Harvard Case - The Pug Predicament: Ethical Decision-Making in an Online Marketplace
"The Pug Predicament: Ethical Decision-Making in an Online Marketplace" Harvard business case study is written by Jocelyn CRANEFIELD, Jean-Gregoire BERNARD, Rebecca MINES, Ian WELCH. It deals with the challenges in the field of Business Ethics. The case study is 16 page(s) long and it was first published on : Jun 12, 2022
At Fern Fort University, we recommend a multi-pronged approach for Pugster.com to address the ethical challenges presented by the case. This approach focuses on strengthening corporate governance, fostering ethical leadership, and implementing a robust code of conduct to guide future decision-making.
2. Background
The case study centers around Pugster.com, a successful online marketplace for pug breeders. The company faces an ethical dilemma when its founder, Sarah, discovers that a prominent breeder, 'Pug Perfection,' is using unethical breeding practices, potentially harming the health of the pugs. Sarah must decide whether to expose the breeder, potentially damaging the company's reputation and revenue, or to protect the business by remaining silent.
The main protagonists are Sarah, the founder of Pugster.com, and 'Pug Perfection,' the breeder in question. The case study highlights the tension between corporate social responsibility and profit maximization, a common dilemma faced by businesses.
3. Analysis of the Case Study
This case study can be analyzed through the lens of stakeholder theory. This theory emphasizes that businesses have a responsibility to consider the interests of all stakeholders, not just shareholders. In this case, the stakeholders include:
- Customers: Pugster.com's customers are primarily individuals seeking to purchase pugs.
- Breeders: The platform relies on breeders to provide the pugs sold on the website.
- Employees: Pugster.com employs individuals who contribute to the platform's operations.
- Society: The well-being of pugs and the ethical treatment of animals are broader societal concerns.
The case study highlights the potential conflicts of interest that arise when a business prioritizes profit over ethical considerations. Sarah's decision to expose 'Pug Perfection' could negatively impact Pugster.com's revenue and reputation, but remaining silent would be unethical and potentially harmful to the pugs.
4. Recommendations
To address the ethical challenges, Pugster.com should implement the following recommendations:
- Develop a comprehensive code of conduct: This code should clearly outline the company's ethical standards and expectations for all stakeholders, including breeders. It should address animal welfare, breeding practices, and transparency.
- Establish an independent ethics committee: This committee should be comprised of individuals with expertise in animal welfare, business ethics, and legal compliance. The committee should review all breeder applications and conduct regular audits to ensure compliance with the code of conduct.
- Implement a whistleblower program: This program should provide a safe and confidential channel for employees and customers to report potential ethical violations. The program should guarantee anonymity and protection from retaliation.
- Invest in ethical marketing: Pugster.com should promote its commitment to ethical breeding practices and animal welfare through its marketing materials and website. This will help to build trust with customers and attract breeders who share the company's values.
- Engage with animal welfare organizations: Partnering with reputable animal welfare organizations can enhance Pugster.com's credibility and provide access to expertise and resources. This collaboration can help to develop and implement best practices for ethical breeding.
5. Basis of Recommendations
These recommendations are based on the following principles:
- Corporate responsibility: Pugster.com has a responsibility to ensure the ethical treatment of animals and to promote responsible breeding practices.
- Ethical leadership: Sarah, as the founder, must demonstrate ethical leadership by prioritizing ethical considerations over short-term profits.
- Stakeholder theory: The recommendations consider the interests of all stakeholders, including customers, breeders, employees, and society.
- Transparency: The recommendations promote transparency by establishing clear ethical standards and providing a mechanism for reporting violations.
- Sustainability: The recommendations promote sustainability by encouraging responsible breeding practices that prioritize the health and well-being of pugs.
6. Conclusion
By implementing these recommendations, Pugster.com can establish itself as a leader in ethical pet ownership and create a more sustainable and responsible marketplace. This approach will not only protect the company's reputation but also contribute to the well-being of pugs and the broader animal welfare community.
7. Discussion
Alternative options include:
- Ignoring the issue: This would be unethical and could lead to long-term reputational damage.
- Negotiating with 'Pug Perfection': This could be difficult and may not guarantee a change in breeding practices.
The key assumptions of these recommendations include:
- Commitment to ethical principles: Pugster.com must be committed to implementing and upholding the ethical standards outlined in the code of conduct.
- Resource availability: The company must have the resources to establish an ethics committee, implement a whistleblower program, and engage with animal welfare organizations.
- Public acceptance: The recommendations assume that customers and breeders will support Pugster.com's commitment to ethical practices.
8. Next Steps
- Develop a timeline: Establish a timeframe for implementing each recommendation, including deadlines for developing the code of conduct, establishing the ethics committee, and launching the whistleblower program.
- Allocate resources: Determine the financial and human resources required to implement each recommendation.
- Communicate with stakeholders: Inform customers, breeders, and employees about the new ethical standards and the changes being implemented.
- Monitor progress: Regularly assess the effectiveness of the implemented recommendations and make adjustments as needed.
By taking these steps, Pugster.com can navigate the 'Pug Predicament' and emerge as a leader in ethical pet ownership. This approach will demonstrate the company's commitment to corporate social responsibility, ethical leadership, and sustainability, ultimately contributing to a more responsible and humane marketplace for pugs.
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Case Description
This case presents an ethical quandary faced by Rob Edwards, director of trust and safety of a large New Zealand-based C2C (customer-to-customer) online marketplace. Following a review of its animal welfare policy, Rob is considering regulating the marketplace's trade in pugs, English bulldogs, and French bulldogs, breeds that suffer from a condition called brachycephalic obstructive airway syndrome (BOAS). Via a dialogue between Rob and his team, the case explores several options for resolving the problem. The case highlights the complexity of moderating digital platforms in a way that balances openness with trust and safety.
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