Investment in South Africa Paper

Investment in South Africa Paper

The possible utilitarian benefits of building the Caltex plant in 1977 were much more beneficial than the possible violations of moral rights and justice. The building of the plant brought several benefits to both the people and the government. Every undertaking is always characterized with positives as well as negatives (Velasquez, 2008). Therefore, we can not rule out that there might not have been some negative implications as a result of the construction of the plant. But to be precise, the benefits of the plant far much surpassed the violations of moral rights and of justice.

The benefits accruing from the plant are many. To begin with, it will create employment to the masses. Employment is of paramount importance especially in this period of economic recession (Velasquez, 2006). Employment will lead to improved living standards to the majority of the citizens which means they can actively participate in activities of national building. The plant would also lead to empowerment of the stockholders by availing more dividends to them. The extra earnings from the project would enable plant to expand into other more investment projects. Every company’s objective is to expand and grow to higher levels in terms of profitability and market occupation (Velasquez, 2002). The plant would lead to more growth of the company’s market penetration and cover. If a company’s products are both readily available and easily obtainable, it wins the favor of more customers which means more profits for the company.

Increased profitability to the company is an advantage to the government. It is a legal requirement for companies to remit a certain percentage of their profits to the government. However, a few moral and legal violations include pollution. This comes due to the emotions of gases and toxic fumes to the air.  Competition to other entities may be seen as a negative implication by the sympathizers of these companies. Increased growth may mean so much increase in bureaucracies. The government may not be able to completely monitor the operations of the company. Thus the company officials may avail incorrect information about their profitability limiting the earnings that the government gets from the company.

As a stockholder in Chevron Oil, I would vote no for the idea of asking Caltex to terminate its operations. I t is quit absurd to pass this idea, bearing in mind that I have invested my money into it. How do I get my investment growing?  Not to sell to the military and the South African police is a very serious issue. This decision is even against the government. In fact, it is the simplest way to ask the government to revoke our license. In the first place, the company will look like an enemy of the state. Therefore, I would vote no. The best decision is to advice the company to implement Tutu principles as they are not only profitable but also ethically acceptable.

The managers are the main decision makers. They make decisions aimed at improving the company (Goodpaster, Nash, & Mathews, 1998). Terminating the operations of the company cannot even be considered. Not selling to the military and the police is very detrimental to the company. Thus they would support the idea of implementing the Tutu principles.

The management has the responsibility of pursuing both the responsibility of acting legally as well as ensuring that a project is profitable. No company can exist without the laws. Thus the management should ensure that they first analyze and understand the requirements of the law before deciding on what project to consider for investment (Quinn & Petrick, 1997). However how much a project is profitable, if the law does not recognize it as a legal, the company may not be able implement it. Any company is formed under provisions of the law and thus for it to be legal, it has to engage in legal activities. By this, it will not have problems with the state.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Goodpaster K., Nash L., & Mathews B., (1998), Policies and Persons: a casebook in business ethics, McGraw Hill

Quinn J. & Petrick J., (1997), Management ethics: Integrity at work, SAGE Publishers

Velasquez M., (2002), Business Ethics: Concepts&under, Prentice Hall (Higher Education Division, Pearson Education)

Velasquez M. (2006), Business Ethics: Concepts and Cases (6th ed.), Upper Saddle River: Pearson Prentice Hall

Velasquez G. M., (2008), Business Ethics: Concepts and cases, Prentice Hall