Running Head: Ethical Dilemma

Ethical Dilemma
Name:
Institution:

ARLA FOODS ETHICAL DILEMMA

Mohammad ALFADEL
Saturday, April 23, 16

The Jylands-Posten, a Danish newspaper, published a total of twelve offensive cartoons that
depicted Prophet Mohammed in a negative manner. This happened in September 1995, and the
Islam community came out vehemently criticizing the cartoons as not only blasphemous but also
insulting. Initially, the Danish Muslim communities engaged in peaceful protests, but shortly
after, the crisis became an international one. The Organization of the Islamic Conference (OIC)
demanded an apology from Denmarks Prime minister, but this demand was not met. This denial
prompted OIC to call upon all member states to boycott all Danish products. This is how the Arla
Foods found itself losing 1.5 dollars daily. This paper explores the ethical and moral issues in a
utilitarian approach and recommends the most workable solution to this problem (Donkin, 2006).
Arla Food Ethical Dilemma
1. The difference in social, political and religious issues between Denmark and
Saudi Arabia resulted to mistrust
Employment practices in Saudi Arabia differs from the ones employed in Denmark. In
addition, the perception of human rights differs between the two countries. However, the ultimate
dilemma lies in the distinct religious and cultural practices between the two countries. In this
regard, Saudi Arabia is highly suspicious of a Denmark business mainly because of the cartoon
issue that Arla had nothing to do with (Irvan, n.d.).

ARLA FOODS ETHICAL DILEMMA

According to the Muslim community, the publication of the twelve cartoons was highly
unethical. Depending on the statue offered to Prophet Mohammed by the Muslim community, the
cartoons were viewed as a direct insult to their leader and the whole Muslim community.
Nevertheless, due to the historical tension between the Wwest and the Muslim community, such
Akind of misunderstanding should have been anticipated by the Danish media. Nevertheless,
even German and French newspaperSnewspapers published the offensive cartoons, but the
Muslim community laid blame on the original publishers of the cartoons. The Muslims felt that
Denmark was deliberately provoking them, and their opinion of this country ultimately changed.
However, the Danish government protected their media under the freedom of press,, but
freedom of press as well as that of expression comes with various ethical considerations, or at
least this is what the Muslim community maintained (Donkin, 2006).
Secondary ethical dilemmas
1.

Human rights violations that were never perpetrated by Arla

DenmarksS support of the publication of the offensive cartoons maintaining that it was
an exercise of freedom of expression was an abuse of the freedom of worship in Saudi Arabia.
According to Jeff Jacoby, (2006), Jyllands-Posten had done nothing wrong by publishing the
Mohammed cartoons. According to him, The current uproar over cartoons of the Muslim
prophet Mohammedillustrates yet again the fascist intolerance that is at the heart of radical
Islam. Jeff Jacoby (2006). Besides, the American newspapers that shunned the call to republish
the cartoons were accused OFto increasing the powers of the theocratic primitives (Ireland,
2006).

ARLA FOODS ETHICAL DILEMMA

On the other hand, the support of the offensive publications was a vast violations of the
freedom of worship in the Muslim world. Therefore, Arla has the social and moral responsibility
to distance itself from the Denmark stand on the cartoon issue. Arla was being viewed as part of
the nation that insulted the Muslim world through the offensive cartoons (Donkin, 2006).
Although Denmark was exercising its freedom of expression, it does not have a right to
insult other peoples beliefs. According to many newspapers within Islamic countries, the
Mohammed cartoons wereEREas an insult to the prophet as well as to Islam. They maintained
that freedom of expression comes with ethical considerations that does not include the freedom
to insult others. Fakhrudiin Ahmed (2006), in the Daily Sstar, maintained that Frfreedom of
speech and expression has limitations as it does not extend to freedom to abuse other peoples
religions. In fact, freedom of expression was viewed by major Muslim newspapers as a Western
idea that was being misused by some media houses. This kind of thinking made some sense as
some Western nNewspapers shunned the publication of the cartoons basing their refusal on this
argument (Miami Herald, 2006)..
The Washington Post (2006) distanced itself from the cartoons regarding them as vulgar
and offensive. This newspaper further called the re-publication of the cartoons as an insensitivity
to the Muslim community and not an enjoyment of the freedom of speech. Therefore, instead of
mitigating the damages caused by the initial publication, most Western newspapers escalated the
issue by reprinting the cartoons. In this regard, it was both immoral and unethical for the
newspaper to continue republishing the cartoons after realizing thatTHAT most Muslims felt
offended. Hiding behind the freedom of expression was unjustified as the offensive cartoons did
not aim at serving any particular positive purpose.

ARLA FOODS ETHICAL DILEMMA

Although the Denmark media have the freedom of expression, the Muslim community
should not be insulted through the publication of the offensive cartoons. Arla Ffoods appeared to
support the insult of the Muslim community barely because it had its origin from Denmark. In
this regard, by keeping quiet, Arla appeared to be in support of the mother country. However,
Arla was never directly involved in the insult (KArla Boycott Crisis Management |
kunmuhammadpunya, 2015).- I DO NOT UNDERTSAND THIS CITATION).
Tertiary ethical dilemmas
Employment practices
International corporations like Arla face a number of ethical issues regarding employment
practices. There is a high possibility that Saudi Arabia has inferior working conditions as
compared to Denmark. This is supported by the fact that some employees at Arla were attacked
at the height of the cartoon saga. Back in Denmark, Arla could have offered better protection for
its employees. However, the rage in the Muslim world have made the Danish employees an easy
target for attack. However, Arla Foods was trying its best in Saudi Arabia as the employees were
offered some security as they travelled to their work places. Arla was actually faced with the
possibility of sending back home the Danish employees in Saudi Arabia. Arla Foods did not wish
to offend the Muslim community by responding harshly to their attacks on Arla employees.
However, Arla was responsible for the wellbeing of its employees, thus the ethical dilemma
((Knight, Mitchell & Gao, 2009).Amstutz, 2013).
Sending Danish employees home would also have resulted in fewerlessFEWER losses
for Arla Foods. However, ethically, laying off these employees was wrong, and the company was
actually facing a dilemma on how exactly to go about the crisis (Amstutz, 2013).

ARLA FOODS ETHICAL DILEMMA

Ethical principles Against Which Arla is evaluated

Respect for the culture and beliefs of the host country

As an international company, Arla had an ethical obligation to respect the Saudis who are
mainly Muslims. Arla, who was profiting from 400 US dollars annually within the Gulf region.
Besides, Arla Foods had operated in the Middle East for 40 years when the boycott was called.
Over the years, Arlas Muslim consumers had been extremely supportive with the company
enjoying leadership in cream and butter marketing within the region. Therefore, the Muslims did
not discriminate against Arla in the previous years. Another fact is that most of Arlas consumers
did not have anything against the company as they were willing to continue doing business with
Arla. The only reason why the consumers hesitated to have Arlas products was the obligation to
show solidarity with the larger Muslim community. In this regard, Arla understood the stance
taken by their Muslim customers and did not retain any hard feelings towards them.
Nevertheless, they appeared not to respect their religious beliefs due to the association with
Denmark (Sadi, Copenhagen Business School. CBS & Denmark, 2009).,
(Knight, Mitchell & Gao, 2009).-WHY ARE THERE SO MANY CITATIONS
TheHE Middle East was the region where Arla had flourished, to becomingINGe a
recognized brand, and had employs sEMPLOYED a total of 1200 people from the region.
Therefore, Arla was largely a Middle East cCompany, but it had firm ties with the country of
origin, Denmark. This boycott posed the potential of destroying the reputation enjoyed by Arla
for 40 years. Therefore, the company was not as concerned with the dropping sales but the
overall reputation. In this regard, Arla had to ensure that it was better placed to handle any future
boycotts targeting foreign companies within the Middle East. Nevertheless, Arla should have

ARLA FOODS ETHICAL DILEMMA

anticipated the extensive nature of the boycott and work to mitigate the damage caused by being
proactive. Therefore, the company should have expressed its stand right at the beginning of the
cartoon conflict by distancing itself from the Danish leadership stand. In particular, a close
engagement with the media early enough would have assisted Arla in minimizing the impact. For
example, the company should have sent their crisis committee head to hold a dialogue onON in
the national tTelevision to ensure thatTHAT its customers were appeased long before the
escalation of the boycotts (Sadi et al., 2009).
While it was advisable for Arla to distance itself from the cCartoon publications, it should
have communicated its inability to control the freedom of expression enjoyed by the media.
Although it had an obligation to protect its brand, the company should have emphasized its
helpless position regarding the mediaS actions. In addition, the company should have
undertaken campaigns to educate the public regarding collective boycotts that affects mainly the
innocent. The various ethical issues regarding such boycotts should have been addressed in order
to mitigate any similar calls in future (Donkin, 2006).
Utilitarian theory
Arla had the moral obligations to instill social responsibility INto Saudis while respecting
their religious and cultural practices. Since Arla is based in Denmark, the company has THE
power to control resources in order to offerverOFFER??? their products at an AN international
level. Therefore, their economic decisions should be made on the basis of their social
consequences. According to the utilitarian approach, the main focus of ethical decision making at
Arla required consideration for the best outcome to theTHE most people. Therefore, the decision
to send home the Danish employees was ruled out as it would have caused unemployment to the
workers and financial constraints on the workers dependents back home (Amstutz, 2013).

ARLA FOODS ETHICAL DILEMMA

Solving on the Arla problem by merely sending home Danish employees and laying off
employees would not have positively impacted on many people. In fact, Saudis would have
continued to boycott Danish goods from Arla. Using the utilitarian approach, Arla was able to
assess the best cause of action in terms of its consequences. No wonder Arla offered an apology
to the Muslim world and distanced itself from the cartoons to ensure that the larger Saudi
community will be willing to cooperate with Arla. Such a decision resulted in ending the boycott
resulting in bettering the lives of employees and, Arlas business partners and creating peace
within the Saudi community. In addition, Arla engaged in community activities that further made
the company acceptable in the Middle East (Amstutz, 2013).

Possible prognosis
The main reason why Arla was targeted for the boycott is the existing perception that it is
still a Danish company. In order to mitigate any future effects of aA boycott call on international
companies, Arla should engage fully in the local community issues. In addition, Arla should
consider changing its name as its reputation is already tainted. The campaign to distance itself
from the cartoon publications offence should continue involving portrayal of respect for
Muslims. I also believe that Arlas products should cease using the aspect of made in .. label
in its brand. Besides, timely communication of Arlas stand regarding the cartoons could have
saved the company major losses. Arlas should have talked when the caricatures of Mohammed
began to circulate, which was the best time to express its stand (Donkin, 2006).
At the pre-crisis stage, Arla should have acted upon the caricatures and not waitedED
until the acute crisis hit the company. Arla has both moral and ethical obligations to its

ARLA FOODS ETHICAL DILEMMA

employees, the consumers, and the larger Saudi Arabian community that has ensured the
companys growth over the years. Therefore, its primary objective is to ensure ethical
considerations when dealing with the three groups. The employees should not have been exposed
to unnecessary threat due to theirs connection with Arla. On the other hand, the consumers
willing to do business with Arla should have been protected to do that, through timely response
from Arla. The larger community should have been saved from plenty of suspicion regarding
Arla had it distanced itself from the cartoons early enough (Donkin, 2006).

ARLA FOODS ETHICAL DILEMMA

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References- LOOK AT HOW I CHANGED THE SPACING OF THE FIRST TWO

ENTRIES. ALSO, YOU SEEM TO BE USING APA STYLE, BUT THESE ARE NOT IN APA.
DOES THAT MATTER?
Amstutz, M. R. (2013). International ethics: Concepts, theories, and cases in global politics.
Place of publication not identified: Rowman & Littlefield.
Ahmed, Fakhruddin (2006). Freedom of speech or hate speech, The Daily Star, February 6.
Retrieved April 16 from http://www.thedailystar.net/2006/02/06/d60206020430.htm

Arla Boycott Crisis Management | kunmuhammadpunya. (2015, March 17). Retrieved from
https://kunmuhammadpunya.wordpress.com/2015/03/17/arla-boycott-crisis-management/
Callamard, Agnes (2006). Prophetic fallacy, Guardian, February 2. Retrieved April 15, 2006
from http://politics.guardian.co.uk/comment/story/0,,1700693,00.html
Donkin, R. (2006, April 27). The boycott threat - Management Today. Retrieved from
http://www.managementtoday.co.uk/news/555754/boycott-threat/

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Irvan, S. (n.d.). Cartoon Crisis and Freedom of the Press1. Retrieved from
http://fcms.emu.edu.tr/images/stories/articles/suleyman_hoca/cartoon%20crisis%20and
%20freedom%20of%20the%20press.pdf
Ireland, Doug (2006). The right to caricature Godand his prophets, February 7. Retrieved
May2, 2006 from www.openDemocracy.net.
Jacoby, J. eff (2006). We are all Danes now, The Boston Globe. , February 5. Retrieved May
1, 2006 from.http://www.boston.com/news/globe/editorial_opinion/oped/articles/
2006/02/05/we_are_all_danes_now/
Knight, J. G., Mitchell, B. S., & Gao, H. (February 01, 2009). Riding out the Muhammad
Cartoons Crisis: Contrasting Strategies and Outcomes. Long Range Planning, 42, 1, 6-22.
Miami Heraldrald (2006). Drawing the line on religious cartoons, February 7. Retrieved May
2, 2006 from http://www.masnet.org/articleinterest.asp?id=3175
Sadi, N., Copenhagen Business School. CBS., & Danmark. (2009). Handling crisis
communication in an intercultural context: Arla in the Cartoon Controversy - What kind
of cultural barriers did Arla face when handling the crisis in the Middle East?.
Frederiksberg.
Washington Post (2006). The uses of cartoons, February 8. Retrieved April 17, 2006 from
http://www.washingtonpost.com/wpdyn/content/article/2006/02/07/AR2006020701849.html

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