Business Ethics and Responsible Management Report and Theories

Business Ethics and
Responsible Management

TABLE OF CONTENT
PART 1-A REPORT .......................................................................................................................3
INTRODUCTION...........................................................................................................................3
1. Ethical issue faced by the company.........................................................................................3
2. Role of business in society.......................................................................................................3
3. Five stakeholders.....................................................................................................................4
4. Examples of good and bad ethics ............................................................................................6
5. Recommendations....................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
PART 1-B TWO THEORIES .........................................................................................................9
INTRODUCTION...........................................................................................................................9
1. Describing the two theories ....................................................................................................9
2. Applying the theories ..............................................................................................................9
3. Advantages and disadvantages of theories ...........................................................................10
4. Recommendations..................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERNCES ................................................................................................................................12
PART 2 Reflective essay ..............................................................................................................13
INTRODUCTION ........................................................................................................................13
MAIN BODY ................................................................................................................................13
1. Discussion on ethical leadership management in ethical and unethical organizational culture
....................................................................................................................................................13
2. Analysis on maintaining integrity and compliances in ethical and unethical business
environment ..............................................................................................................................13
3. Own experiences and learning...............................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

PART 1-A REPORT
INTRODUCTION
Business ethics refers to the system which implements the business policies and practices
in order to mange the issues in the environment. This assignment is based on the Southern Water
which is the private utility company and the company is responsible for the public wastewater
collection in Hampshire. This report will outline the ethical issue of the company and the impact
on role of business in society and how ethical issue affected society. Further it will outline the
impact ethical issue on the stakeholders and good and bad ethics of two companies and at last it
will outline the recommendations.
1. Ethical issue faced by the company
The ethical issues occur when the cited policies and practices are not followed by the
company and affects the principles of the company. This issues can be affected by both
individuals and businesses by doing some unethical practices in the external environment
(Hobday and et.al., 2019). It is basically the situation where the moral standards of the company
are questioned. The organizations establish the ethics in their business in order to promote
integrity among the members of the company (Navalta, Stone and Lyons, 2019). Southern water
has also done the unethical work which has caused the environment has polluted the coastal
areas in the parts of the Hampshire, where they operate. The fine was imposed on the company
of £90 Million in order to dump the sewage into the seas. As the role of the company is to collect
the public wastewater and do the treatment of that wastewater. But the company has dumped the
rubbish and sewage into the seas which causes an ethical issue done by the company in the
external environment. This issue has caused health related problems to the humans and fisheries
and other businesses which are dependent on the coastal waters.
2. Role of business in society
Corporate Social Responsibility is the main activity of every business that makes the
company to be socially accountable from its stakeholders and the public in the external
environment (Allhoff and Henschke, 2018). It makes the company to have good reputation in the
market by providing some percent of net profit in the welfare of market. The Corporate Social
Responsibility is the multi-layered concept which makes the company to know about the
responsibilities to be fulfilled at the four levels that are economic, legal, ethical and
philanthropic.

The following levels of the Carroll's Pyramid of CSR raises the performances of the
company in order to manage financial rewards and manage the conflicts related to the ethical
concerns and profits of the company. As the company has faced the ethical issue by dumping the
sewage into the sea which has caused the problems in the society. By doing this the humans have
faced the health related issues, some issues were also faced by the fisheries who used to go into
the sea and many businesses has also affected by this ethical issue as these business were
dependent on the coastal water of the seas. This caused a bad impact on the society and affected
many people in the external environment.
3. Five stakeholders
Freeman used to suggest that the stakeholders of the company are those groups which
used to support the organization in order to exist in the market (Ferns and Amaeshi, 2019). This
includes the customers, employees, owners, suppliers, government, financial institutions, etc.
The five stakeholders of the Southern Water are the owners, employees, government and
regulation bodies, society and shareholders of the company. The impact and influence of the
ethical issue on the stakeholders of the company are as follows:
Stakeholders Internal/
External
Impact Influence How
stakeholders area
affected by
ethical issued
done by the
company
Southern Water
owners
Internal High High By doing this
unethical issue it
has affected the
reputation and
image of the
company.
This makes the
company to lost
its profits by
paying the fine