Capstone Project: Ethical Considerations for TOMS Roasting & Palm Oil

This integrated capstone project report provides an executive summary and detailed analysis of ethical dilemmas faced by TOMS Roasting Company and Palm oil production. It examines the problems related to social responsibility, environmental impact, and economic development, particularly focusing on the "one-for-one" concept of TOMS and the environmental and social issues arising from palm oil production, including deforestation, modern slavery, and emissions. The report analyzes the ethical issues, presents recommendations and potential solutions, and discusses personal learning experiences. The report highlights the ethical challenges of balancing profit with social and environmental welfare. The report also investigates the impacts of ethical considerations on the companies and provides recommendations for future actions.

INTEGRATED
CAPSTONE
PROJECT

EXECUTIVE SUMMARY
It is the analysis and discussions of problems faced by company and production in
regards to their concept. Ethical issues are dilemma which leads to the situation in which the
person is unable to distinguish and decide between the right and wrong of the situation. The
report identified the problem faced by TOMS Roasting company which has it is ultimate aim
which states that Coffee for You and Water for all. The Ethical issue with company arise with
the concept of social responsibility and economic development. Further, in this it has been
identified that dilemma of the situation arise due to one for one concept because in this the
organisation has clear objectives and exchange policies with farmers in which the
organisation will buy 1 bag of coffee beans in will supply 1 week of pure water to regions.
Apart from this it analysed the problem and ethical issues raised due to Palm oil production
where the increasing rate of Palm oil production is leading to depletion of rainforest, modern
slavery in which labourers are forced to work in critical conditions and emission of harmful
gases which led to red alarm situation. Thus, the report evaluated the recommendation and
solution on the basis of ethical issues faced by Palm oil production and TOMS coffee
Company.
Table of Contents
EXECUTIVE SUMMARY...................................................................................................................3
INTRODUCTION.................................................................................................................................4
BACKGROUND OF PALM OIL PRODUCTION...............................................................................4
BACKGROUND OF TOMS ROASTING COMPANY.......................................................................4
PROBLEM OF TOMS ROASTING COMPANY.................................................................................5
DETAILED ANALYSIS OF PROBLEM.............................................................................................6
RECOMMENDATION AND SOLUTION...........................................................................................8
CONCLUSION.....................................................................................................................................9
PERSONAL LEARNING.....................................................................................................................9
REFERENCES....................................................................................................................................11

INTRODUCTION
Capstone project is the discussion of topics real life situations which can be argued.
The report will analyse the issue of ethical considerations and social faced by TOMS
Roasting Company and Palm oil production. Further, it will outline the problem and its
solution on social responsibility and ethical issue in which the firm or individual is bound to
maintain a balance between profits and social welfare/ environmental conditions. Thus, the
report will evaluate recommendations and individuals learning which can be implemented in
future to overcome the issues.
BACKGROUND OF PALM OIL PRODUCTION
Palm oil production started from West Africa and is produced from Dates, food crop.
It is used for various purposes that is for consumption, trade and also used by Egyptian for
burial of people in tombs. Further, it is used by people for making candles, Edible oils, and
lubricants. It is rich of nutrition and therefore it has fastest growing sale across the globe
(Why palm-oil production is going green. 2015). Its growth started from Africa, North
America, Asia and South America. Its production and export has risen to 85 percent from
Indonesia and Malaysia (Wicke, Sikkema and Faaij, 2011). Apart from this Palm oil us
extracted from tree with fresh fruit bunches.
BACKGROUND OF TOMS ROASTING COMPANY
TOMS Roasting company has it is ultimate aim which states that Coffee for You and
Water for all. In this when the person buys coffee from organisations than it is helping to
provide safe water to needy community (TOMS launches one-for-one coffee company |
Fortune, 2014). The concept is termed by an enterprise as One for One. The coffee flavours
of firm are unique and are sourced from regions which are famous for the coffee. In addition,
the one for one idea of entity arise when it has been analyses that more than 700 million
people do not have safe water to cook and drink which is risking their lives. Thus, with the
idea the company is serving safe water to communities in 7 countries.
PROBLEM OF PALM OIL PRODUCTION

It is an ethical issue which is been arising due to increasing production of Palm oil.
Ethical issue arises when it is unable to decide between right and wrong of the situation. In
this situation the production is good while reduction in tree is false. The situation is leading
go red alarm situation and increasing threat of dangerous species. Due to increasing
awareness about going green the reputation of palm oil production is at stake. Moreover,
from past 3 decades, it has been evaluated that tropical forests have been cut down and
shaded which has led to drastic change in climatic conditions. Apart from this the indigenous
people have lost their own over lands which destroying their daily livelihood (Stichnothe and
Schuchardt, 2010). Thus, the production of oil has now became ethical issue because the oil
has own benefits which are healthy for consumption, applying and innovating new products
keeping mind the healthiness of society. The Palm oil is used by the people for edible
purposes due to which its sales increase continuously and it is being offered at every grocery
stores and shopping marts (Why palm-oil production is going green. 2015). On the other
hand, it is the key point of discussion because the people environment campaigners have
started campaigning against the production due to which its production is major impacted.
Apart from this, it has been evaluated that the Palm plantation his exploiting human rights as
in productions the land of people is grabbed forcefully and it is giving rise to modern day
slavery, and child labour. The palm production and consumption is good for society but due
to its increasing sales the rights of indigenous society are being exploited. Ethical Dilemma
of the situation is being increasing because the arguments are about saving environment and
forest in order to go green. Thus, the situation has led to various type of alternatives such as
to stop palm oil production, certified production, expensive palm oil products etc.
PROBLEM OF TOMS ROASTING COMPANY
The focus of the TOMS coffee company is to promote economic development
therefore the management focused on analysing the best people and areas of coffee. It was
found out that the there were local farmers of 7 regions who had the best coffee beans with
the help of which people use to earn their livelihood. The people use to sell their beans at
possible price. Further, the major ingredient which is required to make super premium quality
coffee is water and it was discovered that the farmers and few regions lacks the safe water not
only for coffee but for their own drinking and cooking. Therefore, the firm planned a concept
of one for one in which the organisation will buy 1 bag of coffee beans in will supply 1 week
of pure water to regions. Furthermore, it launched that if one will buy one cup of coffee than
the person is contributing to economic development and even providing water to these

regions that do not have safe water to drink and cook. Moreover, the organisation survived
the idea because it believed that consumers are focused and want if their contribution is
helping the society than it is the kind of magic for them which will ultimately assist them in
gaining advantage and fulfilling social responsibility (Du, Bhattacharya and Sen, 2010). In
this the firm offered the scheme in which the person can every time buy coffee with different
flavours from different regions where the person will get the chance to know the story of that
particular farmer (TOMS launches one-for-one coffee company | Fortune, 2014). With the
help of this idea the consumers can connect with people and understand the reality of idea.
Moreover, the company offers its products in homely environment to make people
comfortable. In addition at the coffee house it will have its other merchandise that is shoes,
sunglasses in order to make avail choices for consumers. In accordance to this, the major
problem is that the revenue of company is not only based on coffee house but on many other
merchandise whereas the source of water for farmers is limited to coffee company. Serving
social welfare is best thing to fulfil social responsibility for which the person or company
needs to more focused one common thing instead of making profits (Rossouw, Van Vuuren
and Adam, 2010).
DETAILED ANALYSIS OF PROBLEM
It has become the point of discussion and an major ethical issue because the palm
plantations is leading carbon emissions in atmosphere which is a green house gas. Further, it
releases fossil fuels which are impacting the overall environment and even the deforestation
in areas like Indonesia has increased the emissions rates due to Palm oil Production.
According to ethical considerations it is very important to understand the emissions of gases
which are leading to global warming. On the other hand, there are many other ethical issues
which are arising due to Palm production that is social conflicts. The increasing rate of Palm
oil production is leading to depletion of rainforest but on the same art part it is giving rise t
modern slavery in which labourers are forced to work in critical conditions (McCarthy,
Gillespie and Zen, 2012). The expansion of palm oil production industry is heading towards
social conflicts. In modern slavery people are forced to work under bondage and debts. It has
become ethical issue because in starts it promoted sustainable development but now it has
became the critical point of discussion as it is leading to environmental and social conflicts.
Apparently according to go green Palm oil production scenario it has been evaluated that with

the continuous depletion of rainforest and climatic changes the sales of palm oil has been
doubled which has led to Ethical Dilemma in which it is hard to determine the true and false
of the situation. Further, the environmental campaigners has decides are started promoting
awareness about the destruction caused by Palm oil production due to which the individuals
has promoted the idea of not buying products from companies like Unilever and Nestle which
products the products with the help of palm oil (Why palm-oil production is going green.
2015). With this the dilemma is whether the industry can balance the situation of
environmental protection and its profits hand in hand. Now, if the production will be
minimized or stopped then it will not only hinder the industry but it will impact the quality of
many products such as, lipsticks, ice creams, vegetables oils etc. Despite, it has been analysed
that there are many companies rising palm oil do not even know the from where the palm oil
is coming and production will be cut to certified than it will lead to decreasing profits and
sales because in this case the industry increase the prices of its pal oil products.
In accordance to TOMS coffee company, it has been analysed that the ultimate
problem is with the motive and concept which is social responsibility and then is linked with
one for one. Social responsibility is serving social welfare with no motive of maximizing
profits and generating revenue but the firm is using every tactic which can assist the
organisations in attracting more and more with the aim of earning profits. In social
responsibility the entity is bound to think for benefiting society instead of mailing profits but
Toms Coffee house is more focused on generating revenue with the concept of one for one as
it provided company a strong base to enhance its image and sell different type of beverages
(TOMS launches one-for-one coffee company | Fortune. 2014). Further, it can be a balance
between profits and serving social welfare but in this case no matter what profits are the
company will provide one week of water in return of one coffee bean bag. The ethical
considerations in this is to first look for maximizing benefits and responsibility towards the
suppliers of coffee beans but the focus of management is to attract customers by various eye
catching strategies (Brik, Rettab and Mellahi, 2011). Further, the dilemma of the situation
arise due to one for one concept because in this the organisation has clear objectives and
exchange policies with farmers in which no individual can question because whatever other
strategies used by TOMS to increase profits are not impacting farmers. On the other hand, if
the firm is doing this as social responsibility than it is important for an enterprise to look over
providing more and more advantages to community instead to maximizing profits. The
selfish motto of the coffee house is the biggest problem due to which the situation has turned

into dilemma. Hence, due to continuous increasing profits the management of the company
lost the focus over serving benefits to farmers which has led to various ethical issue of social
responsibility.
RECOMMENDATION AND SOLUTION
In Accordance to Palm oil ethical issue it has been analysed that the limiting
productions are must for the industry in order to prevent environmental damages. Therefore it
can be recommended that:
 The production should be done under certified boundaries which aim at protecting
environment and climatic conditions.
 The palm oil should only be used in necessary products and in limited quantity in
order to create awareness among people in regards to its uniqueness and importance.
 The products which are produced with the help of palm oil should be selling
accordingly at higher price in order to preserve the natural resources.
 The companies which are using palm oil in products should maintain appropriate
record of usage, as it will assist the industry in making optimum utilisation of
resources (Melero, Bautista and Sánchez-Vázquez, 2010).
 The industry should not force or bound labourers to work under drastic conditions
because this will assist the industry in reducing social conflicts.
 The environmental conditions should be regularly analysed and trees should be
planted just double as per the usage in Palm oil Production.
In accordance to ethical issue arised in TOMS coffee company where, the problem is with the
motive and concept which is social responsibility and then is linked with one for oneb can be
recommended that:
 The firm should focus on serving social welfare to all regions from where it get super
premium quality coffee beans.
 The company should establish balance between social responsibility and profits in
order to remove the issue of Ethical Dilemma.
 The organisation should share about the farmers and their efforts in order to make
people aware about the society struggling for safe drinking water.
 TOMS coffee company should make innovation in its concept of one for one in which
the management should first focus on providing adequate water supply to farmers

with no motive of getting coffee beans but to attain advantage over social
responsibility.
CONCLUSION
The report summarized that the issue of ethical considerations and social faced by
TOMS Roasting Company and Palm oil production where Palm oil production started from
West Africa and is produced from Dates, food crop and is used for various purposes such as
consumption, make up, lubricants etc. Apparently, TOMS Roasting company has it is
ultimate aim which states that Coffee for You and Water for all. Further, the report outlined
the problem of both the situation where it has been identified that ethical issue because the
palm plantations is leading carbon emissions in atmosphere which is a green house gas. In
addition, it evaluated that under social responsibility the entity is bound to think for
benefiting society instead of mailing profits but Toms Coffee house is more focused on
generating revenue with its one for one concept. Thus, the report concluded with the solution
which stated that the coffee house should focus on serving social welfare to all regions from
where it get super premium quality coffee beans while in case of Palm oil, the environmental
conditions should be regularly monitored and trees should be planted just double as per the
usage in Palm oil.
PERSONAL LEARNING
In accordance to report I have analysed considering ethical issues plays a major in
handling business activities. Further, I have discovered that the firm should stick by its one
responsibility which is linked to its ultimate objective. Like in case of TOMS coffee company
i learned about the situation of Ethical Dilemma, in which it is important for the person to
determine the right and wrong of the situation. Moreover, the one for one concept of the
organisation with farmers amazed as it is focused on maximizing profits and serving social
welfare but with the situation I learned keeping a balance with profits and social
responsibility assist the firm in avoiding the Situation of Ethical Dilemma. This analysis will
assist me in future when planning a welfare activity for the society. In regards to present
learning from the situation I will make many alterations in my future plans such as, creating
innovative schemes and strategies to fulfil the objective of social welfare and will focus on

societal benefits instead of making personal profits from business. On the other hand, i was
aware about the increasing palm oil production and sales but I did not knew about the arising
ethical issues like its increasing use and production is leading to depletion of plants and
natural resources which is impact environment and climatic condition which is leading to
global warming. The problem made me learn about the Dilemma of the situation by which I
analysed that it is important for the individuals to make appropriate and optimum use of
natural resources because they are cannot be renewed. Moreover, with the help of study I
learned that if in case I will innovate the use of palm oil products than I will focus on making
the products unique and little expensive in order to limit the line of production which will
assist in preserving trees. Thus, I enhanced my learning in case of TOMS Coffee company
where ethical considerations is to first look for maximizing benefits and responsibility
towards the suppliers of coffee beans but the management of company is focused on
attracting consumers with helps of various innovative strategies Hence, the study assisted me
in determining the right and wrong of the situation which arise due to Ethical Dilemma. The
analysis of problems will assist me in handing issues which can come in my personal and
professional life in future.

REFERENCES
Books and Journals
Du, S., Bhattacharya, C.B. and Sen, S., 2010. Maximizing business returns to corporate social
responsibility (CSR): The role of CSR communication. International Journal of
Management Reviews. 12(1). pp.8-19.
Rossouw, D., Van Vuuren, L., and Adam, M.Z.A., 2010. Business ethics. Oxford University
Press Southern Africa.
Brik, A.B., Rettab, B. and Mellahi, K., 2011. Market orientation, corporate social
responsibility, and business performance. Journal of Business Ethics. 99(3). pp.307-
324.
Wicke, B., Sikkema, R., and Faaij, A., 2011. Exploring land use changes and the role of palm
oil production in Indonesia and Malaysia. Land use policy. 28(1). pp.193-206.
McCarthy, J.F., Gillespie, P. and Zen, Z., 2012. Swimming upstream: local Indonesian
production networks in “globalized” palm oil production. World Development. 40(3).
pp.555-569.
Stichnothe, H. and Schuchardt, F., 2010. Comparison of different treatment options for palm
oil production waste on a life cycle basis. The International Journal of Life Cycle
Assessment. 15(9). pp.907-915.
Melero, J.A., Bautista, L.F., and Sánchez-Vázquez, R., 2010. Biodiesel production from
crude palm oil using sulfonic acid-modified mesostructured catalysts. Chemical
Engineering Journal. 161(3). pp.323-331.
ONLINE
TOMS launches one-for-one coffee company | Fortune. 2014. [Online]. Available through:
<https://www.youtube.com/watch?v=EtKsC8BlYhw>.
Why palm-oil production is going green. 2015. [Online]. Available through:
<https://www.youtube.com/watch?v=LlGj7Wx1azE>.