Business Ethics and Responsible Management

This document discusses the nature of ethical issues and the role of business in society, with a focus on gender pay gap in Morrisons. It identifies key stakeholders and their impact, provides examples of ethical choices that have benefited or disadvantaged other businesses, and offers advice and recommendations for companies emerging from analysis.

Business Ethics and Responsible
Management

Table of Contents
PART 1............................................................................................................................................3
A) ....................................................................................................................................................3
Nature of the ethical issue and the role of business in society...............................................3
Identification of key stakeholders and the impact on them....................................................4
Examples of Ethical choices have dis/benefited other businesses.........................................4
Advice and recommendations for Company emerging from analysis...................................5
REFERENCES................................................................................................................................6
B) .....................................................................................................................................................7
Introduction............................................................................................................................7
Discussion ..............................................................................................................................7
Conclusion..............................................................................................................................9
REFERENCES..............................................................................................................................10
PART 2..........................................................................................................................................11
Ethical leader and the qualities possessed by an ethical leader............................................11
As an ethical manager how can I raise my organisation above the set standards................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
PART 1
A)
Introduction

Business ethics is related to executing business practices and policies with context to
controversial subject area. This applies to all the business conduct aspects and relevant to
conduct of people and whole company. The responsible management is regarded as seeking
balance interest of whole world to proposer for current and the future generations. Morrisons is
largest chain of the supermarket in United Kingdom and its headquarter is in England. In this
company, the issue arise related to gender pay gap (Doucet, Smith and Durand, 2012). Women
employees earn 88p for every £1that every men earn when comparing the means hourly wages. It
is unethical in nature and company should pay to workers on the basis of their job roles. Under
the given report will be discuss about nature of ethical issues and role of the business in society.
Qualities which recognised for the ethical leadership and creation of ethical company will be
discussed here.
Nature of the ethical issue and the role of business in society
Ethical issue refers to situation or issue that needs an individual or company to select
among alternatives which should be examined as the ethical or unethical. Morrisons is facing
same legal action from the shop the floor employers which are represented through other
company. This estimates that almost 80000 staff members of Morrisons could be entitled to the
compensation. Morrisons has become first UK to sign up to new ethical scheme which
empowers employees in developing to talk freely regarding working conditions. Under this
company, ethical issue is related to gender pay gap in company and this arise the complexities in
business. Women workers earn 88p for every £1 that men workers earn when comparing about
the hourly wages (Wood and et. al., 2016). The median hourly wage of female workless is 11.5%
minimum than men. Morrisons has the negative impact on business as not to treat the women
and men employees on equal basis. In regards to pay gap issue, Morrisons could face £1bn bill if
the new legal actions against success of company. Law firm Leigh Day is seeking towards
compensation for the women shop-floor staff members at supermarket which paid less as
comparison to male staff in Morrison.
Around 80000 staff at Morrison store could eligible to claim about pay back to totalling
billion pounds. Other than this, Morrison company is facing equal-pay claim from the store of
staff, increasing stakes in long running conflict regarding value of various kinds of work at
retailers. Regarding the gender pay gap, group of the women is taking the legal action against
supermarket over the claims about not to pay similar as male employees which do same job role.

The unequal pay issue develop negative impact on performance level of employees along with
the organisational productivity (Morrison, 2012). The employees will not work not in a proper
manner and the chances of absenteeism will be reduced. Gender pay gap can be issues from
public policy perspective because this minimized economic output and women are dependent on
the welfare payments.
Identification of key stakeholders and the impact on them
Stakeholder is member of the groups without whose support company would be cease to
exist. It is party which has interest in an organisation and can impact through business. The
stakeholders of Morrison company are exist outside and inside of company. Its internal
stakeholders are managers, directors and employees. On the other hand, external stakeholders
consists shareholders, customers and government. Under this, stakeholders plays a necessary role
in the gender pay gap issues (Groom, 2018). Gender pay gap impact on the working women in
an organisation. This is necessary that women are made aware about their responsibilities and
rights at workplace. The main role of internal stakeholder like managers and directors is to
develop the positive working environment by creating the policies which can give the fair pay to
employees on the basis of their job role and responsibilities in an effective manner. Other than
this, government developed the equal pay gap act for removing the gender pay related issues at
workplace. This act prohibits less favourable treatment among male and fem,ale employees in
context to employment conditions and pay. This act is related to about giving equal pay among
men and women employees for their equal work. It covers people in similar employment and
consists the equality in pay and some other contractual conditions.
Examples of Ethical choices have dis/benefited other businesses
Next Plc is equal opportunities manager and will assure offers about the career
opportunities without any kind of discrimination. This company works in an ethical way by
providing the equal opportunities to male and female workers and also give them equal pay as
per their work. The staff members of this company are integral to attaining business objectives
and its main aim is to attract, sustain and also develop best talent. It ensures about the
differentials in salary among employees at workplace justifiable and fair. On the other hand,
gender pay gap in Starbucks company is zero. It claimed that female and male staff members
earn similar amount. In year 2018, Starbucks company announced that it reached 100% pay
equality for women and men for all races of people performing similar work (Williams and

Sawer, 2018). Parity of Starbucks shows not only the women get the equal pay for equal work
but they also attained several high pay roles as the men.
Advice and recommendations for Company emerging from analysis
Morrisons company requires to look after the female employees which working in
company. Gender pay gap issue develop the negative impact on employees performance. There
are some recommendations to Morrison company given below:
 It is necessary for Morrison company to develop effective policies and treat male and
female workers on equal basis.
 Company need to implement Equal pay act so that each person at workplace can take the
pay on the basis of equal job role.
 Company should give the pay scale to employees on the basis of their roles and
responsibility instead of gender basis. This will help in enhance morale of employees and
the productivity of company will be increased.

REFERENCES
Doucet, C., Smith, M. and Durand, C., 2012. Pay structure, female representation and the gender
pay gap among university professors. Relations Industrielles/Industrial Relations. 67(1).
pp.51-75.
Wood, J. M. and et. al., 2016. Organisational behaviour: core concepts and applications. John
Wiley & Sons Australia, Ltd..
Morrison, M. H., 2012. Gender and leadership: educational leadership through feminine eyes:
have the barriers in acquiring educational administrative positions for women changed
in the last fifteen years?. Indiana University of Pennsylvania.
Groom, M., 2018. Beyond the pay gap: The retirement disadvantage of being female. Policy
Quarterly. 14(1).
Williams, B. and Sawer, M., 2018. Rainbow Labor and a purple policy launch: gender and
sexuality issues. Double Disillusion: The 2016 Australian Federal Election, pp.641-
660.

B)
Applying two ethical theories to the case study
Introduction
Ethics is refers to the branch of philosophy that consist defending, recommending and
systematizing concept towards the right and wrong aspect present in the business organisation.
Mainly, it is concern with the matters of values that affect the company and its workers as well.
For attaining success, it is one of the major concern for every business organisation to follow the
all the ethics at working area so that they can implement their activities in an effective manner
(Jones and Felps, 2013). In context of Morrison, company is focus on following all the setted
ethics in order to improve heir positive performance. As there are some different ethical theories
that is follow by company in improving its overall performance level. One of the main purpose
of following ethical theories is to deal with different morals and well-defined standards. As it
includes various terms such as rights, rules, obligations, human standards and many more.
Discussion
Utilitarianism theory
Under this case, it is one of the important ethical theory that used to evaluate as well as
analyse the basic results. By using this, company provides better results to the workers present at
working area. Along with this, it also help in determining what is right and what is wrong within
the company. In addition of this, it also promote actions that help in maximising happiness and
the well being that affected employees at working area. Along with this, it includes different
varieties of utilitarianism that admit the several characteristics. As it relies upon some theory of
intrinsic value that held to be good in itself as compare to further consequence (Gustafson,
2013).
Advantage of Utilitarianism: The main advantage of using Utilitarianism theory is that
any kind of morale position of business organisation can be easily improve their workplace . It
also support in effectively justified the beliefs that is related with the ethical grounds.
Disadvantages of Utilitarianism: One of the major drawback of this theory that always
not possible towards the decision on the ethical grounds. Along with this, sometime decision can
not be related with the situation whether it is good or bad. The main reason behind this is that

each and every workers are totally different from each other at working area (Fok, Payne and
Corey, 2016).
As per Utilitarianism theory, it is effective and also consider good and moral that is
effective for business organisation. As gender pay gap is one of the major concern for Morrison
that negatively affect the overall performance of employees. In this male and female workers are
face pay gap issue that directly reduce their productivity level at workplace. Due to this,
employees get demotivated and also leave organisation as well. This become a major issue for
company because it may increase employee turnover. Issue in pay scale may create complexities
among workers that create negative working environment at working. Due to this, employees
may reduce their productivity level and at the same time also fail in attaining set goals and
objectives. As Utilitarianism theory is one of the effective aspect that support in equality and
welfare of people that support as well as promote equality at working area that is detrimental to
mental and physical health (Lindebaum and Raftopoulou, 2017). As female workers are always
paid less then the men that negatively affect their performance and ability to perform well. It
also affect on their morale and productivity level at working area. Thus, it is crucial for
Morrison to focus on promoting equality at working area and also set pay scale on the basis of
employee job roles and responsibilities. This can be beneficial in increasing employee
performance and at the same time also may develop positive relation among all male and female.
This will directly contributes in increasing profitability level of company. Along with this,
manager of company is also provide extra benefits to their workers so that they can perform well
and put their best efforts to completing their task activities. Furthermore, different set of
Utilitarian ethics stated that gender pay gap is major issue or concern for company in which firm
is responsible for providing fair wages as per employees performance. This will support in
improving the overall performance of company and its workers as well.
Veil of Ignorance
It is also consider as an important ethical theory that help business organisation in
promoting equality at working area. This can be beneficial for the company in reducing the issue
of gender pay gap as entire workforce treated equally and paid as per workers job roles and
responsibilities. One of the main focus of this type of ethical theory is to eliminate discrimination
on the basis of gender. With the help of this, company can easily enhance workers performance
and at the same time also make them more productive (Muldoon and et. al., 2014).

Advantage of Veil of Ignorance: One of the main advantage of this theory is that it
focus on fairness that help in reducing the issues that can be arise between male and female
employees due gender pay gap.
Disadvantage of Veil of Ignorance: Major drawback of this theory is that sometime it
reduce the involvement of employees within the decision activities. This may negatively affect
on the productivity level of employees (Andreescu and et. al., 2013).
In case of Morrison, this type of ethical theory is more effective because it focus on
keeping all the workers equally who are perform at same working station. In this, the main
purpose of Veil of Ignorance is to make employee more productive. With the assistance of this,
company can easily reduce the issues that arise among workers due to gender pay gap. Manager
of company is responsible for giving equal pay to as their job roles and responsibilities. This will
contributes in reducing the employee turnover by retaining workers for longer period of time
within the business organisation (Heidari and et. al., 2018).
From both ethical theories, Morrison needs to apply Veil of Ignorance as it is one of the
effective and beneficial to overcome from the issue of gender pay gap. With the assistance of
this, company can easily maintain positive working environment wherein employees perform
their best and attain their set targets in an effective manner (Koppelman, 2012).
Conclusion
From the above mention report, gender pay gap issues has been found at workplace and it
is not ethical for company. This kind of issue reduce the morale of female employees and also
reduce organisational growth. Under this give report has been discussion about the gender pay
gap issues and role of internal and external stakeholders to overcome from it. Other than this,
there has been discussed about the two different ethical theories Utilitarianism and Veil of
Ignorance regarding the gender pay gap.

REFERENCES
Jones, T. M. and Felps, W., 2013. Stakeholder happiness enhancement: A neo-utilitarian
objective for the modern corporation. Business Ethics Quarterly. 23(3). pp.349-379.
Gustafson, A., 2013. In defense of a utilitarian business ethic. Business and Society Review.
118(3). pp.325-360.
Fok, L. Y., Payne, D. M. and Corey, C. M., 2016. Cultural values, utilitarian orientation, and
ethical decision making: A comparison of US and Puerto Rican professionals. Journal
of Business Ethics. 134(2). pp.263-279.
Lindebaum, D. and Raftopoulou, E., 2017. What would John Stuart Mill say? A utilitarian
perspective on contemporary neuroscience debates in leadership. Journal of Business
Ethics. 144(4). pp.813-822.
Muldoon, R and et. al., 2014. Disagreement behind the veil of ignorance. Philosophical Studies.
170(3). pp.377-394.
Andreescu, L. and et. al., 2013. Understanding normative foresight outcomes: Scenario
development and the ‘veil of ignorance’effect. Technological Forecasting and Social
Change. 80(4). pp.711-722.
Koppelman, A., 2012. Veil of Ignorance: Tunnel Constructivism in Free Speech Theory. Nw. UL
Rev.107. p.647.
Heidari, H. and et. al., 2018. Fairness behind a veil of ignorance: A welfare analysis for
automated decision making. In Advances in Neural Information Processing Systems (pp.
1265-1276).

PART 2
Ethical leader and the qualities possessed by an ethical leader
As per my point of view ethical leadership is related with the ethical values and beliefs
that help in protecting rights of other people. This type of leadership is refers to the traditional
leadership objectives that directly contributes in increasing overall productivity level of workers
and organisation as well. Mainly, ethical leader are the person who have ability to implement all
the ethics at the time executing business activities (Schaubroeck, Lam and Peng, 2016). This can
effective in developing as well as managing employees activities at working area. In this regards,
entire decision making is based on the core values that define positive experience for each and
every workers working within the business organisation. This will directly contributes in keeping
employees more productive and also increase positive brand image. As there are some best
quality of ethical leaders who put their best efforts for reducing gender pay gap at working area:
 Best decision maker: In business organisation entire decision are made by leader. This is
the reason that ethical leader should implement as well as formulate entire values and
beliefs of business organisation. It can be beneficial in improving ethical standard of
company and at the same time also may reduce any kind of ethical issues. With the
assistance of this, ethical leader can take right and best decision that contributes in
managing the workforce in an effective manner (Bedi, Alpaslan and Green, 2016).
 Effective leadership: Effective ethical leader is responsible for guiding as well as
leading workforce and at the same time also influence their workers. By this employees
put their best efforts for accomplishing their targets in stipulated time frame (Neubert,
Wu and Roberts, 2013).
 Team building: It is one of the effective quality of leader in which they keep better
collaboration among all the team members. In this regards, ethical leader is also
responsible for providing equal opportunities to their team members so that they can
perform their best for attaining all the set common goals and objectives in stipulated
period of time (Hassan and et. al., 2013).
All these qualities are support ethical leader in managing the equality at working area by
making employees more productive efficient. If leader has best qualities and abilities then they
easily attain their vision and at the same time also improve organisational performance. As

ethical leader also implement values and beliefs at the time of leading workers. This can be
contributes in maintaining positive and healthy relationship between workers. With the
assistance of this, company can easily established its competitive image at market place.
As an ethical manager how can I raise my organisation above the set standards
Management and leadership both are the important part in an organisation. The role of a
leader is to guide the employees and the main role of manager is to manage the work in an
organisation. As per my opinion, manager is more effective in performing his/her duties and
responsibilities. As a ethical manger, my responsibility is to conduct the work in an ethical way
and remove any kind of unethical errors from workplace because it negatively impact on
organisational productivity. From the above above mention qualities, I possess best decision
maker by following ethical practices and motivate my subordinates so that they can able to work
in a better manner. I believed in work by following all the ethical consideration and believed in
giving the equal pay to employees on the basis of set job roles.
The business ethics is related to moral principles in company needs to operate the
business. As an ethical manager, it is my duty to set the ethical standards which help company to
develop faster and gain competitive advantage. In order to raise my company above set
standards, I require to observe the daily basis activities of staff members at workplace and
communicate with them so to determine the issues and give them better solutions to overcome
from them. On the other hand, I will listen the opinions of employees before taking any decision
at workplace. I will take the decisions which will in favour of employees and organisation.
CONCLUSION
Team building, decision making and effective leadership qualities recognised for ethical
leadership and creation of an ethical organisation has been studied in proper manner.

REFERENCES
Books & Journals
Bedi, A., Alpaslan, C. M. and Green, S., 2016. A meta-analytic review of ethical leadership
outcomes and moderators. Journal of Business Ethics. 139(3). pp.517-536.
Hassan, S., and et. al., 2013. Ethical and empowering leadership and leader effectiveness.
Journal of Managerial Psychology.
Schaubroeck, J. M., Lam, S. S. and Peng, A. C., 2016. Can peers’ ethical and transformational
leadership improve coworkers’ service quality? A latent growth analysis.
Organizational Behavior and Human Decision Processes. 133. pp.45-58.
Neubert, M. J., Wu, C. and Roberts, J. A., 2013. The influence of ethical leadership and
regulatory focus on employee outcomes. Business Ethics Quarterly. 23(2). pp.269-296.
Online
Pay Equity & Discrimination. 2020. [Online]. Available through:
<https://iwpr.org/issue/employment-education-economic-change/pay-equity-
discrimination/>.