Business Ethics and Responsible Management

This report discusses the key nature of ethical issues and the role of business in society. It explores a case study on the supply chain and human rights abuse in tuna companies and provides recommendations for promoting ethical practices. The report also discusses the application of two ethical theories and identifies the qualities of recognized ethical leadership.

Business Ethics and
Responsible Management

Table of Contents
PART-1............................................................................................................................................3
A) Introduction about the key nature of ethical issue and role of business in society ...............3
Advices and recommendation for company regarding the way it can be ethical and responsible
company. ...................................................................................................................................5
B) Application of two ethical theories .......................................................................................6
PART-2 ...........................................................................................................................................7
Identified qualities of recognised ethical leadership and creation of ethical organisation..........7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
With development of technology and increase in awareness among people related to
ethical practices it has forced company to take several measures to take steps towards the same in
order to grow and sustain business for longer time frame. Business Ethics is policies and
practices of organisation that it used while operating its functions so that no undue pressure or
harm can be caused to employees or customers. There are numerous responsibilities that need to
be completed by manager in order to ensure that ethical practices are being promoted in firm so
that it can enjoy maximum profitably and market share. Management is responsibilities for
accomplishing goals of organisation by making optimum utilisation of resources so that best
services can be rendered to customers.
This report is based on case study of Supply chain and human right abuse of tuna
companies that resulted in negative impact on growth and brand image of businesses. It has
covered points related to roles of business towards society, ethical issue faced by company and
the way it has impacted. Furthermore it has content theories related to ethical practices and what
characteristic needs to be present in ethical leaders.
PART-1
A) Introduction about the key nature of ethical issue and role of business in society
This is a case study of Tuna brand that is world biggest company that is unable to tackle
modern slavery in the pacific supply chain. It has been stated that company has been consistency
claimed of abusing human right of workers that are performing their task near sea. Worker are
not paid for their efforts as well as they are physically abuse to do several task that resulted in
abuse of human right. The management of Tuna company has make little efforts to address the
issue which resulted in negative impact or threat of sustainability of enterprise in the industry.
The ethical dilemma in the case study is that the management of Tuna company instead of
taking steps towards protection of employees has prefer profitability of organisation
(Zgrzywa-Ziemak, 2020). Furthermore, it can be stated that manager plays an important role in
providing several benefits to society by ensuring that ethical practices and value are promoted in
the organisation. Business plays an most important role in society by delivering products and
services as per existing needs of customers. So it is role of business to conduct ethical practice

rather than promoting modern salivary or abusing human rights as they operate its
business in society so need to give benefit to key individuals.
Identification of key stakeholders and the impact of them and the way ethical choices have
dis/ benefited other businesses
Stakeholders are key individual that are interested in growth and operation of
business as they are affected by business such as investors, customers, employees,
government, competitors and many more. The above case has adversely impacted on each of
the stakeholders like the first and foremost employees has been affected by decision of company.
As it has forced them to work even in poor working environment with no or minimum wages
thus it was abuse of human right. Thus company has not abided to human right as employees
right were totally ignored that has adversely impacted on their satisfaction level. Tuna
brand has promote modern salary which means that migrant are bought and sold at sea thereby
they are not allowed to come back of their land and tossed overboard if they get injured or
complained about the same to others. These facts clearly stated that it has impacted customers or
people living in society as they are transferred from one ship to another and not allowed to come
back again in any case (Sison Ferrero and Guitián, 2018). Now- a – days, people mostly wants
to be part of organisation that followed ethical practices so it has caused loss of customers
satisfaction level. Thus, indirectly affected interest of investors as due to unethical practices
brand image and profitability of organisation has decreased to large extend. At last it has
also impact interest of government, as it has make strict policies and laws related to human right
despite of that company in order to earn maximum profit has exploited their overall right. It can
be argued that management of Tuna brand has neglected ethical practices in order to enjoy more
profitability and market share in new market. Manager despite of knowing the fact that company
is abusing human right has forced individual to work even in case of non payments that resulted
in dissatisfaction. Manager has to incurred huge cost for promoting unethical practices in
Tuna brand as it has lead to loss of customers satisfaction, company needs to incurred
extra cost or expense for not abiding to rules and regulation. Due to non-ethical thinking or
negligence of manager company has to suffered from huge loss as overall brand image and
reputation has been decreased (Kesuma and et.al., 2020). Therefore it can be stated that if HR
has ensure that no injustice caused to individuals then it can avoid unethical practices and
contribute in sustainability and growth of enterprise in external environment. There are several

roles that manager needs to play in society for business success such as promote ethical practices
in the organisation by ensuring equal opportunities given to each individual. So, it roles is to
ensure that no harm needs to be caused to any individual in any case or circumstances for
benefits of organisation as well as satisfaction of employees (Schweigert, 2016).
Advices and recommendation for company regarding the way it can be ethical and responsible
company.
On the basis of above case study, it is understand that ethical practices play important
role in expansion and creation of strong brand image of enterprise by meeting needs of
customers as well as employees that are working in the firm (Verma, 2019). There are key
suggestions for Tuna brand that it need to undertake in order to promote ethical practices and
make stakeholders happy and satisfied. Such as:
 Firstly, the company needs to make and implement strict policies that human right is not
exploited in any case or circumstances. It needs to ensure that modern salivary is strictly
prohibited in the organisation as well as employees are paid for their hard work and
determination (Gurayah, 2020.). Hr manager needs to ensure good working environment
given to employees so that no injury or further harm can be caused to them in any
circumstances.
 Secondly, it can be illustrated that company needs to ensure that ethical practices are
promoted in the form so that customers as well as employees can be make happy and
satisfied and enterprise can regained its brand image.
 Thirdly, it can be suggested that Tuna by abiding to existing law, respecting each and
every individual can become ethical and responsible organisation. Management needs to
communicate employees about the procedure or the way company will promote ethical
values in the fir so that no harm or loss can be caused to any individuals
(Global.Gurayah, 2020). Therefore management of company need to take active part to
avoid unethical practices for benefits of organisation.
 Company by abiding to human rights laws and engaging more and more individual or
staff to promote ethical culture and value in organisation so that no harm can be caused to
any individual and it can grow and sustain for longer time frame. Management needs to
communicate to employees as well as external stakeholders that Tuna is now going to

take key measure that will ensure protection and safety of employees or individual at
highest level as possible.
B) Application of two ethical theories
There are several ethical theories such as Utilitarianism, social justice and social contract
theory and deontology that can be used in order to understand the above case study in more
better manner. Out of numerous ethical theory, Utilitarianism and deontology are used to
demonstrate in order to understand ethic of the case related to Tuna Brand. Such as:
Utilitarianism: It is most useful and prominent ethical theory that states” the greatest amount of
good for greatest number of people”. Thus it clearly explained that decision or particular actions
that is good for large number of individual in the society needs to be promoted so that maximum
benefits can be enjoyed by them. The main purpose of Utilitarianism is that making life
better by increasing or promoting more right things as compared to negative actions.
Therefore the above case study can be easily related to Utilitarianism, as management despite of
undertaking or pursuing decision that is good for maximum individual has take steps that are
beneficial for company (Hill and Scott, 2020). So, in order to provide more benefits to
organisation or profit, management has abused right of individuals that resulted in negative
impact on growth and operation of business. Management despite of thinking strategy or
decision that are good for maximum individual has give priority to benefits of organisation.
So, in the case of Tuna brand management has abided to the above theory that is
Utilitarianism while taking several decision for business that means needs to considered
what is good for employees, customers or key individuals that are living in society.
Stakeholders such as customers, employees and government are winner in the case study as
company by making use of unethical practices has to suffered hue loss in future circumstances.
For example: employees are exploited or forced to work in poor environment at the same time
company by not abiding laws has affected the interest of government so it have imposed several
cost or legal expenses. Therefore, no another company in future circumstances can do similar
thing or promote unethical practices that caused harm to numerous individuals (Weller, 2017).
While company and management are losers due to unethical practices brand image, profitability,
market share and trust of customers of company has decreased. Therefore it can be understand
that management has not select decision which is greatest good for everyone. Utilitarianism
seeks or demand to predict consequences of particular which sometimes become quite

impossible or difficult to do the same. It is subjective in nature as there are somebody that are
happy in specific thing while other may not so all these are major disadvantages of
Utilitarianism ethical theory.
Deontology: It is another ethical theory which states that particular action are good or bad on the
basis of set of rules and regulations. As deon means duty so action that obey all duties that are
described are under category of ethics. So, it is related to act or moral obligation that doesn't
undertake consequences of human welfare that means individual needs to perform specific duty
for sake of all individuals. It is clearly state in the law that abusing human right is unethical
practices or acts such as Tuna brand in order to enjoyed maximum profitability has
promoted modern slavery. It can also be learnt that management of Tuna brand rather
than focusing on right or wrong action has taken decision that are beneficial for
organisation (Manasakis, 2018). As it has not take any steps to protect employees that caused
great harm as they were being not paid for their hard work. So, company and management by not
considering ethical practices has to suffer huge losses, even loss trust and confidence of key
stakeholders. Overall reputation of firm has also decreased due to use of modern slavery as most
of the individual does not like to have products and services from company that follow unethical
practices.
PART-2
Identified qualities of recognised ethical leadership and creation of ethical organisation
Ethics are moral principle and value that direct individual about the way task can be
completed in better or right manner so that no harm or threat can be caused to others. Ethical
leadership is a term that can be defined as leaders that ethically behave with other individuals
that is respect and recognised each employees for their hard work and determination etc. In
another words, ethical leaders can easily build relationship with employees by trusty and
honestly sharing information to them. It considered all individual equal thus tried to avoid
discrimination in order to make each and every person happy and satisfied. I have learnt lot
many thing from the above case study such as why is ethical behaviour is important and the way
it can lead in growth and success of enterprise (Caulfield, 2019). Such as I get to know about
special qualities of ethical leaders that helps it in easily influencing different individual in best
possible manner thereby contributing in growth and success of organisation. The first and

foremost characteristic of ethical leaders is that it needs to have fair and just attitude which
means it needs to treat everyone equally. Thus it should not discriminate about individuals on
basis of gender, caste, religion or any other factors so that employees are motivated to give their
best for benefit of organisation. Another quality that needs to be present in leaders is respect and
recognised each individuals for their hard work and determination so that they are further
influenced to put extra efforts. It also promote value and ethical principle so that no harm can be
caused to any individual in any circumstances therefore contribute in team building and
achievements of end goals. I also learnt that ethical leaders honestly communicate or share
necessarily information to employees about the way task can be completed or overall
objectives of company. Thus it helped in making employees happy and satisfied as they
feel more valuable or important part of organisation. At last it can be illustrated that ethical
leaders never tolerate unethical behaviour thereby take strict action against it so that no other
individual can do the same in near future circumstances (Jha, 2019). From the perspective of
myself, ethical leaders as well as ethical manager are useful for organisation as manager is
responsible for designing policies and procedure regarding the way task will be performed.
While leader are individual that motivates employees to make optimum utilisation of their
existing skills and capabilities so that company can gained competitive advantages. Therefore,
ethical manager needs to follow ethical value while formulating policies, to taking several
decision so that no injustice can be caused to individual that are working in the
organisation. At the same time ethical leader also needs to use similar strategies to motivate
all employees rather than discriminating among people. So, I have learned from above
analysis that strong relationship between manager and leaders will contributed in greater success
of organisation as employees are highly motivated to give their best for achievements of
company goals (How Leaders Can Create an Ethical Organization, 2015). Manager and leaders
that are committed to ethical principle can make employees satisfied to give their best so that
company can attained its objectives in limited time possible. The case study has helped in
learning the way company can developed ethical environment in the firm so that needs of
customers as well as employees can be satisfied in best possible manner. There are several
practices which could be used by manager as well as leaders of company in order to develop
ethical organisational culture in company such as open and true communication, ethical training
to employees and ethical behaviour while completing several task. So that no undue pressure or

unethical practices can be caused to individual to complete the task such as poor working
environment, discrimination among employees (Boda, 2019). As per my view, the first thing
that manager can do in order to develop ethical organisation is become a role model of
employees so that they are ready to follow its direction and strategy. It is observed that people
are inspired when their role model that is subordinate always have ethical behaviour or ensure
equal chance to all in different process. Another way which could be fruitful in developing
ethical organisation can be illustrated as communicate or share information to employees about
the code of conduct, ethical values that are expected by company from its employees. So, that
they are ready to abide to all ethical code so that no unjust or harm can be caused to any
individuals in any circumstances. I also get to know that offering ethical training to employees is
also great options for development of ethical organisation as through program individual can be
trained what practices are permissible or not. The best action or strategy for development of
ethical organisation is punish the unethical one while reward employees that promote
ethical behaviour (Siltaloppi, Rajala and Hietala, 2020). Manager by rewarding employees
that has abided to ethical code of conduct motivates and inspired other individual to do the
same so that they can be get same award, on contrary, punish individual that has not taken
steps to follow ethical value that resulted in creating negative brand image of enterprise.
Therefore it can be understood that ethical environment in created in organisation by promoting
equality and diversity principle so that each individuals is ready to give its best for growth and
expansion of business in external environment.
CONCLUSION
It can be concluded from above report that in recent scenario individuals wants to be part
of organisation that promote ethical practices while operating its different function. Ethical
principle and key values helps in building and retained strong brand image, market share and
value of company in external environment. It is also understand from above study, that relevant
theories of ethics can be used by manager in order to promote ethical value within organisation
for long term growth and success of firm. The above study also helped in learning that company
by complying with rules and regulation can easily promote its business operation and make
interested stakeholders happy and satisfied. At last, it can be summarised that due to unethical
practices of Tuna brand investors and customers trust has broken thus they are less interested to
further work with organisation. Therefore it can be illustrated that company as well as

management needs to take coordinate efforts to implement ethical practices so for growth and
sustainability of organisation for longer time frame.

REFERENCES
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common good approach. Routledge.
Verma, M., BUSINESS ETHICS-“A COMPETITIVE ADVANTAGE FOR COMPANIES”.
Weller, A. E., 2017. Aligning responsible business practices: A case study. Business Ethics: A
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Zgrzywa-Ziemak, A., 2020. MANAGEMENT ETHICS.
Online
How Leaders Can Create an Ethical Organization, 2015. [Online]. Available
Through:<https://www.ginaabudi.com/how-leaders-can-create-an-ethical-organization/
>.