Responsible Leadership and Stakeholder Management

The assignment provided is related to responsible leadership and stakeholder management in a business context. It requires the analysis of various references from books, journals, and online resources to understand the principles of responsible management education and its application in real-world scenarios. The student needs to critically examine the role of United Nations Principles for Responsible Management Education as a driver for change in responsible management education in UK business schools.

Business Ethics and Responsible
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1 ............................................................................................................................................4
PART A...........................................................................................................................................................................4
PART B...........................................................................................................................................................................6
PART 2 ............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business ethics and responsibility management is necessary and significant in the entities
to conduct the work/task in the ethical mode. Such responsible management is relevant to make
an every individual of being conduct the world in most appropriate manner (Matten, 2016). This
report will be carried on ASOS which is the British online fashion and cosmetic retailer primarily
targeting the young adults. This report is all about unethical working into the ASOS business
function where companies was using the child labour and Syrian refugees in their production
process. It was the shameful act by such big brand. Also, there were exploiting them by giving
the wages lower than standard wages system of Turkey. As the Middle manager, this report will
be forwarded to senior management team of the ASOS. Also, this case study will be
comprehensively explained and analysed. This report will include the various ethical dimensions
of managing the supply chain along with discussing the ethical duties, social responsibilities etc.
This will put light on two common ethical theories. This report will also discuss about what
qualities of the ethical leader as the ethical manager along with how they manage their business
and various ethical standards.
PART 1
PART A
This case study is all about the improper working regulation which has already conducted
in the Turkish factory of ASOS. In this case, use of child labor and Syrian refugees has been
forced to work at the less wage even lower than the standard labor wage rate of Turkey working
fundamental. The investigator found that child labor was engaged in the Turkish factory of
ASOS. The case has been presented for understanding the ethical dimension required into any
kind of corporate working and its regulation to maintain ethical decorum in the society with a
message to not exploit anyone. This case will be examined to get valid conclusion & guidance
for conducting ethical norms in the ASOS. But, company has denied on this matter. So, there will
be discussion take place further on this matter as below:
The supply chain is consists of the series of links that enables the movement of products
from the producers to customers. This movement involves series of costs for different entities
involved. This management of supply chain is known as supply chain management. But this
supply chain management is the unique process which involves good, place, time, quantity and

other costs (Crane, 2017). An ethical conduction is required in such flow of supply chain to make
it effective and suitable to conduct the business purpose ethically. There are various dimension of
managing the supply chain namely customer relationship management, material, production cost,
inventory management along with risk management. There are number of factors which will tell
about the ethnicity of managing the supply chain management for the ASOS. As, this is the
leading British fashion & cosmetic retailer so it is required to have ethics and corporate social
responsibilities towards the functioning and performance of an organisation. This issue is
required to conduct as an ethical questions because any activity in ASOS is required to be
conducted with pure duties and responsibilities. Ethics of duty is required here to function the
supply chain management in a proper way. Ethics of duty is important to perform roles and
duties in context with an individual or entire organisation. Also, it will be responsible to perform
the functioning of the business operation in an ethical manner.
I want to say that, this case study is explored as an ethical question to avoid such type of
exploitation of manpower into the society and business process. There are negative impacts of
this ethical question on the business operational and entire functioning such as it would lead to
unethical behavior in an organization by an employee and it may also exploit the business
functioning and operational aspects. Such exploitation of supply chain in the Turkish factories
may effect the various code of conduct in the ASOS. This issue has been explored as as ethical
question because it would lead to ineffective functioning for the entities in the future with loss of
the manpower and profitability. The impact of this ethical dilemma has put negative impact on
business functioning of ASOS by indulging into the legal court cases. Such legal cases has
effected their brand image at the great level. As everyone knows that, child labor has critical
banned in the entire world, hence using child in the business function has effected the business
regulation such as demand and supply, customer loyalty, price changing etc. at the moderate
level. Hence, it is legal and required to control all such impact to generate and sustain the
business. Engaging child in this case has put impact on their health, education and livelihood by
exploiting their dreams and idea for their future. This has been included as ethical question to
survive and protect the social responsibilities of the business towards the society and culture.
What is Asos Corporate Social responsibility
According to my point of view, ASOS corporate social responsibility is the Fashion with
integrity programme. The CSR of the ASOS is derived by the Fashion with integrity which

shows the transparent, responsible and inclusive approach to business (Leigh, 2012). This is the
way employee's and staff of ASOS works with others to transform the impact of fashion on the
people, animals along with an environment (Blaim, 2012). Along with this, ASOS needs to set
and associate their mission and vision statement with the role for the betterment of the society
and its welfare. ASOS needs to be society and customer centric to have the sustainability in the
business. The mission statement of ASOS as like “ to gain the customer attraction along with
incredible choice and delivering impeccable service. For effective CSR, ASOS has undertaken
the fashion with Integrity programme to enhance the social & corporate awareness. Mission
statement of our “Being customer's favorite” makes us different from others along with
contributing to society along with realizing any social causes to demonstrate.
I realized that Analyzing stakeholders is necessary and crucial for the success of the
business or projects. In context with ASOS, entity such as investors, customers, suppliers, vendor
are the key stakeholders of the company. Such identification of the stakeholders can be done with
fried-man stakeholder theory. This theory is based on organizational management and business
ethics that addresses the morals and values in managing an organisation. According to Friedman
theory, investor, suppliers, customers, vendors are the key stakeholder of the ASOS and also they
have wide and severe affect on the business conduction and performance. They can be affected
by organisation action, objectives and policies. Such effects are required to overcome or change
to gain the shareholder trust and belief into the business. It can be better explained with the help
of interest/influence matrix which is useful to understand the needs for the communication along
with potential resistance to change. “Interest” indicates the concern about the change, whereas
“influence” indicates an ability to resist and stimulates the concern (Ismaeel, 2016). With the
help of this matrix, effects such as loss of the stakeholders trust and belief, investment in the
business, long term relationship etc. can be overcome and change to the optimized level. This
matrix comprises of two components namely importance/interest and influence.

Importance says that priority is being given to the need and interests of each and every
stakeholders. Influence says about the power which stakeholders has to facilitate the achieving
an activities or objective. It involves the various course of action to enhance and improve the
decision making of the stakeholders. In the layman language, variables affecting the stakeholder
is related to the importance and influence of this matrix (Cunliffe, 2015). There are different
ethical choices or decision which has impacted upon other business entities. This ethical
dilemma has destroyed the trust and interest of ASOS stakeholders by lower down their image in
the market and also, such dilemma has break down corporate relationships of the stakeholders.
For Example: TOMS has used the ethical practices into their marketing process. It says
that TOMS has put its social and environmental philanthropy on the full display in virtually
every aspects of its branding. This display advertising has been benefited this company to gain
their customer positive experience along with their trust and belief over the product. On the other
hand, Dr. Bonner has used the social authenticity into their business regulation which has put
negative impact onto their products or services. Dr Bonner sold the vitamin and strong capsules
to make bones and muscles strong and strong. But, targeting the entire society into the marketing
has reflected their product and brand image.
Illustration 1: Stakeholder matrix

ASOS needs to think over the society by reducing the child labor exploitation for giving
and passing the positive message. They can also bring equality and positivism by their
conduction of activities. It is necessary to have ethical behavior such as proper attitude, fair with
the workers along with equality among everyone to enhance image & reputation of the brand and
motivate the sales force etc. In my opinion, we can stop unauthorized outsourcing by making
effective strategies and plan to arranging valuable resources and eligible manpower from
different location as per what laws and regulation predicts. Also, I want to say that, for avoiding
the child labor practices, it is necessary to have regular inspection check in ASOS work places or
operating units to prevent unethical child practices in the future. Adidas is an ideal example for
such ethical practices.
Adidas is the best suitable ethical company that has made themselves to be most
sustainable fashion brand, because ethical code of conduct and functioning in an organisation.
They have make themselves stay away from such ethical dilemma by regulating their business
environment along with implementing the code of conduct and ethical norms in the Adidas
(Scherer, 2012). They have made their positive image in the society by conducting the welfare
and charity program for needy and poor people and contributing to the society.
I want to say that, Adidas have position themselves as an ideal business with major focus
on sustainability by their practices and initiative to corporate the society. There Eco-friendly
products where they used to natural production process with major focus on labor intensive
technique and Eco-packaging for the customer's. As the middle manager, I want to recommend
that ASOS can follow Eco-friendly practices by using the natural raw materials for their
cosmetics product to avoid unexpected threat to their customers. In my opinion, we can use
several amended laws & procedures and also enable inspection check for the process.
It is concluded that ethical working and norms is required in every organisation to keep
continuity into the function and operation for the longer period of time. It is also required to take
care of stakeholders interest and also what influence them to take critical decisions. Apart from
the conclusion, it is recommendable that business entity should follow ethical conduct to the
business functioning and operation to maintain the image, trust and belief of their customer and
other legal person.

PART B
In order to provide the views on the ethics of this case, there will be the consideration of
two ethical theories namely Egoism and Right & Justice for providing the most suitable and
relevant solution for this given ASOS case study. There will be the brief explanation of these two
theories and then helpful in providing the views on an above case study.
Egoism: It is the theory that one's self is, or should be the motivation and goals of one
own action. This theory has two variants namely descriptive or normative. The descriptive
variant perceives an egoism as the factual description of the human affairs. This shows that
people are motivated by their own interest and desires and they cannot described it in the direct
way (Hibbert, 2016). On the other hand, normative variant proposes that people should be so
motivate that, regardless of what presently encourage their behaviour. In this case, when it was
clearly stated that investigator has found the child workers and rescued Syrian refugees were
found in the Turkish factory of ASOS. Actually, they were exploited in many ways such as
working more than expected wage along with getting far below wages that Turkish minimum
age. This is critically unethical and unlawful (Scherer, 2012). The descriptive egoist theory is
called as the psychological theory which describes that human nature are being wholly self-
centred or motivated. This theory would provide the knowledge of human affair and regulation in
the business conduction. If there is any exploitation of the human or they are not properly
benefited. Hence, it is the critical case or judgment. Various investigator has told ASOS and
Marks & Spencer are using the child labor, which is the crime declared. It is not ethical any case
nor I have any kind of logic.
Right & Justice: This theory tells about the Justice of being fair for conduct any kind of
activities. This theory consists of two principles: First principle concern that each and every
person should have same and permanent claim to a fully scheme of equal basic liberties, which is
compatible with the same scheme for all liberties (Weiss, 2014). This says that everyone should
have some basic freedom that should never be taken away. Rawls recognized right to every
individual, worker or corporation etc. On the other hand, second principle says that each and
every person is required to attached to an offices and position open for fair equilities of an
opportunity along with this, they should be benefited with great advantage and necessities
(Voegtlin, 2015).

It is critically analyzed that every person whether corporation, workers or individual must
get their equal right & justice in context with whatever they deserved such as food, water, shelter
etc. In context with case, child and Syrian refugees should get their equal and justifiable rights
and opportunities to grow and work where they want to do. They should get their basic liberties
and right to used into their lives. It was also noticed that ASOS were paying the wages even less
than standard wage rate of the Turkey. First, child working in the factories should be prohibited
and being declared as punishable offense and also Syrian refugees should get the equal and right
opportunities to get rewarded to their work. It is necessary for every country and company to pay
their employee or worker irrespective of the nation at the standard and equal rate or prices. It is
also critically analyzed that such practices is against of the human nature and their behaviour and
wants. Hence, it is necessary and required to resolve such issues and be fair & equal to every
worker and individual. ASOS in the future use this theory to prevent the common interest and
motivation of their worker and manpower in their Turkish factory. Such ethical dilemma is
required to remove to gain competitive advantage over the business and also on its regulations.
Right & Justice is suitable to taken care of CRS and Mission statement. Both the theory is
required to be critically reviewed to know each other scope in solving the ethical dilemma and
also the weakness of both the theories is their minimum relevancy into the business context.
Lastly, it is concluded that these approach be benefit to business at the greater level along with
the organizational goals and objectives.
PART 2
Leader is the key necessary person which is required in every company or business entity
to conduct ethically and professionally with some code of conduct and ethical norms & goals.
Being a leader means for defining and exhibiting moral and ethical courage and setting the best
example for everyone in the country (Leigh, 2012). Being a leader, it forces to one to identify
and analyze you own strength and weaknesses and enable one to develop a good sense of reality.
In the reflective style, I am one of the growing leader with getting an ethical and moral
inspiration from other existing and talented leader. Working with ethical consideration and norms
& regulation make me to be competent with other consent & approval to be an ethical manager.
Following person ethics such as honesty, integrity, loyalty along with fairness make the leader
effective and inspiring. As an ethical manager, I manage or owned my business or duties with

ethical consideration such as being on time, pure consent of my co-person, well behaved with
employee and worker to increase their motivation level to increase the business suitability and
morality. I generally follow high ethical standards for manage other and my business. In my
context, leader mean the moral and inspired person top motivate any common man to gain his
confidence and motivation to perform. Of course, it is not required to be an employee as the
leader. Anyone can become the leader. For me, leader must be deep visionary, with set and
accurate goal and mission to be achieved.
Its have both positive and negative impact on the shareholders of the business. In positive
sense, it encourages the moral and unity of the shareholder to invest high more in the business.
Also, it helps to have an effective relationship with an organization or business. On the other
side, shareholder cannot use their own business idea's and method for dealing just because of an
ethical consideration and behavior (Forray, 2017). Another impact is that shareholders might go
against or switch off the business. In this case, it would be not suitable for my business to survive
for the longer period of time. It has to be make clear that ethics cannot be come automatically, I
need to inspire my employee and worker to stay ethically in the business. For this, training and
development based on an ethical consideration and norms is required to be conduct. I know very
well that training charge is not the cost effective and it may reduce the profit, but it will give an
appropriate result to my business and corporate entities. Ethics can be learned and gain with
classroom based learning but that wouldn't not be effective and long in the business. I generally
manage by business by working on the ethical standards which involves both the professional
and individual level. My main focus is mainly lies on the individual ethical development which
is suitable for every individual person in an organization. In this level, individual should have
different set of ethical standard from their employer and also this can lead to tensions. I and other
business manager should be aware of the potential conflicts. I manage my business with ethical
consideration and norms & regulation.
I am inspired by various ethical leader such as Jack Ma who ha founded the Alibaba and
Jeff Bezos who founded the Amazon. Both the organization works at the E-commerce level.
These leaders believes that there should be ethical code of conduct to regulate and start an E-
commerce business and entities. They both are the role model for future business inspirer and
person (Burchell, 2016). I noticed that there thought level and process is unique and motivating
to expand and continue the business for the longer period of time & duration. When it arises that

what makes the leader moral. In context with my-self, morality always come from the personal
ethics such as honesty, believes, integrity, promise keeping along with loyalty in the business to
operate. Morality in the leadership always come from understanding the values and method of
the compliance. Leader should be enriched with an accurate understanding of the values and
vision of the business. In my context, en-richness always come from how I motivate my
employee and other business person to have effectively manage and regulate the business. Moral
leader should be aim to serve instead of his/her own skills, knowledge and talent. I could say my-
self as the moral leader because apart from showing the own skills and knowledge, I serve and
contribute it to my business person and worker in my entities.
When talking about the unethical leader, there was one name called “Stephen Elop” well
-known former CEO of Nokia who was simply responsible for defeat of this tech giant. Elop has
done unethical deal to sell the Nokia to the Microsoft. Elop has sold his share in the Nokia to
other tech company and easily made this tech giant Nokia to struggle to survive into the market.
Aristotle theory is completely based on the virtue ethics. This theory says that a virtue
ethicist should give the kind of moral advice in the difficult situation of the business person. In
context with moral leadership, Aristotle’s has given two types of an ethic namely deontological
ethics, in which leader judges that how well the person follows the laws and rules of the society.
On the other hand, teleological ethics where leader judges an ethics on the basis of outcomes of
the person action and norms (Murray, 2015). There is one flaws in both the types is the
“thinking”. In my context, I uses teleological ethics to check and judge my team members
outcomes and their action over it. There is the vast and effective relationship between the moral
person and moral manager. On the one side, where moral person can motivate their own peer,
friends and family. On the other hand, I as the moral manager develop my employee's and
worker by providing them almost training along with effective learning on how to act in the
moral and impressive way to gain optimized productivity and affectionate. Apart from this,
destructive leadership entails the negative consequences that can be result from the confluence of
destructive leaders, susceptible followers along with conducive environment. The impact of the
destructive leader could be destructive and defeat point for the business entities and units. Such
leader can demoralized the other employee and person in an organization. Also, they can result in
the ineffective working and productivity in the business entities. In this situation, role of reward,
ethical practices an compliance is used for the future consideration of the business (Quigley,

2014). Toxic triangle is consist of: destructive leadership, susceptible follower along with
conducive environment. Unethical leader such Steven Elop has crossed all the limits of
destructive leadership with creating negative environment in an organisation. Such unethical
functioning has effected organisational values at the greater level and resulted non-functioning of
the method of compliance. In order to avoid such practices, it is necessary to keep motivate
employees or workforce by providing them rewards, compliance, ethical code of conduct and
structuring the future organisational values.

CONCLUSION
From the above report, it is concluded that ethical conduct is required in every business
and process. Corporate social responsibility has been noticed as necessary practices to maintain
the dignity and belief to the business firm and entity. Being working as the moral manager is
important to raise the confidence and trust of the shareholder into the organization system and
various operational functioning. Manager can use both professional and individual level of the
ethical standard. It is required and necessary to avoid & remove the destructive leader to
maintain the moral and influence of an employee in an organization.

REFERENCES
Book & Journals
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Hibbert, P. and Cunliffe, A., 2015. Responsible management: Engaging moral reflexive practice
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Ismaeel, M. and Blaim, K., 2012. Toward applied Islamic business ethics: responsible halal
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Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Burchell, J., Kennedy, S. and Murray, A., 2015. Responsible management education in UK
business schools: Critically examining the role of the United Nations Principles for
Responsible Management Education as a driver for change. Management Learning.
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Doh, J. P. and Quigley, N. R., 2014. Responsible leadership and stakeholder management:
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Online
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