Practise explaining and evaluating common business objectives, including ethical objectives, aims, and reasons objectives may change for IB Business Management SL.
The Bengaluru office is responsible for customers in Asia. In 2021, this region will account for 30 % of MM ’s business, but it is expected to account for 60 % by 2025. Today, the Bengaluru office includes divisions responsible for sales, commissioning the work required to provide customers with the product, and providing after-sales service. Other business functions, including the rest of the Sales Division, either remain in the United Kingdom or are outsourced. Rachel would like to move all of MM ’s operations to Bengaluru. Bengaluru is a rapidly growing city of over 8 million people. Some aspects of its infrastructure, such as roads and water, have struggled to keep up with the growth. Deteriorating air quality, mainly from traffic pollution, is also a significant problem. Bengaluru is known as the “Silicon Valley of India”, with a concentration of high-tech businesses. These businesses benefit from high-quality education and training facilities. Bengaluru is also home to its own film industry, which produces about 80 films each year. The rapid growth of Bengaluru means extensive construction of buildings, and Rachel believes that suitable premises could be found at lower rents than in the UK. Javed can see operational difficulties with moving some of the design functions of MM to Bengaluru. Although the country has a strong IT industry, London has a stronger creative industry. Many of the creative employees at MM, like its graphic designers and artists, are based in London and are unlikely to want to relocate to India. Many recent recruits to MM have also come from the London Academy of Creative Arts.
MM's Bengaluru office already serves Asia and the region is expected to grow from 30% of MM's business in 2021 to 60% by 2025. Bengaluru is a rapidly growing city with high-quality education and training, a strong IT industry, an existing film industry, excellent premises and potentially lower rents than the UK, although roads, water and air quality are problems. Relocating all operations could therefore improve access to customers, skilled employees and lower-cost premises, but London has the stronger creative industry and many graphic designers and artists may not relocate. MM's ethical objectives require it to avoid customers and contracts linked to human-rights abuses, persecution, poverty and poor environmental records. Country X offers a profitable contract to improve its image but has been accused of arresting critical journalists, persecuting religious groups and failing to address poverty and environmental harm.
Explain how the proposed contract with Country X may conflict with MM's ethical objectives.
M M 's ethics include choice of customer. M M takes a firm line on:
- Equal opportunities
- Carbon footprint
- Freedom of expression
- Exploitation of employees
- Cultural diversity
The proposed contract conflicts with M M ethics because Country X has been accused of:
- human rights abuses (against equal opportunities, cultural diversity)
- arresting journalists for criticizing the government (freedom of expression)
- persecuting people for religious opinions (diversity)
- doing little to reduce poverty (equal opportunities)
- doing little to improve environmental record (carbon footprint)
The proposed contract could negatively affect the reputation of M M . M M has worked hard to develop its profile and credibility as an ethical company, but this image could be damaged. This could have negative implications for future contracts, as some current clients may not want to be associated with M M any longer. This may be the case of some NGOs that specifically campaign for human rights or carbon footprint and whose own CSR policies may stop them from working with an agency that does not consistently share the same values. Besides, country X has "arrested journalists for criticizing the government" (line 121) - with the contract, MM could give the impression that it condones such practices, and some journalists could create a negative campaign against M M, suggesting that its ethical claims are only a smoke screen meant to get them more contracts and more profit.
Marks should be allocated according to the markbands on page 3.
Award a maximum of [3] for a theoretical answer
Award a maximum of [4] for an answer that describes MM ethics and the proposed contract with country X.