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Pakistans foremost enabler of corporate citizenship

Pakistans foremost enabler of corporate citizenship

 PRODUCT

Product
car , fridge, phone --carbon emissions, heat , health effecting waves
 PRODUCT

RATIONAL UTILITY MAXIMIZER:

A person who has a well defined and consistent set of preferences, and who knows how personal
choices will affect those preferences.
PROBLEMS WITH THE ASSUMPTION OF RATIONAL UTILITY MAXIMIZATION:
Few people are good at estimating probabilities.
People are irrational and inconsistent when weighing choices.
Many consumer markets are monopolies or oligopolies (collusion)
CONTRACT VIEW OF THE FIRMS DUTIES TO ITS CUSTOMERS:
The view that the relationship between a business firm and its customers is relationship, and the
firms moral duties to the customer are those created by this contractual relationships.
 PRODUCT

RELIABILITY:
The probability that a product will function as the consumer is led to expect that it will function.
SERVICE LIFE:
The period of time during which the product will function as effectively as the consumer is to led
to expect it to function.
MAINTAINABILITY:
The ease with which the product can be repaired and kept in operating condition.
PRODUCT SAFETY:
The degree of risk associated with using a product.
 Product : DUE CARE THEORY
AREAS OF PRODUCER RESPONSIBILITY ACCORDING TO DUE CARE THEORY:
Design
Production
Information
SOCIAL COSTS VIEW OF THE MANUFACTURERS DUTIES TO CONSUMERS:
The view that a manufacturer should pay the costs of any injuries sustained through any defects in the
product, even when the manufacturer exercised all due care in the design and manufacture of the product
and has taken all reasonable precautions to warn users of every foreseen danger.
Manufacturer should pay the costs of all injuries caused by defect in a product even if exercised due care.
Argues that injuries are external costs that should be internalized.
 PRODUCT: THEOTY OF DUTY

Theory of the duties of the manufacturer extends

It maintains that a manufacturer must pay the costs of any injuries sustained through any defects in
the product, even when the manufacturer exercised due care and took all reasonable precautions to
warn users of every foreseen danger.
Criticism
The major criticism of this theory is that it is unfair because it violates the basic canons of
compensatory justice:
a person should not be forced to compensate an injured party if he or she could not have foreseen
and prevented the injury. Instead,
it may have the unintended effect of encouraging carelessness in consumers, which would cause
even more accidents. Finally, such critics argue that liability suits will increase and impose heavy
losses on insurance companies, forcing insurance rates to rise precipitously.
 PRODUCT

How far must manufacturers and their representatives go to make their products and services
completely safe?
WHAT Is the relationship between a business and its customers? a contract, or is there more to it
than that?
Hos does the fact that companies usually know more about their products than their customers
IMPACT their duty to protect customers from injury or harm?
What responsibility do businesses have for customer injuries no one could reasonably have
foreseen or prevented?
What about customers privacy what obligations do companies have?
 CONSUMER: MARKET APPROACH

MARKET APPROACH TO CONSUMER PROTECTION:

Consumer safely is seen as a good that is most efficiently provided through the mechanism of the
free market whereby sellers must respond to consumer demands.
PROBLEMS WITH THE ASSUMPTION OF FULL INFORMATION:
Many products are too complex for consumers to understand
Markets cannot provide consumers with product information.
FREE RIDERS:
individuals who enjoy the benefits of a good without paying their share of its costs.
 PRODUCT:IMPACT

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F10B18D7C8B02939C6A1F10B18D7C8B0&FORM=VIRE

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Chocolate.
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tail&mid=899215885F6E1429718A899215885F6E1429718A&FORM=VIRE

Being bad does not make sense.

 Product & Production

The Ethics of Product usage

Production
http://www.beechnut.com/kitchen/

http://mongabay-
images.s3.amazonaws.com/13/0903gp_irresponsible-palm-
oil-full.jpg

How food is cooked

 Production Cycle
Input : Raw Material
Production Process
Output : Product + Waste

Supply chain: How raw material is Produced ( Supply Chain)

Manufactured, Packaged, Stored, Transported
Production Process
Production Process: Certification
Production Process: Environmental Efficiency
Reduction in Electricity, Steam and Freshwater Consumption
Avoid/reduce the spillages from chemicals, oil and lubricants
Rectification of Compressed Air Leakages (ENERGY AUDITS)
Rectification of Steam, Water Leakages (ENERGY AUDITS)
Minimization of Dust Emissions to NEQS limit
Reduction in waste (recipe wastage, board wastage)
Control environmental pollution from stack emissions (Gas, HFO)
Control vibration in Machine Hall
Environment friendly disposal of waste
Improvement in Power Factor
Reduction in oil consumption
Noise level reduction
 Production Process: Transportation

By 2015, fleet efficiency had doubled, saving the company $1 billion a year.
Achieved this through a combination of technology and new measures like
streamlining delivery so trucks don't drive empty, and finding better
routes between stores.
 Production Process: Compliance
Certifications Standards & Guidelines
Fairtrade
Sedex Members Ethical Trade Audit (SMETA )
SA800
14001,
OHSAS 18001
ILO conventions
UN Charter on Human Rights
GRI
 CASE: Sadhu
The Case
Based on a real life incident of Bowen H. McCoy, MD of Morgan Stanley
On a trekking trip to Himalaya he met people of different nationalities
One of the European climber found an Indian Sadhu
The Sadhu was shivering & suffering from Hypothermia
Everybody contributed in reviving the Sadhu
However, nobody took complete responsibility for the Sadhus well being
Ethical Dilemma CASE: Sadhu
Every person did their bit for the Sadhu
no one ensured the ultimate well being of the Sadhu
Where does the ethical responsibility of an individual end
Is there collective or institutional responsibility?
Each took responsibility as long as it was convenient, then passed on the buck to others.
Had the person been a well dressed Asian or a Western Woman
 Arguments/Justifications
StephanArguments
Each took responsibility as long as it was convenient, then passed on the buck to others.
? Action different ? If the person a well dressed Asian or a Western Woman
McCoys Arguments
At first, McCoy was defensive to Stephens arguments.
He was supportive of reason ---Stress, Once in a lifetime opportunity () excuses
But then he also pointed out how allwalked by an ethical dilemma without appropriate action
Workplace ( if similar situation )
How to ensure collaborative effort towards end goal
Synchronizing individual efforts with collective vision
Reaching consensus and selecting a leader in crunch situation
How to ensure groups support
 Arguments: other
Here in the midst of a once in a life time adventure came a crisis
that no one had caused.
Was it important?.certainly.
Should it be fixed?.absolutely.
Did I cause it?..No.
Could I be held responsible if it fails?. No.
Net result a man probably died on a rocky slope in the middle of
nowhere.
 Analysis
Actions are Moral but the end result is not satisfactory in this case
Focus :
what is the end- completing once in a life time trip ? or saving the Sadhu?
which action would produce the best result
Conclusion :
Rule base theories only distinguish between actions that are morally justifiable and actions that
are not
case focuses more on the different moral characters of people, rather than our justifications of
the moral worth of actions.