Case Study: Ethics and Sustainability in Business

Case Study: Greenleaf Foods' Sustainability Dilemma

Greenleaf Foods is a mid$-$sized company specializing in packaged organic and sustainable food products. Known for its eco$-$friendly branding, Greenleaf has cultivated a loyal customer base and gamered praise for its efforts to reduce environmental harm.

Recently, Greenleaf faced a critical decision. Its primary supplier of organic quinoa was exposed for using labor practices that violated international labor standards, including underpaying workers and poor working conditions. Additionally, the transportation process for the quinoa significantly contributes to the company's carbon footprint.

A senior executive proposed switching to a local supplier to reduce environmental impact and improve labor conditions. However, the new supplier's quinoa would cost $30\%$ more, leading to higher retail prices and potential loss of customers. Furthermore, transitioning to a new supplier would take six months, potentially causing supply chain disruptions and affecting revenues.

Greenleaf's leadership must decide between maintaining their current supplier, which is more profitable but ethically questionable, or shifting to the new supplier at a significant financial cost and operational risk.

QUESTION $1$

$(25$ MARKS$)$

$1\mathrm{.}1.$ Analyze the ethical dilemma faced by Greenleaf Foods using a deontological ethical framework. Discuss the importance of adhering to moral principles and how they guide ethical decisions. $(10$ marks$)$

$1\mathrm{.}2.$ Evaluate the same dilemma using utilitarianism, considering the potential outcomes for stakeholders, including employees, customers, and the environment. $(10$ marks$)$

$1\mathrm{.}3.$ Compare the conclusions drawn from both ethical frameworks and argue which approach is more appropriate for Greenleaf Foods. $(5$ marks$)$