Essay on Red Lobsters Ethical Dilemma - 2438 Words

Red Lobsters Ethical Dilemma - Term Paper Gerry Mullen, CEO of Red Lobster restaurants, has been faced with a dilemma. He recently received an email from Terry Modotti, Vice President for Public Relations concerning the lobster retrieval in La Mosquitia, also known as the Mosquito Coast. The article states that many of the young working men are being killed and maimed to make lobsters available at cheap process to consumers in the United States. The men, known as buzos, must dive up to 130 feet for lobster, and face dangerous decompression sickness which begins with paralysis and ends in a slow death. This is due to the fact that there are no medical or decompression facilities on the boats, and there is also no equipment to aid†¦show more content†¦Another disadvantage of implementing this option would be that net earnings would decrease due to a decrease in consumers, and shareholders will be angered by the decreasing figures of the company. With all of the negativity being placed upon the company as a resul t of this option, a bad light would be shown on the CEO and the company, especially since Gerry is relatively new. Since there are clearly more disadvantages than advantages for Gerry and Red Lobster by exercising this option, I would advise Gerry to further pursue other options. Another option with which Gerry could investigate would be for Red Lobster to offer to pay a higher price for lobster to boat companies in the Mosquito Coast in order for the divers to receive a higher salary cut. A possible advantage to this is that it would provide a better living environment for the divers. It is stated in the article that after the sacabuzos (middlemen), boat captains, and fish processors take their share of the money, what remains for the buzos is a mere $2 per pound of lobster fetched. Within a two week time period, this rate will amount to about $300. If the divers are trying to support families, $300 for two weeks is quite meager. By increasing the price that Red Lobster is wi lling to pay for wholesale lobster, the divers will benefit considerably due to a higher salary. Another advantage to a higher salary would mean that more individuals would be inclined to become divers,