Primo Cigarettes - Ethics

We believe outsourcing production of Primo brand cigarettes to Rohanda is the optimal course of action. In accordance with stakeholder theory we will be maximizing our profits, legally, without encouraging black market sales or violating Rohanda's import ban. We recognize that there is cultural relativism involved and allow Rohanda to have freedom by giving it the power to sell our brand of cigarettes and maintain control over its operations in the region. Their authority won't be overridden and their goals of benefiting their tobacco farmers and keeping control of cigarettes in their country will be accomplished. The primary reason they would implement an import ban would be to protect their economy. By allowing the entire supply chain to reside in their country, job opportunities and tax income are created at the production, distributing, and retail phases. Through the government and UST working together in this venture we will be able to increase the size of the market in Rohanda. All parties involved will benefit, we will be in effect, "enlarging the cake". Every party involved will benefit and receive increased revenues if our plan is implemented. The proposition of the Asian Branch manager, to raise the prices on Kandalan distributors encourages the pursuit of bad profits, and unfairly punishes the legal distributers in neighboring Kandala, the only party that is playing by the rules. Our proposed solution is the ethically correct course of action because it ensures an equitable distribution of outcomes for all parties involved. This solution is the most desirable because it promotes a fundamental fairness in our approach to doing business. This fairness we are promoting is fundamental because we are fostering good social relationships connected with our economic exchanges. This fairness approach will greatly enhance our reputation in the region and ultimately lead to even greater sales.

. In this case it appears that profits are more important to Rohanda than health. You can see that they gave into the ban because of the effects it would have on its economy rather than the push from the health council. Primo could become the brand of the country and address their desire to increase profits for the country.

This can also be justified because the profits become good by respecting the government and its people. They (Derek insert your definition in this area). We would be accomplishing our endeavor through the support of our customers. Our relationship depending on the success would be for the long haul and create low prices for consumers.

I think the main ethical issue is: should they increase the price for the Kandalan legal distributors simply because they are sold for more illegally in Rohanda. The legal suppliers will be penalized and the smugglers will profit along with the company. This encourages black market activity at the expense