BBS301: Ethical Dilemma in Management at CFOODSTORE Report

This report analyzes the ethical dilemmas faced by CFOODSTORE, a growing food industry business, as it attempts to incorporate ethical sourcing practices. The research explores the impact of these practices on investors, stakeholders, and consumer purchasing behavior. The report employs both primary and secondary research methods, including surveys and literature reviews, to understand how ethical considerations affect profitability and consumer decisions. The findings reveal that while ethical sourcing is desirable, the organization may face challenges in maintaining profitability and attracting consumers due to cost implications and consumer awareness. The report concludes with recommendations for balancing ethical practices with business sustainability, such as exploring alternative methods for food preservation, adhering to legal structures, and maintaining a fair pay system while strategically pricing products to appeal to investors and establish a premium brand.

Running head: ETHICAL DILEMMA IN MANAGEMENT
ETHICAL DILEMMA IN MANAGEMENT
Name of the Student:
Name of the University:
Author Note:

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Problem Discovery:
The CFOODSTORE is one of the newest and growing food industry. It has its chians
over 115 stores in Singapore, and major part of its business is done on the e- commerce
platform. However, the organization is trying to incorporate an ethical system and structure
within its service. The organization is trying to incorporate an ethically sourced service of sea
food to its consumers. While trying to materialize this, the organization is now faced with a
many situations, which is probable to affect its business. The organization is trying to include
an ethical strategic system in the sourcing the food and servicing the same to the customers,
and the stakeholders and the investors of the organization is more of the approach that it will
be not only cost effective, but also, there is a probability that instead of observing a profit, the
organization might face certain financial issue regarding their business which may hinder
them observing any kind of profit.
Therefore, the aim of the following research is to understand the ways this ethical practice
can hinder the business. Therefore, objectives of the research are to understand,
 Whether the decision of ethically sourced sea food service will impact negatively on
the investors and the stakeholders.
 Whether the purchasing behaviour of the consumers are driven by the ethical
decisions and ethically provided service by the organization.
Therefore, to conduct the research, both a primary and secondary research method will
be included, and the produced literature will focus on the following research questions.
1. Will the ethical considerations affect the profit market of the organization?
2. Is the purchasing behaviour of the organization directed by the ethical considerations
and the ethical services made by the organization?

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The research will firstly, include a secondary analysis of the ethical behaviour in the
food industry, and then it will move forward to the primary research analysis.
Literature Review:
In the food industry there are primarily four areas contributing to ethical dilemma. First,
all the organizations must be aware of the legal structures of the host or the home country,
where they are conducting their business. The food industry, especially, is provided certain
legal aspects since they are involved with the wellbeing of the people1. Secondly, they must
involve into an anti- corruption business, whereby, no food industry will involve any form of
corrupted pay structure, and corrupted processing structure. They must ensure that there is a
fair pay system involved2. Thirdly, the organization must abide by the health and wellness
rules provided by the health and nutrition body of the respective countries or of the United
Nations.3 Therefore, maintaining these, often affect the budgetary system.
Primary Analysis:
To include a primary research, first a research design was incorporated. The research
design is a framework of methods and techniques that are to be included to provide the
primary research a framework4. Therefore, the research design that was included in this
present scenario, was an exploratory research. The exploratory research refers to the
exploration of the market to understand the market pattern and to find out perspectives related
1 Quarshie, Anne M., Asta Salmi, and Rudolf Leuschner. "Sustainability and corporate social responsibility in
supply chains: The state of research in supply chain management and business ethics journals." Journal of
Purchasing and Supply Management 22, no. 2 (2016): 82-97.
2 Fonner, Robert, and Gil Sylvia. "Willingness to pay for multiple seafood labels in a niche market." Marine
Resource Economics 30, no. 1 (2014): 51-70.
3 Kemmerer, Lisa. Eating earth: Environmental ethics and dietary choice. Oxford University Press, 2014.
4 Creswell, John W., and J. David Creswell. Research design: Qualitative, quantitative, and mixed methods
approaches. Sage publications, 2017.

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to the research topic, which is, in the present scenario, the issue of ethics in the services of the
organization.5
The next aspect of the research was data gathering. To collect the data, the organization
included a survey method. Since it was an exploratory research design, therefore, a survey
method was included6. A structured, close ended, questionnaire had been included to conduct
the survey.
Data Analysis:
The collected data, upon conducting the survey, the following observations have been
made.
 Firstly, if the organization has to include an ethical approach into the sourcing of
the food, then there can be plenty of consequences.
o One, the organization, has to ensure, that it will provide only fresh food to
the consumers.
o Two, the organization has to ensure that the sourced food that re provided,
are properly collected, and had been properly cleaned and were kept in a
clean environment.
o Three, the organization must maintain a fair pay system and the pricing
structure that is to be shown to the customers, should also be kept fair,
keeping a very little profit margin.
o Four, the organization also has to ensure, that the food that are collected,
were collected maintaining all the ethical behaviour that is, by abiding all
the legal structure, provided by the governments. It is often seen that there
5 Wang, Kenneth T. Research design in counseling. Nelson Education, 2015.
6 Cleary, Michelle, Jan Horsfall, and Mark Hayter. "Data collection and sampling in qualitative research: does
size matter?." Journal of advanced nursing 70, no. 3 (2014): 473-475.

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are certain water bodies which is set with a particular limit, and from
certain water bodies they cannot collect any firm of food. Also, there are
certain sea animals, which are not to be caught.
 Secondly, research on the consumer behaviour or the purchasing behaviour of the
consumers have provided the following understanding.
o One, not all of the customers are aware of the related notion that they must
know and check, before they are purchasing a product.
o Two, most of the customers check the date before the purchasing the products
or items. Some of them also check the smell only, before buying a sea food
item.
o Third, there are very few individuals who are aware of all the notions that are
to be considered before buying a sea food item.
o Lastly, many of the customers who only, involve into online purchase
behaviour, buy products by viewing the public opinion regarding the
organization.
Conclusion and Recommendation:
From the collected data and the reviewed literature, it can be said that if the organization
tries to include a complete ethical approach then they will not be able to profit. The data
upholds that the consumers, involved in the purchasing behaviour are not much aware of the
process and the skills that are needed to check while including a buying behaviour for the sea
food items. Also, if the organization is to include an ethical structure then they must keep all
the products fresh and an ethical structure to source the food must also be included which will
be very much cost effective, and the company may lose some of their investors.

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Recommendations:
 The following recommendations can be made upon the conclusion that has been
drawn.
 The organization can include other ways to keep the food fresh for some time.
 The organization should abide by all the legal structures.
 They should maintain a fair pay system, but they can keep the prices of the products a
little higher, that will help them to become a premium brand and will ensure the
involvement of the investors.
References:

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Quarshie, Anne M., Asta Salmi, and Rudolf Leuschner. "Sustainability and corporate
social responsibility in supply chains: The state of research in supply chain management
and business ethics journals." Journal of Purchasing and Supply Management 22, no. 2
(2016): 82-97.
Fonner, Robert, and Gil Sylvia. "Willingness to pay for multiple seafood labels in a niche
market." Marine Resource Economics 30, no. 1 (2014): 51-70.
Kemmerer, Lisa. Eating earth: Environmental ethics and dietary choice. Oxford
University Press, 2014.
Creswell, John W., and J. David Creswell. Research design: Qualitative, quantitative,
and mixed methods approaches. Sage publications, 2017.
Wang, Kenneth T. Research design in counseling. Nelson Education, 2015.
Cleary, Michelle, Jan Horsfall, and Mark Hayter. "Data collection and sampling in
qualitative research: does size matter?." Journal of advanced nursing 70, no. 3 (2014):
473-475.