Sample Marketing Essay on Addressing ethical issues in a company

Addressing ethical issues in a company

Ethics is a code of conduct that is acceptable by a society in which they are practiced. Ethics can be exercised in different settings depending on the nature of work that is being done. This paper makes use of the case of American Apparel Company to evaluate the process of its decision-making and how it should attend to ethical matters. The company has various areas of executing its corporate social responsibility. The company is socially responsible to its customers for providing quality beauty products that are natural. The company offers quality products to them thus making it responsible to them. The company is also socially responsible to its employees. This is because they are paid well, in fact almost double of what the rest of the employees in other companies are paid.

The company is also socially responsible to the surrounding. It makes use of materials that are not pollutants of the environment. For instance, some of the products that the company produces are made from cotton as well as recyclable scraps. In addition to this, the company uses energy from the solar, which is friendly to the surrounding when products are being manufactured. The company shows some social responsibility to the society as it engages in charity works by providing garments to the less fortunate. However, the company is not socially responsible to the government as it hires workers who are immigrants. This has an effect of making labor costs low thus making supernormal profits that are too high that the expected normal profits.

The better part of practicing the accepted norms in the company gives the company a good reputation thus attracting more customers. For instance, when it provides high quality products to its customers, they get satisfied with them thus they buy more. Paying the workers high wages makes them attain job satisfaction motivating them to work harder, thus increasing the yields. On the other hand, the company fails to be responsible to the government and thus, all the workers who had been hired against the provision of the Company’s Act are sucked, leaving the company in a shortage of human resources. This has an impact of reducing the value of the company.

American Apparel has a great problem of deciding the next step to take. This is because it will have to consider the options of either shutting down the business or permanently closing it because of the shortage of workers. If the company decides to shut down, it will have to incur some costs to hire new employees after the shutdown period is over, which is a bit expensive. Permanent closure will mean that it will not operate thus the shareholders will bear heavy losses. Carney should engage in promotional methods of creating awareness to the public of his urgent need of workers so that he will market the business afresh as well as boost the image of the company. Some of the strategies that can be employed in this process are placing adverts on the social media, as well as having personal contact with potential customers to create awareness of the company’s operations. By engaging in more socially responsible advertising, the company would have created an image to applicants of various vacancies that only the right personnels were required. It would have showed that the company was strict on following rules.