BUS 5115: Business Law, Ethics, and Social Responsibility Case Study

In this case study for BUS 5115, Kirk, an Assistant Controller, faces an ethical dilemma when his company decides against improving its waste management facilities despite an upcoming expansion. The president, Bob, prioritizes cost-cutting over environmental impact, arguing that the current facilities meet federal regulations. Kirk, concerned about the negative environmental consequences and the lack of industry standards, grapples with corporate social responsibility. The assignment explores the stakeholders involved (Bob, Kirk, Henry, John, the company, and the environment), and discusses the importance of ethical decision-making and the benefits of corporate social responsibility, including building positive brand awareness and improving relationships with the community. The solution suggests that Kirk should communicate his concerns to his supervisor, Henry, emphasizing the long-term advantages of adopting green economics and acting responsibly. The case study concludes with the desired outcome of a positive response from Henry, leading to improvements in the waste management facility, and highlights the potential consequences if the ethical concerns are not addressed.

BUS 5115: BUSINESS LAW, ETHICS, AND SOCIAL RESPONSIBILITY
Written Assignment, Unit 3
Instructor: Professor Whitnie Wiley
Date: September 1, 2024

Abstract:
In this case study, Kirk is an Assistant Controller, at a manufacturing company. Kirk is excited and eager
in his position because he knows that he is being trained to, one day, take on the position of Controller, within
the company. During a company meeting, Kirk’s positive outlook on the company is challenged by Bob’s, the
President, objection to making improvements to the waste management facilities to meet the industry standards,
because the current facilities meet the federal regulations. The argument that Bob makes is that their biggest
competitor doesn’t even have a waste management facility as good as the company Kirk works for so its okay
to not make the improvements. As the majority of the people in the meeting agree with Bob, the decision is
made to not make improvements. Kirk is challenged by the company’s lack of concern about the environmental
impact not making the improvements will have and feels that it is a poor ethical choice. In this paper, corporate
social responsibility will be discussed and suggestions as to what Kirk should do will be made.
Discussion:
The Ethical Issue At Hand:
The ethical issue in this case study is that Bob has chosen to not make improvements to the waste
management facility of the company to accommodate the expansion in the company. The waste management
facility will meet federal regulations but not the standards set by the industry which means that there will be a
negative environmental impact. Kirk an employee at the company has to decide to speak out against the
decision that will result in a negative environmental impact or not.
The Stakeholders:
The stakeholders in this case study are Bob, Kirk, Henry, John, the company, and the environment.
Corporate Social Responsibility
The business model of corporate social responsibility can help companies to be socially accountable
(Chen, 2020). A company has an obligation to be accountable and make socially responsible decisions that
would resonate with the public as a whole and the stakeholders of the company (Schooley, 2020). Corporate

social responsibility is bigger than just the environmental effects their practices may have, it also takes
into consideration the economic and social impacts of the choices of the company. Another term for corporate
social responsibility is “corporate citizenship” (Chen, 2020). Overall, the goal of the company should be to be a
good corporate citizen and to take into consideration how to positively affect the environmental, economic, and
societal communities it is interacting with and to not cause harm in these areas (Schooley, 2020).
By practicing corporate social responsibility, the company can gain good will within the community,
which can strengthen their brand and result in the company having a “good name” (Schooley, 2020). It also
adds to the positive perception of the company from the employee’s perspective, who will feel more loyalty to
the company (Chen, 2020). It is easy for people to want to support a company that supports what they value,
such as the environment and society. Overall, corporate social responsibility is a win win for the company
because of the positive relationship is grows with the public and the positive boost to morale, not to mention the
overall good it does for the society, economy and environment (Chen, 2020). A means by which a company can
take on corporate social responsibility, is by practicing green economics. When a company practices green
economics they focus on creating a harmonious relationship between nature and humans (Halton, 2019).
Through the decision making process, the company ensures that both nature and humans benefit from the
decisions made within the company.
Suggestions for Kirk’s Response
It is important and ethical for Kirk to respond in a thoughtful way that addresses the importance of
corporate social responsibility, as it pertains to the negative environmental impact of not improving the waste
management system, and the positive outcomes that can come from acting in a responsible way. I would suggest
that Kirk either writes an email to or requests a meeting with his immediate supervisor, Henry, to address the
concerns about the environmental impact of the decision that was made. If in email form, I would suggest the
following structure that highlights the positivity that Kirk is seeing in the company, the concerns that Kirk has
about the current decision being made about the waste management facility and then lastly the importance of

corporate social responsibility and its broader benefits.
Kirk should focus on the positive outcomes of corporate social responsibility for the company, such as:
being environmentally conscious, building positive brand awareness, being an industry standard leader,
improving relationships with the community, increasing employee morale and loyalty, and being seen as a
company that values more than the bottom line. Companies that are perceived to practice corporate social
responsibility are more valued by consumers. Kirk could sight examples such as Starbucks who made ethically
sourcing coffee a standard in the coffee industry. It is important that Kirk not be disrespectful or judgment in
his email or meeting, in order for the information to be well received. Kirk can also refer to the statement made
by John, the chemical engineer, showing that the current waste management facility is not equipped to process
of the waste created by the upcoming expansion even though it is able to process the current level of waste
adequately.
It is possible that Henry receives this information from Kirk and does nothing with it and the decision
stands and the improvements are not made. It is also possible, that if Henry does move the information forward
to Bob, he may not choose to change the decision. It could also result in Kirk being seen negatively within the
company because he pursued the ethical issue, at hand. It would not be professional for Kirk to bring his initial
concern to someone higher in the company than Henry. If Henry does not respond positively to Kirk’s inquiries
about changing the situation, then Kirk can try communicating with someone higher in the company.
Ultimately, if the information is received negatively Kirk could loose his job or loose respect for the company
and no longer want to work for the company.
Conclusion
The positive outcome that is desired is that Kirk meets with Henry about the ethical concerns regarding
the decision made that will cause a negative effect on the environment and that Henry responds positively,
which ultimately leads to a change in the decision and the improvements made to the waste management
facility.

References:
Chen, J. (2020, February 22). Corporate Social Responsibility (CSR). Investopedia. Retrieved from
https://www.investopedia.com/terms/c/corp-social-responsibility.asp
Schooley, S. (2020, June 26). What is Corporate Social Responsibility? Business News Daily. Retrieved
from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
Halton, C. (2019, June 14). Green Economics. Investopedia. Retrieved from
https://www.investopedia.com/terms/g/greeneconomics.asp