Business Ethics and Responsible Management

This report discusses the importance of business ethics and responsible management, using the example of Ocado. It covers ethical issues, the role of business in society, stakeholders, examples of good and bad ethical practices, and recommendations for mitigating ethical issues. It also includes a reflection essay on ethical leadership management.

Business Ethics and
Responsible
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Ethical issue................................................................................................................................4
Role of business in society..........................................................................................................5
Stakeholders................................................................................................................................5
Examples of good and bad ethical practices...............................................................................7
Recommendations.......................................................................................................................7
PART 1 B.........................................................................................................................................8
PART 2.....................................................................................................................................10
Reflective essay on Ethical Leadership management...............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business ethics are known as prearranged conduct code for the companies. It is the
guideline setted for the deal with the different process in an ethical way. Discipline includes the
commercial accountability, social accountability, personal responsibility, fairness, faithfulness,
admiration, honesty and ethics of technology. It highlights the sustainableness, brand image,
consumer faithfulness and retaining of employees. The purpose is for preventing the
unprincipled practices of businesses thoughtful and unintentional both. Some of the unethical
exercises avoid enactment of law, even the hazard of businesses pays the unseen cost which is
reputation loss. This report is based on OCADO which is a British business of licenses grocery
technology and is headquartered in Hatfield, Hertfordshire, England. Firms 50% share is owned
by the UK famous retailer Marks and Spencer and it has licensed its grocery fulfilment
technology to the international retailers like Kroger in US and Coles Group in Australia. Firm
was incorporated in year 2000 by Mr. Jonathan Faiman, Jason Gissing and Tim Steiner. The
project mentions the ethical issues of Ocado, businesses role in today’s society, stakeholder’s
examination of firm, examples of decent and corrupt ethics and references for mitigating the bad
ethics. It even covers the business ethics theory, theory of application, critiques study, references
and moral leadership administration.
PART 1
a)
Ethical issues
It’s important for the business for keeping emphasis on the inside environment of business
on the constant basis for identification even if they are doing work in an ethical way and gain
positive brand image. Scanning of the environment aids the firm for identifying the ethical issues
and mitigate them before they create a negative impact on the firm. With the given case study
context Ocado which is the online retail firm, exploiting the drivers by giving then wages
minimum then the United Kingdom’s legal wage rate. They get less wages than the $5 per hour
which is the minimum wage rate of United Kingdom. Secondly the drivers are hired and told
they will get the payment of $ 14 per hour. Drivers have reported of down fall in their earnings
by 50 % to 70% after the coming of new delivery partner Ryde. There load also increased and
because of it they had the issues of back pains and shoulder. On other side the firm has asked the

drivers for developing the appearance by their own expenses and firm will not pay a single
pound for the uniform expenses. When the company was confronted about this entire scenario
they told that they are talking with the drivers but when this was asked to the driver they said
nobody approached them for the consultation. So it is the unethical performance from OCADO
towards the workers which is not satisfactory. Due to the issue the image of brand of the firm got
negatively impacted and they lose many of the consumers as customers trust those business firms
which are performing the business activities ethically.
Role of business in society
Business operating in the society having main motive of generating sales. The sales and
profits should prepare the ethics code of conduct for making affirmative decision taking in
firm so the goals get achieved without any hindrances. When business operates by
unethical practices, it will lead to legal consequences which will harm firm’s reputation
and impact society as the whole. In context of provided case study one viewpoint is of
giving of less wags to drivers and making them financially weak impacting society. Firm
not moving in the correct direction for taking fair decisions creating many issues for
drivers. Giving less wages and extra work is resulting in creation of negative impression on
society as firm is practicing it for the working. Meanwhile firm should make clear to
drivers that they are working on it and soon solve it and should give advantages and
disadvantage of same to firm ensuring that they don’t work on terms which are unethical
affecting society as whole.
Stakeholders
Stakeholders are the people who have the curiosity in firm and the actions and they
invest and participate in firm. They have power in the process of decision taking in accordance to
the expertise and knowledge in the taking of decisions. So, stakeholders have the vital part in the
achievement of firm’s objectives as they constantly monitor the activities of business. There are
less sponsors of Ocado which is online retail firm and significance of stakeholders in the firm’s
achievements is stated here-
 Consumers- They are chief motive for the firm’s success and firm work for
keeping pleased and glad by the goods and facilities. Consumers are the

stakeholders of Ocado who have no interest in the firm but have power and affects
negatively on the firm in case they switch to the other brand. If Ocado soon does
not solve the issue of the drivers, then the consumers may switch the firm
impacting the company’s profitability. Consumers are not allowed for taking part
in the process of decision making of firm because the knowledge lack in taking
decisions of organisation. Further, they have knowledge in the research of
marketing for analysing likings and actions consumers towards goods and
facilities sell by the Ocado firm. So their recommendations will aid firm for
making variations in the business firm.
 Government and makers of policy – Includes those persons which have high
power and controls the business by the instructions and guidelines and is
important for Ocado for following the guidelines and strategies made for firms for
the economy. They fundamentally make these strategies which aids the economic
system in growing. In case study Ocado didn’t follow the strategies and
guidelines so they’ll get penalty. They have no interest in the firm’s process of
decision making but have more power for influencing choice of the firm by the
legislature authorities. They play the crucial role in achievements of the firm
because of the assisting strategies and structures for the enterprise success.
 Employees: It consists of persons which work for firm. They have more interest
in firm bit don’t have more power in the activities of decision taking and because
of approach and environment. It states that firm gives more power to the
employees in company's process of decision taking as they’ll take the decisions
which are helpful for own motive and don’t take decisions which are good for the
business enterprise. But it shows the vital part in giving the proposals in enterprise
which ill aid for making the optimistic variations. They are conscious of the
firm’s inside matters and distinguish what alteration is reasonable by the firm and
which isn’t.
 Local communities: It includes person which have less interest and less power in
firm due to knowledge lacking and proficiency in the process of decision taking.
They play the essential part in the development of brand image of the firm by
giving the valuable assets.

Instances of good and bad ethical practices.
There are several firms who perform the activities in a fair and accurate way and do not
come in the bad ethics category. Example of firm having good ethics practices is IBM have
got the award for best ethics firm in globe for two consecutive years. Other example is of
Marks & Spencer, which deals in the retail segment of clothes and is an ethical firm
offering its services fairly.
Examples of firms having bad ethics consist of Amazon which is the online retailer which
is rated as unethical firm on the terms of issues of environment and managing of supply chain.
Other example of firm having bad ethics is ASDA which deals in retail super marts having bad
ethics for discrepancy between workers, staff and others.
Recommendations
Here are some recommendations for mitigating the ethical issues in context of Ocado are
stated below-
 Firm is recommended to increase the wages of the drivers and pay them at least the
United Kingdom’s minimum legal wage rate.
 They are recommended for recruiting more drivers so the load of the existing
employees decreases. If the driver needs to deliver the big bags to the customers,
then the firm should give them big vehicles for transportation such as vans or cars.
 Company should give medical facilities to the drivers and must give them medical
insurance cover so in any case if they get injured they get the treatment free of cost.
The drivers must also get life insurance cover so they get security of life.
 They are also recommended that they must take the advice of employees before
taking any decision in the firm as employees may aid them in giving the
information which might aid the management for achieving the goals and
objectives of the firm.

PART 1 B
Whenever there is the issue of business organization, various different conditions &
determinants which sets the wide-ranging impacts and became more hard for enterprise
which continue for entire unethical practices. Many different theories of ethics which are
used in the business enterprise helping in offer & leading coherent, constant and systematic
which is related to the statement for issuers which can be in detail and discussed to the
stakeholders which provides the effective function in the making of decisions. Hence it’ll
help for offer of the better understanding which is related to the challenges of problems of
the business enterprise.
UTLITARIANISM
The theory was developed John Mill and Mr. Jeremy Bentham & their fundamental
principle is great happiness. By Mr. John Mill fundamental principle of the theory which is the
that action is correct if it encourages cheerfulness and is wrong if it brings the grief and
happiness opposite. Firm may work for the making of society happy by the actions and promotes
the sadness if it isn’t correct decision. Basic principle of Jeremy Benetham is great happiness
gives which nature has placed mankind under 2 sovereign masters of pain and pleasure. The
theory focuses on the first outcomes and results by actions and disregards of things such as
reason and motive for the commitment of action. Secondly it focuses on the neutral decision
taking by agents. It mentions that the decision should be taken by the peoples counting the
individuals whether they are related to stranger, friend or family. The fundamental principle is of
greatest amount for good to large no. of individuals. It works for the society’s betterment.
OCADO may apply this theory and work for the betterment of drivers so they are
happy and get benefitted. Firm may fix the working hours so they are not burdened and get time
for playing games.
Main benefit of this theory is its universal concept which is applied in any culture or
situation. Other advantage of it is of following the democracy principles which mentions that if
result of large individuals gives pleasure, it is the correct decision. Main disadvantage is that it
only focuses on the outcome and not action. It deals with actions giving happiness to others but
don’t care for individuals in context of action which is wrong. It also don’t measure happiness in
physical form as there are no proper measurement of happiness.

DEONTOLOGY
It was introduced by Immanuel Kant providing individual should follow the duties to
other people or society as if any individual holds duty of other and is considered as the correct
ethically. It mainly focuses on actions for acting individuals good. By Kant performing correct
things matter most despite of outcome which causes harm.
In reference of OCADO the theory has the application that firm should engage self in
activities which respect others dignity. It should eliminate concept of extra working so driver’s
health is compromised and if firm continues extra work it is considered as unethical.
Advantage of theory is creating the individual accountability on individual about action
should be bringing harmony having universal application. Disadvantage of theory is for not
giving basis on rationale for deciding duty of person and conflicts for individual.

PART 2
Reflection essay on the Ethical Leadership management.
Ethical management is known as subject which showcases leader’s behaviour by noble
values by the words and actions. It is the act according to moral principles in day to day
operations of business and in the process of decision taking. Ethical leadership management has
created culture in place of work where individual may perform right things. Ethical leader is one
who explains and supports values which might build the ethical work culture. Ethical culture of
organisation is build from ethical values effective communication make sure that individuals
have sustain the values in the behaviour while doing work in firm. Ethical leader is one who
aligns ethics in firm and recruit individuals by similar values so ethics are communicated by to
each one who work for the firm. Ethical leader don’t bring biasness in the decision taking and
lead workforce by examples.
Ethical leader might keep honesty and comply in place of work by making sure which
rules & guidelines are strictly followed by the staff member as it reflects the performance
efficiency. There may be teams spirit in all the employees the individual is keep besides and
everyone can work for the firm’s common goals. Leader may encourage employees so they work
with ethics and enthusiasm which sets the example for others. For bringing efficiency and
effectiveness in workforce performance, leader may motivate for complying with the code of
conduct so all may work together as the team. Mechanism of effective communication should be
developed in business firm so honesty and compliance are ensured by leader.
For becoming ethical leader, I have taught myself for constructing self in the ethical
leader. Before team construction I distinguish individuals in accordance to the productivity as
productive teams are formed as the firm. In guiding the team, I maintained group spirit between
the team members where I insisted more discussions so the channel of effective communication
is built in the team. While resolving issues among members I respect opinions of members of
team and tried to work with the viewpoint of their so the dignity of them doesn’t get hurt. It
boosts the confidence of the teams and I was capable for trusting self-abilities which aided me
for making in right decisions. By following ethical conduct of firms aided me for taking positive
decisions for the team and enterprise. Before figuring any conclusion I evaluated the decisions
taken by me and its impacts so I can take decisions without any stress and worry. So the ethical

behaviour aided me for opting fair decisions without any discrepancies which leaded to
enhancement in the team member’s productivity.
CONCLUSION
This part concludes that the ethical leader brings ethical environment in firm where the
working is done by following the ethics. Firm should encourage strict complying of the ethics
and morals so business runs ethically for eliminating pointless issues. Ethical leader is individual
who defines values and do work on the building of effectual communication so the values and
ethics are communicated to everyone. So it is duty of leader for ensuring compliance and honesty
in place of work so productivity is enhanced of business and employees may get on success
height.

REFERENCES
Books and Journals
Gallego‐Alvarez, I., Rodríguez‐Domínguez, L. and Martín Vallejo, J., 2020. An analysis of
business ethics in the cultural contexts of different religions. Business Ethics: A
European Review, 29(3), pp.570-586.
Gerasimov, B.N. and Gerasimov, K.B., 2018. Business ethics as an element of modern
management. In HIGH TECHNOLOGY MANAGEMENT & ECONOMICS (pp. 4-10).
Kurseeva, M. and Baranzhieva, S., 2020. BUSINESS CONDUCT ETHICS. In Актуальные
вопросы современного менеджмента: теория, методология, практика (pp. 166-
169).
Laczniak, G.R. and Murphy, P.E., 2019. The role of normative marketing ethics. Journal of
Business Research, 95, pp.401-407.
Mahmood, K.S., 2020. Need for legal reform to regulate business ethics.
Picard, R.G., 2021. Media Business Ethics, Corporate Social Responsibility, and Governance.
In Handbook of Global Media Ethics (pp. 59-70). Springer, Cham.
Pullen, A. and Rhodes, C., 2021. Organizing Corporeal Ethics: A Research Overview.
Routledge.
Rendtorff, J.D., 2019. The concept of business legitimacy: Corporate social responsibility,
corporate citizenship, corporate governance as essential elements of ethical business
legitimacy. In Responsibility and Governance (pp. 45-60). Springer, Singapore.
Rendtorff, J.D., 2019. The Principle of Responsibility: Rethinking CSR as SDG Management.
In Philosophy of Management and Sustainability: Rethinking Business Ethics and
Social Responsibility in Sustainable Development. Emerald Publishing Limited.
Roosa, A., 2020. Education in Business Ethics and the Prevention of Toxic Leadership: A
Phenomenological Qualitative Study.
Schwartzkopf, D. and Sigurjonsson, O., 2021. AI's Manifold Role in Business Ethics Education.
In Principles of Responsible Management Education (PRME) in the Age of Artificial
Intelligence (AI) (pp. 27-40). Information Age Publishing.
Zhong, X., Ren, L. and Song, T., 2022. Beyond market strategies: How multiple decision-maker
groups jointly influence underperforming firms’ corporate social (ir)
responsibility. Journal of Business Ethics, 178(2), pp.481-499.
(Gallego‐Alvarez, Rodríguez‐Domínguez and Martín Vallejo, 2020)(Kurseeva and Baranzhieva,
2020)(Laczniak and Murphy, 2019)(Rendtorff, 2019)(Pullen and Rhodes, 2021)
(Mahmood, 2020)(Picard, 2021)(Rendtorff, 2019)(Roosa, 2020)(Schwartzkopf and
Sigurjonsson, 2021)( Zhong, Ren and Song, 2022)(Gerasimov and Gerasimov, 2018)