Memorandum on Business Ethics

Penshoppe Imports, Inc. has achieved in October to December 2008 137% of its quarterly targets. This is considered the biggest gain of the company since starting its operations in 2002, whereby it operated only with one warehouse and a two-floor office space to support the daily distribution and operations. This huge success could be attributed mainly to the bold decisions made by management in 2007, which allowed the company to import both raw and finished items from different parts of the region.

This move resulted to higher productivity, with most of the merchandise being assembled through partner companies located in key areas worldwide. In its effort to go higher on a global-scale, Penshoppe is also being confronted by global issues surrounding the export business. Hand in hand with the owners’ and stockholders’ aim to go further up in 2009 is the fact that there are current practices that need to be modified in order for the business to conform with global standards as far as ethics is concerned.

Management has become so concerned at the probable effects of its daring moves to boost the business that it now wishes to give back to the community by modifying some of its current practices. As a result, the next items to be discussed also aims at achieving social relevance. In order to address the current ethical issues, Penshoppe Imports incorporated, has decided to cut down its partnerships with two manufacturers in the Asian region, mainly due to the news that these manufacturers pay below minimum wage to its laborers despite the rates being charged to business partners.

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Penshoppe is taking its stand in supporting the labor sector that it hardly sees itself as being part of organizations that withhold compensations due to its laborers. Penshoppe will also cease to import items from partner Blue Soda garments, due to several reasons. One is that Blue Soda has been said to be conducting studies and researches that are not environmentally and animal friendly. Second is that this supplier has been recently charged with conducting child labor, and is therefore violating the code of ethics for businesses.

As a result of this move, Penshoppe will again need to establish partnerships with more socially-responsible companies and will spend the next two months securing major partnerships from top suppliers in China and India. Management will take into account the current practices of targeted companies in making their decisions. This plan would entail the support of all employees from senior management to rank and file. This would mean doubling the hard work in maintaining the sales, despite the major changes in capitalization and operations.

Management guarantees that such moves will not negatively affect the current workforce, but instead, will help alleviate their working conditions. In the long run, the success of this decision will benefit the employees through creating a healthy working environment. With this new directive, management commits to being more sensitive to the needs of the workforce, delegating Human Resource Partners per department who would address various concerns and help raise queries and inputs to top management.

This would also guarantee that each department will be best represented at that any labor concern shall be immediately addressed. In this regard, management is encouraging each individual to partake in this new direction and to continue to contribute its best efforts towards the achievement of the corporate goals. Management is highly confident that with the continued support of each employee, success would not only mean the achievement of the sales targets and financial goals, but being at par with global standards in terms of creating a healthy working environment for the workforce.

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