Essays on Decision Based on Profit Maximization Ethical Perspective Case Study

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The paper 'Decision Based on Profit Maximization Ethical Perspective' is a wonderful example of a Business Case Study. It is clear that Lobsters which are the main products that Lobster Lovers Company offers to its customers are harvested in a manner that exposes the divers who are the harvesters to danger to the extent that most of them die while others are left paralyzed for life. In addition, it has been established that though the company does not buy directly from the divers, the ship owners who are the main suppliers of Lobsters to the company ignore the plight of the divers, and they even don’ t care whether they die during the course of harvesting or not.

This means that the company is also indirectly involved in this most unethical action in the course of its business. As such, Marcus the company’ s CEO is confused about whether to take action or let the status quo remain as long as the business continues to make profits. Using the three ethical perspectives of Utilitarianism, profit maximization, and universalism, the following section will explain the cause of action that Marcus ought to take with regard to the perspectives before concluding on the best course of action for him as the CEO and hence the company. Decision-based on profit maximization ethical perspective Taking action to ensure the safety of diverse is an aspect of social responsibility and if the company decides to take the action, it will be good for the community of divers as well as for the company in the long run though it does not maximize profit for the company in the short run since costs will be involved.

Such costs will eat into the company’ s profit and hence to don’ t contribute to profit maximization in the short run. The profit maximization perspective is of the view that all corporate behaviors should be aimed at maximizing financial benefits to the existing stakeholders the scope of which does not include people related to the business including employees, community, and suppliers. As such, improving the working conditions of the divers will be against profit maximization. Instead, since diversity are paid, they should take the initiative to improve their working conditions from the pay they get.

Alternatively, the company’ s shareholders should themselves take such an initiative from the dividends they get instead of trusting the executives to use their money in bettering the divers working conditions (John, 2010). As such, Marcus should not do anything but should leave things as they are according to the profit maximization perspective as using the company’ s money to better the divers working conditions will not help in maximization of profit but will indeed eat into the company’ s profitability. Decision-based on the Utilitarianism perspective According to the perspective, Marcus ought to make the decision that will ensure happiness for the greatest number of people in society (stakeholders).

In other words, Marcus ought to consider common good in making the decision. As such, Marcus should, first of all, determine who the stakeholders likely to be affected by his decision are and identify the nature of effect this would be. In other words, will they be affected positively or negatively? After this, Marcus should then make the decision to ensure that the maximum numbers of people are affected in a positive way.

The following table gives out the details of people who are likely to be affected by the decision as well as the effects of Marcus' decision.

References

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