Riordan Manufacturing – Role of ethics and social responsibility

Ethics refers to the various moral principles which are professed by a certain group of individuals. Different academic fields have their own ethics which unite individuals in that field (Wheelen & Hunger, 2010, p. 33). In the business context, ethics refers to the different values of human conduct that define what is right or wrong, good or bad, decent or shameful. This means that ethics enable a firm’s employees to adhere to the stipulated values and standards.

In the 21st century, management teams of firms in different economic sectors are increasingly considering business ethics as a priority in their strategic management (Carpenter & Sanders, 2009, p.45). This has resulted from an increment in the degree of complexity within the business environment. Incorporation of business ethics is a vital component in a firm’s effort to attain competitive advantage.

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As a result of integrating ethics and social responsibility in its operation, Riordan Manufacturing which has managed to become the industry leader with regard to manufacture of plastic injection molding. Riordan Manufacturing has achieved this through formulation of a Corporate Compliance Plan. The plan is customized to the firm’s role of producing plastic designs. Additionally, Riordan is also committed at ensuring that all the firm’s activities with a high degree adherence to ethical and moral principles.

Additionally, Riordan Manufacturing ensures that its employees adhere to ethical standards when serving customers, who include aircraft manufacturers, beverage producers, appliances manufacturers and automotive part manufacturers. As a result, their level of satisfaction is increased. The resultant effect is that the firms benefit through increased sales hence their profitability. In the long term, a good customer relationship developed.

In developing their corporate strategy, Werther and Chandler (2011, p.34) are of the opinion that firms should incorporate a multi-stakeholder perspective. This will increase the efficiency with which the firms respond to changes in the society such as changes in social goals, growth in technology and globalization. Riordan Manufacturing has achieved this by considering the various stakeholders such as the customers, and employees.

There are different social responsibility principles which Riordan Manufacturing should incorporate in its corporate social responsibility. Some of these principles relate to the environment, human rights, financial responsibility, diversity, and safety. Failure to incorporate social responsibility may limit a firm’s performance for example its ability to attain its goals and objectives.

In addition, failure to incorporate social corporate responsibility may result into the business facing increased regulation by the government. However, the firm will not be effective in its social responsibility. The resultant effect is that the firm’s long term performance will be diminished.

Company overstepping ethical boundaries for stakeholder agendas

Currently, Riordan Manufacturing mostly markets its products in the US. However, the firm is in the process of venturing into the international market through internationalisation. One of the target markets that the firm has identified is Germany. To succeed in Germany, Riordan Manufacturing has to adhere to ethical business practices.

For example, the firm will be required to conduct a comprehensive market campaign in the process of marketing its products. It is unethical for Riordan Manufacturing to use unethical business practices such as false advertisements so as to gain a high market position thus maximising its profitability. Additionally, the firm may also promote itself in the German market by giving false information about the level of industry competition.

The resultant effect is that the reputation of the firm may be diminished thus limiting its ability to penetrate the market. The firm may also produce its products using low quality raw materials and sell them at a high price with the objective of making a high profit margin.

However, by doing this, the firm will be acting unethically. This is due to the fact that it will be overstepping the customer’s objective of attaining a high utility by consuming goods of high quality. To ensure that its employees are satisfied, Riordan Manufacturing should ensure that there is equitable remuneration of all its employees.

Therefore, it would be unethical for the firm to discriminate in its compensation by paying some of its employees a higher amount of wages and salaries. The firm could also be overstepping ethical boundaries by polluting the environment in which it operates.


In order for Riordan Manufacturing to survive in the long term as a going concern entity, it must serve its customers optimally. One of the ways through which this can be attained is by integrating ethics and social responsibility in its strategic planning. Riordan Manufacturing should consider different stakeholders in formulating its ethical and social responsibility plans. Some of the key stakeholders that the firm should consider include its customers, the society and employees.

Reference List

Carpenter, M.A. & Sanders, W.G. (2009). Strategic management: a dynamic perspective concepts and cases. Upper Saddle River, NJ: Pearson Education.

Werther, W. & Chandler, D. (2011). Strategic corporate social responsibility: stakeholders in a global environment. Los Angeles: Sage.

Wheelen, T. & Hunger, D. (2010). Concepts in strategic management and business policy. Upper Saddle River, NJ: Pearson Education.


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