to ensure that they are making choices grounded in the values of the organization. In a 750 – 1000 word point/counterpoint paper (excluding cover and reference pages), analyze either of the two case studies presented below.
Essay Prompts
Many decisions made by organizations today have multiple facets, meaning there can be many sides to the situation, and while some organizations have written concrete ethical operating principles, decisions may still have options for what is considered right and wrong. Is what is in the best interest of the company in the best interest of society? Does shareholder interest outweigh stakeholder interest….or are they the same? For this assignment, you will conduct research on one of these case studies and present both sides of the issue in a point/counterpoint format to demonstrate that both sides of some ethical issues can be defended based on ethical theories or principles.
Select either of these case studies as your topic
Case Study 1- Off Shoring
Deana is the Operations Manager for Mergeron, a clothing manufacturer with 200 employees based in a small town in the United States. Mergeron is known for its organic cotton clothing and has close ties with many local farm operations that produce cotton for the textile operation. While sales are up, the cost of cotton and labor in the U.S. have risen and Mergeron profits are declining. Deana has learned of a location in China that is known for its skilled labor in clothing production that offers a much lower cost alternative for labor. However, Deana cannot be assured that the cotton available in China is organically grown. She stops to think about the local farmers and employees in this small town…..but Mergeron needs to make a profit.
Select and apply an ethical principle/theory that Deana could use to justify off-shoring in Mergeron’s case
Provide a counter-point argument, using a different ethical principle/theory to help Deana make a case for continuing production in the United States. Make a solid case for both choices based upon the principles, demonstrating how the theory/principle would be applied.
Once you have completed the point/counter-point, determine which ethical theory or principle is the best ethical choice. Defend your answer with supporting evidence, relevance of understanding your personal values framework, and sound logic.
Case Study 2 – Resource Usage
Jack, Production Manager for Mineralite based in the U.K., looked at his spreadsheet and realized that if they were going to meet the production schedule for the purchase order from one of the world’s giant microchip manufacturers, he was going to have to speed up the mining of cassiterite. However, Jack is aware that the mineral is in limited supply in Central Africa and mining it comes at a cost to the land and the people living in areas surrounding the quarries. He has heard horror stories about some of the mining. Jack is torn – this contract could finally put Mineralite on the radar of any manufacturer of micro-processing parts and be a huge score for Mineralite’s future. The thirst for electronics across the globe is increasing and if Mineralite does not supply the materials, someone else will.
Select and explain an ethical principle/theory that Jack could use to justify mining a limited resource
Provide a counter-point argument using an ethical principle/theory to help Jack make a case for not mining a limited resource. Make a solid case for both choices based upon the principles, demonstrating how the theory/principle would be applied.
Once you have completed the point/counter-point, determine which ethical theory or principle is the best ethical choice. Defend your answer with supporting evidence, relevance of understanding your personal values framework, and sound logic.
Formatting & Sources
Please write your paper in the APA format. As part of your research, you may refer to the course material for supporting evidence, but you must also use at least four credible, outside sources and cite them using APA format as well. Please include a mix of both primary and secondary sources, with at least one source from a scholarly peer-reviewed journal. If you use any Study.com lessons as sources, please also cite them in APA (including the lesson title and instructor’s name).
Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements, and press releases published by the company in question.
Secondary sources come from peer-reviewed scholarly journals, such as the Journal of Management. You may use like JSTOR, Google Scholar, and Social Science Research Network to find articles from these journals. Secondary sources may also come from reputable websites with .gov, .edu, or .org in the domain. (Wikipedia is not a reputable source, though the sources listed in Wikipedia articles may be acceptable.)

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