Government homework help. Assignment 1: Ethics Essay
This assignment is 15% of your grade. This is an Essay with a 1,500 word-count limit.
This essay is designed so that you can explore your own ethics and how you see the business
world in relation to how others see it. Ethical theories help us to understand our view of the
world and it is likely that you will have a preferred theory which you, personally, consider to be
‘right’. For this task, there is no ‘correct’ theoretical framework, however it is important that
you explain how your chosen ethical framework leads you to the decision that you
make. Business decisions have an impact on a number of different stakeholders. This
essay is also designed for you to explore how a business decision that you make in an
organisation can affect many people. It is an important part of this essay for you to
show that you understand how widespread the effect a decision can be.
You are required to write an essay in response to the case below, taking into consideration
the specific discussion points listed after the case study. To obtain a higher grade for your
essay, you should note the following:
• Discuss the problem from the viewpoint of the different stakeholders
• Choose an ethics theory/ framework that appeals to you and use it in your response.
You have a limited word count and you cannot afford to explain or utilise more than
one ethical theory. Discussing the problem using more than one theoretical
framework will not gain you further marks.
• You are required to relate your final decision to your chosen ethical framework. Failure
to use the theory in the explanation of your decision will affect your final mark.
You are the Chairman of TWE Ltd, a long established wine producing company in South
Australia. The company’s next board meeting is due to be held next month. Top of the
agenda for the meeting is the possibility of changing the company’s source of raw materials.
This has come about because for some time now, the company has experienced falling profit
margins. All of the directors had been tasked with identifying ways of reducing the cost base.
One obvious target would be to reduce the level of the workforce but you only want to revert
to this option as a last resort – the work force has been loyal and hard working.
Mr Y, the production director responsible for sourcing grape stock from around South
Australia, the primary raw material used in the production of wine, has recommended that
the board considers shifting contracts away from existing regional suppliers in favour of
lower cost suppliers from farther afield, even in New Zealand. Supporting this view, the
Chief Executive, Mr X, has specifically identified Company XYZ, a company based in a
New Zealand. It is known that his family have an involvement in this company and that Mr X
personally has a 10% equity stake. Despite the obvious conflict of interest, there is no doubt
that this direct link to the supplier would be of benefit to TWE Ltd if it decided to take up this
option. It would reduce the risks of dealing with a new supplier, particularly one which is
In conversations you have had with some of the other directors, they have expressed
concern that the image of TWE Ltd in the Australian market will be damaged by withdrawing
business from the regional suppliers. At present, most of the grape stock is purchased
from three particular suppliers, with the contract making up over 70% of each
supplier’s business. The expected cost reductions for TWE Ltd are undeniable, but there is
a fear that moving the contract will put the existing three supplier out of business, and
there would be the associated knock on effects in the local community.
It is also well known that the country from which it is proposed that the grape stock be
sourced in future, adopts indiscriminate policies towards deforestation (clearing forest
areas), causing irreparable damage to the eco-system. Its government has consistently
argued that the improvement in the quality of life of its people in rural areas must take
priority over natural resources. Additionally, the political environment is fragile and the
possibility of a coup is ever present.
Another factor is that only just under three years ago TWE Ltd received a regional
development grant for AUD 3,500,000 which was used towards the cost of renewing some
of the company’s outdated equipment. This grant was partly awarded on the basis of
retaining jobs in South Australia. The qualifying period will expire in three months time and
the local development agency will not then be able to claw back any of the money –
however, you are trying to square the logic of this with the undoubted damage it would do if
TWE Ltd terminated its contract with the three local suppliers in South Australia.
Having read all the board papers in readiness for the meeting, and having spoken to the other
directors, you are contemplating what recommendations you will make.
What do you do now?
Note: This case study was modified from ISCA.
Please take note of the following:
(i) You will get TWO chances to submit your assignment.
(ii) The Submission Deadline will be 1800 hours Singapore Time on 15 August, 2020.
(iii) Please ensure you submit your Assignment a day before deadline to avoid any issues
at the 11th hour on account of time differences etc. This Assignment will be marked using
the Rubric found in the Subject Outline.