Business Ethics: A Modern Approach

This assignment delves into the multifaceted realm of business ethics, examining its significance in today's globalized world. Students are tasked with analyzing various ethical dilemmas, exploring different frameworks for ethical decision-making, and understanding the role of corporate social responsibility (CSR) in fostering sustainable business practices. The assignment requires critical thinking, research, and application of ethical principles to real-world scenarios.

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Aspect and improvement of
theoretical ethical approaches....................................................................................................1
1.2 Comparison and oppose
absolute and relative theories.....................................................................................................2
1.3 State the ethical issues which can impact the functional
activities.....................................................................................................................................3
TASK 2............................................................................................................................................4
2.1 How business goals are influenced by moral
circumstances.............................................................................................................................4
2.2 Implications for a business and its stakeholders
to function ethically....................................................................................................................5
TASK 3............................................................................................................................................6
3.1 Role of the company acting as a moral agent......................................................................6
3.2 Improvement of mechanism for achieving
employer involvement and empowerment.................................................................................7
TASK 4............................................................................................................................................8
4.1 Current ethical issue affecting of Mercedes..........................................................................8
4.2 How the business could improve the ethics of their
operations ..................................................................................................................................9
4.3 Designing of suitable ethical code........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Ethics can be simply defined as moral belief. It includes systematic defensive and
portraying thought of correct and incorrect nature or behaviour (Strobel, Tumasjan and Welpe,
2015). Ethics is divided into three subjective area by philosophers that is Mata ethics, normative
ethics and applied ethics. Mata ethics is explaining the beginning of moral issues and what they
mean. It also includes the issues of general facts integrating spiritual notion. While normative
ethics is more analytical arriving at motivation standards regulating correct and incorrect
conducts. The present report is based on business ethics of Volkswagen. In this project, several
ethical based theories are explained.
TASK 1
1.1 Aspect and improvement of
theoretical ethical approaches
There are different types of theoretical approaches in business ethics. Some of them are
described below:
 Deontological ethics: This theory gives more focus on relationship between
responsibility and morals of human activities. Deontology is a Greek word where deon
means duty and logos meaning science. According to this theory, each action is
considered to be morally great or good because some of the properties of action itself is
better than the action of products (Rutherford and et. al., 2012). It holds that some of the
acts are virtuously compulsory no matter what will their consequences for upliftment of
human beings. It is an approach to Ethics that concentrates on correctness or in-
correctness of actions themselves that is opposing the goodness or wrongness of the
results of those actions or for the quality and habits of the performer.
 Teleological ethics: It is also called consequentialist or consequentialism. It explains the
basic standard of ethical motive is exactly the worth of what an activity convey to people.
This theory has been refereed as formalized, because their core value lies in the
conformation of an act to some norm or law . It is also a Greek word where telos means
end and logos meaning science. It opposes to deontological ethics which holds that
general standard for an act being morally correct are totally autonomous of good or bad
generation.
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 Utilitarian ethics: According to this theory, an action is right or correct if it create
feeling of happiness or joyful environment but wrong when it do not promote happiness
and effects others life or job of performer. This theory opposes to egoism and states that
one should follow his own self-concern even at the detriment of some other. This is also
different from those ethical theories that decides correctness and wrongness of an
activities which is depending upon the need of the business person. But according to the
utilitarian theory, it is assert-able for the accurate thing that is done from a awful aim.
1.2 Comparison and oppose
absolute and relative theories
Theory 1.2 – Absolute
(objective) or
Relative (Subjective)
Comparison of
theories
Contrast of these
theories
Teleological ethical
theory
It is applicable to
every one.
It is based on the
moral values and
differs on the
behaviour of ending
any action or activity.
This means that it
decides the goodness
of action after its end.
It is used in decision-
making. Here decision
is taken on the basis of
consequences.
Deontological or Duty Absolute It is mainly related to
goodness and evilness
of some activities
which is decided after
its completion. It is
based on duty as this
theory relates people
with their
responsibilities.
It is used when
judgement of ethical
value is given on the
basis of
responsibilities or
obligation of
individual.
Utilitarian theory Relative and This theory states that This is independent of
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subjective the top-grade activity
is the one that
increases the
substitute. It creates
an environment of
felicity and happiness.
all values. Result is
provided after seeing
consequences that is
whether it creates
happiness or not.
Egoism Relative This is concerned with
individual thinking
and benefit. Here one
firstly think about his
profit then it assists
other in their work.
This is applied when
quality of employee or
mangers are
monitored.
Teleological ethical theory can be used by Volkswagen because they have to decide
about wellness of activities after examining their results. If good outcomes are achieved then it is
taken or if it is not giving satisfaction then it will not taken. Deontological and teleological
theories are used in decision-making as they are best tool that show exact affect of any action on
others (Michaelson and et. al., 2014). As deontological is based on duty so, here employees
ethical values are easily calculated as they concentrates on their duty or work mainly.
1.3 State the ethical issues which can impact the functional
activities
Some of the ethical issues that influences the operational activities of Volkswagen are
described below:
 Deceived consumers: Corporation is telling lies to their users about their operations in
order to increase the number of sales. They said that their machinery or vehicles are
pollution free and not affecting the environment so that large number of customers gets
attracted towards their product. But in reality, this was not true. They are cheating their
users by spreading false rumours (Hunton, Hoitash and Thibodeau, 2011). Their vehicles
are creating pollution on a large scale as they consume petrol or diesel. As they
manufacturer around 499,000 cars that takes diesel as fuel and 85,000 of cars that have
3.0 liter engines. Both of them are most pollution creating ingredients. They were
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showing that their cars are more fuel efficient but that are not. This vehicles are creating
as much pollution that causes several severe respiratory diseases like emphysema and
bronchitis and causing many heart diseases that are leading people to death.
 Deception in terms of promotion: They are giving deceive to their users by giving false
information during advertisement. While advertising , they show best features of their
vehicles but do not show the faults or bad features like how many litres of petrol or diesel
gets consumed by their cars, what kind of speed they will give?, or many more bad terms.
They also cheated consumers by showing their cars are giving high average speed in
relation to other companies vehicles (Ismaeel and Blaim, 2012). This all was false. When
users purchase their car and uses that they realize the right matter.
 Used technology to cheat people: Company uses many machines to check the level of
pollutions. This was absolutely wrong as they are giving false reports and showing that
they are low or even effect of pollution. By this way they cheat their users as well as
government.
 Lack of concern for the environment: They also neglect the safety of environment and
make vehicles that are creating high level of pollution and the dangerous smoke coming
out from them impacts negatively on the environment. Human as well as animals are
getting ill due to this. As that smokes causes lungs or heart related issues.
TASK 2
2.1 How business goals are influenced by moral
circumstances
It is the objectives of Volkswagen to become more successful and expand their business
in other countries but some moral circumstances impacts its business as they do not follow them.
This is discussed below:
 Employee migration: Company should treat their employees fairly. They should
provided healthy working environment where they can perform their duty effectively. But
they are not giving them so (Ford and Richardson, 2013). Additionally, they also do not
provide them their wages on regular basis, due to this workers are leaving their jobs and
moving to other companies. This reduces the work force of corporation and they will not
manufacture their goods or services at the specified time. Enterprise also do not provide
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any safety measures to their workers as some works are very risky like welding, etc. To
stop this migration, enterprise should give their employees a safe, secure and healthy
environment.
 Lowers demands: The products produced by them are not demanded by large number of
people as they come to know vehicles promotion was false. Their cars produces high
level of pollution and this create very bad impact on environment or nature of country.
They also spread rumour that their cars are giving much high speed than other cars
(Hoffman, Frederick and Schwartz, 2014). But this was wrong. Their vehicles are giving
a normal speed or even low in hilly areas. Due to all these reasons, the demand or selling
of cars get lowers.
 Violating all ethical considerations: Products produced by Volkswagen are violating
all the moral values as they are using some machines that tells lie about pollution level.
Machines are indicating that cars are producing less level of pollution but the reality is
not this. Environment get badly affected by these high level of pollution. Due to this
government is going to take strict against the company.
2.2 Implications for a business and its stakeholders
to function ethically
Stakeholders get greatly impacted by business of corporation. But it is true that , no
organisation can run or operate without them. They play a vital role in developing an
organisation. Several types of stakeholders are engaged in corporation. The implications for a
business and its stakeholder to operate ethically are following:
 Market place advantages: Firm that follows business ethics and are conducting
respectable methods that has the opportunity of taking domination over market
(DesJardins, 2011). This corporation will be well known to each and every party and all
stakeholders as they are interested to do business with them because company is
following business ethics.
 Shareholder: If venture continuously follow business ethics then this make a long term
continuation of shareholder in their business. This will increase business sustainability.
This is proved to be very beneficial for the corporation as this increases the shareholder
value.
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 Employees Performance: If Volkswagen conduct their business by focussing on moral
values of human, then this will secure the job of their employee. If they do not do so, then
workers gets demotivated and left their jobs (Fassin, Van Rossem and Buelens, 2011).
Organisation that follow ethics will assures well being of their employees. And as fruitful
result workers feel safe and secure and give their best by performing from their core of
heart. This will raise the performance of company.
 Investment and growth: If business is operating ethically, this impacts both corporation
and stakeholder. As company is possessing business ethics, reputation get maintained
and because of this large number of people show their keen interest to invest in this
corporation.
 Development: If company operates under the business ethics or moral, then both firm
itself and all stakeholders will work together that aids in developing the firm.
TASK 3
3.1 Role of the company acting as a moral agent
Moral agent can be simply defined as a conceptual agent that is an agent that have
employee concepts with them. It is the capability of individual in order to make moral judgement
that is based on right or wrong actions. A moral agent is one who has ability to do actions with
reference to right or false. Mercedes can be used as an moral agent as they follow business ethics
and give more focus on human rights. This has been setting appropriate situations of
employment in supplier's factories. Some extra ordinary features of Mercedes which can them a
moral agent are described below:
 Dealing with suppliers: They are dealing with making a good or loyal relationship from
their suppliers. They do not tell any lie to them about their products and tell every thing
either which is good or bad to their suppliers. They also give their share at time. This
makes their bonding more strong and suppliers give their best performance in order to
increase selling of cars or other vehicles (De George, 2011). They supply quality
products to consumers and make long term relationship from them also. As company is
performing their business by following business ethics, some other suppliers can take
this as advantage by using supplying their goods on high prices and telling them lie and
by this way they save extra amount of money without informing corporation.
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 Public image: Public or brand image of Mercedes is very effective. Every one knows
their products as they produce most luxurious cars and two wheelers. Their goods are
very trustable. So, people demand their cars in large quantity. Volkswagen should learn
the techniques to gain trust from this company.
 Focus on reducing pollution: Cars or other vehicles manufactured by Mercedes are
producing low level of pollution. This is being checked by pollution checker machine.
But they do not use false machine for checking as Volkswagen (Crane and Matten,
2016). This attracts large number of stakeholders to invest in their business.
 Employee relationship: Enterprise provide highly secured and healthy environment to
their workers so that they so not face any risks or hazards while working. They are
making them available several equipments or instruments that must be used while
working. They also give them wages on specified time. This will raise the level of
motivation in them and they perform their works by giving their best.
By this way Mercedes acts as a moral agent for Volkswagen. They should run their
business by examining or following the business model of Mercedes.
3.2 Improvement of mechanism for achieving
employer involvement and empowerment
The strategies used by Mercedes in receiving employee involvement and empowerment
are described below:
 Job enlargement: It is a process that is used by company in increasing the number of
jobs and responsibilities to make the position more provocative. It is a flat expansion that
means jobs are added at similar level as those in the present perspective. This will create
a challenging environment at work place. Now employee engages totally in their work as
work load is increases. By this production get also positively impacted.
 Training: Mercedes are arranging a program of training in order to improve the quality
of work in their corporation. They involves human resource management in their firm to
increase number of talented workers. For this purpose, HR is concentrating more on
recruiting skilled workers. As they are hiring freshers who had recently completed their
degree of mechanical engineering, so it is their responsibility to provide them proper
training and development programme so that they learn the daily or core work of
company. So that they also effectively contribute in increasing turnover.
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 Access to information: Enterprise maintain transparency in business and provide
essential information to all members of business like stakeholder, employers,
customers,partners, etc. As each and every one knows about every thing which is
happening in corporation, so all works gets effectively managed. If company is involving
any change, then it is essential that each and every one should be aware of that . If they
all are not aware, then they will resist to change which creates conflict in future
(Calabretta, Durisin and Ogliengo, 2011). Therefore, corporation should maintain high
level of transparency in term of information. This will raise the confidence level of
worker as they understand themselves as a part of company and ultimately the brand gets
popular not in same nation but at international level.
 Team Cohesion: Company maintains team cohesion and continuer their work by making
teams or groups. If same group or more than one people are working to achieving same
goal then the success of company is fixed no doubt (Ciulla, 2011). If there are some few
weak members in a team, then also get support from other members and effectively raise
their performance level. Hence, overall firm gain profit by maintaining an environment of
team cohesion.
 Equal opportunities: Mercedes are providing equal opportunities to all workers as no
one will say they have not given chance to earn profit. This will create a positive
environment at work place as each and every individual are treated by same eye without
making any discrimination on the basis of race, gender, colour, position, etc.
TASK 4
4.1 Current ethical issue affecting of Mercedes
Some of the ethical issues faced by Mercedes are listed below:
 Corporate Social Responsibility (CSR) : Company can also perform several social
welfare as different social problem are rising day by day. They can invest some amount
of money in doing work like educating poor children, making job opportunities for local
peoples, etc. (Bageac, Furrer and Reynaud, 2011).
 Child labour: This is a big ethical issue now-a -days. Mercedes should be aware that
their parters which are doing tasks of assembling the parts of vehicles that they are not
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hiring children at their work shops. They must be sure that same level of standard should
be maintained by them also.
 Carbon footprint: Enterprise is now focusing on reducing pollution as it has been
rising more quickly. They want to reduce the carbon foot print by using liquid petroleum
gas as their fuels by removing petrol or diesel which are making more pollution.
4.2 How the business could improve the ethics of their
operations
Mercedes can use several methods in improving the ethics of their operations that are
described below:
 Personal attitudes: Employees in the company should show positive behaviour towards
their job (Bardy, Drew and Kennedy, 2012). This will improve the performance of
organisation as all workers are giving their best and try to improve the turn over of
company.
 Ethics in sales and marketing: Enterprise should maintain ethics in sales and marketing.
This will attract stakeholders to invest money and this will expand business of firm all
over the world.
 Ethics in intellectual property: Venture need to follow in intellectual properties also
like maintaining work of trademark, patent, copy right effectively by showing their
goodwill for consumers. This will increase their brand value.
4.3 Designing of suitable ethical code
Some suitable ethical code of conduct of Mercedes are listed below:
 Conservation of human rights
 Preventing business from all types of corruption
 Protecting assets of firm
 Doing corporate social responsibility
 Maintaining discipline or loyalty in business
CONCLUSION
From the above based report it has been concluded that maintaining ethics in business is
very essential. This will raise the brand value of company in the eyes of government,
stakeholders as well as customers. Some the methods taken in imposing ethics are reducing
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carbon foot print, avoiding child labour, doing CSR activities, maintaining ecological balance,
etc. The different types of theories of ethics are also explained like deontological, teleological
and utilitarian, etc. Their comparison and use are described in this report. Company can use
methods like training, job enlargement, maintaining transparency in terms of information, etc. in
order to improve their performance level.
REFERENCES
Books & journal
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pp.391-406.
Bardy, R., Drew, S. and Kennedy, T. F., 2012. Foreign investment and ethics: How to contribute
to social responsibility by doing business in less-developed countries. Journal of
Business Ethics. 106(3). pp.267-282.
Calabretta, G., Durisin, B. and Ogliengo, M., 2011. Uncovering the intellectual structure of
research in business ethics: a journey through the history, the classics, and the pillars of
Journal of Business Ethics. Journal of Business ethics. 104(4). pp.499-524.
Ciulla, J. B., 2011. Is business ethics getting better? A historical perspective. Business Ethics
Quarterly. 21(2). pp.335-343.
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sustainability in the age of globalization. Oxford University Press.
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DesJardins, J. R., 2011. An introduction to business ethics. McGraw-Hill.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’ perceptions
of business ethics and CSR-related concepts. Journal of Business ethics. 98(3). pp.425-
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literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
Hoffman, W. M., Frederick, R .E. and Schwartz, M. S. eds., 2014. Business ethics: Readings and
cases in corporate morality. John Wiley & Sons.
Hunton, J. E., Hoitash, R. and Thibodeau, J. C., 2011. Retracted: The Relationship between
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Strobel, M., Tumasjan, A. and Welpe, I., 2015. Do business ethics pay off?. Zeitschrift für
Psychologie/Journal of Psychology.
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it right. John Wiley & Sons.
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Koehler Publishers.
Wright, N. S. and Bennett, H., 2011. Business ethics, CSR, sustainability and the MBA. Journal
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Online
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