Ba Little Enough or Too Much

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The decision of profit maximization featured in the Deckop Chapter, is defined as the option providing the maximized profit for the company as long as they are ethical. Although the chemical company may not develop new products, they avoid the costly interruption while building additional process and customers’ loss when their business is suspended. The better approach to achieving profit maximization is to keep producing same products. According to Friedman’s idea, “A business should maximize profits, so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception or fraud.” This can be a powerful weapon to defend our positon of producing the same products in order to keep earning profit in the near period. However, if we think about developing new products in case of bankruptcy, we can not guarantee the new products work well or the recovery of the cost of additional process. Thus, staying on the same track will be a safe way to achieve profit maximization.

The last part I need to take into account is the universalism, which is represented by Deckop as the golden rule perspective. The golden rule is doing unto others as you would have them do unto you. Based on this perspective of universalism, the ethical option for universalism is to keep producing the same products as usual. The chemical company will not harm the environment in further path so the environmental groups may accept their action. Meanwhile, they will not take any risk if they encounter serious issues while producing products. Another pretty important factor may come out is the working opportunities of employees. If the chemical company requested intermission while building the additional process, the employees would lose their jobs immediately. The better approach to balancing both is staying where they are, which is keeping to produce same products.

The apparent decision I would make is to keep producing the same products as before. I compare perspectives between environmental groups and customers transforming as a result of producing new products. Personally put it into consideration, I would definitely be concerned about the environment problem. Most people agreed that running a good or bad business relies on the condition of the environment. For instance, if your company did not produce any polluted emission to the environment, customers would potentially prefer this type of company because they hold the responsibility to society. Another significant influence is the customers transforming to their competitors since they have been interrupted in building the new process. That posted a severe threat to their business such as reputation harness and goodwill lost.

The counterargument we have to highlight is the employees’ sizable bonuses from the company’s profit sharing plan if the company got the success of the new products. The counter side will address that the firm is not being ethical in improving the reward for employees. According to Friedman’s opinion, he wrote that there is only one social responsibility of business that is to use its resources to increase its profits as long as it stays within the rules. Although maximized profit is very important for company, we have to pursue the value of employees rather than the profit-centered business. Compared with this case, we have to take into account the working opportunity of employees if the Chemical Company shut down, which is the first concerned issue for the company operation.

For the manager Juan, he is frustrated to catch the attention in the company and the Plant Supervisor did not interested in his plan for some reasons. The first significant thing is that if the government official has been reported a mistake they make from the chemical company allowing them to dispose additional waste to river, the chemical company will be inspected again and required them to installed additional process if it is necessary. Meanwhile, the consequence of sale and profit will become worse and worse as a result of their customers’ loyalty loss. Another serious thing to emphasize, he had decided to approach to the Vice President of Operations while touring the plant next week. This is not an effective method to gain reputation as a new manager by meeting the Vice President in person. I would recommend him to collect more information to show the influence of new products development, and balance the impact if he contacted the government about their error to request the permit. Evidence is very necessary to support his opinion but now he need to get the internal support from Owen. Currently, the Chemical Company needs to keep producing the same products, which is the better way to keep business fluent.