Importance of Business Ethics in Solving Social Issues

The provided document is an assignment that explores the significance of business ethics in addressing social, cultural, and environmental issues. It emphasizes how ethical behavior can positively impact a company's reputation and image, while also highlighting individual responsibility in promoting socially responsible practices and environmental sustainability.

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
Micro and macro factors that change the nature of business .....................................................1
Importance of organisation and individual in order to manage sustainability and behave
ethically in relation to cultural, social and environmental issues................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
A business is the way and process of earning money. It also can be defined as an
organisation which do professional activities and it may be profit and non-profit organisations.
Tesco is a British multinational groceries and general merchandise retailer Plc company. This
study will include and show about various micro and macro factors that affect and change the
nature of modern business in the global environment (Van Wormer and Besthorn, 2017). It also
shows the reason and importance of an individual and the company in order to manage
sustainability and treat ethically in relation to economic, social, cultural and environmental
issues.
Micro and macro factors that change the nature of business
Micro factors
There are some micro and external factors that affect the nature of business in negative
manner and in positive manner. Internal and micro factors are customers, employees,
competitors, suppliers, public and resellers that majorly affect the the nature of modern business
in the global environment. Some micro factors are as mentioned below:
Employees: Employees are one of the most important factor for Tesco. Skilled and
potential employees help the company in achieving their determined goals. They have positive
impact on the company but it can only be done if the company hire the right and skilled
employees and fulfil their all the needs. Tesco has potential workers and they help them in
maximizing profitability and productivity.
Competitors: Competitors are another factor that impact on the company's activity in
negative manner. Their are many competitors of Tesco that are rising in retail industry like
Sainsbury's, Aldi etc. Tesco should focus on their strengths and innovation for their products
which can add more value and can differ their products from their competitors in order to being
in a competition and for operating worldwide (Witkowski, Cheba and Kiba-Janiak, 2017).
Customers: Customers are very important micro environmental factors that may affect
the company in negative manner and in positive manner. The main aim of this company is to
maximize profit by satisfying their customers. Tesco need to adopt and make strategies that can
satisfy all the needs of the customers.
Macro factors
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When the company operates in worldwide and another country then it is affected by
many macro and external factors like political factors, economic factors and so on.
Legal factors: legal factors include laws, rules and regulation that majorly affects the the
process and activities of business. Due to changes in taxation laws and any other laws, the
company requires to change in their strategies and policies which may affect their decision
making process.
Social factors: Social factors that effect business of the company are demographic issues
and various religion depending where it wants to expand and operate their business around the
world. Tesco requires to be aware of these social factors and satisfy their customers and consider
the changing behaviours and demand for organic foods (Trevino and Nelson, 2016).
Technological factors: Technology is changing rapidly and many retailing companies
are using this advancement of technologies. Tesco also require to adopt and use new
technologies which can consume their time and cost and also help them in changing the nature of
business.
Political factors: The political environment of that country in which the company wants
to grow their business also affect the company and can change the nature of modern business in
global business environment. Political instability and unemployment rate of that country also
affect in negative way to the company.
Economic factors: Economic factors includes changes in prices, policies and leverage
costs which effects the performance of the company. For example, if there is increase and rising
in the price of [products then customers do not invest their money and do not buy the products
which decrease the sales of the company and affect in negative manner.
Importance of organisation and individual in order to manage sustainability and behave ethically
in relation to cultural, social and environmental issues
There is an importance for the company and individual to learn business ethics and behave
ethically in order to solve social, environmental and cultural issues. Reason and importance of
individual and organisational behaviour is discussed as below:
Organisational behaviour: Ethical behaviour and corporate social responsibilities is
very important for Tesco to solve social and environmental issues and it also has various benefits
like: With the help of business ethics and behave ethically it can attract more potential customers
towards the [products and services of the company that may increase the sales and profit of the
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company (Lindebaum, Geddes and Gabriel, 2017). It can also attract employee or workers who
wants to do work which can decrease recruitment costs and can fill vacancies with talented and
skilled employees. On the other hand unethical behaviours can damage and spoil the reputation
and image of the firm. Business ethics also help in solving environmental issues by reducing the
wastes and by making the eco-friendly products it can satisfy environmental issues.
Individual behaviour: As an individual there is a responsibility and moral belief of them
to behave and treat ethically with people, society and environment. By applying socially
responsible practices like improve the level and quality of lives for people and their families an
individual can take initiative and solve some of the issues related social, environmental and
cultural. As an individual they can also educate the society and people about the importance od
ethics and can strive hard in order to resolve and manage social sustainability. It can take actions
towards environmental issues for example, people can consume green and eco-friendly products
and can give their time in some activities like cleaning of streets etc. by donating services and
goods to those who need and require them and take care of children without parents, it can
improve the living standard of society and also improve social sustainability (Vakilbashi and
et.al., 2017).
CONCLUSION
From the above study it has been concluded that there is an importance of business ethics
in order to treat ethically with people and solve social, cultural and environmental issues. Some
micro and macro factors effected the company's process and functionality in negative manner
and in positive manner. Changes in price and policies of the country in which the company wants
to expand its business also affected the nature of the company.
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REFERENCES
Books and journals
Lindebaum, D., Geddes, D. and Gabriel, Y., 2017. Moral emotions and ethics in organisations:
Introduction to the special issue. Journal of Business Ethics. 141(4). pp.645-656.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Vakilbashi, A. and et.al., 2017. The impact of ethical decision making in the individual and
organizational context. Advanced Science Letters. 23(9). pp.9337-9341.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
Witkowski, J., Cheba, K. and Kiba-Janiak, M., 2017. The macro-and micro-environmental
factors of decisions of production facility location by Japanese companies in Poland.
In Forum Scientiae Oeconomia (Vol. 5, No. 1, pp. 43-56).
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