Improving Business Performance

 

Most are familiar with Nestlé, one of the world’s largest food producers, whose marketing slogan is: “Good food, Good life.” On its website, the corporation states that its three main ambitions are helping children live healthier lives, improving livelihoods in communities, and striving for zero environmental impact (Nestlé, n.d.). These are commendable goals that generated considerable positive publicity; however, recent allegations and court proceedings have suggested that the company may not actually be achieving those ambitions. Nestlé has been accused of using child labor in its cocoa supply chain in Western Africa, using forced slave labor in its seafood supply chains in Southeast Asia, and overusing diverted water from a national forest in drought-stricken California (Singh, 2021). These allegations illustrate that—even when companies adopt policies to promote ethical behavior—serious lapses can occur.

 

· Review the article titled “Mental Models, Moral Imagination and System Thinking in the Age of Globalization” (located in this week’s Learning Resources) and think about how organizations apply these models.

· Consider an organization with which you are familiar. This can be a current or former employer. Focus specifically on the organization’s ethics and sustainability policies, practices, and goals, and identify one issue you think the organization should improve upon with regard to its moral imagination and action.

 

Post a synthesis of how your selected organization could use a moral imagination framework to address issues and create positive social change. In your synthesis, do the following:

· Briefly describe your selected organization and identify one issue the organization should improve upon with respect to its moral imagination and action. Provide a rationale.

· Explain how Werhane’s moral imagination framework could be applied to the issue you identified to help create positive social change within the organization or its stakeholder context.

Sample Solution

Synthesis: Applying Moral Imagination to Improve Ethical Action

Selected Organization and Issue for Improvement:

For this analysis, I will focus on a hypothetical medium-sized Kenyan textile manufacturing company, “Kwani Fabrics.” Kwani Fabrics produces textiles for local fashion designers and exports some fabric to international markets. While Kwani Fabrics has an established code of conduct and emphasizes fair labor practices, the issue it needs to improve upon with respect to its moral imagination and action is managing the ethical sourcing of its raw cotton from local smallholder farmers.

Rationale for the Issue: Kwani Fabrics currently sources cotton through several local intermediaries, which are often aggregators who collect cotton from numerous smallholder farmers in rural areas of Kenya. While Kwani has policies against child labor and forced labor, its current practice relies heavily on these intermediaries to vet their farmers. The moral imagination lapse here is primarily one of limited perspective-taking and an implicit acceptance of existing mental models about supply chain oversight. The company’s current mental model might be: “We deal with reputable local intermediaries, and they are responsible for their farmers’ practices. Our responsibility ends at the point of purchase from the intermediary.” This mental model limits their ethical inquiry and action beyond their direct, legally bound relationships. The reality in some smallholder farming communities can involve precarious livelihoods, leading to pressures that may push families towards child labor or exploitation, even if not directly endorsed by the intermediaries. Kwani’s failure to look deeply into these indirect, complex relationships represents a gap in moral imagination and action.

Applying Werhane’s Moral Imagination Framework to Kwani Fabrics:

Werhane’s moral imagination framework offers a powerful lens for Kwani Fabrics to address this ethical blind spot and create positive social change within its stakeholder context:

  1. Challenging Mental Models:

    • Kwani’s first step would be to explicitly identify and challenge the existing mental model: “Our ethical responsibility stops at our direct suppliers.” This requires internal dialogue within Kwani’s leadership and procurement teams. The new mental model should become: “Our ethical responsibility extends to understanding and influencing the practices throughout our entire supply chain, especially where vulnerabilities exist.”
    • This shift recognizes that supply chain ethics are not just about legal compliance with direct partners, but about the broader moral impact of their purchasing decisions on the livelihoods of those at the very beginning of the chain.
  2. Broadening Stakeholder Perspective-Taking:

    • Instead of just interacting with intermediaries, Kwani needs to engage directly with the smallholder cotton farmers themselves, perhaps through community forums or surveys conducted by independent third parties.
    • They would need to understand the farmers’ lived experiences, their economic challenges, the social structures within their communities, and the pressures they face. This requires moving beyond a transactional view to genuinely empathize with the farmers’ circumstances. For example, understanding that unpredictable weather patterns or fluctuating market prices might push farmers to rely on child labor for quick harvests.
    • This could involve discussions with local elders, teachers, and community leaders to understand the broader social fabric and vulnerabilities that might lead to unethical practices.
  3. Reframing the Problem:

    • The issue should be reframed from “our intermediary might be using unethical practices” to “how can Kwani Fabrics actively contribute to the sustainable livelihoods and well-being of the smallholder cotton farmers who are essential to our product, thereby intrinsically preventing unethical labor practices?”
    • This reframing shifts the problem from a compliance burden to a shared value creation opportunity. It moves beyond merely detecting and punishing wrongdoing to proactively fostering conditions that make ethical practices the most viable option for farmers.
  4. Envisioning Alternative Solutions:

    • With new mental models and broader perspectives, Kwani can brainstorm innovative solutions. Instead of just auditing intermediaries, they might consider:
      • Direct Sourcing Partnerships: Establishing direct contracts with farmer cooperatives, providing fair and predictable prices.
      • Capacity Building: Investing in training for farmers on sustainable agricultural practices, financial literacy, or crop diversification to improve their income stability.
      • Community Development Programs: Funding educational programs for children in farming communities to reduce the need for child labor.
      • Traceability Technology: Implementing blockchain or other digital tools to track cotton from farm to factory, ensuring transparency.
      • Incentive Programs: Offering bonuses or preferred purchasing status to intermediaries who demonstrate verifiable ethical practices among their farmers.
  5. Developing a Narrative:

    • Finally, Kwani needs to integrate this new understanding and its ethical commitments into its core business narrative. Their marketing slogan might evolve to include not just “Good food, Good life” (as in Nestlé’s example), but “Sustainable Fabrics, Thriving Communities.”
    • This involves transparently communicating their efforts to consumers, showcasing the positive impact on farming communities, and building genuine trust. This narrative would demonstrate a deep ethical commitment that goes beyond mere compliance, aligning their actions with their stated ambitions for improving livelihoods.

By systematically applying Werhane’s moral imagination framework, Kwani Fabrics can transcend a reactive, compliance-driven approach to supply chain ethics. It enables them to proactively identify hidden ethical dilemmas, understand the perspectives of all affected stakeholders, envision creative solutions that address root causes, and ultimately, build a business that not only profits but also genuinely creates positive social change in the communities that sustain it.

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