Ethical Dilemma and Contingencies
Candice Thurston faces a moral conundrum as she weighs the pros and drawbacks of selling Candi&Co to Long4Life. The brand’s ambition to change the ethnic hair business is at odds with financial gain. Since its inception, Candi&Co has worked to change the way people see women of color and ethnic hair. However, the company now confronts the moral dilemma of merging with a bigger corporation without sacrificing its founding beliefs.
The biggest worry is that being bought up by Long4Life would make Candi&Co less dedicated to its original goals of desexing hair, giving stylists more agency, and encouraging female entrepreneurship (Scheepers and Govender 1). Thurston faces a precarious balancing act between expanding the company’s bottom line and straying too far from the brand’s roots. Ethical risks include commercializing a brand with social effect, putting profit before social change, and jeopardizing Candi&Co’s close-knit, customer-centric culture.
These moral worries may be lessened with the careful planning of backup plans. Long4Life’s dedication to continuing Candi&Co’s social goal must be spelled out in full in the purchase agreement that must be negotiated. The franchise agreement should include provisions that ensure the training school maintains its commitment to empowering its students, delivering excellent services for various hair types, and supporting female entrepreneurs.
Thurston should look at keeping his leadership position post-acquisition to prevent moral decline. This would give her a voice in company matters and guarantee that Candi&Co’s high ethical standards are maintained. To deal with any breach of the agreed-upon ethical standards, it is important to set up a solid governance framework that includes frequent reviews and audits of the brand’s social effect. Thus, to preserve Candi&Co’s moral standing when it merges into a bigger corporation, the contingency plans must be all-encompassing and flexible enough to adapt to unforeseen circumstances.
Recommendation to the Focal Firm
When making a recommendation to Candi&Co about the acquisition offer from Long4Life, it is crucial to keep the company’s goals, vision for expansion, and dedication to social good in mind. The proposal prioritizes maintaining the company’s essential principles while also realizing financial benefits (Ateba et al. 1325). Firstly, I encourage extensive due investigation before making a choice. Long4Life’s past success in integrating acquired enterprises, especially those with a social or cultural mission, must be thoroughly evaluated (Maziriri). The possible effect on Candi&Co may be predicted by looking at how other acquisitions have integrated into bigger company structures while maintaining their own identities and goals.
Clauses in the purchase agreement outlining the maintenance of Candi&Co’s social purpose should also be prioritized during negotiations. Franchisees should not negotiate with Long4Life unless the company guarantees that it will keep its promises to keep its empowerment initiatives going, keep its services open to everyone, and continue to encourage women to start their own businesses. I would advise that after the transaction, Candice Thurston negotiates a position in the leadership to help prevent the erosion of ethics and the dilution of the brand’s identity (Maziriri). That way, she may have a voice in the company’s direction and help keep the brand true to its roots. By keeping Thurston on board, Candi&Co is able to protect itself from any possible conflicts of interest while simultaneously making use of her unique perspective and experience.
Finally, a backup plan should be made to review and audit the acquisition’s effect on Candi&Co’s social purpose on a regular basis. This safeguards the brand’s dedication to empowering its customers, celebrating its diversity, and doing business professionally by swiftly identifying and addressing any breaches of the agreed-upon ethical standards. Thus, the advice is to go forward with the purchase but to do so in a careful and strategic manner that protects Candi&Co’s values and ensures a smooth transition into the bigger corporate entity and the greatest possible development.
Works Cited
Ateba, Benedict B., et al. “The Significance of Electricity Supply Sustainability to Industrial Growth in South Africa.” Energy Reports, vol. 5, 2019, pp. 1324–1338. Web.
Maziriri, Eugine Tafadzwa. “Green Packaging and Green Advertising as Precursors of Competitive Advantage and Business Performance Among Manufacturing Small and Medium Enterprises in South Africa.” Cogent Business & Management, vol. 7, no. 1, 2020, p. 1719586. Web.
Scheepers, Caren, and Philandra Govender. “Candi&Co South Africa: An Entrepreneurial Woman’s Leadership in Revolutionizing the Ethnic Hair Industry.” Ivey Publishing, 2020, pp. 1–12.