Identify the ethical issue or issues presented in the case:
The ethical issue presented in Costco’s Fish Story was very interesting. The organization failed to pay a high price for their moral shortcomings. Costco relied on farmed salmon to keep the price of its filet’s as low as possible. This causes environmental groups to protest against the organization for salmon farming. (Johnson, 2016 p.297). Managers and employees looking to integrate moral values into their work structures and processes often settle for superficial measures that have little influence on day-to-day operations.
While Costco organization depends on salmon to make money, they failed to realize the damage caused to the environment. The process spread diseases and parasites to wild salmon and other counterparts in the ocean. Key values drive individual decisions, interpersonal relationships, group interaction, and organization goals. Costco company should consist of some core values to serve as their guiding principles. Integrity, fairness to all stakeholders, and the social responsibility to provide a good safe environment to society.
After researching Costco’s website, the company has implemented a global confidential ethics hot line as part of their continuing efforts to assure compliance with Code of Ethics, Vendor Code of Conduct, and other legal and ethical policies. They encourage suppliers to report any possible violations of policy and other misconduct, including violations of: Antitrust and competition laws; The U.S. Foreign Corrupt Practices Act; Insider trading restrictions; Accounting, financial reporting, and internal control rules; Health, safety, and environmental laws; and Costco’s Vendor Code of Conduct. (Costco, n.d.). According to Johnson (2016), Organizations run into trouble when they either fail to identify and communicate their core values or fail to live up to them. Some groups have never taken the time and effort to isolate those principles that set them apart; others have clearly defined values but don’t put enough effort into publicizing them. In my opinion, Costco is taking appropriate action to live up to their core values of their company.
References
Costco. (n.d.). Retrieved from website https://www.costco.com/confidential-ethics-hotline-for-suppliers.html
Johnson, C. E. (2016). Organizational Ethics: A Practical Approach, 3rd Edition. [BryteWave]. Retrieved from https://shelf.brytewave.com/#/books/9781483390437/
Post #2
Identify the ethical issue or issues presented in the case:
The first ethical issue is the obvious responsible salmon farming. Costco faced the issue of whether or not it would use farmed salmon or to use wild caught salmon. Farmed salmon were thought to pose a threat to the environment, as “one of the most harmful aquaculture production systems” (Johnson, 2016, p. 331). Costco chose to continue selling the farmed salmon so they may keep costs low. The second ethical issue I see revolves around how Costco could approach the dangerous salmon farming. On one hand, they could bow to pressure from protesters and stop selling. But doing so would impact customers around the world, would impact company culture, and change their image. So while it may end up being the right call in the long run, Costco faced the ethical issue of how to go about the change. Perhaps they would have to employ more scientific studies to learn more about the subject. Perhaps they would properly choose a better method. Perhaps they would try to educate the public why. The ethical issue was not just whether or not how to change, but how to ethically do it. Identify the principles or values that support your view:
I believe in smart decision making. I believe ethical decisions are well thought out, not just well intentioned. In fact, I believe it is unethical to make a large decision without taking necessary time to think through the many options. While gut instinct may be a good place to start, careful analysis is critical to understanding all sides of the decision. Porter and Heppelmann in the Harvard Business Review write on how smart, connected products are good for consumers, stating “What should a company do first? It must decide which features will deliver real value to customers relative to their cost” (Porter & Heppelmann, 2015, p. 20). In Costco’s case, they faced pressure to change their salmon production methods. Yet before deciding what to do, they ought to consider all sides in order to make an ethical choice. Would wild farming be safer? Would that risk over-fishing? Would this increase prices to consumers who rely on low prices for food? There are many questions that must be faced. To me, smart decision making is important in Costco’s case. This may mean that farmed salmon are still used even if it has downsides. At least I can trust that Costco made the ethical, informed decision.
