Energy Cooperative and the Clean Power Company Recommendations Energy Cooperative and the Clean Power Company Recommendations Energy Cooperative The ethical dilemmas in this case have to do with conflict of interests. All members of the board of directors have signed agreements that, while serving on the board, they will act without prejudice, without any allegiance to a specific cooperation. “Such codes of conduct, and the consequences of breaking them, then need to be communicated frequently to the staff members” (Gardyn, 2003).
The company needs to make it clear what the consequences will be for not following the signed agreement. The first issue is the misrepresentation. If each director says that he is calling as a director of the cooperative, he is misrepresenting his position to all the clients that he calls. The cooperative has no business making business deals with the personal clients of the board members. If they do this, it may make the personal clients feel that the cooperative supports their interest and really the cooperative has no desire to. The second issue is the conflict of interest.
Each of the board members is acting as a consultant and they shouldn’t be combining the two. The board members are saying to their personal clients that they are on the board of directors when they are really not. This information shouldn’t be told to the personal clients, because the personal clients are not a part of the cooperative. Each separate entity or position the board members hold should be kept separate. If not, it will be hard to draw a line as to what the director is representing and the roles will no longer be clear, with each position.
The cooperative is established to provide information and education. It is not to promote businesses or specific clients. The stakeholders in this organization are the ones that are seeking information. There is a risk that the stakeholders not getting the most accurate information or in some cases where they are personal clients to the board members. If they are personal clients to the board members then they might receive information that isn’t available to others.
There also could be board members that have personal clients that are competitors of clients of other board members. Gaining additional information from those directors, who do not make the distinction between positions, may give competing companies an advantage and not put the others at a disadvantage. Another problem is that stakeholders of client organizations may benefit financially, when policies the board members vote to stand to benefit from those clients of the board members.
Stakeholders of other clients or businesses who are not considered, are at a disadvantage if their do not include their interests as well. The Clean Power Company The ethical concern for the Clean Power Company involves those employees that will be out of a job if they are not able to move to the Dominican Republic, or the employees who were not chosen to move. There may be a lot of employees that are not able to move for various reasons. They are losing their job due to family obligations and responsibilities.
Other ethical concerns surround the use of the Chavon River, as a place for dumping waste from the manufacturer. Even if the river is large enough and clean enough to handle it at the moment, it may not take long for the river conditions to change. At some point, the river may not be able to handle all of the waste. There are many different people that may be affected when the river does become contaminated. The Clean Power Company needs to also think about the shareholders.
The shareholders are expecting the stocks to do well and are expecting a return on their investment. With the company relocating overseas, the shareholders are going to see a decaling in their shares as the investment. This will experience a temporary decline in value of their shares, as the investments are made in the new plant. This move is not going to make the shareholders feel comfortable with their investments in the new location. The employees and the shareholders that live in Cincinnati will be negatively affected.
The econonmy will suffer with the plant moving to the Dominican Republic. The residents there stand to benefit more, while the people in Cincinnati will be put aside. Reference Zielenziger, (2003). U. S. companies moving more jobs overseas. (24 Dec. 2003). Retrieved from http://www. commondreams. org/headlines03/1224-07. htm Gardyn, R. (2003). Advise for maintaining personal boundaries between nonprofit coworkers. Retrieved from http://philanthropy. com/article/Advice-for-Maintaining/52459/