Please help!! The Clean Power Company, based in Cincinnati, Ohio, has been in op
ID: 1253042 • Letter: P
Question
Please help!!The Clean Power Company, based in Cincinnati, Ohio, has been in operation for five years. The company produces an energy regulating device that automatically regulates the use of power sources in homes and businesses. Recently, they have realized that in order to stay in business, they will have to move their operations out of the country. They have purchased approximately 500 acres next to the Chavon River in the southeastern part the Dominican Republic.
The land is totally undeveloped. However, it is located across the river from the Altos de Chavon complex that has shops, restaurants, and other commercial attractions. This land looks like a tropical paradise with palm trees and access to the sea via the Chavon River.
As part of the sales agreement, the seller Teltac Corporation, has agreed to put in roads, septic systems, and water lines. However, electrical power and sewer lines will be up to Clean Power. Clean Power Company plans to be self sustaining by using solar power. Teltec has informed them that there should be no problems running sewer lines directly into the river as the Chavon River is clean and large and can absorb the waste.
You are the Director of Corporate Development in charge of spearheading the development of this new site. In addition, you are responsible for transitioning US employees to the new location and hiring local employees. You will need to decide which Cincinnati employees will go to the new Dominican Republic location or if the company should rely solely on local Dominican workers.
Clean Power also plans to build a new school for local children to address overcrowding and the lack of basic necessities, technology, and space for the students. Clean Power desires to be a good corporate partner in this community, which has many dirt roads and undeveloped areas.
Management knows that the initial capital outlay in this initiative will drive the price of the stock down, thereby upsetting the shareholders. However, management believes it will prove a sound investment in the long run.
Question A:
What is Clean Power's corporate social responsibility for each ethical issue you have identified in this case? Write a minimum of 2 pages in APA format addressing these issues.
• Legal
• Economic
• Ethical
• Philanthropic
Question B:
Stakeholder Management — the environment, the employees, the customers, the community and the shareholders:
• What are the above stakeholders' interests for each ethical issue or concern you identified? What are the stakeholders’ responsibilities for each ethical issue or concern you identified? What are the possible decisions the corporation could make for each ethical issue or concern, and what are the possible effects on the stakeholders?
Explanation / Answer
First issue is that the facility uses 500 acres of land for the manufacture of the devices. This will show a drastic effect on the ecosystems inhabiting these lands.
So many species of plants and animals have to be driven away or even removed from their natural homes.
Second issue is that the plant wants to drain its industrial waste directly into the river. This will pollute the river over the long run of 5 to 10 years, resulting in biomagnifications and death of water habitats.
Third is either employee relocation or firing.
And fourth is building the infrastructure for the locality.
Legal issues:
Clean power should take legal clearance for damaging the environment from the authorities of Dominican Republic.
It should also take permission for dumping the wastes into the near by near, and should look at if any pollution regulations are violated.
Regarding the relocation of employees, the clean power should provide the necessary allowances or support facilities at the site area.
And if it wants to recruit new people from the Dom Republic, it should take clearnec or negotiate with the labor unions.
Economics issues: Moving the facility to DR will reduce the costs drastically to the company. As there is availability of cheap factors of production like land and labor.
Due to this cost advantage it can post higher profits in the coming years. But the cost of relocation or developing the new site is a consideration.
Philanthropic Issues:
When the area was occupied or taken for building the facility, there will be a lost of vast natural resources. The resident inhabitant tribes will loose their lively hood.
Question B:
Stakeholder Management — the environment, the employees, the customers, the community and the shareholders:
• What are the above stakeholders' interests for each ethical issue or concern you identified? What are the stakeholders’ responsibilities for each ethical issue or concern you identified? What are the possible decisions the corporation could make for each ethical issue or concern, and what are the possible effects on the stakeholders?
The facility will deteriorate the environment undoubtedly, but the new jobs created in that area increase the standard of living of the people.
The employees will have to work for a lower wage at par with the costs in D. Rep., this makes the employees to resign or loose the current job.
Customers are happy that he product produced at a lower cost facility will be of lower cost. But they have a worry regarding the quality specifications of the product.
The stock holders are much worried as the decision will show an immediate effect on the stock prices.