Description of the Situation and the First Judgment
Video Summary
Residents of Nevada are caught in a crossfire of SolarCity & NV Energy’s struggle for the energy sector, as depicted in the video. To begin with, Elon Musk’s SolarCity is attempting to sell solar systems to Nevada residents to offer them a sustainable energy source while also lowering their electricity bills. SolarCity relieved people’s concern over their monthly power bills, but they also rented their solar systems at no cost upfront. As a result, these solar systems were a game-changer in the energy market, and SolarCity appeared to have nothing but clear skies ahead of them (Bloomberg, 2016).
However, by assisting individuals in paying less for their electricity, SolarCity effectively reduced NV Energy’s revenue, resulting in NV Energy’s severe reprisal, which victimized Solar City and the citizens of Nevada. NV Energy, which Warren Buffett owns, charged SolarCity customers substantially more money. SolarCity departed Nevada after NV Energy’s action because it was no longer practical to operate their company there. Protests and petitions were signed, prompting NV Energy to propose grandfathering the current contracts and not much else. (Buyahar, 2016)
Initial Judgement
My initial assessment strongly favors Elon Musk since all SolarCity was doing epitomized a “win-win” scenario. Elon Musk’s solar systems addressed some of the world’s most pressing concerns by lowering electricity costs, cutting carbon emissions, and employing a source of energy that would outlast the planet itself. SolarCity was earning big profits due to these difficulties being resolved, as many Nevadans acquired their goods to save money while simultaneously contributing to the greater good. Before analyzing the aftermath of this fight, I believe SolarCity will emerge as the winner since Elon’s aim for SolarCity is about the people and not lining his own pockets. I believe Solar City has a far more sustainable business model than NV Energy. As such, Elon Musk is more likely to come out on top in the event of a “war” (Buyahar, 2016).
Profile on Elon Musk
Elon Musk was born in the South African city of Pretoria. In 1971, he demonstrated his aptitude for technology as early as age 12 when he created and sold a video game to Spectravideo. Following his initial success, Elon and his brother, Kimbal Musk, attempted to create an arcade, but his parents rejected the plan. (2019, Redding) He then departed South Africa to pursue his ambition of succeeding economically in the United States (Gregersen, 2021).
Elon had a significant enthusiasm for physics and economics, having earned bachelor’s degrees in both fields. When Elon watched the emergence of the internet in 1995, he walked out of Stanford University, where he had been a physics student, to concentrate on becoming a digital entrepreneur. (Gregersen, 2021)
Musk, alongside his brother, Kimbal, founded Zip2 in 1995 as a web software startup to assist newspapers in developing online city guides. After Zip2 was purchased, Musk used the proceeds to launch X.com. After a merger with Confinity, X became PayPal. Before being acquired by eBay, Musk was forced out of the firm. (Editors, 2018)
Following that, Musk assisted in the startup of funding for Tesla, an electric vehicle. Elon Musk co-founded Tesla, which has subsequently raked in $1.24 billion in sales. The stock has risen about 700 percent in the previous two and a half years. SpaceX is another of Musk’s businesses (Drake, 2016). The Falcon 1 and Falcon 9 rockets are reusable. Multiple startups successes have seen Elon Musk be named the richest man on the planet. It is also worth mentioning that he is one of the most selfless capitalists, evidenced by his numerous donations to the public.
Profile on Warren Buffet
Warren Buffet, who was born on August 30, 1930, in Omaha, Nebraska, has had a natural affinity for financial and commercial matters since he was a toddler. People close to him stated he was a mathematical wonder from an early age. When he was a child, Buffett would occasionally visit his father’s stock brokerage firm. He decided to make his first investment when he was 11 years old, purchasing three shareholdings of Cities Service valued at $38 each. He then traded his shares when the price reached $40, but he quickly regretted his choice when the price increased to $200 per share. (Editors, Biography.com, 2018).
At the age of 16, Buffett joined the University of Pennsylvania. He spent the next two years there before transferring to the University of Nebraska to continue his studies (Mimaroglu, 2017). Buffet graduated with approximately $10,000 from his previous companies at 20. In 1951, he attained his master’s degree in economics from the illustrious Columbia University.
Buffett founded Buffett Partnership Ltd. in his hometown of Omaha in 1956. Buffett became wealthy by successfully recognizing undervalued firms. Berkshire Hathaway, a corporation Buffett admired, was one of the businesses he respected. In 1965, he took over the corporation (Mimaroglu, 2017).
Warren Buffett, much like Elon Musk, is a huge philanthropist. On the other hand, Warren’s circumstance is unique in that he has a lot more to offer up. As per Mohamed of Market Insider, between 2014 and 2018, Buffett donated $15 billion to various organizations, accounting for almost 15% of his total fortune at the time. In the spirit of generosity, he collected $4.5 million in 2019 by promising to sit and eat with the highest bidder for the Glide Foundation, a homeless-supportive organization based in San Francisco (Stempel, 2019).
Stakeholders Impact: Justice and Individual Rights
Investors
It is the company’s social and ethical obligation to meet all of the demands of the investors. The company’s primary responsibility is to pay dividends to shareholders on schedule. SolarCity and Nevada Energy are jointly responsible for sharing earnings equally and paying monthly dividends to investors. The company is accountable for acting responsibly and without conflict with investors.
Customers
Today, you must please your clients to develop a successful firm. The company should give good services to clients without engaging in any unethical behavior, and after-sales service is vital in today’s business climate. Both SolarCity and Nevada Energy must provide excellent customer service for everyone to purchase your goods and use your services automatically. No one will buy these firms’ items if they do not provide decent products and services.
Communities
There are various social and community duties that the firm bears. SolarCity and Nevada Energy are two of America’s leading solar rooftop companies. Individuals should be employed, and the local community should be served well. Pay your taxes on time, give to non-profit organizations, and support hospitals, among other things.
Environment
The company’s main objective should be to improve and safeguard the environment. SolarCity and Nevada Energy must make their goods with ecologically sustainable raw materials. They should offer a portion of the funds to help arrange an event to raise public awareness about the need for environmental conservation.
Employees
Employees play an essential part in making a company more successful. Give individuals jobs and allow them to experience the organization’s pleasant environment. SolarCity and Nevada Energy should give residents jobs and job security, timely wages for all employees without pay cuts, and an atmosphere free of discrimination. Other benefits include paid vacations, medical insurance, stock options, to mention a few.
NPUC Decision
After much deliberation and meetings, the NPUC decided to modify the power tariff system. To compensate those who generated extra energy from solar panels at the total market rate. Instead of taking full use of Nevada’s energy, the NPUC has opted to levy a tiny fee on power. The struggle is proceeding slowly, but it appears to be tilting in favor of SolarCity and a slew of other solar energy providers because the missions of the majority of these solar energy firms resonate with their consumers since they are for the greater good of humanity.
Nevada Now
Nevada produces so much solar energy that it is currently the fourth most powerful state for solar energy production. The government offered several incentives to consumers who used renewable energy sources and laws governing the deployment of solar panels on rooftops. It has enticed 141 solar firms to conduct business in Nevada, providing jobs for residents. The Nevada Public Utility Commission recently approved a planned 500-kV electricity line connecting North and South Nevada, a measure that might boost Western capital inflows while also encouraging renewable growth.
Conclusion
The PUC’s decision to adjust the electricity tariff indicates a functional justice system. Although the battle is still ongoing, it looks to be tipping in favor of SolarCity and other solar energy companies because the bulk of these solar energy companies’ goals resonate with their customers since they are for the more significant benefit of humanity. Individual rights and responsibility to stakeholders were valuable tools in predicting this outcome.
Reflection
I learned that ethics are essential in business, especially in matters that might significantly influence people’s lives. In the issue of the NPUC being unethical against solar panel owners in Nevada by raising the price over what it would be without solar panels, although they benefit the environment.
I also learned that organizations that balance their priorities and recognize the role of ethics are more likely to survive in the long term, as can be observed in our current scenario, where SolarCity was able to win over the people of Nevada since its business model benefited them rather than dominating them. NV Energy’s actions, on the other hand, did not win the hearts of Nevadans in many ways, leading to their retreat and abandonment of their monopoly.
Works Cited
Bloomberg. (2016, January 29). Solar Wars. Retrieved from YouTube: https://youtu.be/YGGk90YljhQ
Buyahar. (2016, January 28). “Who Owns The Sun.” Retrieved from Bloomberg: https://www.bloomberg.com/features/2016-solar-power-buffett-vs-musk/
Drake. (2016, September 27). A Million Humans could live on Mars by 2060. Retrieved from National Geographic: https://www.nationalgeographic.com/science/article/elon-musk-spacex-exploring-mars-planets-space-science#close
Editors, B. (2018, March 30). Biography.com. Retrieved from Warren Buffet Biography: https://www.biography.com/business-figure/warren-buffett
Editors, B. (2018, April 4). Elon Musk Biography. Retrieved from Biography.com: https://www.biography.com/business-figure/elon-musk
Gregersen. (2021, June 24). britannica.com. Retrieved from Elon Musk: https://www.britannica.com/biography/Elon-Musk
Mimaroglu. (2017, December 21). Warren Buffet. Retrieved from Entrepreneur: https://www.entrepreneur.com/slideshow/306551
Stempel. (2019, June 1). Warren. Retrieved from the US: https://www.reuters.com/article/us-buffett-lunch/warren-buffett-charity-lunch-fetches-record-4-57-million-winning-bid-idUSKCN1T238Y
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