Business Ethics and Superdrug

This assignment requires you to analyze the ethical practices of Superdrug, a British health and beauty retailer. Using the provided list of academic sources, assess Superdrug's commitment to social responsibility and business ethics. The analysis should draw upon concepts from business ethics literature, such as corporate social responsibility, stakeholder engagement, and ethical decision-making.

BUSINESS ETHICS

Table of Contents
Introduction:...............................................................................................................................2
Task 1:........................................................................................................................................4
1.1 Background and development of theoretical ethical approaches:........................................4
1.2 Compare and contract absolute and relative ethics..............................................................5
1.3 Explain the ethics issues which can affect the operational activities of business................6
Task 2:........................................................................................................................................8
2.1 Explain how the business objectives are affected by ethical consideration.........................8
Task 3:......................................................................................................................................11
3.1 Assess the role of the organization acting as a moral agent ..............................................11
3.2 Analyse the development of mechanism for achieving employee involvement................12

Task 4:......................................................................................................................................13
4.1 Research current ethical issues affecting a selected business............................................13
4.2 Improvement process of business......................................................................................14
4.3 Suitable ethical codes.........................................................................................................15
Conclusion:..............................................................................................................................18
Reference list:..........................................................................................................................20
Introduction:
Business ethics is a form of ethics of any particular business. It also examines the
moral ethical problems which arise in a business environment. Business ethics is applied to
all aspects of business conduct which is also related to the conduct of an individual. There are

generally four elements in business ethics such as responsibility, commitment, quality and
reliability. Superdrug is a popular health and beauty product retailer in UK after Boots.
Superdrug was established by Ronald & Peter Goldstein in 1964 (Superdrug.com, 2016).
This popular retail currently has more than 787 outlets across UK and Ireland. This
popular health and beauty product retailer has appointed a consultancy guide the organization
on its ethical behaviour and conduct. As stated by Bunge (2012), Superdrug has recognized
the importance, value and benefit of managing the business sustainability. It has been noticed
that Superdrug was committed to follow the environmental good practice, social
responsibility and maintain economic prosperity (Rutherford et al. 2012, p.176). The
organization has been purposefully lobbying and the government has not just reduced the
VAT rates out of the blue (Brenkert and Beauchamp, 2012). On the other hand, Superdrug
has started selling of range of beauty products which have not being tested on animals. Those
products carry the logo of “British Union for the Abolition of Vivisection” (Zikmund et al.
2013).

Task 1:
1.1 Background and development of theoretical ethical approaches:
As stated by Ferrell and Fraedrich (2015), theoretical ethics is concerned with norms,
values and beliefs embedded with the social process. Theoretical ethics defines the right and
wrong for the organization like Superdrug. Every organization has a morality because this
constitutes the basis for mutual beneficial interaction. Those fundamental rules are
considered as rules and regulations for the employees. Rutherford et al. (2012, p.179) opined
that ethics is the branch of philosophy which focuses on the morality of things. On the other
hand moral principles are applied to everyday life. Theoretical ethics includes applying value
which may range from religious principles to customs and traditions (Leroy et al. 2012,
p.258).
According to Bondy et al. (2012, p.284), ethics is a set of moral principles which
distinguish between the rights and wrongs. It has been observed that different organizations
have followed different ethical theories such as consequentialist theories, non-
consequentialist theories and agent-cantered theories. The consequentialist theories are
primarily concerned with the ethical consequences of particular action (Acevedo, 2012,
p.199). On the other hand, the non-consequentialist theories are generally broadly concerned
with the intentions of the person for making ethical decisions about the particular actions (a
et al. 2012, p.287). The agent-cantered theories are more concerned about the more ethical
status of individuals or agents. The agent-cantered theories are less concerned to highlight the
morality of the particular actions (Bunge, 2012).
It has been noticed that higher officials of Superdrug have implemented the
consequentialist theories for maintain the ethical consequences of every operation of the
organization (Brenkert and Beauchamp, 2012). The business consultant has critically
observed different approaches such as duty-based approaches, rights approach, utilitarian
approach, virtue approach, fairness or justice approach, common good approach and egoism.
After observing different types of approaches, the business consultant has advised to follow
the duty-based approach. As stated by Bondy et al. (2012, p.286), duty-based approach is
called deontological ethics which was implemented by the philosopher Immanuel Kant.

According to this approach, the activities of the higher officials is not always
highlighted the consequences of the aim of the organization but those activities have proper
intention in performing the action. As stated by Ma et al. (2012, p.287), the fairness or justice
approach is appropriate for organization. Fairness or justice approach is a law code of
Hammurabi in Ancient Mesopotamia. According to this approach, all free men should be
tracked alike, just as all slaves should be treated alike. Organization can combine universality
along with this approach for implementing the justice approach for all human persons or
employees (Zikmund et al. 2013).
Ethics is related to the values and principles that are used by the business organization
so that they can perform their operations in a smooth manner. Through the ethical princilpes,
they will be able to know that how they have to behave in the market in order to provide
benefits to the society. Some of teh ethical approaches can be used by the enterprise such as
virtue ethics, deontology, consequentialist, morale relativism. Now a days this activities are
followed by the Superdrug.
Business Ethics evelved over the time as before people only believe on the cultural
values they does not took into consideration the social values that peotects the environments
and the young minds wantede to make innovations in the products using their own skills and
abilities and the workers in the organisation found their work more ethical than the previous
time. The companies established different code of conduct for the employees so taht thwere
will be systenmatic flow of work in the organisationsb and all the employere will be treated
fairly at the work place.
1.2 Compare and contract absolute and relative ethics
Ethical absolutism is a one side of the spectrum in ethical theory. Ethical absolutism
claims that there are eternal, universally applicable moral principles. According to Voegtlin
et al. (2012, p.12), ethical absolutism determines the qualities of the right and wrong
objectives. It has been noticed that absolutism allows the moral rules which can be evaluated
critically. The management of Samsung and HCL have implemented absolute ethics so that
every employee is treated the same way (Leroy et al. 2012, p.261). According to absolute
ethics, the managers of the organization need not change the moral only when the moral rule
is right (Bunge, 2012). Therefore, the managers would not need to develop different rules for
different employees because absolute rules are universal. It has been noticed that the

absolutist theory has no place for evolutionary nature in humanity in general condition. On
the other hand the absolutism does not consider the situation whereas it simply ignores the
circumstances in which ethical judgements have been made.
On the other hand the ethical relativism provides the morality in the different
departments of the organization. The relative ethics ensures that there are no universal rights
and wrong that can be rationally determined (Zikmund et al. 2013). It has been observed that
the relative morality simply takes the stance that no single set of moral rules can possibly
account for any situation. As opined by Rutherford et al. (2012, p.175), in some
organizations like Tesco, General Electric and Greenergy, a moral decision is made
rationally, taking into account the consequences to each potential choice. It has been
observed that Superdrug fails to appreciate certain moral values which are universal due to
maintaining relativism ethics. On the other hand the managers have observed that the job
ethics is essentially descriptive. Those are most disadvantages for maintaining relativism
ethics.
However, it has been noticed that cultural relativism reduces the meaning of good
which is socially applicable. As per popular news report it has been observed that the
manager of General Electric has terminated 2 employees for poor performance (Brenkert and
Beauchamp, 2012). However, the employee termination is against the company ethics but
poor performance is not acceptable to the managers. Therefore, it may be more difficult to
decide when the rules need changing in different circumstances (Zikmund et al. 2013).
Absolute ethics is related to the one specific ethic or code of conduct that
should be followed by the people. On the other hand, it is said that relative ethic is based on
the concept that no one follow any specific principles because all human beings are different
from each other. On the basis of the absolute it can be stated that Superdrug can idenitify the
difference between the right and wrong and from the another aproach it cannot be analysed.
1.3 Explain the ethics issues which can affect the operational activities of
business

As opined by Myers (2013), the managers have faced ethical issues in business. It
has been observed that more than 30% employees of a Multinational company face
workplace harassment for using of social networking sites. It has been found that comments
regarding employers or colleagues on social networking sites are costing employee jobs
across UK (Hill and Jones, 2013). Therefore, its consequences in the workplace affect the
business industry because the employers are setting policies regarding use of social
networking sites during working hours (Ferrell and Fraedrich, 2015). On the other hand, the
employers have devised a policy about the use of social networking sites when they are off
duty.
It has been noticed that Cisco Systems Inc has developed a software program such as
Cisco SocialMiner which monitors their employees in social media (Ma et al. 2012, p.289).
The organization has claimed that their advance software system monitors the status update,
forum posts and blog posts in real time.
As opined by Rutherford et al. (2012, p.177), some organization has faced issues
regarding equally maintained payment for the employees. If the organization follows the
federal and state laws, organization has to pay equal salary to the employees who perform
same works. On the other hand, the organization is liable to increase the salary of the old
staffs. Therefore ethical dilemma arises (Leroy et al. 2012, p.264).
As argued by Bondy et al. (2012, p.282), maximum private organizations have faced
some ethical issues such as :
 Terminating employees in unsafe working condition
 Producing unsafe products for the customers
 Avoiding proper monitoring process and technology help
 Recycling of waste product
 Profiling from products bad for health or people.
There are some of the ethical issues that can affect the operational activities of
the business organization. Some of the issues are related to the decision making

process, diversity and governance issues. Along with this their are some of the
fundamental issues that are related to the trust and integrity among all the co-workers.

Task 2:
2.1 Explain how the business objectives are affected by ethical
consideration
It has been observed that Superdrug managers have applied the consequentialism
ubiquitously in the organization. The manager wants that, all implemented decisions should
have measurable consequences. As stated by Bunge (2012)),deontology requires a rule to
governs a decision. It has been noticed that not all decisions have a rule or associated duty
with them. Sometime managers have followed the virtue ethics to examine the decision in the
context of one’s character (Brenkert and Beauchamp, 2012). However, due to some ethical
issues the managers follow consequentialism ethics systematically.
It has been noticed that Superdrug has operated their business globally and interact
with different cultures and commercial systems. There is no confusion that Ireland market is
totally different from UK market (Weiss, 2014). Therefore the marketing experts have
followed ethical frameworks to guide the administrative decision in foreign market so that
the business aim remains firmly based and the organization maintains the social responsible
principles (McGee, 2012). However the business ethics of Superdrug has been affected by
ethical consideration such as:
Unfair employee treatment strategy:
The managers have followed an ethical approach to promote the safety and security of
the employees. According to company terms and policies, the organization has to provide the
living wage as a form of additional benefits (Zikmund et al. 2013). It has been noticed that
organization has stopped the proposed benefits for uncertain period. Then organization has
claimed that those employees performance were not good.
Engagement in sustainable manufacturing process:
It has been observed that the organization has implemented a business lobby with UK
government to reduce the Value Added Tax on some lifesaving drugs (Hill and Jones, 2013).

On the other hand the organization has sold their skin care products and other brand products
without tested on animals.
Business objectives of Superdrug are get affected due to the ethical issues. In
order to resolve all ethical delimmas the company have to use all the laws and regulations
that are made by the state government. Some of the objectives are profitability, higher sales,
social responsibilities and so on. For example, the firm of United Kingdom can follow the
equity act in order to provide minimum wage to all the worker.All the employees should be
treated fairly at the workplace this leadas to the retention of the employees for long time in
the organisation.The ethical consideration focuses on the concept that the employees should
minimise the negative effects taht harm the environment and deploy the natural resources of
the environment. There should be proper rules and regulations at the work place which could
have positive impact on the environment.The Superdrugs are the healthy and the beauty
retailers that operates in the united kingdoms and their fulfillb their objectives and the
functions that is not to harm the consumers and the drugs are consumed not to harm the
environment aspects.
2.2 Evaluate the implication for a business and its stakeholders to operate
ethically
As opined by Audi (2012, p.274), management of organization has to follow good
ethics which will be accepted by the society. However, after some days the issues in the
ethics will arise. It has been noticed that management system of Superdrug operated by the
laws of honesty and consideration will be preferred over a competitor. As opined by Ma et al.
(2012, p.292), government is one of the stakeholder of this organization. The UK
Government has already reduced the VAT of some lifesaving drugs. However, it has been
observed that the organization has maintained dual image in the UK. Primarily they sell
lifesaving drugs in cheap price. On the other hand they have sold the untested cosmetic under
the logo of “British Union for the Abolition of Vivisection” (Torugsa et al. 2012, p.485).
Therefore, the organization has not maintained proper ethics in their business operation.
Customers:
Apart from Government, customers are also affected by the business strategy of
Superdrug. The business strategy has expressed the mix effect in the market. Superdrug
maintains ethics by reducing the price of some health and skin care products. On the other

hand the organization has sold untested products along with the government logo. This
particular lobby with Government is unethical.
The activities of the business organization are based on their stakeholders such as
customers, employees, competitors, government and so on. If all these people perform their
operations ethically then Superdrug will be able to improve their growth, competitiveness can
be achieved, all business objetives can be accomplished and overall performance of the firm
can be enhanced in an efficient manner. On the other hand, if they are not performing
business on ethical manner then due to this their image get affected and they will not be able
to attract number of customers towards their services.
The positive aspect of super drug is that it can compete in the market place and they will
never fight any competition with the competitor because the behaviour predicts that may not
obey the law the rules and the regulations are not ethical and they strive for the competrition.
It is also known as the largest retail store and it has its own team of nurses who are running
this store. The negative aspect of superdrug is that it does not harm to the consumer nor the
environment.
Task 3:
3.1 Assess the role of the organization acting as a moral agent
As stated by Voegtlin et al. (2012, p.8), Superdrug has implemented the lobby with
UK government. The government has reduced the Value Added Tax of some health and
beauty care products. It has been observed that the organization has acted as moral agent
through its organizational integrity. Superdrug has implemented the some strategy to
maintain ethics.
Organizational integrity:
Superdrug has not maintained properly organizational integrity. According to ethical
structure, the organization has not maintained the proper accountability, alignment and code
of ethics with the customers as well as employees (Torugsa et al. 2012, p.487).
Working condition:

It has been observed that the working condition of the employees is affected by the
unethical decision of the companies
Good practice in equal opportunity:
It has been noticed that organization has not maintained the good opportunity ethics
in the workplace.
Moral agent is the one who perform ethical practices in order to behave in right
direction so that overall performance can be improved. For example, Superdrug act as a
moral agent and perform practices on the basis of trust, quality, beliefs, values and so on.
Along with this, they are following all the rules and regulations that are made by the state
government in order to perform well and protect all the rights of the people. The retailer
share their profits with their workers in order to increase their motivation level.
The organisation can become ethical when the employees are working cooperatively
to achieve the goals of the organisation. The resources of the organisation should be
processed effectively to achieve the dwesired outcomes in the organsiation.
In the supergrugs the nurses are working effectively and effeciently to achieve the
goals of the organisation.The ethical organsiation cultures defines the the belief, values and
the customs of the organsiation that the organisation follows to achieve its objective. The
demension that shapes the organisation are linked with the cultural values of the organisation.
3.2 Analyse the development of mechanism for achieving employee
involvement
The organization should consider developing a strategy for conveying organizational
strategy and values to the employees along with the goals and the objectives. As a
consequence the training methods need to be changed in order to incorporate the same. In
addition to the above mentioned fact the organization should consider imparting training to
the employees with the purpose of uplifting their skills. This would not just enable the
employees to develop new skills but would also ensure active participation from their end.
By imparting training to the employees the organization would also ensure that the

employees of the organization are more connected and loyal to the organization. The
imparting of training also enhances or improves the employee retention in the organization.
Superdrug can develop some of the mechanism in order to increase the involvement
of employees within the firm. For this, they can focus on their HR policies. The manager can
offer some rewards, incentives and fringe benefits to their workers so that their level of
engagement can be increased at the workplace. Along with this, proper communication
should be their among all the staff members so that trust can be build among them and
overall performance can be improved.
The employee empowerment and achievement realtes to the recognition of the work that is
done by the employees in the organisation. It also refers to the responsibilities that are given
to the employees in the decision making process and regarding the particular task of the
organisation. It allows that the decision can be taken by the employees in the organisation
and this helps in facing the problems by the employees in the organisation.
Employee empoerment helps the employees to take responsiveness against the issues and the
problems that arises in the organisation. It also leads to the commitment of the achievement
of the goals for the organisation by the emplouyees.
Task 4:
4.1 Research current ethical issues affecting a selected business
Distinct industries situated all around United States, faces several ethical dilemmas.
These cover diverse issues like the pay rates of an employee and harassments that are
commonly found in a workplace (Torugsa et al. 2012, p.489). Organizations like to confront
all these dilemmas since such can either ire or praise a consumer depending on the type of
policies they will be adopting.
Employee Behaviour:
Varying from a small to large, company individuals of every business types comes up
with the term of ethical issues which rises from the behaviour of an employee (Voegtlin et al.
2012, p.2). For instance, whether some individual is with personal work during their official
working time, how the company manager is giving importance towards harassment and how

a manager is handling some employees for promoting the topic of ethical issues regarding he
behaviour of the employee.
Working Conditions:
Apart from the above mentioned, several other issues are also there among which this
is the one. For instance, an employee is needed to be well aware about safety awareness of
their workplace.
Customer and Supplier Relationship:
The business owner and the employees are required to consider the ethical issues
related to their relationship with each other (Melé, 2012, p.92). Particularly the business
owner is needed to consider their relationship with the suppliers and make out whether it
stands ethical to continue business with the suppliers who are into unethical practices.
The other ethical issues:
 Elimination of working conditions which are unsafe
 Avoiding technologies or processes which jeopardize the employees safety and public
safety
 Manufacturing of products which are safe for the consumers
 Recycling of waste products and its utilization
 Profiting from all the kinds of products, which are threatening towards human health
like cigarettes, drugs etc.
Superdrug is a health and beauty retail organization in United Kingdom who are
facing some of the ethical issues related to the fundamental rights of consumers. These
issues are related to the trust and integrity among all the employees. When trust factor is
not their among all the people then due to this their overall performance is get affected.
So, manager should provide all tasks in a team so that communication gap can be
reduced.
The ethical issues that affects the supersrugs are that proper training should be given to
the staff nurses operating at the superdrug and the issues that are related to the ethics

should be covered in the sessions that are called as the orientation programmes and there
can be some isuues whose answer cannot be judged as the right or wrong.
4.2 Improvement process of business
For bringing improvement in the business process, below discussed are certain steps
that include:
 Processing of map: As soon as you have understood the procedure which you
want to improve, document all the steps by making use of flowcharts or swim
lane diagrams. Both these tools will be showing all steps visually within the
process (Voegtlin et al. 2012, p.5).
 Analysing the entire procedure: While using the flowchart or diagram, try to
investigate the process with certain problems (Thiel et al. 2012, p.51). Check
out the different places with which the customers get frustrated, the steps that
are actually getting bottleneck, where cost is rising and quality is falling and
make out the processes which are in need of extra caution.
Redesigning the process: Process redesigning requires elimination of the identified problems
(Nica, 2013, p.12). Best process in this is to involving the people who had direct involvement
on the process.
Acquiring all the resources: An employee is needed to safeguard all the resources
which they want for implementation (Giacalone and Promislo, 2013, p.87). Listing of all the
things would be attained which they want for undergoing this procedure.
Implementation and communication changes: One should remember that alteration or
modification is not that easy. Starting a new process according to an individual’s plan is
considered as a complete project (Santos, 2012, p.337). Henceforth proper planning and
management is needed to be done with all care.
Reviewing the process: A process review is an absolute must as soon as the entire
project planning and management have been done. Adopt strategies whenever needed (Thiel
et al. 2012, p.55). Small improvements that have been regularly done will be ensuring that
the entire process will be staying efficient and relevant.

Superdrug can use some of the ethical approaches by following the corporate social
responsibilities in order to provide benefits to the society. Along with this, they can focus on
the rights of an individual so that overall performance can be improved in an efficient
manner. The retail industry have to focus on all the environmental laws so that environment
can be safe and health of the people can be ensured. The company can also combine all the
people of the firm so that an effective decision can be made. Through the, the communication
gap among all the people can reduced.
The business can improve the ethics of their operation by making changes in the plans and
the policies of the organisation. The Superdrug can use review techniques to check the
working of the organisation. The different tools and techniques that are needed for the
effecient and the effective working of the organisation.
4.3 Suitable ethical codes
The code of ethics is defined as a formal document which establishes the company behaviour
along with a formal paper mentioning the behaviour shown by the employees working in the
company.
The reason for having ‘code of ethics’ is because of the following:
 For defining the acceptable behaviours
 For promotion of practices that are of higher standards
 Providing a benchmark to the employees for self-evaluation
 For establishment of framework for professional responsibilities and behaviour
A suitable ethical code will be including:
 Company values: Here the company vision is been discussed where the
organization will be mentioning the aims and goals with which they are
functioning (Floyd et al. 2013, p.752).
 Problem Resolution: How professionals are supposed to approach problems
remains the main motto of the ethical code (Craft, 2013, p.225). Being in a
company if they find any means of unethical operation getting attained, it is
their duty to inform the higher authority about such act.

 Standards principle maintained by a professional: An individual is needed to be
professional enough to remain dutiful towards their performance.
 The organization should also set the policies and procedures clear about the
organizational and the codes.
Ethical code is related to the values and principles on which the company is following
their operations and through this they will be able to identify that how they are performing
their activities in the market. The company should follow all the health and social laws so
that consumer satisfaction can be increased. Along with this, if an employee met with an
accident then it is the responsibility of the manager to give him compensation and provide
some medical facilities. Along with this ethical partnership should be establish with the other
companies.
The compliance based wthics deals with the rules and the regulations are to be obyed the
employees such as the safety standard that are to be maintained by the organisation.
The value based ethics deals with the values of the organisation these includes the
responsibilities of the employees. They require a larger degree of authority and the selfr
regulation programmes.
M1
According to the......, that ethical issues can affect the performance of the business
organization. Some of the issues are related to the trust, diversity, integrity and so on.
Through these, the overall performance can be affected and Superdrug will not be able to get
the success in the market. The ethical issues can sometime affect the activities of the
organisation if the issues are not properly followed in the organisation.
M2
Superdrug can collect the information from the journals, internet, newspaper, research
papers, government policies and so on. Through these, the firm will be able to collect the
current data so that they can resolve their conflicts. Along with these, a survey can be
conducted in the market so that current trends can be identified.
M3

When all the information are analysed then after that all the data should be
communicate to the employees so that their overall performance can be improved. For this,
the manager can conduct meetings, sessions etc so that all people will be able to know about
the companies policies.
D1
As per my point of view, Superdrug should focus on the coordination among all the
people. If this will increase then overall performance can be improved in an efficient manner.
When i was working in team then due to lack of communication we will not be able to
accomplish our objectives.
D2
Being a manager of superdrug, it is my responsibility to manage all the activities that
are performed by all the employees. In order to manage these day to day activities, an
appropriate plans can be made so that decisions can be made and overall objectives can be
achieved. I will use observation approach, so that overall performance can be improved by
providing the feedback to each and every worker.
D3
The business organization can use different approcahes in order to solve all the issues
of the problems. For this, superdrug can use normative theory so that ethical strategies can be
made and overall performance can be improved.

Conclusion:
This entire report is based on the business ethics of Superdrug. It has been observed that
the organization was committed to follow the environmental good practice, social
responsibility and maintain economic prosperity. The organization has been purposefully
lobbying and the government has not just reduced the VAT rates out of the blue. On the other
hand, Superdrug has started selling of range of beauty products which have not being tested
on animals. Those products carry the logo of “British Union for the Abolition of
Vivisection”. Superdrug have implemented the consequentialist theories for maintain the
ethical consequences of every operation. The business consultant has critically observed
different approaches such as duty-based approaches, rights approach, utilitarian approach,
virtue approach, fairness or justice approach, common good approach and egoism. The
consultant has provided different circumstances of Samsung and HCL regarding absolute
ethics so that every employee is treated the same way. The consultant has observed that
cultural relativism reduces the meaning of good which is socially applicable. It has been
noticed that MNC companies are often created a boundary to maintain the company ethics
but sometimes it interferes in the personal life of the employees. Superdrug ethics proves
faulty because it does not provide fair employee treatment and sustainable manufacturing
process. Finally the consultant has proposed a suitable ethical consideration for the
organization.

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