Ethical Dilemma

A socially responsible company supplying locally produced organic food products has been offered a supply of packaging from overseas at a rate significantly cheaper than their current local supplier. This offer is, however, contrary to the company’s values on local supply and the reduction of environmental impact. The positive impact is that this saving would enable the company to invest in some direct marketing for their products that have only recently entered the market. Should the company change to the cheaper supplier?

Points to consider

For:

• need to promote their products to promote sales.
• success of the product impacts the success of the issue, in this case local production and organics and the link to environmental and health issues.
• could provide some cost savings to consumers that could result in an increase in sales.
• need to promote the product to raise awareness.

Against:

• built reputation on basis of locally produced products. To source from overseas is contrary to that. Public knowledge of that may affect reputation.
• the environment is an important issue in the organic food industry, so sourcing locally is important in reducing environmental impact of products overall.
• packaging will require transportation from overseas, this will have an environmental impact.
• select promotion method carefully so as not to offend potential/current customers, to ensure the method selected does not run contrary to the issues highlighted, such as waste of paper through poor targeting and environmental impact.