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    RHINO CAPTURE IN KRUGER NATIONAL PARK

    1. Key Issue An operational finance problem Unethical of kruger game capture unit High Demand of Rhino Horn and made enough to produce enough capital

    including the employee did poach the rhino

    2. Profile Kruger National ParkA. Kruger National Profile

    Established in South Africa in 1998 Kruger National Park is in SANPark area

    15.000 white rhinos and 1.500 black rhinos existed in South Africa in2007

    10.000 white rhinos and 500 black rhino existed within Kruger NationalPark in 2009 and making it home to the largest rhino population in the

    world.

    Chief Executive Officer of SANParks is Dr. David Mabunda Many viewed Kruger as the best national park in all of Africa in all aspect

    : management, infrastructure, and biodiversity (336 trees, 49 fish, 34

    amphibians, 114 reptiles, 507 birds and 147 mammals).

    Kruger has tourist operations that offering 21 rest camps, 7 private lodgeconcession and 11 private safari lodge. (Lodge made by partnership

    between private companies that has 25 0 30 lease from Kruger)

    Capturing a Rhinoo Capture game unit also enable in here (Sanpark Game Capture unit

    had 3 location : Kruger, Kimberley and Port Elizabeth) See page

    C-364

    o Rhino Hunting program by safari companies in Kurger AreaB. Income of Kruger National Park

    Income generation from game capture

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    The sale of wildlife for income was accepted and supported by SouthAfricas National Environmental Management Act (2004)

    Two species are : white rhinos from kruger national park and buffalosfrom other park

    In 2009, 500 rhinos were sold in South Africa ( 252 from Kruger NationalTransactions)

    Flowchart of sales transactions is shown in Exibit 3C. VWS ( Veterinary Wildlife Service)

    VWS offered a variety of operational and vetenary serviceso Vetenarian operational were critical to the conservation of wildlifeo Vetenarian services included wildlife capture, holding,

    translocation,park development, species conservation management,

    wildlife sales, animal exchanges and contractual commitment. See

    Exibit 4 for more detail

    D. SWOT Strengths

    Biodiverisity

    Land viewed

    Good management and infrastructure

    WeaknessLarge area

    Financial for operational cost

    OpportunitiesIncreasing foreign exchange due to many tourist come to south Africa

    From the diversity that Kruger has, it could make more tourist

    ThreatsEthical Issues of poaching the rhino

    The income most from rhino capture game

    E. Key Success Biodiverisity

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    Land viewed Good management and infrastructure

    3. Theory of CSR2 type of strategic approach for corporate involvement in society:

    Responsive CSRo Generic Social Impact

    Strategic CSRo Value Chain Social Impacto Social Dimensions of Competitive Context

    4. Theory of EthicsA. What do we mean by Business Ethics?

    Business ethics is the application of general ethical principle to the action and

    decisions of business and the conduct of their personal

    B. 3 School of Thought Ethical Universalism

    The same set of ethical standards should apply everywhere

    The concept of what is wrong and what is right are universal andtranscend culture, society and reliogion

    For example: honesty, trustworthiness, respecting rights of others Ethical Relativism

    The ethical standards vary according to local custom Ethical relativism holds that differing religious belief,customs, and

    behavioral norms across countries and culture give rise to multiple

    sets of standards what is wrong and right.

    For example: payment of bribes Integrative Social Contracts Theory

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    Universal ethical principles or norms based on the collective viewsof multiple culture and societies combine to form a social

    contract

    Universal ethical principles match local cultures and traditions For manager of multinational company : social contract theory

    maintains adherence to universal (first order) ethical norms should

    always take precedence over local (second order) norms. See page

    346

    C. 3 Categories of Management Morality Moral Manager

    o Dedicated to high standards of ethical behavior in own action andhow the companys business is to be conducted

    Immoral Managero Capitalistic greedo Ignores interest of others

    Amoral Managero Believes business and ethics should not be mixed since different

    rules apply to business activities and other realms of life

    D. What are the driver of unethical strategy Large numbers of immoral and amoral business people Overzealous pursuit of personal gain, wealth and other selfish interests Heavy pressures on company managers to meet or beat earning targets Company cultures that place profit and good performance ahead of ethical

    behavior

    E. Aproach to managing a Company ethical Conduct Unconcerned or non issue approach

    o If the law permits unethical behavior why stand on ethicalprinciples

    Damage control approacho May adopt code of ethics as window dressing

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    o Adept at using spin to explain away the use of unethicalstrategy elements or discount the impact of shady actions

    Compliance approacho Highly concerned about having ethically upstanding reputation

    Ethical culture approacho Use ethical culture in company culture

    5. SANParks Strategyo Make game capture still exist -> to solve financial problemo Partnership between private companies to solve the financial problemo SANParks Environmental Crimes Unit and South African Police Service -> to

    solve the unethical issue of poaching and to war against poaching

    o Clause 55(2) (b) of the Protected Areas Act No.57 of 2003 (as amended) -> torespond the social issue as a CSR Program

    6. Analyze of CSRFrom the case we found that the national park has CSR Programs to respond the social

    issue like:

    Made Clause 55(2) (b) of the Protected Areas Act No.57 of 2003 (asamended

    Train and prepare the SANParks Environmental Crimes Unit and SouthAfrican Police Service

    7. Analyze of EthicsA. School of Thought

    From the case we find that the company give priority to local norm

    This clarified by the South Africa government allow the game capture of rhino

    B. Categories of Management Moralityo CEO of SANPark (Dr. David Mabunda)

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    SANParks, by selling or donating rhino, is assisting in the process of

    recolonization of the range in the country and outside. It should be noted

    that it would be foolhardy if South Africa were to have its only rhino

    population residing in the Kruger, because we run the danger of losing

    them should there be a major out break of disease or rampant poaching.

    Poachers must beware and This war we plan on winning see page C-

    374

    From those statement the CEO has Immoral

    C. Do Strategy of SANParks and Kruger to be Ethical Yes

    Unethical strategy could reflect badly on the character of company Ethical strategy could make the business going so well and that is

    the best interest of shareholders

    Ethical strategy could reduce or eliminate the business costs ofethical failures

    D.

    What are the driver of unethical strategy Financial Problem The immoral and amoral of business people (manager) Local of norm (government allow the game capture unit exist on Kruger)

    E. Aproach to Managing a Company Ethical Conduct From the case, the manager use unconcerned or non issue approach that if

    the government or the law permit the unethical behavior so they dont

    stand on ethical principle

    After the have ethical issue, they use damage control approach as windowdressing for example amended the Act No 57 of 2003

    F. Linking strategy to ethics and values Unethical issue become the THREAT of Kruger National Park especially

    the game capture unit and the employee did poaching

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    If we can eliminate the unethical issue, we can eliminate the THREAT ofKruger National Park

    8. RecommendationA. Financial Problem

    Game capture still exist but with the ethical way of game capture. Forexample the game capture should not use the drug guns

    Exchange or sell animal could be continued if all element could controlthe animal as the object and make them in a good condition

    Still ask the South Africa government to help operational funds Work together with WWF to find more funds

    B. CSRThe strategic approach for CSR is Strategic CSR :

    Value Chain Social Impacts :Make the people round national park or all element (employee, seller,

    buyer, people that live round park) to be more aware for unethical activity

    that is poaching and sell the horn of rhino

    Social Dimensions of Competitive Context Protect the land for the hunter Make training program for the employee to help the goal of

    company

    Support the SANParks Environmental Crime Unit and SouthAfrican Police Service.

    C. Ethics The immoral and amoral of business people

    Use pursuing a compliance approach to stop the poaching rhino by the

    employee

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    Make a code of ethics a visible and regular part of communicationwith employees

    Implement ethics training program Give ethics awards to employee

    Aproach to managing a company ethical conductUse compliance approach for the manager and ethical culture approach for

    example the manager should help the sanpark war against poaching

    Linking the strategy to ethics and values By making a new strategy : war against poaching and game

    capture unit more ethically at the end could eliminate the

    THREATS of company