Business Ethics and Business Management

Business Ethics and Business
Management

Table of Contents
INTRODUCTION.................................................................................................................................3
PART 1-A.............................................................................................................................................3
Ethical issue.......................................................................................................................................3
Role of business in society................................................................................................................4
Stakeholder involvement...................................................................................................................4
Example of good and bad ethics........................................................................................................5
Recommendations.............................................................................................................................6
PART 1-B..............................................................................................................................................6
Theories.............................................................................................................................................6
Apply the theories..............................................................................................................................7
Critique..............................................................................................................................................8
Recommendations.............................................................................................................................8
PART 2..................................................................................................................................................9
Reflective essay.................................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Business ethics is defined as a practice of business in which ethical practices and
approaches are used to conduct the business operations. This report is based on the case study
of Marks and Spencer Company in respect to business ethics. Company was established in
the year 1884 by the founder Michael Marks and Thomas Spencer. Company is associated
with retail sector and deals in clothing line, home product and food products. This report will
project about the ethical issue denoted as pay gap will discuss. Role of business in society
will also understand in this report. Stakeholders will also discuss to deal with the issue.
Different examples will also project related to good and bad ethics. Necessary
recommendations will also part of this report. Theories will also discuss related to gender pay
gap in companies. What are the ways can be used to implement such theories in organisation
level. Reflection will also be a part of this report over leadership.
PART 1-A
Ethical issue
Ethical issues are claimed as such issues that restrict the company to follow the
regular operations in normal manner. This is more like issues related to ethical practice. In
Marks and Spencer Company different ethical issues company is involved with in order to
conduct the business operations. The main issue company has been associated with as a part
of ethical issue can be projected in the following manner.
Gender pay gap
Gender pay gap is defined as discrimination on the ground of gender in regards to
paying the individual employees in company. This is among the most significant ethical,
issue part of the organisation. In Marks and Spencer Company recently the pay gap has been
noticed as the female employees in company have registered complaints against the pay gap
on the basis of the gender (Freeman and McKain, 2019). This is covered under discrimination
at work place where the female employees of company are discriminated on the ground of
gender in term to pay the employees. Employees designated at same positional role get
different pays just on the ground of gender. Female employees not just face discrimination at
the time of joining the organisation but also further at the time of internal recruitments and
employees in company get promoted at higher designated positions in company. At that time

as well female employees face discrimination as they do not get such increments in salary,
incentives and other incremental benefits. All this is a serious issue in company as
discrimination in salary and employment benefits on ground of genders. Discrimination at
work place always creates a negative and unproductive work culture at organisation.
Role of business in society
Business organisations play a huge role in order to deal with all different ethical
issues at work place. In order to deal with the ethical issue denoted as gender pay gap
business organisations play a crucial role. This all issue is directly related to companies and
other corporate organisations weather the gender gap can be seen and monitored. Earlier in
all the organisation the gender pay gap has registered. Different laws have also applicable
over companies that support dealing against the gender age gap the laws like anti
discrimination have played a significant role in dealing against the issue. The legislation has
changed allot the entire situation of gender pay gap. Now even in companies HRM manage
the issues of pay gap. In companies in case any employee is facing any kind of discrimination
it can register the issue in employee grievance section to protest the issue and get the best
treatment in organisation (Bhattacharya and Roy, 2018). In Marks and Spencer Company
gender pay gap is not register at direct level but at indirect level it still a part of the
organisation. Even the management of Marks and Spencer Company have taken steps like
creating employee grievance centre, anti discrimination centre to deal with the issue
efficiently. After all these efforts still the gender pay gap can be seen in organisation.
Companies can play a major role in dealing against the issue along with the government to
make legislation against the discrimination.
Stakeholder involvement
Stakeholder’s part of the organisation can play a crucial role in dealing against the
issue call as gender pay gap. The stakeholders can be a part against dealing with the issue can
be projected in following manner.
Management of company: Management of Marks and Spencer Company can play a major
role in order to deal with the issue of gender pay gap. Company management can make strict
rules in the company that can involve strong punishments to deal with gender pay gap
(Martinez-Martin and Kreitmair, 2018). Management of company are among the primary
stakeholders dealing with the issue. Management have all the responsibly to improve the
level of employee satisfaction in organisation. Making a strong rule against the

discrimination on any basis will support employees specially to female employees for dealing
with the issue.
Employees: Employees of Marks and Spencer Company will also be a crucial stakeholder
for dealing with the issue. Employee can oppose any kind of discrimination at work place.
This will help the company to deal with the issue. Especially the female employee’s part of
Marks and Spencer Company can stand against the discrimination at work place to fight with
the issue.
Government: Government is a strong stakeholder that can play a role in dealing with the
issue. Government can support women by making strong law against the gender
discrimination at work place (Moon and Nolan, 2019). This will support women employees
to get unfair treatment at work place. Already in UK anti discrimination act is established to
fight against the discrimination at work place. Government can make the rules and
regulations stronger by modifying the act.
Share holders: Shareholders of Marks and Spencer Company can also play a crucial role in
dealing with the issue of gender pay gap. Share holders of company are claimed as the owner
of company and they can play a strong role in dealing with the issue (Berlin, 2018). They
have the right to ask questions from management of Marks and Spencer Company about the
necessary steps they have taken to fight against the gender pay gap.
HRM Department: HRM department in company always play a crucial role in dealing with
any issue related to employees in company. This issue also addresses by HRM department
just like other issues. HRM can use the experience to deal with the issue at organisation.
The above mentioned stakeholders can play a crucial role in order to deal with the
issue cal gender pay gap.
Example of good and bad ethics
Good ethics
In Marks and Spencer Company management has opposed HRM department to
personally view all the issues employee in company face. This can be projected as the
example of good ethical policy in company. Good ethics allow company to establish a proper
work culture in company. This kind of gestures in organisation also channelize into employee
satisfaction in organisation and management of Marks and Spencer Company.

Bad ethics
In Marks and Spencer Company employees especially the female employees are
facing the issue call as gender pay gap. This is an example of bad ethics. Female employees
in company are facing the problem such as payt gap (Kania, 2018). Even after holding the
same designated positional role in company female employees are getting lower pay and
employment benefits as compare to male employees in company. This is an example of bad
ethics in company. This kind of practices diminishes the work culture of company.
Recommendations
It can be recommended that Marks and Spencer Company can take steps against the
gender pay gap in company. Company can establish a anti discrimination centre in
organisation where all employees can register the complaint against any kind of
discrimination face in organisation. This will allow employees of Marks and Spencer
Company to report against the pay gap discrimination at the organisation. This will allow
female employees of company to directly report the complaint against the pay gap at
organisation level.
PART 1-B
Theories
There are a lot of theories which can be used by Marks & Spencer from time to time
so that they can control this factor. There is a standards and reputation which the organization
has created for them in the market which will have to be well maintained. The customers trust
and demand for these products because of the values and equality they have for the people in
the organization so that there is a better functioning.
 Human capital theory
The discrimination in this theory is that the employees get treated according to their age,
experience, education, hours, marital status, etc. This is a good but an unfair treatment which
is being done for the employees. Though the employees are restricted to speak about their
salaries with one another otherwise there are a lot of factors which can affect the productivity
and the quality of the products and services of the company can get affected (Muniapan and
Dass, 2016). Marks & Spencer has a strong reputation and has been in the market from so

long which is why the employees of the company also have an expectation which has to be
matched.
 Dual labour market theory
Marks & Spencer has both genders working in the organization but there is an unfair
discrimination which was taking place in the organization regarding this factor. The
employees were being given work according to their gender and they were not being paid
then according to that. There are a lot of physical working and night long works which are
not given to women because of their safety and because they have to reach home on time but
there are independent women who want to do that extra mile in the organization because they
want to be treated the same. Promotions will be given to men more because they take that
extra mile but women are not even given the chance to do so but it is very essential for the
company to give that opportunity to whoever needs it. There are a lot of employees who want
to work harder so that they can achieve their objectives and goals which are very essential.
Apply the theories
The employees and customers are the backbones of an organization which have to get
what they need. It is very essential for Marks & Spencer to give the opportunity to everyone
equally so that there is a better functioning and the organization will be able to have better
experienced and skills employees working with them (Pearson, 2017). There are a lot of
employees who have left the organization because of discrimination which the company is
providing to the genders. There are a lot of policies which the government has also made for
organizations and market so that there is an equality which can be balanced in the world
because everyone has their own rights. M&S is always working for the best of the customers
and the employees which are working in the company so that they can get a strong market
base and the productivity has to increase since the demands and needs of the customers are
also increasing. There are going to be more ideas and creativity which is going to come up in
the company when both the genders work together in one company because they can
understand the customers better and then matching up to the expectations of the customers is
going to be very helpful for a long run. Employees must be given their personal and
professional life a balance so that they are satisfied and there has to be no discrimination
according to gender or age but skill and experience they have to make the customers have a

better experience and make the other employees be able to grow in the market (Schwartz,
2017).
Critique
There are a lot of advantages and disadvantages which can come up in an organization
because of this factor and they have to be addressed by the organization so that there is a
better functioning. The productivity and operations of the company do not have to be
scarified by the organization so that there is a better functioning.
Advantages
There are going to be loyal workforce which would be present in the organization so
that there is a better functioning. It is very important for the company to give equal
opportunities to all the employees in the market so that they can give their best and this way
the company will be able to maintain their standards and quality of the products and services
(Godwyn, 2017). The brand image is very essential in today’s world and this factor can get in
a lot of customers and make them loyal to the organization as well.
Disadvantages
There are a lot of disadvantages because of this discrimination which takes place
because of gender is that the company can lose on their loyal and skilled employees in the
organization. Employees have an expectation from the company as well which the
organization must fulfil otherwise there are a lot of competitors who want experienced
employees in their organization so that they can get a competitive advantage. Employees
must give their best and for that the company will have to provide them with healthy
environment and any kind of discrimination in the organization is going to lead the company
have a negative environment in which the employees will not be able to give their best.
Recommendations
It is very important currently to make sure that they are following all the government
policies for gender discrimination and there are equal opportunities and advantages given to
everyone who are being hired in the company. There are high hopes and expectations of the
employees working in these organizations as well so that they can be able to achieve their
goals and objectives of life (Reinecke, Arnold and Palazzo, 2016). There has to be no
segmentation in the organization when there are employees being hired but the best skilled,

experienced and knowledgeable employees must be taken in the company so that the best can
be given to the customers.
PART 2
Reflective essay
There are ethical leadership management within an organisation has highly required
for growing itself in very fast manner. Currently those businesses and ventures are gaining
huge profit within the market place which has successful followed the concept of ethical
leadership management within their daily operations. There are upper management of M&S
has required to order its various leaders for strictly implementing various ethical
considerations within the teamwork. It is very necessary to this retail company for gaining an
effective workforce. Basically, when a leader of M&S will proper follow business operations
within its daily operations, then it can be positively affected to its team members and
employees (Pirson, 2016). Reason is, most employees always like to work under those
leaders who understands the actual value of business ethics in the workplace. An ethical
leader never judges its employees and team members on the basis of their ethnicity, religion,
caste, colour, because an ethical leader always judges its employees on the basis of
employees’ workability, efficiency and performance etc. Generally, this is the actual way to
consider different employees and team members within their workplace.
In this modern world, most employees fully understand different attempts which has
taken by upper management, leaders and managers by a company. In this situation, if leader
within a company take an unethical attempt, then this also employees understand very well.
So that, upper management at M&S should avoid to give power of leader to those people
within workplace which perfectly aware about the business ethics. There is proper knowledge
of business ethics should always have within leaders of M&S. This retail company is always
aiming for achieving long-term benefits, in which its leaders and manager not follow business
ethics in their daily operations, then this company can’t achieve its decided targets within the
UK’s retail industry (Lepeley, Von Kimakowitz and Bardy, 2016). Many times, leaders
provide growth opportunities to only those people who close to him or her, in which this
attempt of leaders is completely unethical. By conducting this type of attempts, no leader can
easily achieve its various teamwork objectives within the company’s business environment.

Currently M&S should have workforce of only many skilled and talented employees,
because these types of employees are able to put their great efforts in the workplace in
caparison of other employees. In this situation, this retail company can’t achieve this type of
workforces without ethical leaders. Basically, an ethical leader mostly takes different
decisions towards developing various skills and abilities of its employees and team members
(Suriyankietkaew and Kantamara, 2019). That leader goes to upper management for taking
permission to provide some specific training and development sessions. By participating in
these sessions, an employee can easily develop its various skills and abilities, and at the end
these employees will be able grow themselves within the workplace. After developing
various skills and abilities employees can be enabled for putting great efforts within the
workplace as well. This is the main reason that, all leaders within the M&S should always
consider different business ethics in their daily operations.
CONCLUSION
It can be concluded that top-level management of Marks and Spencer (M&S) always
need to follow all ethical considerations within its workplace. It is very necessary to this
company for gaining an effective workforce, because in this dynamic world most people
always give priority to only that workplace where present management has successfully
implemented the business ethics in daily operations. On the other side, top-level management
should give order to its various employees, managers and leaders also for always considering
different business ethics within respective business operations (Hooper, 2016). Currently
there are various theories available to upper management of this company, in which these
theories can support to management for systematically maintaining ethics within the
workplace. There are leaders of M&S highly need to be ethical in a teamwork, because it is
necessary to them for improving performance and productivity of all employees and team
members.

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