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Green Move’s Zero Pedal

  1. Create a two pages argumentative essay on the following:
    Support the argument that the war in the Napoleonic era was fundamentally similar to warfare practiced
    today. Use evidence to justify the argument.
  2. Each major points must tie a specific innovation from the Napoleonic era with modern warfare.
  3. Keep in mind that while you can comment on the implications of the topic of your essay in relation to
    the current military force, should really present a history
    essay.
    Essay will be evaluated on the ability to use it as a tool to inform professional judgment.

Green Move

Question A.1
Green Move’s Zero Pedal is a good invention for the start-up company. It provides users
with a cheaper option to gas-powered models and is environmentally friendly. However, the bike
has a design flaw that causes it to accelerate dangerously in temperatures over 100 degrees
Fahrenheit. My first step would be to ask Doug, the supplier of this information to share with me
the report that he had shared with my predecessor outlining the dangers posed by the bike. Next,
I would perform an independent analysis of the report and this time, I would calculate all costs
necessary to repair the bike and also the costs of not fixing the bike. To do this, I would apply a
rational decision making model namely; the cost-benefit analysis model. Rational decision
making models involve four stages: identifying the problem, generating a myriad of solutions,
selecting the best alternative and finally implementing it. In this case, Green Move’s costs of
repairing the bike or not repairing it should be compared to the benefits accruing to the company
in either scenario. If the costs of not fixing the bike outweigh the benefits to the company whilst
considering the cost of lawsuits in cases of injuries caused by the design flaws, Green Move
would then make the appropriate decision. The pressures involed in the decision making are
huge due to the fact that the product has already been rolled out to the market and fixing of flaws
would require recalls. Finally, I would then present my findings to Robert with all scenarios
analyzed including the likelihood of bikes being exposed to the conditions stated .
Question A.2
Black Laws Dictionary describes bribery as “The offering, giving, receiving, or soliciting
of any item of value to influence the actions of an official or other person in charge of a public or

Green Move
legal duty.” In this context, we analyze the payment of the $ 5,000 dollars demanded by the
buyer to put the Zero Pedal bike on their shelves. To find out whether this payment is legal or
unethical, we need to find out whether it constitutes a bribe. According to Unger (1998), bribery
is “the act of making payments, usually secretly, intended to induce the recipient to act in a
manner that is illegal or favorable to the payer, at the expense of the recipient’s employer, of the
payer’s competitors, or of other parties, including the general public.” In this case, the buyer’s
demand is not illegal in the strict sense of the law since putting a bike on their shelves is a
normal business practice. Again, the recipient of the fee has not given Green Move a faourable
position compared to competitors. In US law, this also does not qualify as a bribe since it is mere
payment for someone to do what they are supposed to do. In determining whether the payment is
unethical, we would look at Fieser (1995) model of business ethics where it was stated that
“When people refer to business ethics, they are often referring to 1 of 3 things: avoid breaking
the criminal law in one’s work-related activity, avoid action that may result in civil lawsuits
against the company, or avoid actions that may be bad for the company’s image.” In this case,
all the three requirements have been satisfied. To determine whether to pay the $ 5,000, I would
analyze the benefits that would accrue to the company e.g. where the buyer is a large and
influential retailer, the placing of the product on their shelves would lead to increased sales. If
the benefits do outweigh the $ 5,000 cost, I would recommend the company to pay it since it is
neither illegal nor unethical.
Question A.3
The company should indeed employ a cost-benefit analysis in making a decision
regarding the Zero Pedal’s safety concerns. There are two risks involved in this: first, if the
company decides to repair the bikes, they lose revenue that would otherwise have been saved had

Green Move
the flaw been ignored and the other is that the company might face legal action for all injuries
arising from the product’s design flaws. However, a cost-benefit analysis for the option of not
repairing the bikes should include the risk of negative market reaction to the product. A cost
benefit analysis in this case would put both scenarios into perspective and the decision making
should be relatively easier.
Question B.1
While few companies often set out to deliberately commit unethical practices, the desire
by most to have a competitive advantage has a direct impact on the way products are
manufactured, and how the business treats workers. In the past, companies did not concern
themselves with the ethical considerations in the supply chain due to the assumption that if the
customer was in the dark, their concern would be limited to product quality and safety. However,
with recent scandals involving Nike, Reebok and GAP Apparels, more and more companies are
looking to evaluate relationships with overseas suppliers. Most of the drive to do this comes from
today’s economic climate where media and other persons not in the business chain are
increasingly vigilant about business practices that encourage slavery, child labor and
unfavourable conditions for workers in poor countries. Most consumers today are increasingly
becoming better educated about working conditions in overseas “sweat shops”, and the unfair
treatment of factory workers. These concerns can seriously harm a company’s sales and brand
identity. In addition, the company might find itself in trouble with regulators. In the case of
Green Move, Robert needs to assess the actual working conditions independently. If indeed Solar
Group has been forcing workers to work in unsafe environments, Robert should ask them to
improve the working conditions and if this fails, terminate the agreement altogether and source

Green Move
for a supplier with better working conditions. This is the ethical way out for Robert as Green
Move risks its brand by continued association with Solar Group.
Question B.2
Today’s supply chains are quite complex in the sense that a products has various
componensts sourced from a global pool. In a competitive global marketplace, companies have
to maintain competitive prices to survive, while at the same time enhancing quality. This
normally puts pressure on businesses to reduce manufacturing costs. Increasingly, this drive has
led to a great deal of outsourcing and off-shoring of manufacturing activities mainly Asia where
labor costs are cheaper and businesses are not well regulated. However, from a moral and ethical
standpoint, a company’s pursuit of better profits in no way justifies placing the health and well
being of the employees of suppliers at greater risk. Promoting worker safety abroad can be
achieved in many ways. First, companies should sign contracts with overseas suppliers that are
very specific about the conditions under which the products are to be manufactured. Throug
these contracts, a standard for employee treatment should be developed and constantly
monitored. This standard does not neccesarily have to be similar to U.S . legal standard but it
should at the very least advocate for humane working conditions where the dignity and safety of
the worker is not compromised. Continued violation of these set standards should lead to
cancellation of supplier contracts. It is also important that U.S. companies work with suppliers to
promote the desired work environment. In Roberts case, Green Move needs to come up with an
acceptable safety standard and embed it into the contract with Solar Group. This way, both
parties would know the required work environment and constant monitoring would improve
worker welfare. Monitoring involves making periodic visits to Solar Group plants to see working
conditions first-hand. These visits should be unannounced so as to be more effective. Moreover,

Green Move
the company may use reputable third parties in Bangladesh to assesss factory conditions on its
behalf and churn regular reports.
Question B.3
In the recent case of Apple where it was accussed of violations of international labor
practices in its Chinese supply chains, the New York Times played a big role in breaking the
story and ensuring public debate raged about Apple’s misgivings. The media plays a huge role in
ensuring that ethical practices are followed even in foreign countries where the sights of the U.S.
consumer cannot reach. This is done by frequent investigations into supply chains of various
companies that have outsourced much of their work. In Green Move’s case, the blogger’s threat
to go public with the story about worker conditions in Bangladesh would really do a great deal of
harm to Green Move’s brand. Robert needs to come up with a mitigation plan to counter the bad
press likely to arise from the publishing of the story. The plan should emphasize the company’s
commitment to maintaining a responsible supply chain.
Question C.1
In the global setup and history of trade and business, there have often been several
alternative—mostly unethical—ways of closing business deals in the form of extra kick-backs
and luxurious gifts. These unethical incentives are called bribes. In the U.S. itself, bribery has
been reported in various high-profile corruption cases in the international marketplace with
companies such as Johnson & Johnson and Daimler AG being found culpable. Internationally,
bribery is seen as a way to compete in the global market and most companies engage in the vice
to stay afloat. In discussions about bribery, we look at the ways in which businesses practice it,
the ethical issues considerations, the effects of U.S. laws enacted to prevent it such as the

Green Move
Foreign Corrupt Practices Act (FCPA), as well as the general controversy behind this practice in
the public eye. The FCPA was enacted in 1977 to promote integrity in the conduct of U.S.
businesses in foreign markets. It outlaws bribing of public officials in foreign governments to
achieve favorable treatment. In Green Move’s case, the bid for the public lease is supposed to be
competitive. However, the property manager has asked for an off-the-books facilitation fee to
enable the company get an edge over other competitors. This qualifies as a bribe under the FCPA
since it involves provision of money to a public official to influence his actions. If Viktor was to
pay the $ 2,000 fee to the property manager, his actions would be both illegal and unethical. The
illegality would stem from the fact that Green Move is a U.S. company hence should comply
with the FCPA. The payment would also be unethical since it would give Green Move an unfair
advantage over other competitors as well as adversely affecting the welfare of the Russian people
by preventing them from getting value for the property. In my opinion, Viktor should not pay the
bribe but instead prepare a competitive bid. He can also formally complain to the relevant
Russian authority and notify them of the solicitation of the bribe so as to help curb corruption in
the country.
Question C.2
Viktor has stressed on the need for the company to move technological operations to
Russia as a means of cutting on costs and improving resource management. However, cost-
cutting should not be used as the ultimate reason to move to Russia since a number of other
reasons need to be considered before making the decision. One of these reasons is the business
environment in Russia. Already, Viktor has been asked to offer a bribe to a government
employee in exchange for a favorable property bid. This is an indicator that corruption is
neccesary for businesses to thrive in the country. Green Move would therefore place itself in

Green Move
precarious position if it decides to engage in unethical behavior so as to receive the benefits of
operating in Russia. The company should perform a cost-benefit analysis to assess all the costs
required to make the move and to quantify the benefits attached to those costs. The analysis
should include FCPA fines which often run into millions of dollars and the impact of
reputational damage. I would advise the company to hold off its planned expansion into Russia
until it is able to get a proper assessment of the costs and benefits of the decision.
Question D.1
Green Move’s unethical behavior in the payment of a bribe in Russia, ignoring of design
flaws in the Zero Pedal bike and neglecting the poor working conditions in its supply chain stems
from a number of issues. Chief among the issues is pressure to succeed. This pressure emanates
from the company management’s desire to grow the start-up business into a successful venture.
This is evident in their firing of an employee who complained about the design flaws in the bike.
It also explains why the company would circumvent the law and business ethics to get ahead of
the competition. Another reason for this behavior could be the personality traits of its
management especially the C.E.O., Robert. Robert clearly seems willing to “roll the dice” on
matters pertaining to ethical conduct and has ignored all warning signs that would otherwise stop
a rational C.E.O. The organizational culture at Green Move where success at all costs is the
motto could also have led to the unethical behavior. The culture is the guideline in making moral
decisions and is normally set by those at the top.
Question D.2
Green Move runs into several residual risks due to its unethical actions. This might
accrue in the form of civil and criminal liability for the company’s illegal and unconscionable

Green Move
conduct. First, its Zero Pedal bike is likely to cause injuries to users which would lead to several
lawsuits that the company might not be able to successfully defend. Secondly, Robert’s decision
to ignore the plight of the workers at Solar Group might lead to fines for unethical conduct from
various bodies regulating the international labor market. Finally, the decision to bribe a public
official in Russia might lead to punitive fines under the FCPA as well as criminal culpability on
the part of the company’s management. The sum total of all these risks puts the company at great
risks and if they were all to attach, the companies future would be decidedly bleak.
Question D.3
As the body in charge of corporate governance at Green Move, the board of directors has
a huge task ahead of them in trying to mitigate against the risks that the company’s management
has exposed it to. Since the majority of the problems seem to stem from the company’s decision
makers, it is imperative that there is a change of the ‘tone at the top’. The board should fire the
management as a matter of principle and take further action against them for commiting crimes
and putting the lives of consumers at risk. In addition, the company should move to correct the
situation by reversing the decisions made by Robert and his team. This includes: recall of the
Zero Pedal bikes so as to address the safety concerns, addressing the issue of poor working
conditions for Solar Group’s employees in Bangladesh by giving the supplier an ultimatum as to
the acceptable labor standards and to cancel the contract where this is not agreeable or followed
and finally, to notify the relevant anti-corruption authorities in both the U.S. and Russia on
Viktor’s bribe instead of covering up the crime. Ultimately, the board should help eradicate the
culture of loose ethics in the organization by sourcing for managers with an ethical track record
and through sensitization programs. The board can also reduce pressure by lowering revenue
targets to manageable levels.

Green Move

Question D.4
Ultimately, the U.S. government has a responsibility to ensure that unethical and illegal business
practices are eradicated. The enactment of laws that provide strict business requirements and
adequate deterrent measures in the form of huge fines is one such responsibility. While the
FCPA is a good start in eradicating corruption in foreign dealings, it needs to be enhanced to
provide more coverage of corrupt practices. For example, the Act does not define bribery which
means that a number of emergent bribery practices might escape the arm of the law. Various
regulators also need to be vigilant in ensuring that businesses in the U.S. are run in a manner that
does not jeopardize consumer safety. An example of this should be to bring the Zero Pedal bike
under regulation by the National Highway Traffic Safety Administration (NHSTA). This way,
solar-powered bikes can be assessed for safety and quality. It is also important that supply chains
are assessed by the various government departments to ensure that the purchase of goods in the
U.S. is not inadvertently promoting the abuse of labor rights for workers in poor countries or
those with poor regulation mechanisms.

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