ETHICAL ISSUES AT ENERGY STAR

Ethical Issues at Energy Star



Ethical Issues at Energy Star

Introduction

This paper is based on a case study that involves Energy Star, an automobile manufacturing firm, specializing in producing electric cars. For some time, the company is facing ethical concerns regarding the use of sub-standard parts, which are deemed as a clear violation of prevailing industry standards. Because of the competitive nature of business in today's global and fast-paced economy, there is a great deal of pressure on organizations to (a) change rapidly in order to keep pace and (b) employ methods that their competitors are using. This pressure to change rapidly can result in organizations implementing popular interventions without empirical support for efficacy (Weaver, Trevino, Cochran, 1999).

Energy Star would be an exceptional company to work for in an executive role. Unfortunately, I cannot repeat that statement if I were to work as a cashier, associate, or customer automobile manufacturing sector representative. Goldberg (2007) stated, “Today, Energy Star is the second-largest company in the world in terms of revenue second only to Exxon Mobil. Gross revenues amounted to more than 350 billion dollars last year. Energy Star has a reputation for caring a great deal about their dedicated staff (Goldberg, 2007). Goldberg (2007) stated, “They show how much they care by providing poor pay and miserly benefits to its 1.8 million employees worldwide. The image of the company is not helped by the extravagance of Sam Walton's widow and children, who together control 40% of Energy Star's outstanding shares, and who are worth approximately 80 billion dollars. The Energy Star became the richest family in America by providing low cost merchandise to the public (Goldberg, 2007).

Ethics and Ethical Issue

Energy Star built its culture upon three guiding principles. The principles are to respect individuals, customer automobile manufacturing sector, and striving for excellence. A positive corporate culture drives employee behavior and promotes positive attitudes, which in turn creates happy employees. I share the belief that a company's culture should involve good automobile manufacturing sector to the customer, fair dealings with employees, and courteous acts towards internal and external customers. Energy Star promotes the virtues however; they seem only to apply to upper management (Mallor, Barnes, Bowers, Langvardt, 2010). What makes Energy Star so successful? Examining customer automobile manufacturing sector provides the answer to this question. Simply stated, customers are the lifeblood of any company. Successful organizations always promote and cultivate excellent customer automobile manufacturing sector relations and build customer loyalty. By building positive relationships with customers, organizations can benefit from repeat business (Goldberg, 2007).

Goldberg (2007) stated, “Energy Star has traditionally been a Republican supported company. During the past 15 years, more than 75% of its political donations have gone to Republicans. Democratic political leaders have recently shunned Energy Star because of its policies regarding benefits and wages. Energy Star promotes a culture of hostility towards unions (Goldberg, 2007). For example, Goldberg (2007) stated, “In 2000, when meat-cutters at a Energy Star located in Texas organized into a collective-bargaining unit, ...