Ethics in Business: When Price Drop Leads to Halt Production.

Ethical standards in business may become vague when it comes to selecting between a right or a wrong thing to do. It is because business is legally bound to the law despite being independent in final decision-making beyond any control by the government. It was all due to the nature of business, where it will only produce and offer something in exchange for profits and revenues. However, with the recent trends of climate change, war and bankruptcy, it has come to a point where business owners need to understand how their role may help the people to survive the food and water supply shortages including daily needs.

During uncertainty, businesses seek government intervention to help overcome challenges. Now, as a gesture of gratitude and paying their respects, it should not be a problem for businesses to accept the government’s urge in continuing the production of palm oil even with much lower profits. Palm oil producers may even succeed in maintaining their status quo in the competitive business of the edible oil industry with volumes of guaranteed purchasing by consumers and other related industries.

Meanwhile, businesses should become aware that the natural ecosystem of palm oil plantations will be disrupted by infections or disease and stunted growth problems when too many palm oil fruits are left on the ground till rotted. This will lead to another series of problems and cause major disruptions in the production line when the factory runs again. Hence, a good risk management strategy manager would tell the palm oil producers to negotiate a new pricing scheme for the raw materials from the farmers for win-win situations.

At the same time, it is hoped that the government will not only impose coercion without discussion because mandatory obligation needs will only worsen the already affected industry. Government officials should do the lobbying and public relations work at a much more productive rate. The government is also advisable to ease the labour shortage problems by allowing a certain quota of foreign workers to work in the plantation area or by bringing in workers from Sabah and Sarawak who are known to be better with the green environment.

In addition, an increase in chemical fertilizer costs could be intelligently managed by utilizing many types of biofertilizers which have been proven to be effective. Alternatively, organic materials from food waste products also can be composted into great fertilizer at a much lower cost. In another way, the natural-made fertilizer can enhance the richness and air circulation condition of plantation soil and eventually helps to increase the quality and quantity of palm oil harvesting. As a result, the palm oil industry will be able to sustain its profitability with a more eco-friendly approach.

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