Business Ethic Assignment

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Added on 2019-12-03

Business Ethic Assignment

Added on 2019-12-03

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RESPONSIBLEBUSINESS

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31) Stakeholder analysis of the IKEA company......................................................................32). Critical Analysis and Evaluation.......................................................................................5CONCLUSION................................................................................................................................9RECOMMENDATIONS...............................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTION Business ethics is the form of applied ethics that helps to examine and analyses theprinciples and moral values that arise out of a business environment. Various types of ethicalissues followed by the company and its employee, suppliers, customer. In short it can be said thatethical issues are the issues including rules and policies between the company and itsstakeholders. IKEA is a multinational group of company headquarters in Delfty, Netherlands.The company deals in various types of ready to assemble furniture, appliances, home accessoriesand motor vehicles. It was founded in Sweden by the 17 years old boy in 1943, who has beenlisted as world's one of the richest people in the year 2013. The company is known for its modernarchitectural designs used in various types of furniture and appliances. Interior design of thecompany is highly associated with the eco-friendly simplicity. The following report is going todepict about the various issues faced by the company at the time of manufacture and sale of theproduct. It also shows how various issues affected the company working and reputation and whatare the necessary measures considered by the company in order to overcome the various issuesthat arises during the manufacture and sale of the product. At last, various necessary suggestionare also provide which can assist the company to overcome the various problems and achieve thehigh growth rate. The main purpose of this report is to implement the business ethics principle inthe organization in order to analyses and monitor the working of the organization. It also aim atimplementing the moral principles and moral value in the organization in order to maintain thehealthy relation within the organization among employee and employer, manager and staff,workers and supervisors and so on.MAIN BODY1) Stakeholder analysis of the IKEA companyThere are number of stakeholders of the company which affects the day to day working of theorganization. Some of them are:-Employees:- Employees are one of the major stakeholders of the company. Companies workingand profitability all depends upon the employees (Brookes, Altinay and Ringham, 2014).Employees simple want job security, healthy working environment, commission and incentiveson regular basis for the work performed by them. Therefore, IKEA company has taken into

consideration all responsible and sustainable measures in order to satisfy the employees byfulfilling there demands. Managers:- Managers are another important stakeholders of the company. Managers want thatthere objective should be achieved on time for which they are responsible (Audi, 2012). Theyalso want profitability and growth of the company. Therefore, IKEA has taking intoconsideration all the responsible and sustainable measure to fulfill there managers want.Company is making an efforts to increase its profitability by producing eco-friendly products toits customers at low rate.Customers:- Customers are the external stakeholders of the company who want value for theremoney spend. They simple want better quality products at low price (George, 2011). They alsowant that company should supply ethical products and provides after sale services. Therefore,after considering all responsible and sustainable factors company has started manufacturing eco-friendly products of high quality at low price.Suppliers:- They are one of the valuable assets of the company. Without the supply of rawmaterial the working of the company will be badly affected. Suppliers simple wants orders fromthe company on regular basis. They also want that company should make them timely payment.Therefore, IKEA used to purchase raw material from the supplier as an when demand arises bymaking advance payment. Power interest analysis matrix of the shareholdershighKeep satisfied(Customers)Customers of the company high powercontrol but rate of interest is low. Encourage and influence(Shareholders)Shareholders are the person who investcapital in the organization. Therefore,there power and interest level both arehigh. Monitor(Suppliers)Suppliers are the person who supplyraw material to the company. Therefore,power of them towards the company ishigh but interest is low.Keep informed(Employees)Employee are the person who work forthe betterment of the company. Employeepower and interest towards the companyis low.Low interest high

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