MGT301A – Ethics and Sustainability
Assessment 3:
Group Scenario
(Group C)
Student Names:
Leela Subramaniam
Bimal Pandey
Yamille Villacorta
Mekhna Shibu
Short description of organisation
James Finlay and Co was established in 1750 and since 1817 changed its operations from cotton merchant, to a globally operating tea merchant. Finlay`s, is its subsidiary brand that is concerned with B2B (business to business) sales of tea, coffee and botanical solutions. Finlays currently have four main plantation farms located in Kenya, Argentina, Sri Lanka and China.
James Finlay Kenya is a “leading producer and supplier of Kenyan tea” (Finlay`s, n.d.). It has a large focus on providing consumers with a large, more customisable, range of teas. The overall mission and vision statement for all of Finlay`s plantations is concerned with increasing profits sustainably whilst ensuring tea drinkers across the world can be connected by natural and healthy beverages.
Description of the ethical issue
The most significant ethical issue in this scenario is the sexual exploitation of vulnerable workers faced by James Finlay Co., as reported by BBC (2023). Sexual exploitation in the workplace is defined as any abuse of power, trust, or vulnerability for sexual purposes (Australian Government DFAT, 2019).
The organization’s female workers have been subjected to sexual harassment and coercion in exchange for work, resulting in violations of their dignity, autonomy, and human rights. These women were pressured to comply with the sexual demands of their bosses to avoid losing their livelihoods (Africa Eye & Panorama Teams, 2023). Furthermore, the poor working conditions, rewards, welfare policies, and employee development practices within the company, as stated by Chepkoech (2018), add to the severity of the situation.
The United Nations Guiding Principles on Business and Human Rights (UNGPs) and International Labor Organization (ILO) conventions offer a suitable framework for analyzing the situation. UNGPs require companies to respect human rights and avoid discrimination, forced labour, and human trafficking. By allowing sexual exploitation, James Finlays Co is violating these rights. Furthermore, the company must have effective mechanisms in place to address such human rights abuses. Meanwhile, the ILO conventions establish standards for labour practices, including those related to sexual harassment and forced labour, which James Finlays Co must ensure it is not violating.
Applying these principles highlights the organization’s ethical responsibility to address the sexual exploitation of vulnerable workers and ensure that its labour practices align with international standards. Consequently, the company may need to establish or improve its grievance mechanisms and take corrective action to meet these standards. Ultimately, companies must be held accountable for their actions, and it is imperative to push for reforms that safeguard the rights and safety of women in the workplace.
List of key stakeholders
Stakeholders:
Description:
Owners
A company’s owners are in charge of making sure that the enterprise complies with all applicable laws and ethical standards, and that it runs legally and ethically.
This duty may be carried out in a variety of ways, such as through risk management, financial accountability, and ethical monitoring. The exact duties of a company’s owners will vary depending on a number of variables, such as the size and scope of the enterprise, the nature of the sector, and the legal and regulatory framework in which it works.
Employees
According to the James Finlay & Co., the business has traditionally placed a high priority on the welfare and advancement of its employees.
The business has obviously realised how crucially important its employees are to its success. The company’s durability and success during more than two centuries of operations may have been influenced by its emphasis on the welfare and development of its employees.
Managers
Finlay & Co.’s management style has been characterised as somewhat paternalistic because the business offers a variety of social and welfare advantages to its staff. For instance, the business gave its employees access to housing, healthcare, and training and educational possibilities.
Government
It is obvious that Finlay, James & Company Limited relied on government support and cooperation to fulfil its economic goals. The exact nature of the interaction between the two parties changed depending on the circumstance and time period.
Suppliers
The relationship between Finlay, James & Company Limited and its suppliers is discussed in the article “Finlay, James & Company Limited: A Study of the Growth of a Family Firm 1750-1950”. For raw materials and other inputs, the company depended on its suppliers, and the suppliers depended on the corporation for access to markets and other commercial prospects. The business was able to guarantee a steady supply of inputs and keep its position as a major participant in the international trading sector by upholding good connections with its suppliers.
Community/society
The community and society in which Finlay, James & Company Limited functioned benefited from the company’s engagement with them. In order to accomplish its business goals, the corporation needed the help of the neighbourhood and larger society, and it also made a lot of contributions to their welfare.
Statement of the ethical issue, in one sentence, in the form of a question (i.e. what is the decision the organisation must take).
What actions do organisations based in developing countries need to take to prevent sexual exploitation in their supply chain?
References:
Finlays. (n.d.). Our Mission and Vision. https://www.finlays.net/about-us/overview/
Korir, P. K., & Kagiri, A. (2017). Effect of Material Sourcing Strategies on Organizational Performance: A Case of James Finlay (Kenya) Limited. International Journal of Supply Chain Management, 2(3), 1-17
Chepkoech, A. (2018, April 26). Finlays to close Kericho flower farms blames
worker’ strikes. Business Daily, p. Ppl.
True cost of our tea: Sexual abuse on Kenyan tea farms revealed. (2023, February 20). BBC News. https://www.bbc.com/news/uk-64662056
Jeffery, R. (1982). Merchant Capital and the End of Empire: James Finlay, Merchant Adventurers. Economic and Political Weekly, 17(7), 241–248. https://www.jstor.org/stable/4370678
Noah, S. A. (2013). Stakeholder Involvement in the Management of Strategic Change at Finlays Tea Company Limited, Kenya. Erepository.uonbi.ac.ke. http://erepository.uonbi.ac.ke/handle/11295/63098