Answer to Question #225860 in Finance for Anisha Radhika Kum

Question

Tinsel Tin Company, an Australian company, mines tin using cheap, resource-wasteful techniques in a tropical country. The effects of the mining include pollution of freshwater streams from almost their sources to the sea. The local people used to fish, hunt near, get drinking water from and swim in these streams, but now none of these things are possible. Local people now buy canned meat for protein. It is relatively cheap and tends to be very poor quality with a very high fat content. As a result, the local people are much fatter than they used to be and their health is poorer. Tinsel has supplied a fully equipped medical clinic but expects the local people to supply the staff. Discuss each of the following questions. (a) Has Tinsel contravened, in your view, its ethical responsibilities? (b) Is it possible to trade off an ethical ‘bad’ with an ethical ‘good’? (c) Has Tinsel done enough to compensate for the change they have brought about in the local people’s lives?

Answer 1

Solution a):

Tinsel Tin, an American corporation, employs mines tin by using some cheap tactics which pollutes the fresh water where the natives often used wash, hunt fish, bath, drink, and so forth. However, the firm has made it harder for them by compelling individuals to consume tinned meats from any outside sources, which may entail a range of health risks. Tinsel has provided a fully equipped medical clinic but expects locals to provide the employees, demonstrating that it has acted unethically in discharging its responsibilities. Since the firm caused the problem, it should be their first priority to compensate the victims rather than flinging the dilemma over to the indigenous.

Solution b): 

It is not good idea to to swap an ethical bad with ethical good. However, in business, people frequently replace terrible ethical ideals with excellent ethical values for the sake of their financial gain since they used business policies by supplying medical clinic facilities. This shows the firm is being trying to mix their bad ethics with good ones as a solution to the problems.

Solution c):

Tinsel has done enough to make up for the changes they have made in the life of the villagers in order to prevent condemnation and make a positive reputation in the perception of the audiences, but their main goal is to make money without regard for the inhabitants .