QUESTION 1

Read carefully the Case Study and answer the questions that follow. You are the Purchasing Manager of UK Accessories, a London based company which supplies metal accessories to the car industry in Europe. You are visiting Tanzania, where a AF Metal, involved in light metal manufacturing, operates its factory since several years now. Your visit forms part of the audit procedure, which is carried out every 3 years, prior to the renewal of the purchasing agreement. The two companies have strong commercial ties, and UK Accessories has been purchasing nearly 80% of the output of AF Metal, as their prices are very competitive - about 40% lower compared to the European suppliers. AF Metal factory is situated next to a river, about 1 km from the coastal village well known for its fishing activities. About midway from the factory and the sea, the river takes a gentle bend where the water is relatively still. A home for the elderly is located on one side of the river, and a preprimary school is located on the opposite side. The river bend is a popular spot, where the children and the elderly persons enjoy bathing activities, while several women come regularly to wash their clothes. AF Metal, which employs 200 people from the neighbouring area, has very good relations with the local authorities, namely the Village Council. It is known for its generous support to the elderly home and the pre-primary school, as it provides nearly 75% of their operating budgets, besides other donations to the Village Council activities, through its CSR program. Prior to your departure, you notice that the toxic effluents from the factory are discharged into the river without any waste water treatment. You are very concerned, as it is known that the metal processing activities of the factory generate effluents that contain heavy metals and hazardous chemicals, requiring highly sophisticated treatment prior to discharge. You will need to report on your audit exercise, upon flying back to UK and reaching the office the next day. You need to decide whether you will recommend the contract renewal or not

(a) Choose an ethical theory: either a consequentialist ethical theory or a nature-related theory / environmental ethic principle. Explain briefly the chosen theory, highlighting its origin, focus, rules, applications and relevant shortcomings / critiques

(b) Explain what would be the course of action you need to take, as the Purchasing Manager of UK Accessories, in the situation described in the above case study, on the basis of a consequentialist ethical theory. State the theory and explain how you intend to proceed to reach a decision, indicating the impact of the alternative decisions on each of the various involved stakeholders. State any assumptions you may wish to make

QUESTION 2

Part (a)

(i) Explain briefly five current environmental challenges

(ii) Assess the roles and responsibilities of businesses in this context

Part (b)

(i) State the definition of the stakeholder theory, and explain how it is derived from the theory of the Firm according to E Freeman?

(ii) Explain his arguments to define who are the stakeholders

QUESTION 3

Part (a)

(i) Discuss the concept of Triple Bottom line according to John Elkington?

(ii) For the social bottom line, explain the meaning of social capital, indicating the accounting issues and indicators

Part (b)

(i) "The consumer society is subject to a variety of unresolved tensions caused by internal inconsistencies in these traditions and the continual dialogue with other traditions" (Laura Michaelis). Comment on this statement, stating your arguments about the forces driving the growth of consumption

QUESTION 4

Part (a)

(i) Describe the characteristics of the Market economy, Survival economy and Nature's economy, as part of the Global economy, as defined by Stuart Hart

(ii) Explain the environmental strategy that he recommends to achieve sustainability

Part (b)

Eco-Modernism represents the hijacking of traditional environmentalism (Richard Welford). Elaborate on the arguments of R Welford to support his statement

QUESTION 5

Part (a)

(i) Evaluate the suitability of the term 'Human Resources Management' when referring to employees as human resources.

(ii) Elaborate on the key rights and duties of employees, highlighting the relevant ethical theories / principles.

Part (b)

(i) Explain the concept of Ethical sourcing

QUESTION 6

Part (a)

(i) State the seven sustainability revolutions that corporations need to respond to, according to John Elkington

(ii) Elaborate on two paradigms within each of these revolutions

Part (b): Explain two of the main considerations resulting from the reshaping of ethical issues, when dealing with suppliers and competitors in a global business network?