Question

1. On the subject of the Industry Life Cycle as it relates to business ethics: do you see any ethical risks when a Company is transiting through he growth stage of this theory? Answer the question and list at least two risks or present two arguments why you disagree that risks do not exist at all.

Answer 1

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Here we will get into the topic of ethical risks when a company is transitioning through its growth stage.

It is definitely true to say that there is an ethical risk when a company is transitioning through the growth stage. Those two risks are following below:-

1) When the company is at the growth stage, it starts to use more of the resources, and using an excess of the resources can harm the environment, and this is ethically wrong and can put the company into a threatening position. Harming the environment is a part of the ethical risk that a company would take and would also be ruining its reputation by doing this.

2) To expand its business, the company would try to make more profit by selling more of the products in bulk not keeping in mind the consumer's need, want, and preferences. This is also ethically wrong because the consumer is the king of the market and not treating them well is ethically wrong.