Unit 7: the community stakeholder
The Clean Power Company, based in Cincinnati, Ohio, has been in operation for 5 years. The company produces an energy regulating device that automatically regulates the use of power sources in homes and businesses. Recently, they have realized that in order to stay in business, they will have to move their operations out of the country. They have purchased approximately 500 acres next to the Chavon River in the southeastern part the Dominican Republic.
The land is totally undeveloped. However, it is located across the river from the Altos de Chavon complex that has shops, restaurants, and other commercial attractions. This land looks like a tropical paradise with palm trees and access to the sea via the Chavon River.
As part of the sales agreement, the seller, Teltac Corporation, has agreed to put in roads, septic systems, and water lines. However, electrical power and sewer lines will be up to Clean Power. Clean Power Company plans to be self sustaining by using solar power. Teltec has informed them that there should be no problems running sewer lines directly into the river as the Chavon River is clean and large and can absorb the waste.
You are the Director of Corporate Development in charge of spearheading the development of this new site. In addition, you are responsible for transitioning US employees to the new location and hiring local employees. You will need to decide which Cincinnati employees will go to the new Dominican Republic location or if the company should rely solely on local Dominican workers.
Clean Power also plans to build a new school for local children to address overcrowding and the lack of basic necessities, technology, and space for the students. Clean Power desires to be a good corporate partner in this community, which has many dirt roads and undeveloped areas.
Management knows that the initial capital outlay in this initiative will drive the price of the stock down, thereby upsetting the shareholders. However, management believes it will prove a sound investment in the long run.
- To see the Chavon River, go to http://www.bocachicabeach.net/altos_de_chavon.html
- Double click on the last picture to enlarge the picture of the river.
Question A:
What is Clean Power’s corporate social responsibility for each ethical issue you have identified in this case? Write a minimum of 2 pages in APA format addressing these issues.
- Legal
- Economic
- Ethical
- Philanthropic
Question B:
Stakeholder Management — Write a minimum of 2 pages in APA format addressing the questions below regarding the following stakeholders: the environment, the employees, the customers, the community and the shareholders:
- What are the above stakeholders’ interests for each ethical issue or concern you identified? What are the stakeholders’ responsibilities for each ethical issue or concern you identified? What are the possible decisions the corporation could make for each ethical issue or concern, and what are the possible effects on the stakeholders?
