Subject: Business and Management
Language: English (U.S.)
Pages: 1
Critically evaluate information from core business functions and the value chain to enhance organizational knowledge of strategic position and direction.

Strategic Ethical Issues for Ford

           Several strategic ethical issues emerge as Ford tries to increase productivity and achieve long-term sustainability. The ethical issues that Ford is currently facing resonate across the entire automobile industry. In a bid to carve out impressive market shares and increased profits, most of the companies in the automobile industry have flouted ethical regulations and considerations. The flouting of such laws has shone a bad light on the industry with customer perceptions turning negative across the world.

           One ethical dilemma that Ford has to deal with is the impact of outsourcing and offshoring. Companies in the industry have used outsourcing and offshoring as means to cut costs in the volatile economic market. Such initiatives have become popular in the industry as companies seek to move core functions into regions where the cost of labor and production are lower.

           The result is endemic unemployment in the home countries of the automobile companies. For instance, Toyota moved its primary production plant from Japan to South-East Asia where the cost of labor and other factors of production are lower. Millions of people were consequently rendered unemployed by the move.

If Ford were to follow suit then the company would receive worldwide consternation on ethical grounds. It is unethical to move production to a different location in a bid to cut costs at the expense of human resource. The company needs to consider the ethical implications of such a move as consumers may reject its products because they empathize with the employees who have been rendered jobless.

Furthermore, the company should be concerned about its corporate social responsibility efforts. Today, more customers are only buying goods from companies that have an established and prolific CSR program especially one geared towards empowerment and the environment. Thus, for Ford to be sustainable and profitable in the long run, the company needs to balance its stakeholder and stockholder needs. The main way of achieving this is developing a formidable CSR program.