Business Ethics
Business Ethics
CONTENTS
S. No. Description Page No
Explain the background and development of theoretical ethical approaches. 3
Compare and contrast absolute and relative ethics. 4
Explain the ethical issues which can affect the operational activities of a business. 5
Explain how the business objectives are affected by ethical consideration. 6
Evaluating key implication for a business and its stakeholders to operate ethically. 6
Assess the role of the organization acting as a moral agent 7
Analyse the development of a mechanism for achieving employee involvement 8
Research current ethical issues affecting a selected business 8
Improvement process of business 9
Appropriate ethical codes 9
References 12
Task 1
1.1 Explaining background and development of theoretical ethical approaches.
Deontological Theory
Deontological theory states that, the results or consequences of any actions which are unimportant; what important is that taken actions are justified morally. For an instant, driving of a drunk person is not right; however, if an individual claims that the person can navigated towards his way home safe and sound, thus must not be held accountable according to the law, they are incorrect as their acts was not right as well as violated the general principle for correct behavior that a drunk individual must not drive (Lazar, 2017). Immanuel Kant’s contribution to the Deontological theory Immanuel Kant proposes’ development that “Duty” is the most important factor to consider when deciding. Kant believes that actions of an individual will only be considered ethically and morally correct if they are taken with a duty’s sense as well as responsibility in mind.
Teleological Ethical Theory
The teleological ethical theory’s primary focus was on “Consequences,” that is. “Outlining the kind of steps or actions someone will take that may cause the most effective results?”. (Benlahcene et al., 2018). The consequences are for identifying how the moral actions of a person are, according to the “Consequentialist Theory.” The action’s consequences could be good or bad, damaging or beneficial. Jeremy Bentham’s contribution to the Consequentialist Theory’s development. In which actions of an individual could be classified as good or bad based on the consequences of those actions (Hurley, 2018). Bentham states that, good things are generally classified as “pleasure,” while bad things are classified as “pain.” Therefore, the person’s actions’ morality determined by which actions taken the most “pleasure” for overall stakeholders and which actions cause pain for the involved stakeholders.
John Stuart Mill
John Stuart Mills is not the same as According to Jeremy Bentham, what good is actually “happiness,” and what is bad actually is “unhappiness,” so an action is moral if its outcomes in “Happiness” for all the involved stakeholders, and a taken decision is erroneous if its consequences in “Unhappiness” for the all the involved stakeholders (Hart, 2017). Utilitarianism (An Consequentialist Theory’s extension) According to the Utilitarianism theory, the person’s actions’ morality is determined by what is good that produced by the actions, not just for an individual who have taken the action, but for everyone in the organization. The principle that produces the “Greatest Good” is the most morally correct.
1.2 Comparing and contrasting the absolute and relative ethics
In ethical theory, ethical absolutism is spectrum’s one end. According to ethical absolutism, there are applicable universally, eternal moral principles. The right and wrong objectives’ qualities are determined by ethical absolutism, said by Voegtlin et al. (2012, p.12). It has been observed that absolutism enables the ethical and moral values or rules which are evaluated critically. Samsung and HCL management have adopted the strict ethics to ensure that all employees are treated equally (Leroy et al., 2012, p.261). According to absolute ethics, organizational employers do not need to bring the change morally only when the organization is following the morally correct rules (Bunge, 2012). As a result, managers will not create separate rules for all other employee as absolute rules are universally correct for the organization.
On contrary, ethical relativism ensures morality in the various organization’s departments. Relative ethics makes sure that there are no such universal rights and wrongs that could be determined rationally (Zikmund et al., 2013). However, it has been seen that that respective morality holds that there is no set of moral or ethical rules that could be account for all kinds of situations. According to Rutherford et al. (2012, p.175), moral decisions are made rationally in organizations like, General Electric, Tesco, as well as in Greenergy, considering the outcome of every potential choice. Cultural relativism, on the other hand, has been observed to minimize the good meaning that is applicable socially. According to a popular news report, General Electric’s manager has fired two workers for their poor and insignificant performance (Brenkert and Beauchamp, 2012). However, firing a worker is against the ethical rules of the company, but his performance was poor which is not acceptable to the organizational managers. As a result, determining when the rules should be changed in various situations could be more crucial or difficult (Zikmund et al., 2013).
1.3 Explaining ethical issues which can affect the operational activities of a business.
According to Myers (2013),employers of the organization has also faced some ethical related issues in the workplace. It has been found that 30% or more workers works in the multinational corporation experience harassment at workplace as a result of their use of social networking websites. It has been discovered that comments made about employers or coworkers on social networking websites are costing employees jobs in the entire UK (Hill and Jones, 2013). As a result, its consequences in the workplace have an impact on the industry as managers are establishing strategies or policies about using of social media sites at workplace during the working hours (Ferrell and Fraedrich, 2015). Employers, on the contrary, have enacted a strategy that prohibiting employees from using social media sites while off the clock. Cisco Systems Inc. has established a software programme called Cisco Social Miner that investigate and monitors their workers activities on social media (Ma et al., 2012, p.289). According to the organisation, their advanced software system also look at their status, blog posts, and forum posts. According to Rutherford et al. (2012, p.177), some organizations have had certain issues with employees receiving equal pay. If the organization abides by state and federal laws, it is required to pay wages equally to all the workers who perform the same tasks. On contrary, the organization is likely to raise the pay of existing employees. As a result, an ethical quandary occurs (Leroy et al., 2012, p.264).
According to Bondy et al. (2012, p.282), the majority of private organisations have also experienced ethical and moral issues like:
• Terminating employees who are working in hazardous conditions
• Creating unsafe goods for customers
• Ignoring proper monitoring processes and technology assistance
• Waste product recycling
• Profiling of products that are harmful to people’s health or the environment.
Task 2
2.1. Explaining how the business objectives are affected by ethical consideration:
It has been found that Superdrug executives have used consequentialism throughout the organization. The employer desires that all the taken decisions should have measurable outcomes. According to Bunge (2012), deontology necessitates the application of a rules and regulations in order to regime a decision. However, it has been observed that not every decisions are accompanied by a duty or a rule. Managers have sometimes used virtue ethics in order to monitor or examine decisions in the employee character’s context (Brenkert and Beauchamp, 2012). However, because of the certain ethical concerns, managers adhere to consequentialism ethics and rules on a consistent basis. It has been observed that Superdrug has conducted business on a global scale, interacting with various commercial and cultures systems. There is no doubt that the Irish market is vastly unique and distinct from the market of the UK (Weiss, 2014). As a result, marketing experts have used ethical rules or frameworks in order to guide their administrative staff while taking the decisions in foreign markets, ensuring that the business goal of firm and the organization adheres to socially responsible rules and principles (McGee, 2012).
However, Superdrug’s organizational ethics have been greatly influenced by ethical considerations, like;
Unfair employee treatment strategy: The managers used an ethical approach in order to ensure about the worker’s security and safety. The firm’s terms and policies states that, the organization is required in order to provide a sufficient amount for living which is an additional advantage for the employee (Zikmund et al. 2013). It has been discovered that the organization has halted some proposed benefits for an unknown period of time. The industry then identified those employees whose performance was subpar.
Engagement in sustainable manufacturing process: It has been seen that a business lobbying campaign is arranged by the organization in the UK government in order to minimize the Value Added Tax on life-saving drugs. On contrary, the company has sold skin care as well as other goods of different brands that have not been animal tested.
2.2. Evaluating implication for a business and its stakeholders to operate ethically:
According to Kvarnström, Airaksinen, and Liira (2018), management needs to adhere to the appropriate ethical norms in society. When ethics issues arise over time, management needs to adhere to them. According to Cabral et al. (2019), government agencies are among the organization’s stakeholders. Superdrug will be preferred over its competitors due to its business management system, which is based on the laws of honesty and consideration.
Governments in other countries have already reduced the tax rate on some lifesaving drugs. Although the organization has a dual image in the UK, it has nonetheless been recognized. Among its services is the sale of affordable, lifesaving drugs. Contrary to this, they promote these untested cosmetics using the British Union for the Abolition of Vivisection’s logos. As a result, the company has not conducted its business operations according to proper ethical standards.
While the association has been viewed in a distorted fashion in the UK, its identity is still intact. Life-saving medications are sold by the association. On the other hand, they are selling these beauty products under the English Union for the Abolition of Vivisection logo (Bates, 2017). As a result, the activities of the association have not been conducted in line with legitimate morals.
The business strategy of Superdrug, as well as the government, affects customer satisfaction. Throughout its business strategy, Superdrug has demonstrated how market mix effects play out. The prices on health and skin care products at Superdrug are kept low in order to maintain ethical standards. Despite this, the company has sold untested products along with a government logo on them. It is unethical for the organization to lobby on behalf of government.
Task 3
3.1. Assessing the role of the organization acting as a moral agent
As stated by Voegtlin et al. (2012, p.8), Superdrug implemented a lobbying initiative with the UK government. The value added tax has been removed from some health and beauty care products. As a result of its organizational integrity, the organization is regarded as a moral agent. Superdrug has implemented a number of policies to ensure it maintains its ethical reputation (Zhan et al., 2021). Integrity in Organization: Superdrug failed to maintain proper organizational integrity as an employer with its employees and customers. Employees’ working conditions are adversely affected by unethical decisions made by employers. Creating equal opportunities for all: Organizations do not follow employment ethics that promote equal opportunity.
3.2. Analyzing the development of a mechanism for achieving employee involvement:
Organizations that wish to succeed must develop communication strategies in order to accomplish their goals, objectives, strategies, and values. Developing the right training methods to comply with these changes will be necessary. Moreover, the company should consider providing employee training so they can expand their skill sets, so that they can not only improve their skill sets, but also increase their engagement. A company’s reputation will be strengthened by training its employees in addition to improving loyalty and commitment. In addition, training can help retain employees.
Task 4
4.1. Researching a current ethical issue affecting a selected business
There are ethical dilemmas confronting a number of industries in the United States. Torugsa et al. (2012) published a study about the issue. The topics addressed include the wages of employees and workplace harassment that is commonly experienced. Based on the policies of these organizations, customers can be either enraged or satisfied by the dilemma they face.
Ethics can present themselves in employees of any company, regardless of its size. An example in British Airways case, how managers should deal with harassment at work is learnt, whereas for the pharmaceutical sector firm such as Pfizer, the procedures followed for development. When confronted with such a situation, employees need to know what safety concerns they have on hand at work.
The ethics of dealing with customers and suppliers must be considered by individuals and companies (Kvarnström, Airaksinen, and Liira, 2018). Owners of businesses should examine their business relationship with suppliers and determine whether it is ethical to continue doing business with them. There may be unethical behavior on the part of the supplier. In addition, ethical considerations must be considered, work safety regulations must be strictly followed. By avoiding technologies and processes that can jeopardize the safety of the public and employees, we can keep the environment and employees safe. Product manufacturing that ensures consumer safety, Recycling waste materials and utilizing them and making money from all kinds of products that threaten human health, like cigarettes, drugs, etc.
4.2. Improvement process of business
In other to improve a business process, the following steps discussed below are to be considered:
Processing of map:
Document all the steps of the process which you wish to improve with flowcharts or swim lane diagrams once you have understood it. These two tools will display all of the steps within the process visually. The flowchart or diagram should be used to identify the problems with the entire process. Consider the points where customers get frustrated, the steps that are actually getting bottlenecked, where costs are rising and quality is declining, and the processes which require more attention.
Redesigning the process:
Identifying and eradicating the identified problems are significant steps in process redesign (Giacalone and Promislo, 2013). In this case, the most appropriate process would be for the people who were directly involved in the process to participate.
Acquiring all the resources
Giacalone and Promislo (2013) argue that an employee is necessary to safeguard all the resources they wish to be used in the implementation process. It is necessary to make a list of all the things that they wish to attain through this procedure.
Implementation and communication changes:
The process of altering or modifying is not as simple as it might seem. When someone begins a new process according to his or her plan, it is regarded as a project as a whole. In the future, planning and management should be done with great diligence.
Reviewing the process:
When planning and managing the entire project is complete, a review of the process is a must. Use strategies as appropriate (Cortellazzo, Bruni, and Zampieri, 2019). Small improvements are required regularly will ensure the efficiency of the entire process.
4.3. Appropriate ethical codes
The company code of ethics refers to the formal document that details the firms’ behavior along with a document that details employee behavior. Having a code of ethics is imperative because of the following reasons:
To determine acceptable behaviour
To promote higher standards of practice
Employees are given the opportunity to self-evaluate
The creation of a framework for professional behaviour and responsibilities
The ethical code will include the company values in discussing the company vision, the organization shares the goals for which it is striving (Floyd et al., 2013, p.752). It also includes the problem resolution such as the ethical code’s primary objective is to describe how professionals should approach problems (Craft, 2013, p.225). Whenever there is a method that makes unethical operations possible, it is a member’s responsibility to report it to the higher authority. It comprises the standards principle that the professional withholds such as the individual’s performance has to remain on track as a result of their professionalism. The policies and procedures of the organization should also be clear regarding the organizational structure and codes.
Designing of a suitable ethical code.
Code of Ethical Conduct
Kingsley Uche Investment Nigeria Ltd.
Be patient and courteous.
Be inclusive. As an enterprise we tend to welcome and support people from backgrounds and identities. In our hiring process, we extend equal hiring opportunity to include everyone and not restricted members of any sexual orientation, gender identity and expression, race, ethnicity, cultural background, nationality, social and economic category, educational background, colour, immigration standing, sex of individuals, age limit, body size, family background, political belief, religion, and mental and ability.
Be considerate. We all depend upon one another to produce the most effective work we can deliver as an organization. Your choices and decisions will influence our clients and colleagues, and you must take those consequences into consideration when taking decisions.
Be respectful. We won’t all agree all the time; however, disagreement isn’t any excuse for disrespectful behavior. We’ll all at a point may experience frustration from time to time, however we should not allow that frustration become personal attacks. A work environment where individuals feel uncomfortable or threatened isn’t a productive or inventive one.
Choose your words carefully. Always conduct yourself professionally. Be kind to others. Do
not insult or place down others. The harassment of others and behaviors that are exclusionary will not be welcomed and are not acceptable.
Such as but are not limited to the following:
Threats of violence.
Discriminatory jokes and language.
Sharing sexually express or violent material via electronic devices or other medium.
Personal insults, particularly mistreatment relating to using racist or sexist terms.
Unwelcome sexual attention.
Advocating for, or encouraging, any of the mentioned behaviours.
Continues harassment of others. Generally, if somebody has requested that you stop something, which they don’t like then you must stop. When we disagree, always do your best to understand why. There will be difference of opinion and occasional disagreements are mostly unavoidable. what’s necessary is that we tend to resolve disagreements and differing views constructively.
The team differences can be our strengths. There is strength in diversity. completely different individuals
have completely different views on problems, which will be valuable for determination issues or
generating new concepts. Being unable to know why somebody holds a viewpoint doesn’t
mean that they’re wrong. Don’t forget that we all have the tendency to make mistakes and blaming one another will not get us anywhere as business. Let us always focus on resolving issues and learning from mistakes to avoid repeating the same mistakes again.
References
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