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Baldwin Corporation is currently boasting of an increase in profitability, market coverage and improved margins. It is currently at position three in terms of profits made which can be evidenced by the $201 profit made at the end of 2020. In terms of market coverage, Baldwin boasts of controlling more than twenty percent of the market coverage and it’s participating in all of the five market segments. It is, however, faced with some challenges which are a threat to its operations. Demand for products is raising in certain regions of the corporations hotspots. In the contrary, the shipping costs for this corporation have risen tremendously in the recent years which is a big problem to the corporation since it cannot be contained. This paper, thus, explores about the ethical decisions made to resolve the difficult problem of meeting increased demand despite the capital limitations and restricted manufacturing output of the corporation.[Click Essay Writer to order your essay]

Solving the Ethical Dilemma at Baldwin Corporation
To solve this dilemma the executive committee employed the utilization theory of ethics. They came to an agreement that the offshore supplier was to increase plant output. A policy was also to be imposed to ensure audits were done twice a year despite the potential increase in labor costs. An auditing team was also to be sent there with immediate effect. This was the most preferred decision since it was in line with the world just theory and had a communal approach. The corporation being a business entity has no direct control over the market and the increased demand, but has direct control over the costs it is incurring (McWay, 2010).

Act utilization section of utilization theory is seen when the corporation notifies the offshore supplier to increase their supply. This is for the good of its market since they would enjoy a constant supply all through due to the increased demand. The rule section of this theory applied whereby despite the potential five percent in increase in labor cost, the corporation is willing to carry on the already scheduled audits, an indication that it obeys the laws and values of the wellbeing of its employees (O’Sullivan, 2012).

One of the suggestions made by the committee was to notify the offshore supplier to increase plant output. This was aimed at meeting the high demand in the market as observed. Consequently, increased supply lead to increased profit margins that would raise Baldwin’s profit of $201 by a significant percentage. The increase in supply was for maintaining customers which could have resulted into a five percent in sales. The increased supply will also serve as a reserve in case of a further increase in the market demand. Increased profitability would be used to meet the problem of limiting capital due to increased costs. [Need an essay writing service? Find help here

The scheduled audits where fundamental in obtaining the required financial report on the operations of the suppliers. An immediate proposal could be used to catch the offshore suppliers unawares. This is based on the fact that the corporation was in audit agreement with the supplier and which could lead into the supplier falsifying their work to go undetected. The regular audits, which were to be done twice a year, would serve as reinforcement to the earlier conducted audits.[“Write my essay for me?” Get help here.]

Solutions offered by the corporation on the ethical dilemma were good. They considered the interests of the public (who are the buyers), the corporation itself and its employees. Utilization theory of ethics was employed well. Both rule and act utilization was employed. I therefore believe that implementation of  the solutions proposed, Baldwin Corporation will be able to overcome the problem of being able to meet the increased demand despite their working capital limitations and the limited manufacturing output and be able to achieve its set goals.


McWay, D, C., & McWay, D, C. (2010). Legal and ethical aspects of health informationmanagement. Clifton Park, NY: Delmar Cengage Learning.

O’Sullivan, P., Smith, M., & Esposito, M. (2012). Business ethics: A critical approach integrating ethics across the business world. London: Routledge.

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By Hanna Robinson

Hanna has won numerous writing awards. She specializes in academic writing, copywriting, business plans and resumes. After graduating from the Comosun College's journalism program, she went on to work at community newspapers throughout Atlantic Canada, before embarking on her freelancing journey.

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