Business Ethics and Responsible Management

This document discusses the ethical dimension of companies and the application of ethical theories in business. It explores the case of gender pay gap and its impact on stakeholders. The document provides recommendations for promoting ethical practices and highlights the importance of responsible management.

BUSINESS ETHICS AND
RESPONSIBLE
MANAGEMENT

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
a. Ethical dimension of company................................................................................................3
b. Applying two ethical theories to the case study......................................................................5
PART 2............................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business ethics is defined as the use of appropriate policies and strategies of the business
which are assistive in running the business on the basis of moral values. For the business to be
successful the most important thing is the working in ethical and correct manner (Ferrell and
et.al., 2019). This is particularly because of the reason that when the company is not able to work
in ethical manner then the consumers will not like the working and this will affect the sales of the
company to a great extent. In the present report the case of the gender pay gap will be discussed
and analysed and how the company and the stakeholder of the company deal with this ethical
issues. Further the discussion relating to the different theories which the companies can use in
order to have effective ethical working. In the end the reflection will be presented that what
circumstances make the ethical leader and ethical manager.
PART 1
a. Ethical dimension of company
For any company it is very important for the company to make use of effective and
ethical working and this will increase the working efficiency of the company. This is particularly
because of the reason that when the company implements ethical and moral working in the
company then this will attract the consumer towards the working of company. The major reason
underlying this fact is that when the company implement the ethical practices then this will assist
company in not using any of the wrong and harmful practice which might harm the consumer or
the society and the environment. In the case of the gender pay gap the company pays less to the
females as compared to the males of the company. The median pay gap is the defined as the
deviation between the payments given to the middle ranking woman as compared to the middle
ranking man.
This is a very common unethical practice which is very common in many of the
companies whether be it big company or small company and whether be it in developed country
or the developing country. Thus, for making the working effective in the country it is very
important for the companies that they must be providing a non- discriminating working
environment by not using any of the unethical practice (de Bakker, Rasche and Ponte, 2019).
Thus, for this it is very important for the company to have an effective strategy so that the

company can make sure that all the employees are getting the pay what they deserve and there is
not any discrimination among them.
The business play an important role within the society as the business is responsible for
the effective working of the society. Thus, it is the duty of the company that they make better
working and provision for betterment of the company (Rhodes, 2016). This is particularly
essential as if the company will take care of the society and environment then this will attract a
majority of the consumers and they will provide attention to the company and the products of the
company. thus, because of the reason it is essential for the company to take proper care of the
society and this will increase the goodwill of the company. In addition to this the company takes
all the resources from the environment and against this it is the responsibility of the company to
provide in exchange to the environment better protection and better services to the consumers.
Hence, the environment and the society will only like the company if they will be
providing better services and product at affordable range. In addition to this when the company
makes its operation good and effective and if there is not any involvement of the discrimination
then this will attract attention of the consumer otherwise not. Thus, when the company is using
unethical or discriminatory practices then this will not attract the interest of the consumers. Thus,
this will reduce the working efficiency and popularity of the company among the consumers. In
this the stakeholders of company has an effective role. The major reason for this is that when the
company will make use of unethical practice like the gender pay gap then this will decrease the
interest of the consumer in the company and the sales of the company will decrease.
Hence, here the stakeholder can play an effective role in the management and increasing
the working efficiency of the company. This is particularly because of the reason that when the
stakeholders of the company will make the strategies in order to promote the business then they
will include all the factors. Thus, for this it is the responsibility of the company and the
stakeholders to make the effective decision for the betterment of the company. The key
stakeholder who is affected because of the gender pay gap is the owner as the sales of the
company have decreased because of unethical working and this has affected the profits of
company. Thus, this resulted in decrease in profitability of company and as a result of this profit
of owner has decreased (Robertson, Voegtlin and Maak, 2017).
Further in addition to this another major stakeholder who was affected because of the
gender pay gap is the employees. The major reason for their suffering is that as a result of

decrease in the profits the employees have also received less of the salary and the bonus and this
decrease the interest of the employees as well in the company. Thus, because of the high gender
pay gap in the company the employees as a stakeholder are also affected and this is not good for
the company and its working. Further another major stakeholder group which is affected is the
shareholders. This is majorly because of the reason that when the company is using the
discriminating strategies then this will reduce the market price of the shares of the company.
Thus, this will be non profitable situation for the company as they will not be able to earn good
in the market because of low share price of the company (Dziubaniuk and Nyholm, 2020).
Recommendation
In the end it is recommended to the company that they must try to decrease the
discrimination and try to implement effective ethical practices within the business. This is
majorly because of the reason that if the company is not able to manage ethical working then this
will continuously decrease the working and the market value and share of the company. Hence,
for this it is recommended to the company that they must try to pay equal to both the male and
females of the company and this is particularly because of the reason that when the company will
provide equal wages or the wages accoutring to the capability of the employees then this will
attract more of the consumers. This is particularly because of the reason that when the company
will make use of ethical practice then this will attract a majority of the employees and this will
assist company in securing a competitive position in the business and the competitive working
environment.
In addition to this another major recommendation to the company is that the company
must make effective use of the Corporate Social Responsibility towards the company. This is
particularly because of the reason that when the company will fulfil the CSR then the consumer
will like this and will assist company in managing its operations in effective and efficient
manner. In addition to this the company also need to have responsible management as this will
assist the company in managing each and every activity of the company in good and coordinated
manner.
b. Applying two ethical theories to the case study
Utilitarianism ethical theory: This is one of the best known and as one of the most influential
moral therapy. This theory is considered to be the core idea of being morally right and wrong
which mainly depends on the facts. This utilitarian act mainly focuses on the key effects

associated with the individual actions. This is one of the key significant theory which believes
that the purpose of morality is to effectively make life better by increasing the degree of good
things associated with happiness and pleasure in the world and also decrease the amount of bad
things (Lucas, Van Wee and Maat, 2016). This is considered to be one of the key significant
theory which is useful in setting certain set of codes within the organisation in order to reduce
gender pay gap within the company and ensure that all the employees within the company are
given best possible equal treatment. This theory is considered to prominent and directing specific
codes or systems which comprises of actions and commands which are based upon traditions,
customs and orders which has been given by the leaders or any other beings. Utilitarian theory is
considered to be significant in thinking what makes a morality to be justifiable and true in order
to make positive set of contribution towards human being. Utilitarianism is significant because it
is a form of consequentialism because it implies on the idea of results of actions and
consequences. This is a significant theory because it comprises of evaluating key principles and
is useful in ensuring that equality is maintained within the organisation. This theory is considered
to be prominent because it is useful in determining what is right and what is wrong by effectively
focusing upon the outcomes (Fuenmayor and Benzmüller, 2019, August). One of the key
significant advantage associated with the utilitarianism ethical theory is that mainly focuses upon
the happiness of the society and ensures that equal set of opportunity is given to each individuals
within the organisation and ensure there is no gender pay gap within the company. This theory is
considered to be significant in teaching people what is right and what is wrong and is also
significant and seeking highest degree of good.
Deontological ethics theory: Deontological ethics is considered to be one of the key prominent
ethical theory which tends to place high degree of emphasis upon the morality and duty of the
human actions. In their logical and ethics the action is considered to be morally good to cause of
specific set of characteristics related with action itself and not because the product of action is
considered to be good. Deontological ethical theory is considered prominent because it is useful
in holding significant level of acts which are morally obligatory which is regardless of the
consequences for the welfare of human. This is considered to be as a normative ethical theory
where the morality of the action is mainly associated with the action itself and defines on the
basis of what is right and what is wrong under a series of guidance and rules. This theory is
considered to be relevant in ensuring that equal set of opportunity is given to each individual

within the company irrespective of the gender. This theory is also significant because it is
considered to be as a duty of obligation or rule-based ethics (Vinnari, Vinnari and Kupsala,
2017). Deontology ethical theory is considered to be prominent because it is significant in
suggesting actions which are considered to be good or bad as per the clear set of rules. Actions
which tends to obey the rules are considered to be ethical. This theory is considered to be
prominent in creating range of applications and actions which ensures in reducing any sort of
gender pay gap within the company. Deontology is considered to be prominent ethical theory
which is useful in ensuring that both men and women with that organisation get equal set up an
opportunity within the organisation and get paid as per the skill set. There should be no
discrimination on the basis of gender. Equal respect must be given to both men and woman. One
of the key significant advantage associated with the deontology ethical theory is that it is
significant in avoiding subjectivity and uncertainty. It is mainly because it is focused on
following certain set of specified rules.
PART 2
As per the Gibbs reflective model, Ethical Leadership is one of the most significant
leadership style which benefits modern organisation mainly reports around the concept of
considering ethics which focuses on the decision which Best works for the company. Ethical
leader tends to reflect upon the good image of the business and focuses on attracting and
retaining the best talent. It is useful in cultivating honest work environment where employees of
the company report any sort of unethical behaviour without any fear of punishment. Ethical
leader is considered close to communicate openly and freely without any sort of restricted
thoughts and ideas. As per the Gibbs reflective model, Ethical leaders are referred to as being
just and fair, honest, respectful and committed to develop a sense of community and team spirit.
It makes decisions based on certain set of values. One of the key Important trait related with the
ethical leader is to encourage initiative and do not tolerate any sort of ethical violations.
I will focus on the finding an alignment within the company. I will become a part of the
organisation and set certain set of norms which makes up culture of the organisation. I will focus
on setting some good core values such as integrity, mistake, trustworthiness, reputation and
accountability within the business in order to work in an ethical manner. As per the Gibbs
reflective model, I am a champion of ethics and focus on contributing towards the affected
people management within the organisation. I will focus on integrating high standard and certain

moral concept within the business in order to become an effective ethical leader within the
organisation. I will also engage in conflict resolution and listen to the problems which has been
faced by them employees of the company. This way I will help the employees of the company to
connect with the employers and help them find the best possible solution to the problem.
As per the Gibbs reflective model, in order to become significant ethical leader for the company
I will focus on complying with the fast changing world and work in constant pressure to become
a better leader for the company. I will ensure that the code of conduct within the company is
clear among the employees and ensure that all the employees in the company work in an ethical
manner. I will focus on managing people with different backgrounds, skill set, personalities and
models. I will also focus on ensuring team building within the organization and ensure all the
employees work in an ethical manner. As per the Gibbs reflective model, I will focus on creating
a safe working environment in order to take action against any sort of unethical practice within
the organization. This will be useful in the creation of the best possible ethical environment by
creating an environment where each individual respects each other and ensure value driven
decision making within the organization with utmost degree of accuracy and relevance.
As per the Gibbs reflective model I intend to demonstrate that, the key ethical values mainly
comprises of responsibility form honesty, trust, respect, openness, integrity, fairness,
transparency, efficiency and reliability. I will focus on effectively developing ethical compliance
within the company by developing an effective work culture but reducing gender pay gap and
integrating ethical set of theories like utilitarian ethical theory and deontological theory.
Utilitarianism ethical theory is considered to be one of the key significant theory which is useful
in setting certain set of codes within the organisation in order to reduce gender pay gap. This
theory is relevant in teaching people what is right and what is wrong and seeks highest degree of
good. Deontological ethics theory is considered prominent because it is useful in holding
significant level of acts which are morally obligatory. It helps in ensuring that both men and
women with that organisation get equal set up an opportunity within the organisation and get
paid as per the skill set. As per the Gibbs reflective model I agree with the fact that, one of the
key significant way because it is useful in insuring that the company operates in a certain set of
action by complying with standard rules and codes to ensure that all the employees within the
organisation are treated well and are not discriminated on the basis of gender. I will focus on
effectively abiding with the possible rules and regulations which is prominent in ensuring that

relevant set of actions has been taken to reduce gender pay gap within the company and all are
treated equally with respect.
CONCLUSION
With the assistance of the above whole discussion it is clear that the use of ethical and
responsible management is very important for the success of the company. The major reason for
this is that when the company will not be using the ethics strategies and responsible management
then this will not attract the consumer and the working and efficiency of the company will
decrease. With help of the above study it was seen that the most common unethical practice is
the gender pay gap in which the company provide unequal payment on the basis of the gender. in
simple words the company pays less to the females as compared with the males within the
company. Thus, this decrease the working efficiency and the profitability and market image of
the company.
Further it was seen that stakeholders of the company has an effective position in
managing ethical working of the company to a great extent. The major reason for this is that
stakeholder work for the better working and development of the business and if they will take the
decision then this will attract a majority of the consumer and working efficiency will increase.
Further in the report it was seen that use of ethical theories and practices is very important for
good and effective working of the company. This highlighted the use of utilitarianism and other
ethical theory for better working of the company.

REFERENCES
Books and Journals
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attitudes: An exploratory study. Journal of Business Research. 95. pp.491-501.
Fuenmayor, D. and Benzmüller, C., 2019, August. Harnessing higher-order (meta-) logic to
represent and reason with complex ethical theories. In Pacific Rim International
Conference on Artificial Intelligence (pp. 418-432). Springer, Cham.
Lucas, K., Van Wee, B. and Maat, K., 2016. A method to evaluate equitable accessibility:
combining ethical theories and accessibility-based approaches. Transportation, 43(3),
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Rhodes, C., 2016. Democratic business ethics: Volkswagen’s emissions scandal and the
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Robertson, D.C., Voegtlin, C. and Maak, T., 2017. Business ethics: The promise of neuroscience.
Journal of Business Ethics. 144(4). pp.679-697.
Vinnari, M., Vinnari, E. and Kupsala, S., 2017. Sustainability matrix: Interest groups and ethical
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