Business Ethics and Responsible Management : ASOS company

Business Ethics and
Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Ethical dimensions of the issues from case......................................................................................1
PART 2 ...........................................................................................................................................6
Ethical manager manages and other to a high ethical standard...................................................6
Personal Ethics ...........................................................................................................................7
Unethical Organisation and Practices about organisation value and methods of compliance . . 7
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Ethics are the standard which guide the individual that what is right and what is wrong and also
what ought to follow in the business in the fair, transparent, and which give benefit to the
society. Ethics consist of the fundamental issue of practice in decision making and also it
concerns of basic human value and standard by which it is judge. And also business must behave
in the ethical way. In these report it will focus on the ASOS which is fashion retail company and
it focuses on the ethical dimension of the issues from the case and also cover ethical theories
such as Contemporary ethical theory and on the other hand traditional ethical theory and outline
the key stakeholder which are affected by the company. Further it will highlight how ethical
manager manages and other to a high standard and also it will cover all the unethical
organisation and practices about the organisation values.
Ethical dimensions of the issues from case
The main and important rational for business that fight against the child labour with the scope of
CSR from that ASOS company which has the child labour supplying chain if facing so many
issues.
For the ethics it can explain and divide between the descriptive and normative. For the
contemporary business settings it is important to have the ethical theory. The normative theory is
quite necessary to the regard of the ethics because when it comes to the debating the issues of
ethics which comes in business and also serves a key to the handling the cases of decision
making. It is very strong factors of ethics when it comes for business and it can also determine
the factors where customers can choose between ASOS and any of other brand. There are some
issues which are as follows:-
Legal risk:- the biggest failure from the legislation of the national which is strictly prohibits for
the child labour. It actually means that business has criminal sanctions or the penalties of
financial cost. From the down and chain of supply to lead the legal responsibilities which would
result in the directly violation of the human rights.
Financial risk:- From the side of the legal risk, ASOS is confronted to the financial risk. The
ethical responsibility of the ASOS is transferred explicitly to its stakeholders which mainly to its
stakeholders. From that it shows that organisation gain bad image in the market for the existence
of supplying the chain of child labour and most probably it loses a significance part of the
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investors and it would impede potential investment. It also takes huge lose of market share and
the competitiveness for the given organisation (Xu , Loi and Ngo , 2016 :494).
Operational risk:- ASOS exploiting of the child labour which also exposed to the risk of the
operations. From identifying the child labour it could result in the consumers boycott, suppliers
contract etc. organisation also might be huge expenses to seek the new suppliers and good
monitoring the supply chain etc.
Reputational risk:- From the number of association, NGOs, trade unions and also it creates
eradicate the child labour should not save the efforts which is known to the large public which
include the all the stakeholders for irresponsible practices of a given company. For instance, non
profit companies called as responsible sourcing networks and also archived for making the
campaign against the large cotton retailers which bought the cotton without knowing there child
labour for the chain of supply.
It includes research into examples of ethical good choices and bad choices have negative
impact.
Salesforce.com:- It has been great philanthropy and good practices. From the donation of the
company it gives millions of dollar for the educations and technology and it also gives discount
for its services for the non profit organisations. Salesforce.com also motivate its employees for
getting into actions by providing them 6 days offer per year for the charitable works it chooses.
Starbucks:- For the business practices and crushing the competition of the market the main
thing which had been done by the company is it quickly fix the environmental problems and
always conscious about for offering the discount for those people who bring reusable cups for
their own and it provides free coffee on the ground to the customers who wants to compost.
Ultimate software:- another organisation which enjoys the status for its treatment to its own
employees. It offers the free medical benefits and health care to its employees which also
includes the complete coverage for all their workers and employees (Salloch and et.al, 2015).
Stakeholder mapping
ASOS has different types of stakeholders for both the external and internal organisation and it
only highlights the main stakeholder which are involved and those stakeholders which affect the
using of underage immigrant individual and illegal things of ASOS. It also includes so many
levels of the responsibilities which argue the organisation for sustaining the primary
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stakeholders. The primary stakeholders of ASOS is their governments, shareholders, employees
media, investors and also the suppliers. The management of the stakeholders are rightly done
which help for the success of the organisation.
Salience model of stakeholders
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For developing something and better understanding the framework of theoretical which provide a
salience model of stakeholder is the degree where mangers of the ASOS provide the facility of
competing the claims of stakeholders. Ideas behind salience model gives the salient priority to
the stakeholders and needs to actively communication with, whereas the lesser salient
stakeholders has the less priority and it not so important for communicated continuously, the
case of ASOS it has seen the warehouse the less salient and never keep the grater communication
which participated for the neglect of the employees.
Dangerous stakeholders – news/press:- it's for the concern of the media for ASOS to get the
needs and attention is given to the salient stakeholders from which it can hold the urgency and
legitimacy. Recently the new has released that the footage of the refugee Syrian Children's
manufacturing clothes for shoppers of the British which opens the eyes of the customers that
what going behind the ASOS the doors. It is a massive threat for the when the data is available
the online and easy to target the audience of ASOS. Media don't even hold the shares and or the
directly power which can campaign and only bring the attention those governments and
consumers.
Definitive stakeholders – governments:- cracking down the missus of the workers which
especially for working for supply the countries which holds the higher rate morale for their
countries of home. Affected countries governments has legimate and powerful stakeholders.
ASOS direct the attention towards the area and also it could cut the risk for their supply source.
Dependent stakeholders- society:- rely of the stakeholders for the power of such as to publish
the issues and problems in media when it cannot, there are some workers which is not realised
their rights of extent which are unable to address due to illegal works.
Recommendation with some conclusion
It's important to see that some inconsistent among the ethical practices of ASOS.
Organisation had to take more care and consideration as to where the goods are coming from and
also all the goods are manufacturing and producing ethically in the company. It is necessary and
important for recognising the problems which is stemming and preventing the form of happening
in the future. ASOS state that it tried best for act socially responsible but also failed to fill the
gape for the claims. For helping and practising to gain better with the sustainability and ethical
practices as the recommendation which are as follows (Vitak , Shilton and Ashktorab,
2016:942).
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Primary area of the issues of ethical which is arising ASOS in their supply chain and
warehouse which is particularly for their industries. It should improve the monitoring of the
factory which monitoring to check the incidents which is raising in the factory and the supply
chain is tied for the corporate social responsibility which concern about health, safety and
environment. It also need to put efforts for making the channels ethical and sustainable. ASOS
also invest more cost in the organisation and which perhaps the increasing of the sales price.
Higher prices of the company translate to raise the profitability and revenue which has been
invested for making sure for the warehouse and all the processes are acceptable (Obicci, 2015:9).
For developing more code to robust the ethics. It is a current code for the company which
uses the general and defuse the negative impact for monitoring and compliances. For more
robust code of ethics it guides into right directions for so many stakeholders in the organisation.
It will foster the accountability and transparency for the structure of the management of the
company. It should clear and focus for defining the difference between ethical and legal. For
embedding the differences for the policies of ethics and the actions which is taken for judging on
ethics rather than on legality. It also ensures that the company doesn't use legality for what is
right. Not everything which is right is not in the form of ethical. It need to make the policies of
stricter with the staff management which are change in the warehouse and it doesn't encourage
the exploitation but also neglectful for let it happen. Training which is provided for enforcing to
treat well to the staff fairly, it also cracks down on the rights of the workers abide ethically which
will able to eliminate the awful press voice by media (Tool , 2017).
Contemporary ethical theory
Contemporary ethical theories developed in 20th century and it reflects the changes for how the
people think and maintain the society. It relates to the achievement for the intellectual and
cultural spheres. This types of theories are broadly classified into postmodern ethics, ethical
relativism and analytical ethics. Whereas the ethical relativism theory claim for the wrong
actions and right depending on the determination of the society for what is right or wrong for the
child labour (Salloch and et.al, 2015:20).
Traditional theory
Traditional theory is the very oldest theory, it is concerned about what kind of person one
is becoming through one's habitual activity. It is important to adopt right kind of ethics, as in
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ASOS case the company was using child for the online delivery and that is considered to the
unethical practices as in the context of the traditional theory as this theory is divided into two
that is consequentialism and Non – consequentialism. In consequentialism it includes egoism and
hedonism it only bases on the judgement that what is right and what is wrong that is if the result
produces happiness and good things and positive vibes among the larger proportion of the people
affected by the action but ASOS with its action of child labour giving negative vibes and not
producing happiness as child labour consider as the unethical behaviour as per the eye of law
child labour is crime so this theory explains us the result and the action. But these theory fails as
ASOS for its fast delivery the company uses child as a delivery boy and on the other has
customers were also happy about the fast delivery as the delivery was at time but by the action
the result also gives the large population happiness and satisfaction but the theory was not ethical
in the eye of the law as child labour was unethical practices that business has to stop doing it. On
the other hand Non- consequentialist theory base on the moral judgement but not on the
outcomes of the result and with above case study the consumer may be happy as they were
receiving wide variety of clothing as ASOS are offering next day delivery as this practice is not
morally right (Michael, 2016:8).
PART 2
Ethical manager manages and other to a high ethical standard.
Develop Ethical Standards – The first step to run the business in ethical way is that in my firm
I will formalize the ethical standard that are to be follow by the individual and states the standard
which are not to be follow and also I will make it clear about the behaviour are and aren't
acceptable. This will help the business to run in the proper way as it will eliminate the confusion
between the employees and I will follow the same thing so employees will inspire to follow the
certain code practices (Kagan, 2018).
Proper Behaviour – The second step is that in the organisation as an ethical manager I will
behave properly with the subordinates so that I can set the example to the rest of the staff and
motivates them to behave in a good way with the colleagues. So the business run in smooth way.
Praise Positive Behaviour – The third ethical standard will be that I will praise the positive
behaviour of the employees so that it serve positive environment in the business. And employees
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feel motivated to follow certain code practices and by appreciating individual it can help long
term benefit for the business (Hands , 2015).
Community Involvement – It is very important for the business to conduct those practices
which involve the society as a whole and also benefit the society. So being ethical manager I will
do many things that are raising money for local causes, and also indulge my business in doing
many social responsibility such as organising charity, organising blood camp etc. and also
motivating employees to participate in various social causes.
Honesty – The one of the basic ethical standard is honesty, the ethical manager must be honest
and transparent and must be honest with the employees and the organisation and also it motivates
the employees to be honest with work and with the organisation.
Personal Ethics
Personal ethics are the refers to ethics with the individual identifies with the respect to the
given situation and also must follow in everyday life. As personnel ethics are different from
person to person and situation to situation. I also follow ethics in personal life also all my
decision are entirely based on ethics. As few problems arises when I try to make ethical decision
in the business and in my personal life. For some leader making ethical decision tends to goals
but I believe that leaders must take decision which is betterment of the whole organisation
(Demirtas and Akdogan , 2015:60). Sometime unethical decision making is way to easy for me
but this thing test the true character of the leader as making easier decision is not the best
decision for the organisation. Therefore, ethics play major role in decision making. My personal
ethics involve values, loyalty, honesty, caring, fairness and respect other and I follow this basic
principle in my personal and professional life too. As I motivates my friends, family and my
employees to work in the ethical manner. Especially as a leader I get straight to the point and
communicate with the employees in very polite manner as communication is the key in relation
to personal ethics. Sometimes my emotional overpowered me but at last I do the right things
which are good of others. Personal ethics are very essential in everyday life as it gives us the
right direction to do certain things and also it helps the individual to become better person
(Blease, Colloca and Kaptchuk, 2016:407).
Unethical Organisation and Practices about organisation value and methods of compliance .
There are many unethical organisation and practices about organisation value -
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The first unethical practices are not paying employees for all the hour worked as it is very
important to pay the employees for what they do as salary is the basis motivation of employees.
The second unethical practices is that involving in unfair practices that is not allowed by the law
and engaging in price fixing so that to gain competitive advantage and also to force small
competitor out of business. The third unethical practice is that business to refuse to honour a
warranty claim on a defective good this will lose interest of the customers and also affect in the
sales. The forth unethical practice is that to use false advertisement tactics and gain customers
and convince them to buy a false product. The fifth unethical behaviour is dishonesty if in the
business all the working members are dishonest with each other than it will to hinders the
working of the organisation.
Method of Compliance
There are many methods to prevent unethical organisation that are first that all the
manager and employees of the organisation review the company policies and understand the
practices in the right way and also the policies are being discuss in freely manner. The second
Compliance strategies is rule base and process driven organisation in these the organisation must
set the standard rules and regulation that every member of the business must follow in the right
manner. The third Compliance Strategy is to value based organisation that operate on a set of
core principles in which the organisation must run with some sort of value and carry basic
principles and behave in the right manner. The forth method is that in the organisation there must
be friendly relationship with the ethical manager and the employees so that there will be positive
vibes in the organisation and also employees fell free and show positive attitude towards the
code practices and must show interest in following the practices and ethical standard in the
company (Baumeister and Alghamdi, 2015:69)
CONCLUSION
This report concluded the ethical behaviour in which the individual must follow the
certain ethical practices in the business. Also, it is concluded the various ethical theories and also
many reason by which stakeholder are affected by the practices and also outline the basic ethical
standard that the manager has to follow and must motivate other to follow certain code practices.
Furthermore, it has concluded the unethical behaviour and organisation and also certain
compliance strategies that has been used to prevent unethical behaviour. And also it concluded
that the individual must follow personal ethics in everyday life.
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REFERENCES
Books and journal
Baumeister, R. F. and Alghamdi, N. G., 2015. Role of self-control failure in immoral and
unethical actions. Current Opinion in Psychology. 6. pp.66-69.
Blease, C., Colloca, L. and Kaptchuk, T.J., 2016. Are open‐label placebos ethical? Informed
consent and ethical equivocations. Bioethics.30(6).pp.407-414.
Demirtas, O. and Akdogan, A. A., 2015. The effect of ethical leadership behavior on ethical
climate, turnover intention, and affective commitment. Journal of Business
Ethics.130(1).pp.59-67.
Hands, D. W., 2015. Normative rational choice theory: past, present, and future.
Kagan, S., 2018. Normative ethics. Routledge.
Michael, K., 2016. Can good standards propel unethical technologies?. IEEE Technology and
Society Magazine.35(3).pp.6-9.
Obicci, P.A., 2015. Effects of ethical leadership on employee performance in Uganda. Net
journal of business management.3(1).pp.1-12.
Salloch, S and et.al, 2015. The normative background of empirical-ethical research: first steps
towards a transparent and reasoned approach in the selection of an ethical theory. BMC
medical ethics.16(1).p.20.
Tool, M., 2017. The discretionary economy: A normative theory of political economy. Routledge.
Vitak, J., Shilton, K. and Ashktorab, Z., 2016, February. Beyond the Belmont principles: Ethical
challenges, practices, and beliefs in the online data research community. In Proceedings of
the 19th ACM Conference on Computer-Supported Cooperative Work & Social
Computing (pp. 941-953). ACM.
Xu, A.J., Loi, R. and Ngo, H. Y., 2016. Ethical leadership behavior and employee justice
perceptions: The mediating role of trust in organization. Journal of Business
Ethics.134(3).pp.493-504.
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