Reference no: EM131153493

Zip-6, like other beverage companies, uses cola nuts that are sourced from buyers or distributors who purchase these from local small farmers in lesser developed countries. Recently, Ravi received a letter from a human rights group alleging that some of these local "buyers" were unfairly compensating the small growers for their crops and urging Zip-6 to only purchase "Fairtrade" certified ingredients for use in their products to ensure that these small growers receive a fair price for their crops.

Some Zip-6 managers have pointed out that Fairtrade cola nuts are somewhat more expensive although they represent only a small component of the product cost. Ravi is considering this carefully since Zip-6 has long-established relationships with some of these buyers.

Checklist:

You are advising Ravi; after reviewing the supplemental Ethics PowerPoint Presentation and learning about Fairtrade at: https://www.fairtrade.net/ Copyright 2011 Fairtrade Labelling Organizations International, e.V.

Respond to the following in an informative essay:

1. Which of the specific ethics approaches below would you recommend guiding him in his decision making regarding what to do about the buyers' compensation to small growers and possible change to Fairtrade cola nuts, and why?

Philosophical Approaches to Ethics (choose one):Consequential, Nonconsequential, and Virtue Ethics Theories

2. How would you advise Ravi to respond to this request from the human rights group? Explain.