Sam’s Ethical and Financial Viable Choices
As the chief executive officer of BYM, Sam has a number of decisions to make in order to keep the company afloat. Sam can decide to retain the operations of the company in Detroit due to several financial reasons. By relocating to Uganda, the company will lose a huge amount of financial subsidies. Therefore, the company can remain in Detroit and continue enjoying such subsidies. Subsidies in the business world are introduced to prevent potential imbalances in the use and resource allocation (Liu et al., 2019). Due to the company’s financial challenges, it might be unable to manufacture enough products to meet the escalating demand of its consumers. Therefore, if Sam makes the decision to remain in Detroit, the manufacturing processes can be improved by subsidizing the inputs costs. Such a decision will be financially viable to help BYM overcome current problems.
Sam can also decide to remain in Detroit in order to continue employing more than 100 loyal workers. It is ethically viable for Sam to ensure over 100 loyal workers do not lose their jobs by retaining BYM in Detroit. The creation of employment is of the benefits people from Detroit should enjoy because of Sam’s company. It is fulfilling and ethically correct to contribute back to society positively. Sam can also decide to relocate the company to Uganda and thereafter employ some citizens of Uganda. The relocation decision will be financially viable since cheap labor is available in the country.
Sam can also make the decision of remaining in Detroit to eliminate the extra expenses of relocating to Uganda. It will require heavy resource input to transfer the manufacturing plant from Detroit to its new location. New buildings and warehouses will have to be constructed following other essential infrastructure and the country’s globalization policies to accommodate the entire manufacturing plant (Meyer, 2017). Transporting tools and equipment from Detroit to Uganda also requires heavy financial input. Therefore, the decision of Sam to maintain in the current location of the company is financially viable.
The decision of moving overseas is financially unviable when it comes to losing potential private investors. It is impossible for the CEO to predict how the company’s private investors will react to the issue of relocation. Some investors might support the move of relocating the business from Detroit to Uganda, while there are chances of other investors declining the proposal. The company is already unstable financially, and therefore, some private investors might not be willing to incur additional costs of moving the entire transportation and supply chain to a new country.
By moving the company’s production overseas, Sam will have to leave behind essential friends and, more importantly, their immediate family. It is ethically viable for the decision of retaining the current location of BYM to be reached. The decision will enable Sam to maintain the closeness of the immediate family together with other friends. Family relationship enhances a unique form of endurance promoting the well-being of each member (Thomas et al., 017). Following ethical standards, it is a wise decision for Sam to maintain the current location of BYM in Detroit.
Sam can make a decision of moving the company to Uganda in order to save it from collapsing. The firm’s operation in Detroit is dwindling with unstable cash reserves and consistent losses. Therefore, it is considered financially viable for Sam to try the production process differently to regain stability in the business. From the research, Uganda has favorable climatic conditions promoting agricultural practices. For instance, it enhances the growth of cotton, basic raw material for the textile industry. Therefore, instead of waiting to incur more losses and consequently collapse the company, it is financially acceptable for Sam to relocate to Uganda and rejuvenate the company’s production process.
Apart from the attractive climatic conditions of Uganda, Entebbe is a modern city situated on Lake Victoria. The city has both economic and infrastructural abilities to boost the manufacturing process of firms such as BYM. A country is a potential place for the company to realign itself and continue with its production processes deploying strategic moves to achieve its set goals and objectives. Entebbe is an Uganda city with a major and well-built airport comprising enough population to act as employees (The Observer, 2018, p. 11). The new country will offer numerous opportunities for BYM to expand its textile manufacturing operations. Therefore, Sam’s decision to relocate the company to Uganda is financially viable in relation to the plentiful benefits BYM will accrue while there.
Challenges of Sam’s Choices on Moral Integrity
Moral integrity is a vital virtue every leader ought to possess. Ethical dilemmas are one of the challenges in most organizations where a leader is faced with the puzzle of making the right decisions (Caldwell, 2018). As the chief executive officer of BYM, Sam has employed over 100 workers who depend on the company. However, the CEO is critical in deciding whether to relocate to Uganda or remain in Detroit. Sam’s moral integrity is faced with a challenge since there is a decision to be made. It is either BYM to remain in Detroit and continue to suffer from financial instabilities and losses to retain over 100 employees or relocate to Uganda.
Starting a firm and watching it flourish has always been Sam’s dream, and it is quite disheartening to stand and watch BYM as it crumbles on the ground. Relocating to a new country, Uganda provides a glimpse of hope for the future of the company, but unfortunately, it comes with its price to be paid. Sam has to leave behind their immediate family and friends for the sake of following their passion for managing a company. As the CEO, Sam has to take a challenging moral stand by deciding whether to relocate or remain in Detroit with family members at the expense of BYM.
The company has a possibility of having a bright future in Uganda due to a number of factors. For instance, Uganda has a cheap labor force with unskilled women who are willing for long durations while being paid low wages. They are being forced to undergo such scenarios to provide for their children and avoid marital torture and violence. However, employing such women and paying them low wages regardless of long hours of work challenges moral integrity of Sam. They ought to work under favorable conditions entailing recommendable working hours and proper payments. All employees deserve better wages to eliminate exploitation without considering their backgrounds.
Cultural Consideration
It sounds rational for Sam to retain BYM in Detroit to safeguard job opportunities for the current employees. The decision might have been due to ethical considerations, but however, it does not conform to Hofstede’s cultural framework. For instance, remaining in Detroit is categorized under short-term orientation according to Hofstede’s framework since it focuses on near-future gratification (Chayakonvikom et al., 2016). The over 100 employees will secure their jobs temporarily, waiting for the collapse of the company. However, in the business sector, long-term goals are preferable to short-term gratification. It requires a sound decision-making process for Sam to evaluate both short-term and long-term benefits frameworks before deciding on the company’s location.
According to Hofstede’s framework, there is significant importance of practicing individualism for personal growth and enhancement towards achieving certain goals. Nevertheless, collectivism is also significant since the well-being of other people has to be prioritized (Chayakonvikom et al., 2016). It is ethically and culturally viable for Sam to make a decision of retaining BYM in Detroit not only for the sake of their friends and immediate families but also to avoid rendering more than 100 employees jobless.
Like any other organization, BYM has stringent rules and regulations formulated by Sam and other stakeholders. For instance, making profits and meeting the running expenses of the company are among the requirements of the stakeholders (Ramachandran, 2020). Depending on Hofstede’s theory, such a phenomenon indicates an extreme improbability avoidance index depicting low tolerance for ambiguity and uncertainty. Strict rules and regulations monitor the known and unknown future of BYM. However much Sam might be willing to retain the manufacturing plant in Detroit, cultural consideration has to be considered by following the policies of the company.
In Uganda, most of the potential employees will be women who were never served justice due to the abuse from their husbands. Also, most cotton picking is done manually using hands in the country, and BYM might consider hiring women as a source of cheap labor. From Hofstede’s cultural framework, femininity has unique attributes such as nurturing, modesty, and other fluid gender roles. Since some characteristics of men involve having a strong desire for wealth building and material achievements according to Hofstede’s theory, they ought to be also employed in BYM (Chayakonvikom et al., 2016). Employing only women as the main source of cheap labor to work on cotton farms is culturally unacceptable. In the current world, all genders can perform all types of work equally depending on their skills and knowledge.
Gender Perception
My perception of the gender of the company’s CEO was neutral regarding a sense of gender equality. From various researches, women are faced with numerous challenges while climbing the rank of top leadership positions in firms, but eventually become CEOs of renowned organizations (Cho et al., 2019). I had an assumption of the CEO being either a male or a female character. Anybody with the right zeal and qualification has a chance of being a CEO regardless of gender orientation.
Future Decisions about Sam Becoming Samantha
If Sam was actually Samantha, my interpretation of the person’s future decisions and actions would remain constant. Solving financial challenges affecting BYM does not depend on the gender identity of an individual. Any sane leader or rather CEO can decide on the next action a company needs to take to avoid future losses. Suppose a woman, for instance, Samantha, has attained proper managerial training. In such a case, she should be able to make sound decisions on whether to relocate BYM to Uganda or retain its current location in Detroit. Generally, any CEO should have the ability to make decisions with or without pressure concerning the present and future position of the company financially, regardless of their gender.
References
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Cho, Y., Park, J., Han, S., & Ho, Y. (2019). “A woman CEO? You’d better think twice!”.Career Development International, 24(1), 91-108. Web.
Liu, M., Liu, L., Xu, S., Du, M., Liu, X., & Zhang, Y. (2019). The influences of government subsidies on the performance of new energy firms: A firm heterogeneity perspective.Sustainability, 11(17), 1-20. Web.
Meyer, K. (2017). International business in an era of anti-globalization.Multinational Business Review, 25(2), 78-90. Web.
Ramachandran, R. (2020). Stakeholder management and innovation.SSRN Electronic Journal. Web.
The Observer. (2018). Entebbe Airport Expansion.The Observer, p. 11. Web.
Thomas, P., Liu, H., & Umberson, D. (2017). Family relationships and well-being.Innovation in Aging, 1(3), 1-11. Web.