Problem Simone, JKLs representative in Merbattys board of directors, is concerned that Alberto views Merbatty as his own property

y to do with as he wishes. She derives this conclusion based on: 1. Jespers confidence that Alberto would eventually agree to his idea of racing 2. Andreas compromising on his working hours whilst performing charity activities. Background Alberto Blanc strongly believes in the principle of charity. Every employee is encouraged to spend two to six months seconded from Merbatty, on full pay, to undertake charity work. Merbatty receives significant publicity from Albertos charitable work. Analysis of Ethical Issues 1. Charity- Giving back to the society shows the high ethical standards the company adheres to. Industry research also points out that luxury businesses and charity go hand in hand.1 However, keeping in mind the shortage of skilled staff in boat-building industry, an average of five man-years is a significant investment of time and resources at Merbattys end. 2. Duty of care towards JKL- JKL is a major stakeholder that possesses high power and exhibits high interest.2 Merbatty has a duty to address JKLs concerns and eliminate any divergence in their visions. JKLs vision is highly business oriented and is not perfectly aligned with Merbattys regarding charity. 3. Professional Behaviour- Although the diary mix-up between Simone and Andreas can be a solitary incident of misunderstanding, such incidents should be avoided in future by careful management of meetings.

Recommendations1. Board members should collectively appoint a person on board who would be responsible for maintaining Merbattys relationship with JKL and communicate all matters of concern. Clear communication will ensure JKL has a full understanding of Merbattys objectivity in dealing with business issues. 2. Specify the exact number of work-hours that an employee can devote for charity work. A written charitable giving policy needs to be established specifying the required norms. Merbattys Charitable Giving Policy would include a statement about the companys commitment to the community, the types of projects and organizations that Merbatty as a company would support, what the company expects from those who are requesting a donation, and the amounts of typical donations. The number of work hours per employee per year and the exact number days when there would be centralised hosting of charitable events would be clearly defined.

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Why Giving to Charity is Important Refer Appendix Mendelows Matrix

Appendix Establish a written charitable giving policy. Since management is responsible for every aspect of the business that includes the companys donations. So, a written policy is brought into place that would let Merbatty manage the companys resources effectively. Merbattys Charitable Giving Policy would include a statement about the companys commitment to the community, the types of projects and organizations that Merbatty as a company would support, when and how they would go about making decisions, what the company expects from those who are requesting a donation, and the amounts of typical donations. Employees are given the opportunity to take part in charitable projects and events, such as road races, serving on charitable boards, tutoring school kids, helping to prepare and serve meals for those in need, transporting senior citizens and others to events, along with dozens of other possibilities in the community. The number of work hours per employee per year and the exact number days when there would be centralised hosting of charitable events would be clearly defined.