Please read below my essay on this Social Topic

April 7, 2016 Case Analysis Project on SeaWorld

Introduction

When one thinks of SeaWorld we think about cute animals doing tricks with their trainers to entertain us. “These theme parks draw about 25 million visitors a year and employ about 10,000 employees in the Central Florida region” ([29] Garcia, 2009). We think about the moment we are there but what about after we don’t even think twice about what happens when they shut off the lights to all those precious marine animals. Have you ever thought about the whales or dolphins or any animals in the entertainment business? Probably not right? “For years, the H&T (hospitality and tourism industry) has been heavily criticized for its inconsiderate and even cruel use of animals for entertainment purposes, we eat them and we cuddle them. We feed them, we play with them, we make money from them, we hunt them, we build tourism around them, we breed them, we teach them tricks and we pass legislations to protect them. In short, we use them for any purpose we wish” [...] (Shani, A., & Pizam, A. 2008) But don’t feel too bad because neither does SeaWorld. This multi-million dollar business of this animal industry uses these animals without thinking twice about the effects of a 12,000 pound animals being subject to a four by four concrete pool for two thirds of their lives. This is important when it comes to the social responsibility that Sea World faces because their whole idea behind animal welfare is being challenged and the purpose of the company is being questioned when the animals being held captive are experiencing psychosis and attacking their trainers they work with. It makes me question are these animals really in good hands or are they just the money ticket for Sea World, should these animals remain in captivity? When will enough be enough when there are no more trainers willing to work with these wonderful creatures or when more documentaries will be created to expose the truth behind the multi-million animal industry? This paper will take a close look at different topics of business to analyze SeaWorld as a business in a different perspective coming from yours truly me.

Chapter 2

Topic 1 (Concern for Ethical and Societal Issues)

Sea World Parks and Entertainment was founded in March 15 1959 by CEO Joel Manby, their main purpose as a society is to deliver educational experiences intended to create a deeper understanding, respect, and desire to protect all wildlife. Personally throughout the years I believe they have failed to obtain their mission to conserve wildlife and keep these animals in their respective families. Weisberg, L. (2016) study found the following:

"If people get a real understanding of what SeaWorld is doing, which their business model relies on sexually assaulting male orcas and forcibly impregnating unwilling females, that's what they are going to find off-putting, not the billboard," said Ashley Byrne, a campaign specialist with PETA. "I don't think there's a nice way to talk about that”. (p.1)

In the wild the orcas are in their own family pods, the orcas have a mom which the babies never leave their sides, an uncle, an aunt, a grandma just like you and I. But in SeaWorld they capture the whales from the ocean ripping their families apart after taking their young and placing them into pools with other orcas from a different region, whales from different pods do not get along quite well. These orcas are often much stressed with rakings and blood marks all over. In SeaWorld they collect the male sperm and impregnate the female orcas and breed them while at SeaWorld. They are destroying the families they are creating by separating the mom and the babies for selling purposes. For you as my audience to get a visual of what this is doing to the orcas, just think about it as violently as a child being ripped apart from its family in plain sight. These mom orcas go into trauma and start expressing vocal sounds nobody has ever heard before. It’s very sad to see the orcas are crying and screaming to get their babies back but we all know how the story ends. Sea World continues to brake these families apart even though they promote the opposite. This cannot be morally correct, I just know this is wrong socially, physically and morally.

Chapter 2

Topic 2 (The Contemporary Environment)

Sea World has to work very hard to earn the trust of the general public, for many years before the incidents started to appear in the media nobody ever question Sea World and how they did things even though they are responsible for their employees and the wonderful creatures. Holcomb, J., Okumus, F., & Bilgihan, A. (2010) study found the following:

“The company has a long history of conservation and land preservation for the benefit of wildlife. They reported the following initiatives ([2] Anheuser-Busch, 2008, p. 33): Partnering with leading environmental organizations to conserve wildlife. Managing the resources surrounding our facilities to promote wildlife habitat conservation and public education. Directly engaging in animal rescue, and partnering with outside conservation groups for the preservation of endangered species and their habitat. Educating the public, through our theme parks, on issues affecting wildlife survival” (P.6)

Whether it applies to employees or business partners, diversity is one area that is heavily reported in their vision, mission, and diversity statements. For example, in their vision statement it states that the company's vision is: “To be recognized as a leader in diversity by our employees and external stakeholders. We drive business results through our commitment to diversity and fostering a culture of inclusion; whom we create our products for; and whom we support through charitable contributions, business purchases, and alliances” ([2] Anheuser-Busch, 2008, p. 43).

All of these things sound really good looking outside seeing in, but like most of the people in this world we tend to lie and embellishes in the truth. In the wild it is reported that orcas can live beyond human years, Males living to 60 or 80 years of age and females to 100 years of age. So why is that the employee’s from SeaWorld are telling their customers false information stating the orcas live longer in captivity, that 30 years is their life span. Why are the employee’s stating that fin dorsal collapse happens to all male whales, when in reality scientist have proven this occurs “in less than 1% of male whales in the wild”. Take a look at this video clip of the employee’s feeding false information to the public. Pictures, M. (2013, August 2). (https://www.youtube.com/watch?v=u3aSc1NpTSM) From the documentary Black fish made in 2013 by Gabriela Cowperthwaite Eli Despres Tim Zimmermann. After another tragic incident happen in SeaWorld in February of 2010 when the male whale SeaWorld holds in captivity Tilikum killed yet another trainer while in the water with the orca.

Chapter 2

Topic 3(Acting Responsibly to Satisfy Society)

I truly believe that SeaWorld Parks and Entertainment needs to do a better job with the contemporary ethical environment that they face. Nearly three years after the film was made to show SeaWorld’s deepest darkest secrets and now five years after the last trainer’s death indecent it is now that in February of 2016 “SeaWorld's decision to end its orca breeding and to phase out by 2019 its theatrical killer whale performances, the foundation of its brand, followed years of public protests”. (Mike Aguilera, SeaWorld San Diego via AP) (Kay, J., & SCHNEIDER, M. 2016, April 4) so it seems that they are trying but in my opinion it took too long in the first place. In addition to pay employee’s deserve a safe environment and working for SeaWorld can seem to be not so safe, not only because of these huge animals being in a small pool but also because prior to being at SeaWorld most of the employees have no knowledge on these orcas or how to properly train an orca for that matter. What disturbed me the most about SeaWorld in the (2013) Blackfish documentary is the fact that the trainers had no clue about any prior incidents that ever happened prior to them being hired. Two prior situations happened before the last incident in 2010 with Dawn Brancheau the trainer who was killed brutally by Tilikum the largest 12,000 pound male orca is captivity. Something else that shocked me was the fact that Sea World knew Tilikum had become extremely stressed out and aggressive and they still purposely breed him with all that rage in his DNA. So they created serval generations of aggressive orcas in captivity. These accidents you can say are premeditated in the sense that SeaWorld knows there cannot possibly be a good outcome for all their negative actions. Let’s take a look at this video it’s a bit disturbing so please bear with me. (https://www.youtube.com/watch?v=YQE40yJme4s&nohtml5=False) B. (2013, September 24).

I honestly believe Sea World has failed to take social responsibility, has failed to the general public, to the customers and the employees, to the community as a whole.

Chapter 3

Topic1 (Microeconomics: The Forces of Demand and Supply

In SeaWorld just like in any business goods need to be purchased but unlike any other company animals are the goods being purchased. For cost purposes when SeaWorld captures these animals they make sure they only capture the babies. If a business cannot accommodate the demands of its consumers then where will the business end? According to Alanna Ketler studied showed the following

“They have also tried cutting ticket prices and have spent around $10 million on marketing that features veterinarians caring for the whales. SeaWorld CEO Joel Manby admits that the company is still struggling to convince the public that it treats its whales well. I believe that the main issue here, however, is not about how nice the staff is treating the whales at SeaWorld, but the mere fact of their captivity. These are giant sentient beings, meant to live in the vast ocean and in pods, and they are being kept in captivity in devastatingly small pools”. Ketler (p.2)

SeaWorld can continue to try and get their business back on track but it will be hard because they have deceived the consumers and their employees. When a company does things like this it’s hard to trust that what they are doing now is actually the correct thing. Sad thing is Sea World was actually doing these things for many years and probably would’ve never stopped if they didn’t get humiliated and publicized.

Chapter 3

Topic 2 (Microeconomics: Issues for the Entire Economy)

I believe SeaWorld is a pure competition structure and raising admission tickets is not always an option so Sea World has added more attractions to their theme parks. According to Paul E. Debbas he states that Sea World’s decisions have affected the business as a whole.

“The company also committed $10 million in matching funds for killer whale research and $1.5 million for a partnership on ocean health. Nevertheless, it appears as if the bad publicity is hurting the company. Attendance declined by one million (4%) in 2013. In the first half of 2014, revenues fell 5%, and operating income (adjusted for a nonrecurring item in 2013) plummeted 53%. There are other reasons for the declining business, such as increased competition from other theme parks, notably in Orlando. As of late October, the share price had fallen 35% year to date. It has declined about 30% from its IPO price of $27 a share.

Another risk the company faces is, not surprisingly, the state of the economy. Discretionary spending on items such as travel and theme park visits is one of the first things that consumers are likely to reduce if the economy slows. Additionally, the balance sheet has a lot of leverage. As of June 30, 2014, long-term debt made up 74% of total capitalization”. (Debars 2014)

I believe that after the documentary Blackfish was made it opened up the eyes to many of the consumers of the business and that’s why they have had this negative impact. It’s very interesting because the animals have more laws then humans do now in days, but they deserve it and need it so maybe more people will stop to think what if that was me ?

Chapter 3

Topic 3 (Global Economic Challenges of the 21st Century)

The economies of the countries around the world have become more aware and interconnected. As SeaWorld is trying to recover their name and their actual purpose for ever opening, they are working hard trying to get things back in order. I believe they see how important it is to actually be honest with their consumers for not only a socially and morally ethical approved business but for a huge success and growth for the business as a whole. According to Ketler she also feels very strongly about SeaWorld saying

“Yes, SeaWorld is still in business, but the fact that their profits have seen a significant decline in such a short period of time makes a huge statement about how we, the consumer, can directly impact the world we live in. If sales continue to plummet as they have thus far, SeaWorld will have no choice but to shut its doors forever. This is also a great example of how spreading awareness (i.e. this documentary) can lead to some big time changes. The first step to create is awareness, so it is important to spread the word and stand up for what you believe in. We do have the power to create the type of world we want to live in”. (Ketler p.2)

I agree with her because the documentary made it possible for people to be aware and that is the first step now SeaWorld can properly correct the unethical issues. From researching and finding what Paul E. Debbas found SeaWorld can say they are at least trying to fix things and surprisingly, “despite the decline in business, SeaWorld is still generating cash. The board of directors raised the quarterly dividend by a penny a share (5%) in the second quarter of 2014. In late October, SeaWorld stock was yielding 4.5%. Since the fourth quarter of 2013, the company has spent more than $90 million to buy back more than three million common shares. In August of 2014, the board authorized a repurchase program for up to $250 million of stock, effective at the start of 2015. This equity might be of interest to income-oriented investors, provided that they can tolerate some risk. Conservative accounts should look elsewhere”. (Debbas p.2)

I believe it is always good to give people second chances so despite their previous mistakes there is always room for growth. So SeaWorld and those precious animals deserve a second chance and who are we to say otherwise. If there change is for the better and sincere then I’m all for it and the animals deserve a second chance and even a third. The only thing we can do is give it time and let’s see if within the next few months to years SeaWorld can overcome the challenges they have been faced with.

Chapter 7

Topic 1 (Setting a Vison and Ethical Standards for the Firm)

I believe someone who focuses on the long-term success, not only on the short term profits are exactly what SeaWorld needs to comeback from their lack if ethical issues. One huge debate that Sea World has seemed to have for a few years now is the right to keep the whales and dolphins captive and also have them in the water the trainers. I believe that if a group of people thought about it and put themselves in the animal’s shoes they wouldn’t even think twice about being inside a tub for two thirds of their lives. My real argument may be emotional or sentimental but I believe each and every one of those animals are worth saving and fighting for. I know it must be very hard to have to change the vison of what Sea World is supposed to be, but at the same time who has the last say so for setting a proper vison and ethical standard for the company. The next two topics in my paper will help me get to the bottom of the structures and decision makers in the Sea World industry.

Chapter 7

Topic 2 (The Strategic Planning Process)

Sea World needs to decide what they will be doing and come up with a good game plan in order to rehabilitee this animals and gain their clients back. They need a list of goals they would like to aim for over the next set of years. According to Alicia Graef

“Sea Shepherd notes that according to its 2011-12 Annual Report, SeaWorld has given only $9 million dollars over the last decade toward conservation efforts. To put that in perspective, the park brings in $1.5 billion every year and raked in $538.4 million this past July through September alone. Sea Shepherd continues, “That means for every 100 dollars in revenue they bring in, they donate approximately 1 cent toward saving the animals in the wild whose captive counterparts they are exploiting. That’s .0001 percent of their income going to help animals in the wild. I think that might be the most telling point of all ― that, in fact, SeaWorld is really nothing more than a money-making enterprise.” (2013 p.3)

In order for Sea World to get people to stop looking at them like monsters they need to set up a strategic planning process, this will take some time but if all we have against Sea World are negative comments and facts about how they really run their business, then it looks to me as if Sea World may be lost forever and that means that those poor animals will be too. I agree with Alicia Graef when she says SeaWorld is really nothing more than a money- making enterprise because that’s exactly what they look like.

Chapter 7

Topic 3 (Organizational Structures)

If SeaWorld has any chances of coming back or even care how people view them as a whole and as a business then they should get on their feet and create a strong organizational structure a group of people working together to better the lives of the employees and the animals captive. According to Rupert Neate he states

“SeaWorld has replaced two top executives in charge of animal safety and theme park operations as part of a continuing battle to turn around its brand following a series of scandals including the deaths of whales, dolphins and trainers.” (2016 p.1) Joel Manby, SeaWorld’s chief executive, said the executives were being replaced by others with “extraordinary depth of knowledge” and “the right expertise to deliver on our strategic priorities”. “We are listening to our guests, evolving as a company, we are always changing,” Manby said as he unveiled the new corporate strategy in November. “In 2017 we will launch an all new orca experience focused on natural environment [of whales]. 2016 will be the last year of our theatrical killer whale experience in San Diego”. (2016 p.2)

Apparently SeaWorld is trying to listen to their clients because I think they see the affect that something so powerful can have on their business and they don’t want to keep their bad reputation. That’s where it has to start with the head boss so that there can be some type of results. This is why the organizational structure is so important in any business but epically to SeaWorld if they hope for any change. The one thing that I’m hoping is that SeaWorld is not making these changes to continue to harm these precious animals. I truly hope they don’t just get rid of the people there but untimely just free those animals. I know that will take some time but I hope their looking for solutions not just and outlet out the spotlight. I hope they do the correct ethical things for the former employees and all those captive animals. I hope they don’t make bigger pools to continue to breed under those circumstances I just HOPE!

Conclusion

So now when you think of SeaWorld what comes to mind marine animals’ captive losing their minds being aggressive and getting abused? Let’s hope our thought of SeaWorld will one day change and be much better than before. “These theme parks draw about 25 million visitors a year and employ about 10,000 employees in the Central Florida region” ([29] Garcia, 2009). I know everyone does not love animals or think about these marine animals to have feelings and understand love, but in my opinion they do and we need to understand the things that Sea World has gotten away with over the years is morally unacceptable. We think about the moment we are there but after we don’t even think twice about what happens when they shut off the lights to all those precious marine animals. Have you ever thought about the whales or dolphins or any animals in the entertainment business? Probably not right? But don’t feel too bad because neither did SeaWorld. This multi-million dollar business of this animal industry uses these animals without thinking twice about the effects of a 12,000 pound animals being subject to a four by four concrete pool for two thirds of their lives. This paper has taken a close look at different topics through a business lens to analyze SeaWorld as a business and talk about the taboos of this industry in a different perspective coming from yours truly me.

References

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Cowperthwaite, G. (Director), Oteyza, M. V. (Producer), & Cowperthwaite, G., Despres, E., & Zimmerman, T. (Writers). (2013). Blackfish [Motion picture on DVD]. Los Angeles, California: Magnolia Home Entertainment, [2013].

Debbas, P. E. (2014, November 03). Value Line - The Most Trusted Name in Investment Research. Retrieved April 08, 2016, from http://valueline.com/

Graef, A. (2013, December 26). Seaworld-tries-to-convince-you-that-keeping-orcas-is-ethical. Retrieved April 12, 2016, from http://www.care2.com/

Holcomb, J., Okumus, F., & Bilgihan, A. (2010). Corporate social responsibility: What are the top three orlando theme parks reporting? Worldwide Hospitality and Tourism Themes, 2(3), 316-337. doi:http://dx.doi.org/10.1108/17554211011052230

Kay, J., & SCHNEIDER, M. (2016, April 4). Scientists-bemoan-seaworld-decision-to-stop-breeding-orcas. Retrieved April 07, 2016, from http://www.usnews.com/news/science/articles/2016-04-04/scientists-bemoan-seaworld-decision-to-stop-breeding-orcas

Ketler, A. (2015, August 14). Collective-Evolution | Be Change. Retrieved April 08, 2016, from http://www.collective-evolution.com/

Neate, R. (2016, February 19). Seaworld-top-executives-replaced-animal-safety-parks-operations. Retrieved April 12, 2016, from http://www.theguardian.com/

Pictures, M. (2013, August 2). Blackfish: Clip 3 2013 Movie Scene. Retrieved April 07, 2016, from http://www.youtube.com/

Weisberg, L. (2016, Jan 28). PETA targets SeaWorld with sex ad. TCA Regional NewsRetrieved from http://search.proquest.com.ezproxy.library.berkeley.org/docview/1760722013?accountid=38129