Question

Mount Ashland Promotions Inc. is organizing one of its most popular events, the ZenNaturals Annual Trade Fest. At this trade show, producers, manufacturers, and distributors in the natural foods market display the latest trends in organic foods, herbal supplements, and natural body care products. The Trade Fest attracts a wide variety of participants, from large distributors who display a wide range of prod-ucts to small, independent companies. As in previous years, Nina Li and her team at Mount Ash-land are in charge of managing the event, which includes all advertising and publicity as well as arranging spots for exhibi-tors. The success of this event depends on Nina’s ability to attract large numbers of small independent retailers in the natural foods market who are looking to expand their product lines. She knows that these small retailers tend to be zealously committed to the principles of healthful lifestyle. Moreover, many are members of the Organic Trade Federation (OTF), an organization that advocates ethical consumerism. The OTF has been known to boycott trade shows that
include too many products with controversial ingredients such as ginkgo biloba, hemp, or kava kava. Nina is aware that some herbal diet teas have been receiving lots of negative attention lately in trade publications and the popular press. These teas claim to be “thermogenic” or fat burning, and typically contain ma huang (or ephedra). Ephedra is particularly controversial, not only because it can be unsafe for people with certain existing health conditions, but because this fast-acting stimulant commonly found in diet and energy products is contrary to the OTF’s principles and values. Worried that too many products at the ZenNaturals Trade Fest may be thermogenic teas, Nina decides to take a closer look at vendors already committed to participate in the event. Based on the data that her team pulled together, more than 33% of them do indeed include teas in their prod-uct lines. She was quite surprised to find that this percentage is so high. She decides to categorize the vendors into four groups: (1) those selling herbal supplements only; (2) those selling organic foods and herbal supplements; (3) those sell-ing organic foods, herbal supplements, and natural body care products; and (4) all others. She finds that only 2% of groups 1, 2, and 4 include tea in their product lines, while 34% of the third group do. Even though group 3 contains most of the vendors, Nina instructs her team to use the average percent-age 10% in its communications, especially with the OTF, about the upcoming ZenNaturals Annual Trade Fest.

(a) What is the ethical dilemma?

(b) What are the undesirable consequences?

(c) Who are the stakeholders in this scenario?

(d) What is your ethical solution? Which stakeholders did you consider when developing this solutions?

Answer 1

(a) The ethical dilemma in this case is that the Organic Trade Federation (OTF) has known to boycott trade shows include controversial ingredients such as ginkgo biloba, hemp, or kava kava because OTF advocates ethical consumerism and the Nina Li an event manager found that the large percentage of vendors come under the category which contains controversial ingredients product. So, Nina Li is in ethical dilemma that how to manage this event. She kept communicating to team that keep the category of the herbal product or organic product under 10% although it is 2% only.

(b) The undesirable consequences can be event manager many be sued for false information if it comes in public. The reputation of company may be degraded. The consumer trust and loyalty may lost which could lead to defamation of company image.

(c) The stakeholders in this scenario are customers, vendors, OTF, Event manager, manufacturer, producers, distributors, research agencies, retailers, company and general public.

(d) The ethical solution is the information to be communicated to the company about the issue and communication to retailers, manufacturer, vendors and producers that they should avoid controversial ingredients in their product.

The stakeholders who are considered when developing this solutions are company, retailers, manufacturer, producers and vendors.