Final Project _part 3

Vanessa James

LS312 Ethics and the Legal Environment

December,15th 2011

Energy Cooperative Energy cooperative’s dilemma is ethical and it is a conflict of interest. All members of the board have signed agreements that while serving on the board, they will act without prejudice and have no allegiance to a specific corporation. “Such codes of conflict and the consequences of breaking them, then need to be communicated frequently to staff members”(Gardyn, 2003).The company needs to make it clear what the consequences are for not following the signed agreement they have. A. The first problem is the misrepresentation. Because each director is calling as a director of the cooperative, his is misrepresenting his position to each client he calls. The Cooperative has no business dealing with the personal clients of the board members. This may make the personal clients feel that the cooperative supports their interest when they don’t have any desire too. B.Second problem conflict of interest, each board member is acting as a consultant and should never mix one organization with another, because they are saying to their personal clients they are on the board of directors when there really not. This kind of information should not be disclosed to personal clients, as personal clients are not connected to the cooperative. So depending on what positions the board members hold each one should be kept separate. If not it will be harder to draw a line as to what the director is representing and all roles will become blurred, with each position held.

Remember the cooperative is established to provide information and education; it is not to promote businesses or specific clients. The stakeholders in this organization are the ones that are seeking information. Of course there is a major risk with the stakeholders not getting