Introduction and Background
The go green debate is gaining currency in the business world. It is no longer the preserve of governments to regulate the market for purposes of sustainability. With the emergence of environmental awareness, business units have been roped forcefully into the go green bandwagon. Closely intertwined with the go green course, is ethical consciousness in which organizations, employers and employees are required to make informed and ethically conscious decisions. In the United States of America, after the Enron Scandal, the ethical course has taken a statutory footing with the enacted of the Sarbanes Oxley Act. It is on that premise and on the general need of achieving sustainable development that this paper shall document a strategy for Computer Inc.
Computer Inc. is a leading world manufacturer of electronics. Currently, it ranks top in the New York Stock Exchange with its stocks recording the highest values in the market. However, even with the successful performance, behind the curtains, the management is well aware of the pressing challenges especially given that the company deals in the competitive electronics markets. Indeed, while the company operates worldwide, most of its products are consumed in North America, Europe and in some parts of Asia. The reason for these selective sales is predictably necessitated by the economic performance of the said regions. The company products, especially the Mac Book and the Ipad, are valued at high costs limiting the regions that can provide reasonable and substantial markets worth establishment in the same regions. However, with the increased globalization and the world’s blossoming economic conditions, it is the contention of this paper that the dynamics would change. Therefore, the company, in its bid to widen its market, needs to pursue an expansionary policy. This expansionary policy shall be the subject of this paper.
Recommended Expansion
Computer Inc. needs to appreciate the blossoming world economies. Five countries come in mind for the purposes of this recommendation. This countries, otherwise, called the BRICS nations have a potential of providing good markets for the company’s products. The BRICS include Brazil, Russia, India, China and South Africa. Though the countries fall under the “developing countries” category, there is every indication that their economies are set to grow to warrant an elevation into the “developed nations” category. Indeed, following this growth would be increased economic capacities of the populations with the overall impact being an increased demand for the products by Computer Inc. In addition, the economies of the BRICS are largely centered on the ever expanding information technology platform. Interestingly, the information technology platform can only suffice with the use of electronic products which are the subject of Computer Inc. production. It is thus a collision of opportunity, luck and preparedness that affords Computer Inc. a chance to expand into these markets. However, this expansion must be seen within the triple bottom line context. This is to mean the expansion in BRICS needs to be in consideration of the three ps, which are, people, planet and profit. Profit has been mentioned last deliberately. Interestingly, immoral and amoral leaders would only pursue profits. It is this paper’s express recommendation and intention that Computer Inc. leadership adopt a morally conscious approach that sees business strategy within the expansive and long sighted spectrum and hence consider not only profits, but people and planet. The remaining sections shall deal substantively with the how in which these p’s would be addressed.
Organizational Viability: Business viability and feasibility
It is essential at this juncture to examine the viability and feasibility of the expansion strategy. Foremost, it is important to note that while feasibility seeks to examine the costs incurred in implementing the business versus the likely returns, viability seeks to examine whether the idea is in itself a successful venture or a potentially successful venture. This part merges the two and considers them in one breadth. It is imperative to appreciate the functioning economies of the BRICS and the enormous potential it portends for Computer Inc. Incidentally, not many electronic dealers have ventured into these markets. This suggests that the level of competition would be relatively low. In fact, the few electronic companies that have made an attempt in these markets have only done so through dealers and have equally only intervened in small scale. A large scale intervention would easily outmuscle their establishments and tilt the scales in favor of Computer Inc. Another notable factor is that Computer Inc. already has a brand image and would not have to spend resources on marketing of its products. It would easily broadcast their brand image which is already a household name in its established markets. Consumers are generally receptive of products that have already been launched and used in other places as compared to the hesitance shown towards completely new products.
As intimated previously, the population in the BRICS region is enormous. For instance, China itself boasts of a population of over two billion. Although the overall GDP of each individual country is low suggesting a low purchasing power, sufficient evidence suffices intimating a general positive change. The relative growth of the BRICS economies promises to increase the GDPs of the countries with a direct impact on the purchasing capacity. It is these developments that this strategy is hinged on. All that is necessary is aggressive positioning to leverage on the potential growth opportunities. Indeed, Computer Inc., being a global player, would find it easy to penetrate and position itself strategically in such markets. Given these and other favorable conditions, it is this paper’s position that the idea is both feasible and viable.
Business sustainability
One outstanding and exceptional character of this strategy is its consideration of a few essential dynamics which more often than not miss out in business strategies. One of the salient considerations is sustainability. Sustainability is a term that is all encompassing. In that vein, the meaning and application depends on the context of use. In this particular case, sustainability will be given a dual meaning. The first meaning relates to business sustainability. This is the extent to which the expansion strategy is sustainable. Indeed, conventional wisdom prefers long term engagements rather than short term dealings. This expansion is no exception to this trend. The real purpose of business, even if intertwined in the beauty of language and description, still remains that of profit making. This expansion strategy seeks to make profits for the company in the long term. One, it has been indicated that information technology informs the backbone and foundation of the BRICS economies. In that context, electronic products remain one of the most useful necessities for these economies. A ready market is, therefore, already present. The question then is how to maintain this market so as to ensure sustainability. One way of achieving the sustainability quest entails the introduction of effective, efficient and reliable products. In other words, this paper recommends that the company hooks its potential consumers to their products. There is nothing unethical in hooking up a consumer in a product so that he has to continuously use it and forever depend on it. However, the imperative in this concern is that the hook up is within the legal and ethical parameters. The company must use only what is ethical and legal in hooking up its consumers. One way of achieving this rather easy task is to ensure products are reliable and efficient. The nature of businesses today depend on electronic products and the higher the stakes at work the higher the level of reliability and efficiency desired. A strategic move, therefore, would be seen in the nature of the products’ efficiency and reliability. Another way of creating sustainability through maintenance of clients is by providing after sale services. The company needs to package its products with sufficient after sales. One effective after sales program is the product clinics where clients bring their products for regular checks and updating often for free or for peppercorn charges. This paper, therefore, recommends a sustainable approach that attests to the business aphorism that the customer is the king. Indeed, sustainability would be achieved with a dependent clientele and this dependence needs to be based not on falsehoods and tricks but on efficiency and reliability.
Environmental Analysis: Environmental sustainability
The other limb of sustainability in this paper relates to the environment. This expansion is an attempt at going green which is premised on the need for organizations to adopt procedures and processes that have the least if not any negative effect on the environment. In this case, Computer Inc. would likely want to situate its production plants in areas with sufficient amounts of raw materials. However, with environmental consciousness, it is imperative that harnessing of raw materials and relevant minerals is done with an environmental conscious attitude. In this wake, it would be essential for Computer Inc. to ensure that the plants are constructed and operated within the environmental framework. Interestingly, all the BRICS nations have documented and even anchored environmental policies on statutory footings. Some of the essential considerations that would be prerequisites before commencement of operations are the environmental impact assessment and consequential licensing of operations. It is essential for Computer Inc. to follow the letter and spirit of the laws and policies undergirding environmental management. Closely connected to this is the need to ensure refuse, wastage and industrial rejects are properly disposed. The onus lies on the Computer Inc. to ensure an ethical spirit which does not merely seek to satisfy the bear minimum imposed by the law. This recommendation is informed by the fact that in the BRICS nations, the legal environment is arguably young. In some cases where it is not too young, the stakeholders have failed to come out strongly to put a case for environmental conscious legislations. In extreme cases, these legislations have been enacted and codified in the body of laws but remain parchments of paper which have no bearing on what happens on the ground. This paper critically recommends for a different approach. The go green debate should and must be reduced to practice. It must be implemented and such implementation takes the form of organizational environmental consciousness. In that connection, it is the position of this paper, that the most essential corporate responsibility should be in line with ensuring that the environment is not polluted through the actions of the organization. In addition, within the environmental sustainability, this paper proposes that employees must be considered. The provisions of the American OSHA (Act) need to be complied with not because of their legal undertones but due to their ethical spirit. Employees’ working environment must be free from pollution, and progressive and healthy to the very extreme. Equally connected to this is the need to provide protective gear for the employees interacting with metals that have been proven to cause health conditions such as cancer.
Environmental sustainability needs to be taken to its extreme and the onus is on the company. For Computer Inc. given its enormous financial capacities, this paper recommends that it also invests in solar power production for their BRICS industries. Coincidentally, all BRICS nations save for Russia fall in temperate and savannah climates which are ideal for use of solar energy. Solar energy remains one of the best instances of green energy and has been proven to have the least pollution effects. In the same vein, Computer Inc. must seek for ways that would facilitate safe and healthy disposal of its used products. It should, embark on a take back option for the electronic gadgets whose use has been depleted. Such old gadgets would then be disposed in the best methods possible.
Legal / Regulatory Framework
Completing the list of considerations in this strategy is the ethical and legal framework of operation. This part shall deal with the legal regulatory framework. Interestingly, as has been noted before, the BRICS nations do not have a comprehensive legal framework that is as developed and all-encompassing as that in developed economies such as in the United States of America. However, this should not be seen as a vote in favor of corruption and neglect of ethical principles. This paper recommends a thorough approach that takes in cognition the mundane legal requirements. To begin with, all the BRICS have a legal framework for multinationals. Computer Inc. would rightly venture into these markets as a multinational. It must observe all the legal provisions. Some areas worth mention which require particular attention include employment law, securities and exchanges law, taxation law, among others. Decision making processes must take cognizance of the legal requirements. For instance, companies must keep proper books of accounts and show the correct amount of profits out of which the taxation amount due to the resident country would be calculated and paid. In addition, Computer Inc. having been established and registered in the United States of America need to take note of the foreign transactions laws and submit their income taxes in respect of overseas returns. The fact that the accounting standards and guidelines including the international accounting standards must be observed to the letter does not need mention. In addition, the company must consider the Securities and Exchanges regulations. It must duly submit its returns to the Commission and account accordingly for the transactions in the foreign subsidiaries.
Ethical leadership
While the legal requirements do not necessarily provide a chance for oversight due to the likely contingencies and liabilities accruable upon discovery, the ethical obligations remain a challenge in terms of implementation. This often arises from the fact that ethics are premised on the society in which the firm operates in. Sadly, the BRICS nations do not have strong ethical histories. In fact, China is one of the worst performers in terms of observation of ethical cores even at the government level. This paper, however, insists that Computer Inc. must observe an ethical premise and conduct its affairs within the ethical framework that would universally find concurrence. Such is the ethical practice that the United States of America practices and continues to advocate for the world at large to adopt. Such ethical practices are the subject of the Sarbanes Oxley Act which is recommended for this strategy to observe. Some of the pressing ethical considerations that the company needs to consider include; non-exploitation of the employees despite the willingness to work in poor environments and or for lesser remuneration, the adequate and prompt payment of taxes, the observance of the legal business laws, among others.
In the same breadth, it is essential for the leaders in the expansion to exercise their powers and authority with decorum and regard to the ethical principles. In this new realization, the most essential ingredient that would make the company exceptional is not its fidelity to the law; rather it is its adherence to its ethical convictions which need to ascribe to the universal ethical theory.
Conclusion
In conclusion, social responsibility must not be read to mean performing actions in support of the community. While this interpretation is not wrong, it is nonetheless shallow. Companies must appreciate that social responsibility goes beyond mere participation in charitable activities; it includes the deliberate strategizing of business within the ethical and legal realm, with an approach that is conscious to the environment and embracive the ethical-legal framework.
References
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Emerson, R. W. (2009). Business Law. New York: Barron's Educational Series.
Lewis, D. L. (2009). Essentials of Employment Law. New York: CIPD Publishing.
Shaw, W. H. (2010). Business Ethics: A Textbook With Cases. New York: Cengage Learning.
