FORMOSAS

ETHICAL ISSUES
Subject: Business Ethics
OUR GROUP MEMBERS:

Trinh Thi Hai

Manayo
Yen - Ahn MinJu
Sunaga
1413250026

Hyehyeon
Taijo Negishi
Bang
OUR PRESENTATIONS STRUCTURE

Part 2:
Part 1: Part 3: Analyze
- Stakeholders
Overview based on CSR
- Moral dilemma

Part 4:
Part 4:
Analyze based on
Recommendation
theories
PART 1: OVERVIEW
1. About Formosa:

. Taiwanese company, operates steel mills and manufactures steel but out-
dated technology

. Desire to make Vung Ang economic zone in Vietnam become the biggest
heavy industrial center in South East Asia.

. Has been consider as Black Planet due to making environment polluted

PART 1: OVERVIEW
2. About the issue - sea pollution caused by Formosa

Place: four middle part of Vietnam. Quang Binh, Quang Tri ,Thua Thien Hue,Ha
tinh

From April 6-18,2016, many fish were found to have dead in the sea.

Formosa was suspected for discharging industrial waste

On June 30, Formosa finally admit its all responsibility and paid compensation.

Soon after mass fish death, Formosa was found burrying their waste.
PART 2: STAKEHOLDERS

The
citizen
The
of Ha The Gover
Tinh & coastal ment
Quang aquacu
Binh lture
and
seafoo
Touris d
m industr
industr y
y
 PART 2: MORAL DILEMA
People in VN had to choose whether keeping
their own fish industries or building a state-of-
the-art (newest) steel mill.
Vietnamese VN Gov. : had to choose foreign investment for
People country or protecting inner industry (economic
development or protection of environment)
Formosa Ha Tinh using cheaper way and
pursue economic benefit or care about
VN Formosa Ha environment and pursue long term benefit -
Goverment Tinh chose the cheaper one: Wet coking instead of
dry coking
As a whole Fast economic growth or protecting
environment (Dilema of interest)
 PART 3: ANALYZE BASED ON CSR
it destroyed economic development in the middle part of VN
Econom-
ical Unethical

Not obey the law of environment

Legal Discharged much amount of industrial waste, for many years

Not takes care of the interests of various stakeholders.

Ethical Destroy many core value of Vietnamese people

Charitable
No
PART 4: ANALYZE BASED ON THEORIES

Theory of justice
Duty
Kants
Utilitarianism
Egoism
of company
theory
PART 4: ANALYZE BASED ON THEORY

Egoism
did not violate morality but society can
not survive if they only try to make
decisions based on egoism.
Utilitarianism
Costs is higher than returns. More
people get harm than benefit: Unethical
 PART 4: ANALYZE BASED ON THEORY

Kants theory
Theory of
Justice
Humanity as an
Motives: wrong end: violate human
actions and also rights (to live Principle of Principle of differentiation:
wrong motives healthy, doing job, equality: Everyone Different in society is the
) has rights that different between who is good
at take opportunities, not who
nobody can violate can ask people to exchange
but Formosa rights, environment with steel:
violate: Immoral Immoral
PART 4: RECOMMENDATIONS
We will have to coordinate to
solve and prevent Formosa
disaster happen in the
future:
The companies
themselves
Citizens
Government

Click on the globe to start

PART 4: RECOMMENDATION

Inner change of awareness

Outside change of
awareness
PART4: RECOMMENDATION~SUSTAINABILITY
BASED APPROACH
Three general principles
1. Firms must become efficient in using natural resources.
2. Firms must think of waste inside the biology.
3. Firms must put emphasis on production of service rather than products.

Fomasa did not follow them

4. Investing in innovations
5. Change the awareness of employees Inner change of Fomasa.
6. Making the product more easily recyclable
PART 4: RECOMMENDATION
Inner awareness change

Making employees clean the polluted coast

Apologizing in public

Meeting the victim

PART 4: RECOMMENDATION
The way from outside of the company

o For citizens:
o Educate people to try to protect environment
o Involve more in decision making processes or politics.

o For Vietnamese government:

o Make more strict environmental regulations
o Monitor the company operating process
THANK YOU SO MUCH FOR YOUR
LISTENING