Business Ethics And Responsible Management

Business Ethics And
Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
A. Ethical Dimensions, Role Of Business In Society, Key Stakeholders Of The Company &
Impact Of Ethical Choices On Business And Recommendations..............................................1
B. Application of Two Ethical Theories.....................................................................................4
PART B............................................................................................................................................6
Ethical Leader, Ethical Manager and Ethical Organisation........................................................6
CONCLUSION ...............................................................................................................................8
REFERENCE.................................................................................................................................10

INTRODUCTION
Business Ethics refers to the organizational values, norms, standards and principles that
shapes up the activities and behaviours of the employees in the organizations. It is also known as
Corporate Ethics. These ethics guide the business to operate the organization and maintain
relationships with all the stakeholders. Management of business ethics is a part of Customer
Relationship Management. Basically it deals with what is right or what is wrong for the
organization (Werhane, Freeman and Dmytriyev, 2017). Deliveroo is an online food delivery
company. It was founded by Will Shu and Greg Orlowski in 2013. Its headquarter is in London.
It operates its business in 200 cities. Its revenue is £277 Million in 2018. Report will highlight
on the ethical dimensions, role of business, key stakeholders and impact of ethics. Report will
tell about the ethical theories and their application on business. Report will describe about the
ethical manager and ethical leader.
PART 1
A. Ethical Dimensions, Role Of Business In Society, Key Stakeholders Of The Company &
Impact Of Ethical Choices On Business And Recommendations
Ethical dimensions of the issues -
1. Compliance and Governance Issues – Business have to comply with the employment
laws, environmental laws and health and safety laws. Deliveroo riders are self-
employed contractors and according to the UK employment legislation, self-
employed contractor is not considered as worker thus, company didn't follow national
minimum wages and holiday paid. They even clearly denied the employees' rights.
This lead to creation of issues for Deliveroo.
2. Equality Issues – It is ethical responsibility of business to provide equal pay and
opportunity to all the employees who are working in the business. Deliveroo
compensation scheme for all the riders are not same whether they are on similar
contract or not. Thus, this inequality lead to create an ethical issue for the company
(Ferrell and Fraedrich, 2015).
3. Unclear Policy – It is considered as an ethical manner that business make policy in
that way, employees can clearly able to understood that what is written in the policy.
But Deliveroo policy is not like that. Thus, riders don't understand the policy which
lead to creation of issue in the business.
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4. Trust – The basic fundamental ethical issue that all company face is lack of trust.
Deliveroo also face the same issues. There is lack of trust and relationship between
company's management team and riders(employees). This lead to raise of issues in
the tribunals and courts. This issue impacts the brand image of the company as well
(Trevino and Nelson, 2016).
Exploration as an Ethical Question -
This should be explored as an ethical questions because without society's support, no
business can operates its activities peacefully. For the peacefully and effectively running of the
business, they need to follow society's norms, standards and ethics. The issues are related the
employee ethics which is a crucial aspect of business ethics. Issues related to employee ethics.
When employees don't complete the tasks, this lead to decrease in employee morale and not
achieve the organizational goals which cause increasing in employee turnover and decreasing in
productivity (Bowie, 2017). Thus, for the better performance of the organization, company
should follow business ethics.
Role of Business in Society
Role of business in society are as follows -
 Business are the units that meet and fulfil the needs of the society by producing goods
and services.
 Business create and give employment and wealth opportunities to the society.
 Business are the one who decide the living standard for the society.
 If business run smoothly, responsible and effectively, this lead company to earn profits.
This will motivate company to expand and grow, resulting in social stability and
economic growth.
 Because of business, various issues related to the societies are solved. In solving
problems, business plays an important role (Shaw, 2016).
Key stakeholders and impact of Ethical Issues on them -
Stakeholders are those people without whom, organization can't operate. They influenced
the business activities. Also, change in any decision of business also impact the business.
Stakeholders of the Deliveroo are Owner, Shareholders, Management Team, Employees
(Riders), Suppliers, Government and Customers.
Issues Regarding Business Ethics impact the stakeholders are as follows -
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 Customers – They are most important stakeholders for Deliveroo. Without their support
and responses, company can't become 3rd largest online business in UK. Issues related to
the business ethics badly impact the customers. The image set in the customer's mind
might be bad. Customers can denied consuming your products. This will cause
decreasing in profits and revenue (Pearson, 2017).
 Employees (Riders) – They are another key stakeholders for Deliveroo. They are the one
who delivers the goods and services to the customers. If company don't follow business
ethics, this will lead to decrease in morale and productivity of employees, which cause to
not completion of tasks on time. This will lead to low pay to employees and increase in
unemployment.
 Shareholders – They are important stakeholders for deliveroo. They are the one who
provide fund to the business. If business have business ethics issues, this will impact the
shareholders' decision regarding holding shares or not of the deliveroo. Thus,
shareholders will not hold the shares, this lead to decrease in the share value of company
(Barry, 2016).
Impact of Ethical choices on another business -
There are various ethical choices which can impact the another businesses. These choices
are as follows -
1. Treatment of Employees – Deciding how Deliveroo will treat employees will impact
many online delivery companies. Various ethical questions like pay fair and equal
payment and provide safe and healthy environment to employees will affect the ethical
choices of another companies. If they choose to provide advance tech environment and
equal payment to the employees, so another company also have to follow this (Fryer,
2016).
2. Ethical Advertising – Deliveroo business advertising decision will impact the decision of
its competitors' ethical advertising. If deliveroo ethical advertising is misleading and
impact the customers negative. This will lead consumer to switch the brand. The
swiching cost will become high for the company and its sell of products and services will
stop, which lead to increase in another company's sale and profits.
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3. Financially Reporting – Deliveroo's accounting ethics choice will impact the another
business' financial aspect. If Deliveroo choose to accurate accounting treatment and fully
disclose the financial statements according to the accounting standards. This will attract
the stakeholders. But, if Deliveroo does misrepresent with its finance, this will lead to
distract the stakeholders from company and they will attract to another company who
follow accounting ethics properly (Davies, 2016).
Recommendations -
Deliveroo can follow following points -
1. Company can mention their employee ethics policy in employment handbook. In this
policy, company can clearly mention that which behaviours will be acceptable or which
is not, which procedure will be followed for the operations, what are the standards that
company and its employees will have to follow etc.
2. Company can hire ethical leaders who can present ethical behaviours in front of the
employees. So that employees can observe and follow the behaviours.
3. Company can actively involve in the Customer-Relationship Management activities,
which will attract the customers and company can sustain for long time.
4. Company can be honest in dealings and treat every employees fairly and well by
providing good and friendly working environment.
B. Application of Two Ethical Theories
Ethical theory refers to the ideas which guide the company to solve the ethical issues.
There are various ethical theories -
 Teleological Ethical Theory
 Deontological Ethical Theory
 Virtue Ethical Theory
 System Development Ethical Theory
 Care Ethical Theory etc. (Swanson and Frederick, 2016).
From the Deliveroo Ethical issues, company should adopt following 2 ethical theories -
1. Deontological Ethical Theory – This ethical theory was propounded by Immanuel Kant.
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It is an ethical theory which is based on the predefined set of rules which make difference right
from wrong. It is also known as Duty-Based ethical theory too. In this theory, the actions are
considered to be morally good. This theory is considered to be easy from the perspective of
application because it requires only company and employees to follow the rules which is mention
in the ethical policy. For the followers of this theory, duties is everything and they are correct
and can't be wrong in any situations.
By applying this theory, company have to follow all the employment laws whether it's in the
favour of business or not. When, company will follow all employment law, rules, regulations and
guidelines, this lead company to work in legal framework of nation. This will lead company to
provide the best environment for the employees and attract the stakeholders. When, employees
and stakeholders are satisfied with the company, this will lead to enhancement in the goodwill of
company and increase in the capital, profits and revenue. Also, this company will get support of
the government which is beneficial for the Deliveroo itself (Deontological Ethical Theories,
2018).
2. Care Ethical Theory – This ethical theory was propounded by Carol Gilligan. It is an
ethical theory which is based on interpersonal relationships and care of employees' needs
and wants. This theory can be used to solve the issue of lack of trust between
management team and employees of Deliveroo. This theory is focus on the 2 concepts
“Care-Givers” and “Care-Receivers”.
This theory has 4 ethical elements which should be follow by Company. These 4 elements are as
follows -
1. Attentiveness – It is an important element of care ethics. For the care, company need
to recognize the needs and wants of its employees. For that company have to pay
attention on them and communicate with them. So that company can understand the
employee and his needs.
2. Responsibility – For the care of employees, company have to become responsible and
must take responsibility of the employees. This responsible behaviour attract the
employees and they feel important for the organisation. This will lead organisation to
gain loyal and responsible employees.
3. Competence – For the care, company must have to know the nature and behaviour of
employees so that company can provide them proper care.
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4. Responsiveness – Employee should response to the care given by organisation to
them. It leads to mutual care. But it's does not mean equal care from another party.
By adopting this theory, Deliveroo can solve the lack of trust issues. Because
through this theory, management will get to know about the needs of employees. Management
will provide suitable resources to them in order to fulfil their needs. This will make employee
happy and focus which increase his efficiency and productivity. Results will be better. Company
and employees both will be satisfied. Satisfied company will lead to friendly working
environment which lead to closeness between management and employees. They will start
understand each other and respect each other. Understanding and Respect will create trust
between them. Overall efficiency of employees, management and organization will lead to
increase in the profits for the Deliveroo (Ethics of care, 2019).
PART B
Ethical Leader, Ethical Manager and Ethical Organisation
Ethical Leader and his leadership qualities
Ethical leader is the person who directs a group of people towards the achievement of the
organizational goals by ethically belief and values. An ethical leader has the following leadership
qualities -
1. RESPECTFUL – He respects everyone whether they are top manager or front line
manager. He also understands and respects his followers' needs, wants, thinkings and
values. He also listens to his followers carefully. He helps them to achieve their personal
as well as organizational goals. He should not be bias between his all followers.
2. HONEST – Ethical leader is honest and loyal towards the organisation and his followers.
This quality make followers respect to his leader. Honest leader doesn't misuse the data
for the benefits of himself. He always stands for the truth, whether situation is in favour
or not (Freeman, 2016).
3. COMMUNITY BUILDING – Ethical leaders focus on the building of community. He
always takes care of his community's interests and goals. Ethical leader focus on effective
communication which help him to gain loyal followers. He makes his community work
hard and think something new for the organisation.
4. THINKS ABOUT OTHERS – An ethical leader always thinks about his followers and
his organisation. Even he prioritises the organisational goal over his personal goal. He
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always does any act or takes any decisions, he first thinks about the beneficial of his
followers and team.
5. JUSTICE – An ethical leader is fair. He treats his every followers same and equal. He
doesn't do any bias between his any of followers. He takes stand for his followers if there
is something wrong with them. He doesn't support the wrong action of his followers
(Shapiro and Stefkovich, 2016).
Ethical Manager, his quality and his relationship with Ethical Leader -
An Ethical manager is a person who is responsible for the activities of an organisation
and group members by following policy and obeying legislations.
Qualities of Ethical Manager are as follows -
 He should have strong ethical leadership quality.
 He should respect and care for employees and customers.
 He should have the fully knowledge of the employment laws and follow them.
 He should be fair with his organisation, employees and peers.
 He should follow the code of conduct of the organization.
 He should focus on the loyal relationship building.
 He should communicate with everyone and carefully listens to everyone.
 He should take care of the environment and communities.
 He should create productive environment in the organisation.
 He should take interest in the problems of employees and help them in solving that
issues.
 He should be risk taker.
 He should treat his employees equally and don't bias between them (Acquaye, 2018).
To understand the relationship between an ethical manager and an ethical leader, we need
to understand the relationship between management and leadership. Leadership is an essential
part of management. If leadership is good, it is easy to manage the employees. But if leadership
is not good, it is difficult for the company to manage the people. Leadership refers to the process
of influencing the group of people in order to achieve the organisational goals. Achieving the
organisational goal is the main objective of management of company. Thus, Leadership is all
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about management of people, emotions, tasks and objectives (Strobel, Tumasjan and Welpe,
2015).
As an Ethical manager, manage the organization to a high ethical standards -
As an Ethical manager, I would make ethical organizational policy and tell every
members of organisation to follow this policy very strictly. I would like to take some qualities of
ethical leaders so that I can present some example in front of my employees. I would respect and
listen carefully to my employees. I would like to prioritize my employees' needs and wants above
my own needs and wants. I would like to conduct various ethical and cross-cultural activities
which motivate my employees to respect and care about each others. I would delegate my some
tasks to my employees, involve them in decision-making process and guide them in completion
of tasks. I would do integrate ethics management practices with all other management practices
which is being used by my company. I would do CRM activities in ethical way in order to win
my stakeholders' trust. I will apply ethical decision-making framework in my organisation. I will
apply open communication system in my organisation so that there will be creation of informal
communication, which lead to creation of understanding, respect and care between employees-
managers. I will make ethical codes of conduct which should be followed by everyone in the
organisation strictly. I will fulfil my all the responsibilities (such as legal, financial,
philanthropic, economic, environmental and ethical). I would conduct training for ethical
decision making for my employees to develop morality in organisation. And lastly, I would join
hands with leaders in order to motivate my employees in order to achieve some improvement in
their performance and completion of organisational tasks and goals (Gambetti, Melewar, and
Martin, 2017).
When, both manager and leader work together to maintain positive environment on the
foundation of ethical framework then the taskforce would be motivated and principally correct in
meeting the objectives and goals of organisation. This will lead to automatically creation of
ethical organisation.
CONCLUSION
From the above study, it has been summarized that Organization, managers and leaders
should follow business ethics, otherwise it will create a lot of issues for the all parties related to
the organisation. Business ethics teaches leaders and managers to behave ethically in the
organisation in order to retain employees and sustain the business. Moreover, Business ethics
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practice is all about gaining trust and providing good quality of services to the public. To become
effective, moral formation is an important account in the workplace, which only can come
through adopting and following business ethics. In the future, if organisation wants ethical
environment, so manager and leader must have to work together and follow business ethics so
that they can create ethical managers and ethical leaders for the future benefits of the
organisation. Thus, Business ethics is important for business, without it no business can become
profitable and sustainable in the future.
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REFERENCE
Books And Journals
Acquaye, A., 2018. Ethical Management Consultancy.
Barry, N., 2016. Business ethics. Springer.
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Freeman, R.E., 2016. Ethical leadership and creating value for stakeholders. In Business ethics:
New challenges for business schools and corporate leaders. (pp. 94-109). Routledge.
Fryer, M., 2016. A role for ethics theory in speculative business ethics teaching. Journal of
business ethics. 138(1). pp.79-90.
Gambetti, R.C., Melewar, T.C. and Martin, K.D., 2017. Guest Editors’ Introduction: Ethical
Management of Intangible Assets in Contemporary Organizations. Business Ethics
Quarterly. 27(3). pp.381-392.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory. (pp. 111-131). Routledge.
Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.
Shaw, W.H., 2016. Business ethics: A textbook with cases. Nelson Education.
Strobel, M., Tumasjan, A. and Welpe, I., 2015. Do business ethics pay off?. Zeitschrift für
Psychologie. Journal of Psychology.
Swanson, D.L. and Frederick, W.C., 2016. Denial and leadership in business ethics education.
Business ethics: New challenges for business schools and corporate leaders, pp.222-240.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Werhane, P.H., Freeman, R.E. and Dmytriyev, S. eds., 2017. Cambridge Handbook of Research
Approaches to Business Ethics and Corporate Responsibility. Cambridge University Press.
Online
Deontological Ethical Theories. 2018. [ONLINE]. Available through:
<https://businessjargons.com/deontological-ethical-theories.html>
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Ethics of care. 2019. [ONLINE]. Available through: <https://www.britannica.com/topic/ethics-
of-care>
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