Logistics Overview: Logistics Company Activities Towards Environmental Issues

Logistics Overview: Logistics company activities towards environmental issues.

Nowadays, the environmental issues are getting worse day by day. As example, the gas such as carbon dioxide and carbon monoxide which been given out by the logistics company truck will increase the temperature to rise and lead to greenhouse effect. As customer is more concern about the quality of the product and environmental issues compare to the price of the product. They rather pay more in order to get a better quality product and also support the environment. But, some of the logistics company will take this advantage by charging higher price than the normal price. This shows that logistics activities play an important role in controlling the environmental issues.

In this case study, the ethical dilemma will be on the logistics manager. There are only two options for the logistics manager to choose from which is shareholders or the society. The decisions that made by the manager will have a direct impact to the environment. If the primary stakeholders are shareholders, their primary goal will be profit maximization. On the other hand, if the primary stakeholder is the society, environmental issues such as greenhouse effect will be control and green service in a reasonable price will provide to the society.

Moreover, there will be individual factors that will influence individual on ethical decision making. The individual factors include age, gender, national, cultural, education, employment, cognitive moral development, locus of control, personal values, personal integrity and moral imagination. Furthermore, it also has situational influences on ethical decision-making, it include issue-related factor and context-related factors. There are two factor is issue-related which are moral intensity and moral framing. Apart from that, context related included rewards, authority, bureaucracy, work roles, organizational culture and national context, a total of six factors.

According to the moral intensity, (Jones, 1991) cites a number of previous studies of moral behaviour that suggest dimensions of moral intensity will influence moral action. A comprehensive studying exploring multiple dimensions of moral intensity and multiple steps in the ethical decision making process would greatly contribute to theory and practice. There are six components of moral intensity, magnitude of consequences, social consensus, temporal immediacy, proximity, and probability of effect.