010 Element Written report (2023 MOD007238 TRI2 D01NON)
Introduction
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Ethics is important for business because it has the power to influence business in society. Ethics also has the potential to provide a major contribution to society, and the potential to inflict harm. The demand for ethics has increased from the stakeholders due to an increase in ethical and unethical behaviour from the organisations that can impact the perception of the public, revenue, and daily operations of the businesses.
Companies with ethics can have the ability to attract loyal customers, hire and retain skilled and experienced workers, and win awards. On the other hand, businesses with unethical practices can face various issues such as legal penalties, boycotts, and social media campaigns (Marquette University, 2023).
This assignment aimed to analyse the ethical rise in the modern workplace and the manifestation of ethical questions via the use of various themes such as Sustainability Development Goals (SDGs), Corporate Social Responsibility (CSR), globalisation and diversity; stakeholder theory; and working with or in the third sector.
The second part of the assignment is based on an analysis of three organisations one from the public sector, one from the private sector, and one from the third world sector. The organisations selected are National Health Service (NHS), Tesco Plc, and British Heart Foundation (BHF).
Overview
In today’s corporate and business world, as well as academic and education circles, business ethics is discussed highly (Grigoropoulos 2019.p.167). Through ethical practices, businesses apply ethical and moral values in everyday processes, behaviour, and policies.
Ethical practices are applied to every employee who works within the organisation regardless of their level of responsibilities, position, and range of responsibilities. Ethical behaviour codes and morality values are applied equally to all employees. As per Manuel, and Herron 2(020.p.235), ethical traditions are incorporated via various Corporate Social Responsibility (CSR), models.
The true ethical decision helps businesses to identify the rights decision taken against the competing alternatives (Manuel, and Herron 2020.p.235). The failure of businesses to comply with the ethical standards of society as well as organisation lead to ethical issues. Ethical conflicts can lead to non-compliance with relevant legislation. While the ethical issues might cause adverse reactions from third parties (Velasquez 2018).
In the modern workplace, ethical issues are multifaceted in which various themes such as Corporate Social Responsibility (CSR), Sustainable Development Goals (SDGs), diversity, globalisation, stakeholder theory, and the emergence of more ethical business structures are manifested.
Sustainability Development Goals (SDGs).
A framework for tackling global issues like inequality, poverty, and climate change is provided by the SDGs. The SDGs were adopted by the United Nations in 2015 as a universal call for ending poverty, protecting of planet, for ensuring peace and security for all people till 2030 (UNDP, 2023).
In the workplace, moral dilemmas involving an organization’s commercial activities that help achieve these objectives come up. Companies must integrate the ideas of sustainability, responsible consumerism, and environmental stewardship into their strategy and decision-making procedures to align their operations with the Sustainable Development Goals (SDGs).
The SDGs aim to end inequality and poverty and transform the world (Agarwal, et al., 2017). To comply with the SDGs businesses are required to take actions that can prioritise the environmental and social impact along with the core objective of profit maximisation.
If the company prefers short-term profit over the wellbeing of society and long-term sustainability, it results in raising ethical questions. Other reasons for raising ethical questions include the depletion of resources, generation of waste, and degradation of the environment. To avoid ethical questions, the business is required to ensure sustainability, production, sourcing, and methods, manage waste, and environmental stewardship (Battaglia, et al., 2020.p.20190305).
To comply with sustainability development goals, businesses are expected to play active roles via the application of innovation and creativity in resolving the issues of sustainability development. The investment of the businesses in these goals results in economic benefits for the business. Corporations incorporate SDGs within their corporate practices to show that they are socially responsible to improve their brand image and show accountability (Yamane and Kaneko 2022.p.107236).
Corporate Social Responsibility (CSR).
Corporate Social Responsibility (CSR), is incorporating social and environmental issues into stakeholder relationships and corporate operations. CSR focuses on the protection of all stakeholder’s interests, such as customers, employees, suppliers, and the community where the business operates. Under the CSR pyramid, the business is expected to have some responsibility to society beyond earning profit for shareholders (Kruslat, et al., 2023).
With the help of CSR practices the businesses show that they are socially responsible organisations along with their economic goal of the value of maximisation for shareholders. The degree to which businesses give priority to corporate social responsibility (CSR) efforts and the sincerity of their commitment to environmental and social objectives raise ethical concerns.
The reputation of the firm can be damaged making it less appealing to relevant shareholders if the company is involved in unethical behaviour (Pereira, et al., 2020). The responsible behaviour of the company, its values, competencies, objectives, and stakeholder interest are established with the help of CSR activities of the business (Adda, et al., 2016).
To truly fulfill their CSR promises, organizations must resolve moral conundrums pertaining to greenwashing, moral supply chain management, charity, and community involvement (Cortina 2017. p. 69).
Globalisation
Globalisation has reduced physical borders and enabled companies to operate in multiple countries across borders as the world has become a single market where businesses can interact with customers all over the world.
Businesses face moral dilemmas due to the rise in globalisation after World War II in five particular areas including environmental standards, labour standards, cultural diversity, human rights, and corruption. Moreover, ethical issues in cross-cultural settings are also faced by businesses due to the globalisation of production processes and markets, and the increasing number of business organisations as well as marketers (Gurnani 2015.p.116).
The ethical issues are presented by globalisation in association with human rights, labour rights, and sustainability of the environment. Working across borders by the companies might raise questions in association with worker exploitation, fair labour practices, and compliance with international standards. To show ethically responsible organisation, businesses are required to ensure fair worker treatment, respect local customs and culture, and show accountability for the environmental and social impact of their operations (Ehrenfeld, 2012) for more visit Academic Assignment Writing
Diversity and Inclusion
Diversity and inclusion focus on the promotion of equitable representation, fostering a culture of belonging, and dealing with systematic biases as well as workplace discrimination that leads to ethical issues for the organisation.
Diversity and inclusion initiatives must be actively promoted by the organisations, via the implementation of anti-discrimination policies, and opportunity creation for unrepresentative groups of workers to help them advance and strive within the organisation.
The harassment and discrimination at work for women and preferring men for executive-level jobs create ethical issues for businesses. Moreover, discrimination on the basis of background or culture, race, colour, and religious beliefs also creates ethical issues and a negative impact on the organisational culture (Tamunomiebi and Ehior 2019.p.839).
Stakeholder Theory
Stakeholder theory focuses on the best interest of all stakeholders such as employees, customers, community, and investors. Stakeholder theory focuses promotion of efficient, practical, effective, and ethical ways of managing the organisation within a complex business environment.
Focusing on the best interest of all stakeholders promotes positive behaviour and attitude towards the organisation like sharing valuable information with all stakeholders (Harrison, et al., 2015.p.858). The failure of an organisation to balance the needs and expectations of various stakeholders leads to ethical questions.
The ethical issues can be addressed by engaging with stakeholder transparency, seeking inputs from diverse perspectives, and prioritising the long-term value creation over the maximisation of short-term profit for upholding ethical principles.
Stakeholder theory promotes moral values and is considered part of normative theory which focuses on human life aspects that promote business relations and provide ethical principles that guide business life actions (Enyinna 2013).
Working With or in the Third sector
Charity and voluntary work comes under the third sector which is also known as the not-for-profit industry. Collaboration of the businesses in the third sector such as social enterprises and non-profit organisations can lead to ethical issues if the company fails to align power dynamics, values, and resource distribution.
Ethical dealing with the third sector and respecting the expertise and autonomy of non-profit partners can help in dealing with ethical issues as such collaboration contributes to meaningful social impact rather than reputational gain only (Salamon and Anheier, 2013.p. 60).s
Ethical Business Structure
The ethical business structure creation can help businesses resolve ethical issues through cooperation, and social enterprises by offering alternatives to traditional business structures that focus on the maximisation of profit only.
Good corporate governance, showing accountability and transparency, and measurement of impact can help in resolving ethical issues. Organisations need to focus on the adoption of business structures that help them to be socially responsible, ensure the sustainability of the environment, and align with the ethical expectations of stakeholders. Such measures will help the organisation contribute the societal change positively (Roszkowska and Melé, 2021.p.187).
Practices
Theories of ethics provide a clear, and unified account of one’s obligations. There are three theories of ethics which include utilitarian, virtue ethics, and deontological. The right and wrong in the given situation are identified with the help of normative theories of ethics (Kagan, 2018).
While the descriptive theories of ethics help in analysing the ways by which ethical decisions are made actually in businesses. Descriptive theories of Ethics focus on moral decision-making, moral actions, and moral phenomena. Descriptive theory helps in understanding the ways by which specific individuals or groups of people believe about ethical questions (Bowie 2013).
Normative theories of ethics
Utilitarian Theory
As per the theory of utilitarianism, an action that results in greater good for the greater number of people by which those people are impacted is considered right. This means the decisions that result in happiness or higher benefits than cost are considered right (Ikechukwu Anthony, and NDUBISI 2022).
Virtue Ethics
The theory of virtue ethics says that “good action comes from a good person” which means actions that were taken by actors having virtuous characters are considered morally right. Hence, for morally correct behaviour, virtuous character formation is the first step in taking the morally right decision Van (Hooft, 2014).
Deontological
The deontological theory focuses on the actions instead of the outcome of those actions and rules for the right behaviour. It states that actions need to be judged on the basis of right or wrong instead of their consequences. This theory analyses actions as good or bad regardless of their consequences (Lazar, 2017. p.579).
Ethical Practices of NHS
National Health Service (NHS), is a government-owned healthcare system. NHS is the world 2nd largest single-payer system of healthcare that aims to provide healthcare facilities to everyone in the UK to improve the population’s health, improve patient care quality, deal with inequality, and ensure efficient delivery of care
Being a public sector organisation, NHS aims to provide quality healthcare services for those who cannot afford expensive treatments from the private health sector. To comply with the UN Sustainability Development Goals in part 2 and Corporate Social Responsibilities and Ethics Practices, NHS published its sustainability report in Appendix 5 of the annual report (NHS, 2023.p.207).
To comply with the SDGs, the UK has established its own standards such as Greening Government Commitments and Greener NHS commitments. NHS has introduced the 2022-25 Green Plan for NHS England which was approved by the board for setting milestones for carbon reduction and “net zero health service by 2024” to ensure its progress to new zero.
The Sustainability development plan of BHS consists of a reduction of greenhouse gas emissions by 44% by 2025, 80% by 2028, and net zero emission that was controlled by NHS by 2040 and net zero emission reduction that is influenced by NHS by 2045 (NHS, 2023.p.207).
To prove that the practices of NHS are morally right it is working towards its goal to reduce the overall greenhouse gas emissions and direct greenhouse gas emissions.
The main aim of this goal is to mitigate the risk of climate change and work toward net-zero by 2040. NHS has reported a reduction of emissions from domestic business flights by 30% since the 2018/2017 baseline. NHS aimed to reduce the government car fleet by 25% to meet Government fleet commitment and aimed to reduce by 100% till 2027 covering vehicles that employees lease via employer salary sacrifice scheme (NHS, 2023.p.209)
To reduce wastage, NHS aimed to reduce the waste amount to less than 5% of landfill, increase the recycled waste proportion to a minimum of 70% of overall waste, and reduce paper use by the government by a minimum of 50% from the 2017/18 baseline. NHS has reduced consumption of water by 8% from the base year 2017/18. NHS also has set a target of sustainable procurement to achieve a carbon reduction plan to support sustainability risk assessment (NHS, 2023.p.210).
Practices of NHS in terms of theories of Ethics and Business Ethics
The goals of NHS to achieve net zero emission by 2040 comply with the utilitarian theory of ethics because the efforts of NHS to reduce carbon footprints will help reduce the negative impact of climate change and protect of planet as well as natural resources that will be beneficial for future generation as the greater good for the greater number of people.
The practices of NHS also form a party of virtue ethics that says that actions taken by a person with virtuous characteristics are considered right. NHS is a healthcare sector that provides quality healthcare services to all within the UK.
NHS’s commitment to public health complies with virtue ethics as it prioritises the health and well-being of communities and patients it demonstrates the NHS’s concern for the wellbeing of society as the priority. The commitment of NHS to reduce energy consumption, carbon emission, and waste generation to minimising environmental impact also proves its virtuous characteristics. NHS ensures integrity, honesty, and fairness via sustainable procurement also confirms its virtuous characteristics.
Wider Lesson Learned by Other Practitioners
NHS is the main national organisation in the healthcare service sector. It world’s 5th largest employer. Therefore, the ethical practices of NHS can be used as guidelines by the private healthcare providers of the UK because NHS’s sustainability practices aim to ensure the reduction of energy consumption, carbon emission, and waste generation to minimising environmental impact.
Ethical Practices of Tesco Plc
Focus on Ethical Dimensions
As per the annual report 2023 of Tesco Plc, it has mentioned the values created for all stakeholders as part of its core business model which include customers, suppliers, colleagues, communities, the planet, and shareholders. To comply with the SDGs, Tesco Plc has undertaken measures that can help in reducing the negative impact of company operations on the plant to contribute towards climate change.
Tesco Plc focuseses on the health, safety, and well-being of its workers. The company has introduced the term Every Voice Matter in which 86% of colleagues showed satisfaction with the health and safety measures taken by the company. Tesco Plc also supports USDAW’s campaign for retail worker protection (Tesco Plc, 2023.p.16).
Tesco Plc focuses on diversity and inclusion to ensure a diverse workforce that can provide different ideas and promote an inclusive culture. The Board of directors of top executives of Tesco Plc was a combination of males and femaless where 58% of board members are male representatives and 42% are females.
While 59% of the executive committee consists of males and 31% comprise female members. 71% of top global leaders are male and 29% comprised of females with 17% ethnically diverse board and executive committee and 15% of top global leaders are ethnically diverse (Tesco Plc, 2023.p.17).
To reduce the impact of company operations on the planet. More than 3rd of greenhouse gas emissions are generated by the food sector. Tesco Plc plays a leading role in the reduction of greenhouse gas emissions to avoid its severe impact on climate change.
Tesco Plc has set a target of net zero emissions by 2050 and becoming carbon neutral throughout the operations of the group by 2035. To achieve its goal, Tesco Plc has developed a time-bound plan for decarbonising key areas of its emission footprints.
Tesco Plc has achieved a 55% absolute reduction in emissions from since 2015/16 baseline via switching to renewable electricity. Some of the efforts of the company include switching the refrigerant gases, installation of heating pumps, and installation of EV charging for fully electric home delivery. Tesco Plc also included climate emission in its big 6 KPIs and introduced ESG metrics in its execution remuneration policy.
Moreover, Tesco Plc also builds comprehensive supplier engagement programs to encourage suppliers for carbon reporting as suppliers are part of its core value chain (Tesco Plc, 2023.p.18).
Tesco Plc also involved in CSR practices one major example is the donation of 52 million meals to food banks and charity groups during the financial year 2023. Moreover, Tesco Plc, is involved in volunteering policy by giving two paid days off to volunteers to encourage its colleagues to work for the betterment of the community and society is part of CSR practices (Tesco Plc, 2023).
The above efforts of Tesco Plc show the ethical practices done by the company.
Tesco Plc Practices in terms of Ethical theories
Tesco Plc’s work for reducing the impact of GHG emissions, and working the planet proves the application of the utilitarian theory of ethics as reducing the impact of climate change will result in greater good for the greater number of people. Tesco realise the impact of the food sector on carbon emissions hence works hard and sets goals for net zero emissions and ensures sustainable practices (Tesco Plc, 2023.p.18).
The CSR practices of Tesco such as the distribution of meals and giving two paid days off to its colleagues proved to the application of the deontological theory of ethics as the company made the morally right decision for the betterment of society regardless of their consequences on society these decisions do not make a big change in the society but the small contribution of the company for being socially responsible organisation.
On the other hand, diversity and inclusion for ensuring equality and ethnical diversity also proved the application of virtue ethics as Tesco Plc is a multinational company with a strong brand image whose effort to reduce workplace discrimination could be considered its virtuous characteristics of the organisation whose actions betterment community, planet, and colleagues would be considered morally and ethically right (Tesco Plc, 2023.p.16).
The commitment of Tesco Plc to create value for all stakeholders including customers, suppliers, planet, community, and shareholders confirms the application of stakeholder theory as Tesco works in the best interest of all stakeholders.
Wider Lesson Learned
Tesco Plc has worked on all aspects including, climate change, community, shareholders suppliers, and colleagues showing its compliance with ethical codes and practices that are exemplary for other practitioners to focus on ethical codes and conduct and ensure sustainable business operation by protecting natural resources in today for a better tomorrow.
Ethical Practices of British Heart Foundation (BHF).
Focus on ethical Dimensions
The British Heart Foundation is a cardiovascular research charity operating in the UK. The company raises money for funding of circulatory and heart diseases and their associated risk factors (The British Heart Foundation, 2019).
The sustainability practices of BHF consist of its focus on environmental sustainability, climate change, and social equality which are major challenges for all stakeholders. BHF has made the commitment to being a healthy and inclusive place for work by 2030 (BHF, 2023.p.64).
To ensure responsible operations, BHF focuses on the reduction of electricity usage by forming an Energy Efficiency Task Force to launch energy awareness campaign programs.
These measure the company to reduce its energy consumption by 10%. BHF also focuses on re-use and recycling and introduced bioplastic carriers that were replaced in 81% of stores and use recyclable and reusable material in its packaging to reduce waste.
BHF also focuses on compliance with UN SDGs works to ensure environmental sustainability. BHF also has 19 zero waste stores to ensure appropriate recycling of all of its materials and sell as many donations as possible. Furthermore, BHF also focuses on responsible partnership via external policy working collaboration for sharing lessons and implementation of best practices. BHF uses a zero tolerance approach in modern slavery (BHF, 2023.p.82).
BHF Practices in Terms of Ethical Theories.
BHF is a charity organisation that earns revenue via donations and charities. Hence its core aim is to work for the betterment of society in the short term and long term. Sustainability practices of BHF showing the implementation of ethical theory.
Working for environmental sustainability to greenhouse gas emissions, carbon emissions, reduction of waste, etc shows the application of utilitarian theory as these measures of the company focus on the greater good for the greater number of people.
BHF’s concern for society shows the application of virtues ethics theory because BHF is a charity organisation that is 98% famous with 83% of popularity (YouGov, 2023). Organisations and individuals who provide donations and charities perceive that BHF will spend their money for the betterment of society and promote the health and well-being of Britain.
The believe in the integrity and sincerity of the charity organisation (BHF) and provide donations. Apart from that moral decision of the company to sell donations to people in need and research heart and cardiovascular diseases shows the application of deontological theory irrespective of its consequences on society.
Wider Lesson Learned
The exceptional work of BHF being a charity organisation, that not only focuses on the health and well-being of society but also on sustainability practices shows that it is socially responsible organisation and accountable. Other charity organisations can also learn from the ethical practices of BHF and ensure sustainable operations in the future.
Conclusion
As per the above analysis, it can be stated that ethical values and principles are essential and help businesses as well as individuals to differentiate between right and wrong.
Ethical practices help in examining rational justification and moral judgments. Business ethics also help in the study of business situations, decisions, and activities for identifying the things that are morally wrong right, or unjust.
It helps the businesses to analyse via analysing the ways by which staff, customers, planets, and suppliers are treated by the organisations. Ethical dilemmas arise if the company incorporates ethical values and principles in decisions and is involved in unethical practices.
In the modern workplace, ethical questions are manifested via the SDGs’ CSR practices, diversity and inclusion, globalisation, and stakeholder theory. The analysis of organisations such as NHS (public sector organisation), Tesco Plc (private sector), and BHF (non-profit organisation). The selected organisation reported ethical practices via the use of various ethical dimensions and worked for the environmental sustainability, social equality, and well-being of society.
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