The document discusses two business ethics cases - the Merck & Co case and the slavery in the chocolate industry case. For the Merck & Co case, it analyzes Roy Vagelos' decision to develop a drug for River Blindness under Kohlberg's theory of moral development. For the chocolate industry case, it identifies systemic, corporate, and individual ethical issues including child labor, poverty wages for farmers, and lack of enforcement of anti-slavery laws. It concludes that African farmers, governments, chocolate companies, distributors, consumers, and those aware of the situation all share moral responsibility for the slavery.

1. LEARNER INITIAL DISCUSSION u01di1
Mala Samaroo
Capella University
BMGT8008 – Learner Initial Discussion u01di1
Ethics and Leadership in Global Environments
u01d1 Total Value: 4.5% of Total Course Grade
Professor: Dr. Terry Walker
Due Date/Time: 6:00 AM EST Friday, January 10, 2014
u01di1 Learner Initial Discussion
BMGT8008 – Due 6:00 AM EST 1/10/2014
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2. LEARNER INITIAL DISCUSSION u01di1
Merck & Co Case
According to Kohlberg’s theory of moral reasoning there are six stages of moral reasoning
(Velasquez, 2012, p.38). The decision made by Roy Vagelos to develop the drug was based on
what he thought was an ethical obligation by the Company to the people with River Blindness.
(Valesquez, 2012, p7.) In addition, Roy Vagelos decision to have Merck & Co develop the drug
was one which was ethical in nature, however although ethical behavior may be seen as the
best long term business strategy, he had to question his duties to his shareholders, rights of
employees, needs of customers and obligations to society when doing so.
Kholberg’s three levels of moral development include the pre-conventional, conventional and
post-conventional stages. Mr. Roy Vagelos by making the decision he operated in the postconventional stage, according to (Valasquez 2012, p. 38) “ the person no longer simply accepts
the values and norms of her group …the person tries to see right and wrong from an impartial
point of view.” Mr. Vagalos moral understanding is developed to the capacity to where he is
able to justify his moral decision. Velasquez, 2012 states that Kohlberg believes that the moral
reasoning of people at the later stages of moral development is better that the reasoning of
those at the earlier stages.
u01di1 Learner Initial Discussion
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Slavery In the Chocolate Industry
Slavery in the chocolate industry case has systemic, corporate and individual ethical issues.
Firstly, from the point of systemic ethical issue, economic systems should be taken into
consideration. (Valesques 2012 p. 64) states ‘ Forty-five percent of the chocolate we consume
in the United States and the rest of the world is made from cocoa beans grown and harvested
on farms in the Ivory Coast” The case also outlines the facts that between 1996 and 2000,
cocoa bean prices had declined. The farmers had no control over this Global decline, as a result
farmers turned to slavery to try to cut labor cost for their survival in this situation. (Valesquez
2012, p.65).
There is another systemic issue relates to the legal aspect of slavery in the chocolate industry.
According to Velasquez 2012, slavery on farms is illegal in the Ivory Coast but the laws are
poorly enforced.
The corporate ethical issues raised by the case are the middlemen who grind and process cocoa
beans they acquire from the Ivory Coast and sell the product to manufacturers. Although the
middlemen are aware of the problem corporations allowed it to continue, according to
Valesquez, 2012, p.65) this process continued until it was brought to the media’s attention, this
resulted in antislavery group activities, U.S. Senator Tom Harkin and U.S. Representative Eliot
Engel, the members of the Chocolate Manufacturers Association and the World Cocoa
Foundation, together with several human rights groups and the Ivory Coast signed
Memorandum of Cooperation. Although such legislations are put in place Knoblauch, M. (2008),
u01di1 Learner Initial Discussion
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4. LEARNER INITIAL DISCUSSION u01di1
mentions chocolate manufacturers such as Cadbury who are aware of the slavery situation but
continue to purchase its cocoa beans from such locations.
There also exists some individual ethical issues in the case. Cocoa farmers are at the center of
the issue, to justify their choice of behavior, there is no morally right reason for child labor or
someone being taken against their will. There is also the issue of the consumers to purchase the
products, while some may not be aware of the problem, there are those who are aware and
contribute to it by purchasing the product. According to Bhatia (2007) “A UNICEF report in the
late 1990s helped to publicize the use of child slaves-mostly 12- to 16-year-old boys trafficked
from neighboring Mali-to harvest cocoa beans in Côte d'Ivoire, the world's leading cocoa
producer and exporter.”
I believe, African Farmers, African governments, American chocolate companies, distributors,
consumers and people who know the situation, shares in the moral responsibility for the
slavery occurring in the chocolate industry. African farmers use child slavery labor. African
government do not control over the rules. Middlemen buys cocoa beans from farmers who use
slavery labor. American chocolate companies know farmers use slavery labor and they continue
to work them. If we know the company names and continue to buy chocolate from them, we
are also morally responsible for the child slavery labor. As a result, all actors in the industry are
responsible.
Re
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5. LEARNER INITIAL DISCUSSION u01di1
RReferences:
Bhatia, S. (2007, Sep). Invisible hand caught in the cookie jar. Dollars & Sense, , 4. Retrieved
from http://search.proquest.com.library.capella.edu/docview/220934336?accountid=27965
Knoblauch, M. (2008). Bitter chocolate: The dark side of the world's most seductive sweet. The
Booklist, 104(17), 61. Retrieved from
http://search.proquest.com.library.capella.edu/docview/235624120?accountid=27965
Velasquez, M. G. (2012). Business ethics: Concepts and cases (7th ed.). Upper Saddle River, NJ:
Prentice Hall.
u01di1 Learner Initial Discussion
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6. LEARNER INITIAL DISCUSSION u01di1
RReferences:
Bhatia, S. (2007, Sep). Invisible hand caught in the cookie jar. Dollars & Sense, , 4. Retrieved
from http://search.proquest.com.library.capella.edu/docview/220934336?accountid=27965
Knoblauch, M. (2008). Bitter chocolate: The dark side of the world's most seductive sweet. The
Booklist, 104(17), 61. Retrieved from
http://search.proquest.com.library.capella.edu/docview/235624120?accountid=27965
Velasquez, M. G. (2012). Business ethics: Concepts and cases (7th ed.). Upper Saddle River, NJ:
Prentice Hall.
u01di1 Learner Initial Discussion
BMGT8008 – Due 6:00 AM EST 1/10/2014
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