Reference no: EM133183247

The global fossil and vegetable oil crisis has led to a high demand for CPO. This causes the price of CPO to rise, so that CPO producers are better off selling or exporting CPO because it will generate higher profits. Once again, the determination of the DMO (Domestic Market Obligation) was also ineffective, at 20%. Now it will be increased to 30% if the external price is still higher then it will not be effective either, as evidenced by the ineffective implementation of HRT (Highest Retail Price) and DMO (Domestic Market Obligation). Domestic CPO producers prefer to sell CPO to palm-based Bio-diesel producers because it is seen from a more profitable price point of view. Supply chain management needs to be addressed from the producer area to the market, there is a price disparity between regions. Meanwhile, CPO producing areas and cooking oil producers generally have different locations. As a result, the implication of the price subsidy for bulk cooking oil is IDR 14,000/kg (the lowest cooking oil price increased from IDR 11,500/kg), while packaged cooking oil is determined based on its economic value. This means that the price of cooking oil is more expensive, even though the last few months have shown that people "must" buy cooking oil at a high price. The government's decision to return packaged cooking oil prices to market prices is expected to stabilize stocks again and encourage producers to return to producing premium packaged cooking oil. The policy of subsidizing bulk cooking oil must be accompanied by supervision because another problem that arises from the existence of subsidies is fraud, namely concerns that bulk cooking oil is repackaged and sold as packaged cooking oil.

1).Explain and describe the attached case examples related to business ethics issues based on decision-making theory:

a. The Dominant Model (DM)

b. The Shareholder Theory (ShareT)

2). Explain and describe every decision of business actors (CPO producers and cooking oil producers) based on their ethical and unethical behavior related to:

a. Business as ethical person

b. Business as collective person.

3). Describe the ethical problems, moral dilemmas, and problems that arise from several perspectives in this case study? In which section and why? Please describe in detail.