Suppose you work for the Wholesome Hamburger Company. You own a 100 fast food restaurants in California. There is a big drought and people are being told to use less water. You know that it takes: 1,800 gallons of water to produce one pound of beef, 12 gallons of water to produce a head of lettuce, 2 gallons for one walnut, and 468 gallons of water to produce a pound of chicken. You discuss this with the executives in your firm and they tell you that the way water is allocated by government, the company does not incur any additional expense: water will remain very cheap for business. The head of the company is soliciting ideas for its strategic plan for the future. What is the ethical dilemma or issue? What are the alternatives or possible courses of action? Identify at least 3 alternatives. What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do? What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Scenario

1. Severe drought is occurring in country A and the government has decided to use water less because to the water shortage. Looking into the current situation the XYZ company operations can fall into an ethical dilemma in relation to the usage of water for its business operations. As it requires around 2500 gallons of water for its production process each day, the water shortage can be an issue.

When the public is getting affected from the water shortage as they are not getting enough water for their daily usage, the company XYZ taking 2500 gallons of water daily for their fast food production can be considered as an unethical activity.

But when considering the sustainability and the survival of the business operations of XYZ, bearing in mind the water shortage and reducing its production process can impact the future of the company. This factor put the company into an ethical dilemma situation.

2. Some of the alternatives or the actions which the company can adopt during this situation are mentioned below.

It can emphasize on reducing the production to a level that it receives a minimum profit till the water shotage is irradiated.

It can reduce or cease production process in some of its branches so as to fight with the water shortage. It can emphasis on the branches where it has least number of customers.

The company can also focus on eliminating the production of few product lines which has very less consumer demands.

3. The company XYZ should think of the alternatives which I just mentioned above as it is obligated to the society in which it is operating. If the organization operates in the same manner through using early 25 gallons of water everyday people will get affected in some way or the other. Hence through adopting the alternatives mentioned, this way the company will show an image which is caring and considerate. Since it is a fast food restaurant and it is a luxury product or a product which can be avoided, spending so much of water for its production can be considered as unethical activity under such condition.

4. The above mentioned course of action emphasis on the social responsibility of the organization and also the sustainability of the organization. By being ethical, the profit, the income of the staff members working in the XYZ will get affected. They might have to do downsizing. So the cost and benefit analysis must be carefully done.

Hence through emphasizing on reducing the production process it can reduce water usage needed for production and also can protect the interest of the employees. These recommendations or alternatives mentioned above highlights the commitment of the organization towards the society as well as towards its stake holders.

answer; operating revenues;