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Business Ethics Case Study: The Carlson Company

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Potential Solutions The Carlson Company has two potential solutions for their dilemma of whether or not to expand. The first one being they can reject the expansion and let this business opportunity slip away from them. Obviously, there was some conflict internally between the board and higher executives at the company which would lead to a tough expansion. When a business opportunity is this advantageous and consequential there needs to be cohesion among executives to ensure smooth expansion. Some executives believed that just by signing the code they tarnished the company name because they felt it meant affiliating themselves with sexual trafficking. Another good reason to not go through with the expansion is because of the high occurrence …show more content…

The Carlson Company is dedicated to social philanthropy. It is also committed to establishing itself as a quality organization. Carlson started the Curtis L. Carlson Foundation, which is committed to education, mentoring children/at-risk youth. By signing the ECPAT, they made sure they accepted these rules with each of their firms. How could they be committed to helping children if they turned a blind eye to the child trafficking in Costa Rica? The Carlson Company executives clearly have the highest salience in this dilemma. They could proceed with expansion, take advantage of the opportunity and become a prominent player in the region fulfilling their economic …show more content…

Walking away from expansion would mean compliance with the sexual trafficking industry in the region. We believe that they should continue with expansion. Ethical training can be implemented for the potential employees of the region. This is a highly successful form of ensuring employees do not acquiesce to the trafficking pressures around them. An Ethics and Compliance officer can be added to the executive team to lead by example to ensure local employees act ethically as well. They can enact a triple-bottom line policy, to not only emphasize about their financial goals, but also social and environmental goals to enrich the company. To combat ethical and social issues, a company must do more than comply with just local laws. The Carlson Company can act as a global citizen by globalizing into the region. Through the installation of strong ethical and social audits, done by external auditors, the Carlson Company can learn how to bring about positive change to the Costa Rican region. The Carlson Company, the United States Government, tourists and the NGO ECPAT would welcome the expansion and look forward to its success. This expansion will not be without its challenges, as seen with the Marriott incident of 2002. However, the employees and executives of Carlson know that this expansion opportunity is too great to cast aside. Therefore, they should enforce

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