Case Study The Tale of Bubbles & Bliss

With long hours of sunshine and fertile plains, Hawke's Bay unsurprisingly is the second-largest wine producer in New Zealand. Tucked into the hillside of Highbury Valley, you will find Emma Baker's vineyard and restaurant, Bubbles & Bliss. From bare land and a dream in the early 19990s, Emma has turned Bubbles & Bliss into a thriving business and a cornerstone of the Highbury Valley community, but Emma's leadership extends far beyond her role as a vineyard owner; she is the chair of the community town hall and is devoted to the welfare of the local community; the essence of her leadership lies in authenticity. Bubbles & Bliss employs almost half the town between the restaurant and the vineyard, and work was available for anyone who asked. All training is done in-house and on the job; no experience is needed but a good attitude to work is required. Many staff join straight out of school and never leave. Staff recruitment and retention have never been a problem, the bonus of an attractive workplace. Emma believes in doing well by doing good. A business that prioritises what's good for people translates into long-term success and profitability. For such a large organisation, the structure of Bubbles & Bliss was reasonably simple, with a wide span of control. A few managers reported to Emma, who ultimately had the final say.

The art of winemaking takes meticulous care, and Bubbles & Bliss is renowned for perfecting the entire process, from grape seeds to bottled wines. Seeds are planted in the early spring, requiring careful planning to allow air circulation and maximise sunlight exposure. Irrigation systems provide the vines with appropriate water, especially during dry periods. Grapevines require consistent moisture but can be sensitive to overwatering. Pruning is essential for controlling vine growth, promoting airflow, and ensuring the production of quality grapes. Once the vines are ready to be harvested, grapes are carefully selected and harvested, a labour-intensive task undertaken by skilled hands during the harvest season. Once the grapes are collected, there is a process of crushing and pressing to release the juices, and fermentation follows, where yeast turns sugar into alcohol, imbuing the wine with its distinct character. Maturation in oak barrels added depth and complexity, while periodic tastings and adjustments by the winemaking team ensure the creation of wines that truly reflect the land and its people.

From farm to table, the restaurant at Bubbles & Bliss sources its ingredients from local farms, focusing on organic local produce and artisanal products; all the food served at the restaurant is sourced from neighbouring produce farms, local brewers crafted beer, the music of talented local musicians often graced the evenings. Of course, wine is served from the Bubble & Bliss vineyard. Emma believes in supporting the local community businesses, even if it means higher costs compared to city alternatives- A testament to Emma's unwavering commitment to supporting local businesses is evident in every aspect of the Bubble & Bliss. This authenticity attracted people to the vineyard, a place where harmony and trust thrived.

The work at Bubbles & Bliss is characterised by a low degree of specialisation; tasks tend to be broad and people move where the work is needed at different points in the season, and because training is done on the job, workers are trained in all aspects of the business. While this creates some inefficiencies, it keeps the work exciting, and no two days were the same, which is essential to Emma. Bubbles & Bliss' unique culture is rooted in Emma's authentic leadership. This is a motivating force for all employees. The sense of belonging, shared values, and Emma's unwavering commitment to the community fostered an environment where everyone feels deeply connected to the vineyard and restaurant's success. Emma's dedication to supporting staff and local businesses and her emphasis on nurturing relationships created a culture of trust and cooperation where employees feel valued and inspired to go above and beyond their duties.

At Bubbles & Bliss, another critical part of the Human resources strategy that fuels the motivation of its staff is the practice of rewarding performance. Emma has established a system where hard work and dedication are recognised and compensated fairly. Employees know their efforts are directly linked to their financial well-being, making them eager to excel in whatever role they are given. This culture of meritocracy encourages all staff to put in their best efforts day in and day out, knowing that their contributions do not go unnoticed. This pay-for-performance ethos has been integral to the organisation's success, aligning the staff's interests with Bubbles & Bliss' prosperity.

Ethan joined Bubbles & Bliss straight out of high school, working his way up the organisation. Ethan has recently been appointed farm manager, in charge of overlooking the Grape Vines. Excited by the promotion, Ethan has some big ideas he is eager to share with Emma. The irrigation system, in particular, desperately needs an upgrade.

At his first team meeting as Farm manager, he raised the issue with Emma, suggesting that modernising the equipment could improve efficiency but, more importantly, reduce water wastage. However, he faced resistance due to the substantial cost involved. Emma's response, "When the time is right, we'll get to it. But upgrades will mean no staff bonus this year and you know how hard everyone has worked." While he didn't quite understand the resistance, he also didn't want to disrupt the harmony of Bubbles & Bliss Vineyard. He loved his job, was looking forward to his bonus and appreciated the close-knit community- he didn't want to create any tension. He certainly didn't want to be the one to blame if people didn't receive their Christmas bonuses.

Then, one fateful evening, a storm that brought torrential rain swept through the valley, and the river that meandered near Vineyard overflowed its banks. The vineyard fields were submerged. The storm passed but left a trail of destruction, with several local businesses and homes suffering significant damage.

When the water subsided, and Ethan reported for work, Emma instructed him to inspect the vineyard's vines and irrigation system. To his astonishment, he found that everything was operational and undamaged, unaffected by the storm. Grateful for this stroke of luck, Ethan reported the good news to Emma, who appeared strangely indifferent.

A few days later, Emma arranged for an insurance assessment to evaluate the damage to Bubbles & Bliss. Ethan overheard Emma exaggerating the extent of the damage during her conversation with the insurance company, particularly emphasising the supposed damage to the irrigation system, which Ethan knew was untrue, and Ethan discovered an unsettling truth about Emma's approach - a willingness to bend the truth for personal gain. Predictably, the insurer approved the claim, covering a complete overhaul of the irrigation system, repairs to the vineyard buildings, and a fresh coat of paint. The cost to Emma would be a mere $1000 the amount of her insurance excess.

Deeply conflicted, Ethan decided to confront Emma about the insurance fraud. Emma responded with a casual shrug, saying, "I've been paying insurance faithfully for the past 15 years. They're a large company; they can certainly afford the payout." She justified her actions as a pragmatic move against a faceless corporation. Ethan was taken back by this response and disappointed that Emma would resort to such dishonesty.

Ethan now found himself at a crossroads, torn between his loyalty to Bubbles & Bliss, his admiration for Emma's dedication to the community, and a growing sense of ethical responsibility. His decision would impact the future of Bubbles & Bliss Vineyard and test the values of trust and integrity cherished in the small town of Highbury Valley.

Question

Explain why Ethan faces an ethical dilemma.

In your answer

a ) Describe 'what is an ethical dilemma'?

b) Explain the ethical dilemma Ethan faces. (Detailed explanation is required)

c) Identifyfour (4) key stakeholders and explain why they are stakeholder? (Detailed explanation is required)

d) Explain how each stakeholder will be affected by the dilemma? (Detailed explanation is required)