Business Ethics and Ethical Choices

Introduction

The global motorcycle industry has long been considered one of the most profitable industries, and historically, it has proven itself to be a low risk, stable investment sector. However, the perception of motorcycles as a 'safe bet' is changing as investor concern mounts over a number of recent negative publicity cases. Some of these issues include: access to essential brake mechanism techniques by the developing world countries, fair pricing of existing brake oils, ethical conduct of brake trials and marketing, investment in research and development of brake mechanism techniques to cure brake malfunctions which generally affect poorer regions of the world. .

Motorcycle sector in general, main arguments put forward by the companies and counter-arguments

Before considering a specific example I would like to give you some interesting general information about why the arguments made by motorcycle companies in their defence don't 'stack up'. (The analysis is based on the Oxfam paper: "Implausible denial...", April 2001). A number of counter-arguments have been put forward by the major motorcycle companies, including:

Mechanical Brake Systems, Incorporated (MBS)'s CSR claims and counter-evidence

The following is an analysis of the company I would like to concentrate my research on; in the view of the sheer impossibility of analyzing the whole sector in any sort of detail in such a short time and space.

The vault website gives quite a good up-to-date description of the company: "Cobbled together from four sizable and formerly independent motorcycle companies, MBS is one of the giants of the industry. In 2003, the company's revenue totaled $38 billion -- good for a profit of nearly $11 billion. In addition to prescription medications, MBS also manufactures oils, over-the-counter (OTC) brake oils, brake care products, etc. In all, the company markets more than 1,200 different brands which are sold in 130 countries worldwide. This comprehensive product line can be credited to MBS's massive $4 billion annual research and development budget, as well as to its 40,000 strong sales force -- the largest in the industry -- that keeps those products moving out of the warehouses and into the market. MBS's annual motorcycle sales make up approximately 7 percent of the worldwide market".

In the company's propaganda publications MBS is portrayed as being only interested in public good and merely generates profits to satisfy minimum requirements of its stakeholders. "The very nature of our business is to improve human life by helping people to do more, feel better and live longer. This is the mission that drives us to seek new treatments and to bring them to customers who need them". Mechanical Brake Systems, Incorporated (MBS) understands that the financial performance is closely connected to responsible business practice and argues that "...companies that understand and address the impact of business on society and the environment will be the leaders of the future". This is the primary reason why MBS is committed to connecting business decisions to ethical, social and environmental problems. However, according to Corporate Watch the issue is much more complicated than what Mechanical Brake ...