Business Ethics Report

This report analyzes the ethical considerations and CSR practices of ASOS, a leading online fashion retailer. It explores different ethical theories, analyzes the impact of ethical issues on business operations and stakeholders, and discusses the regulatory framework of CSR. The report also provides recommendations for improving ASOS's CSR policy to benefit various stakeholders.

BUSINESS
ETHICS

Table of Contents

INTRODUCTION
Business ethics consider as moral principle which is related to different types of business
policies as well as business practices. is the study of suitable business policies and practices in
reference to potentially controversial subjects consist of corporate governance, insider trading,
bribery, discrimination, corporate social responsibility and fiduciary responsibilities (Akrivou
and Bradbury-Huang, 2015). Moral values of business main pillars of any organisation at a
commercial centre which is handled by top of the line race. In the report selected company
ASOS a is a British online fashion and cosmetic retailer and the company was founded in 2000.
The aim of the report to understand the roles and requirement for businesses to embed ethics and
incorporate social responsibility. In the report consist of understanding of the different
perspectives regarding to ethics. Apart from interpret the importance of roles of directors and
other stakeholders, identify issues regarding to company reporting and its impact on society. In
further, ethical dimension of businesses and their impact of CSR strategies on businesses.
TASK 1
1.1 Background and development of ethical approaches
ASOS plc is a British online fashion and cosmetic retailer and the company was founded
in 2000. The company has been selling 850 brands in the range of different clothing and
accessories and they are shipping over 200 countries from fulfilment centres in the UK, US and
Europe. The company has been focused into world wide assets and science to develop business
in effective manner. These ethical approaches can be divided into 2 parts -
Deontological ethical theory – The particular theory has been introduced by Immanuel Kant.
The particular theory consider as action of the individuals and it does not relate to result of its
activities. They are -
 Develop choice in best way
 When way is going to right that time do it
 Ignore to do wrong things
 Maintain distance from the grounds and they are incorrect
As per the of ethical morals, they can not decriminalize an action through exhibit which
is supplied optimal aspects, so that's why some times it is known as non consequentialist. Most
of the ethics related to in pair way such as showing are right or wrong due to assorted property
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they have. The hypothesis of deontological defines about the after effects of the different action
are not so quibbling. But it kind of quality in the human action which is related to logically right
or wrong. It will be moved by the individuals that will be considered to manage in ethically way
and attempt to comprehend their feelings in order to duties and obligation.
Teleological ethical theory – The particular theory called consequentiality moral system unlike
deontological theory (Boatright, 2017). It is mainly consider on the results which may be
good/correct choices. They must have information related to various information and review
regarding to result and arise from the choice made. After getting result if it is positive so consider
that action other wise actions were indicted as immoral.
1.2 Compare and contrast absolute and relative ethics
In current time, business ethics can play important role for each business because it can
help to understand the concept of of idea and implement in effective manner regarding to
business ethics and it reflect on the thought in reference to practices of moral in ASOS. In
business environment show different act which is considering corporation, representation and
sensation for ethics and values.
Relative Advantages
 Motivate for cultural variety
 Flexibility
 Disallow a controlling culture
Absolutist Advantages
 Fixed ethical code to measure actions
 Equal and universal view of ethics
Relative Weakness
 Creation of different beliefs which
mean they are all equal
 Paradox – If the universal think that it
was relativism, then it would become
an absolute ( Strobel, Tumasjan and
Welpe, 2015).
 Cultural or moral relativists can not
criticise another's morals.
Absolutist Weaknesses
 Do not allow to circumstances into
account
 Does not allow to a lesser evil
 Social of Rigid diversity
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To define several policies and strategies regarding to business morals and it influence on
the business as well as common people such as -
Absolute Morals – These hypotheses have down score regarding to unspecific motive
regulation and stimulation which essential be finished with included condition. These conception
have destroyed awareness of manlike which will not work as per intensify human mobility.
Relative Morals – It has been defined that as per the changes in general moral standards
and obligations affect to circumstances which is related to different societies and practices. The
organise is to make a relation in between moral code and circumstances in subject to do
something (Cowton and Downs, 2015).
1.3 Ethical issues can affect to operational activities
Any problem and situation that are defined requirement of a person or organization to
select between options that must be defined as right ethical or unethical. In reference to
organization, the company has been used child labour in Turkish factory and syrian refugees has
been forced to work at the less wage even lower than the standard labour wage rate of turkey
working fundamental. There are finding by researcher that child labour was connected in the
Turkish factory of ASOS. But, company has denied on the particular matter. So it will be
discussed to take place further on this matter.
The issues can affect to business operation activities as well as whole functioning like
unethical behaviour of different employees which can affect to working environment. It may also
feat the business to functioning and operational results. Such exploitation of supply chain in
reference to Turkish factories affect by several codes due to operate ASOS. The particular ethical
issues create question due to ineffective functioning for the entities in the future with loss of
manpower and profitability. The operation activities impact through ethical issues, these are
health and safety, workers behaviour and attitude, employee working circumstances and workers
behaviour and attitude.
1.4 Determine the implications for a business and it's stakeholders
All business have individuals which are responsible for the interest of business activities.
In any organisation stakeholders consider as play important role to the success and management
of company. For instance shareholders, employee, suppliers, customers and communities who
contribute into functions of an organisation. Each business expect to meet with stakeholders
expectations. They can show impact on the business and ASOS have several types of
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stakeholders as it is a large organisation and so many different people are a part of it. There are
mentioned different types of stakeholders -
Owners – They are provided the capital for the business to be set up or to be survive. It
may be sole traders, shareholders and partners. ASOS and its owners wants to improve share
price but owner good not received a good dividend or return. They may sale out to their share
prices and significantly focus on stock exchange to finding result for ASOS and it will be more
difficult to increment to new capital to get continue growth. .
Employees – These are considering as human assets in the context to company and help
to operate business daily. Within ASOS staff members have various job role which can help to
keep the business in effective manner. The company hire people and they feel important part of
the company and help to add to its success.
TASK 2
2.1 Potential conflicts which may arise between the needs and expectations
It is essential for business to balance the interest of its several stakeholders. Every
stakeholders have their priorities such as shareholders can expect to the business can make a
profit to achieve more return in their investment. There are required to employees get effective
atmosphere for work to stay long time in company (Crane and Matten, 2016). Potential investors
may desire to see evidence regarding to respond of situation problems before committing money
to the business. There are conflicts arises when the needs of some stakeholder groups
compromise the expectation for others.
A business has to make choices with some stakeholder might not like. As a example the
low-budget supplier goods which can help to cut down the prices of customers must not come at
the expenses of ethical practice by suppliers or product safety. In the end of product may be
lower which can associate with an unethical supplier or low quality product risks damaging of
business reputation and financial loss. The business ethics can impact on different types of
stakeholders as good faith and fair dealing, employment law and social responsibility. Impact on
different stakeholders
 Supplier – ASOS expect to nearly with their suppliers to shield with complications and
fulfil the needs and desires to develop up sound business association with them.
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 Workers – The are focusing on the superior gathering demand benchmark, well-being,
security and work environment. They can intensify to item quality through world class
foundation (Dierksmeier and et.al., 2016).
 Customers – They can be argued to take interest in reference to criticism methodology to
assembled and intensify in their operation. They can resolve to money customer through
their style experience.
2.2 Impact of CSR on the supply chain
ASOS corporate social responsibility is the fashion with the integrity programme. The
CSR of ASOS is traced by fashion with integrity to present transparent, trustworthy and
comprehensive approach to business. It is the way of employees and staff of ASOS works with
other to convert the impact of fashion on the people, animals in reference to an environment.
Apart from this ASOS needs to arrange and associate with their mission and vision statement in
the role of the improvement of the society and their welfare. There is need to ASOS to be society
and customer centric to have the sustainability in the company. There are identifying mission
statement of ASOS as like - “to gain the customer attraction with the help of incredible choice
and supply impeccable service. It includes CSR covers the issues in reference to social and
environmental matters. On the other side corporate of CSR practices related to distinct even
should related to environmental matters and there are defined different activities and principle of
volunteering (Reinecke, Arnold and Palazzo, 2016).
2.3 Improve the ethics of their operations
ASOS has build up a broad approach in order to meet demands of experts, suppliers and
clients (Fennell, 2015). To improve business ethics there is need to prepare a clear plan which
can described how to improve business ethics in effective manner. To improve business ethics
need to follow these steps which can help to operate business operation ion smoothly manner
these are -
 Create a plan – It is consider as first step which can help to take initiative and focus on
different types situation which is related to internal policies of ASOS. When company
have prepared plan that will be specific and use different strategies where consist of
hiring process, clear communication in reference to ethics policy and code of conduct.
They establish a system to check out and monitor all activities and disclose in particular
time period. In last final a policy and procedure in order to examine all breeches which is
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related to ethics and their level. With the help of this idea analysis of existing risk of
business and risk management, including hiring an outside consultant.
 Follow through with action – In the second step to improve business ethics to follow
plan and apply in ASOS's process in effective manner. To control business activities
provide training classes to employees as well as provided code of conduct on the yearly
basis to each employee. To build up clear policies and procedures is key of success
because it is important part of internal system and help to follow the procedures. It will
make sure that ethical needs of the business are introduced and mainly consider of cash,
accounting as well as finance.
 Ethical is a part of organizational culture – Besides developing and executing a plan,
the most significant way to improve business ethics regarding to operations. It is clear
and provide all requirement that can help to meet expectations of the highest ethical
conduct. These codes of conducts and control policy is most important for each members
and responsible for take decision and setting the done.
TASK 3
3.1 Business objectives are affected by ethical consideration
The main objective of the ASOS to create and supply to precocious attention and remedy
to their every clients. They are focusing on the skilled people who have knowledge and easily
understand operations of business so they can hire those people to provide best treatment for the
production. To manufacturing good quality of clothing so they are set to particular bench mark
regarding to quality and also focus on security and drug. The organization global way to need
create the assortment for the follower and also for locality groups. They can in addition to
advance enthusiasm and their corporation regarding to their work. They can additionally tries to
raise their voice regarding to budgetary performance and dependable on social insurance office.
They can try to improve performance of budgetary to provide satisfaction through their duties.
They can wind up all related and esteemed organization in reference to their speculators,
business accomplices, clients and their associates (Hill, 2017).
Ethical Consideration – The goals of the business attract to provide finished results
which is related to an association to look to carry out. Mostly there need to each company in
particular way and need to boost their benefits as guarantees to provide accurate profit for
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speculations and intensify overall industry in order to attain business extension, decrease
ecological effects and meet with clients requirements. Advance organization can expand to
search out different methods and complete its operational activities to less effect of nature. The
ethical work environment can consist of expenses against business targets.
3.2 The regulatory framework of CSR
Corporate social responsibility is a concept which can provide many definitions of CSR
in reference to how forward. A defined explanation by European commission refers that
companies interlink with social and environment factors in order to operate business activities
smoothly. They can set range of low price clothing and a higher profit to more essential than
ASOS's responsibility in reference to society. To survive CSR of ASOS to follow legislations
and regulations related to CSR and it will provide help to corporate governance to apply a
approach of triple bottom line approach which can directed regarding to social and environments
features. According to Friedman states that following social responsibility is very costly and the
costs became conveyed for customer, shareholder and employees perspectives. The particular
theory has been introduced as outdated but in reference to save money they can cut those cereal
to manufacture cheap and early clothing. To generate low income consumer a brand's ethical told
about that all factors are not important and they are indicated as low prices to show overall other
things. There are taken as positive side in order to show significant actions in terms of corporate
social responsibility as well as sustainability. The company has been running for the programme
which is related to CSR and different approaches of business (Murtaza and et.al., 2016). In
reference to include various legislation in the UK include -
 Working time regulation 2001.
 Disability Discrimination act 1995
 Health and safety act 1974
It is considering whether or not CSR should be made mandatory and identifying that
legislation to deduct CSR driver such as businesses has to improved their competitiveness with
the help of brand value.
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TASK 4
4.1 Current ethical issues affecting a selected business
There are defined ethical issues which is affected to ASOS and it will show impact in all
over companies these are -
Globalisation – Low margins were not able to support stand-alone business and
customers were hoping to located into world wide connections. These are controlling all over
offers in relation to all items. The business worldwide select to division structure and promote to
different groups in the line of business. They can restructure to prompt a need to direly and
develop world wide administration data frameworks. They can consider new stratified
constitution and ASOS's top management wouldn't have capability to tackle with the business to
select assemble. Most of the information circulate to mid environment regarding to content with
country and it Would be tracked in reference to information system.
Corruption – It can lead to reduce in the company's structure, environment, size etc. it
will be improve when top management can trust to loyalty of people after that put on risk.
Corruption have always affected to to business in negative manner and along with affect to
reputation of business. As a result it can reflect on the reputation of shareholders, investors and
customers and so on. As a result the corruption can affect to lack of resources, increase in crime
rates and weakened and decreased development rate (Ogbari and et.al., 2016).
Corporate social responsibility – As per the report of Forbes it has been commitment that
desire will be achieved in two ways. That will be provided by association to turn people and
become familiar with association to provide help to give enjoy with its products. There are
presenting that companies can arrange all business action in order to get much more profit for
business operations. They can show vital part of the wealth to create process and administrate
properly to intensify power of business. There are including different things like law, models etc.
To control activities need to consider those factors which can influence in direct manner by
corporate social responsibility these are nature, labours and buyers.
Environment – It is very important which is related to day to day activities and keep
moving to provide access and it is consider as primary necessarily such as clean water,
nourishment and wellness attention consciousness. It is nearing the time period, evaluate and
populaces to rise in future. It will need to do tomorrow. It is working as responsible for day to
day activities.
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4.2 Potential impact of changes in CSR on business performance
When ASOS can change in CSR to it will affect to business performance due to reduce
environmental problems. It is a sustainable economy and the responsibility of corporations to
make it profitable and develop business. It can solve problems regarding to companies and make
it interlink sustainability into their strategic thinking. In the fist stage includes pollution
prevention which can focus on the continuous improvement to reduce waste energy. As a
successful CSR the company easily prepare strategies regarding to their problems and implement
in effective manner. The CSR on non strategic level lead as failure over the long run and
commitment as accountability and transparency and ethical behaviour in respect to considering
stakeholders as well as good governance,.
Through CSR can arrange all problems in effective manner and manage stakeholders to
in all groups and accept reviews to do not hinder to an organization. In order to stakeholder fails
to complexity of network to connect with cross sector partnerships. It is related to
communication and maintain all function regarding to exchange perspectives. As a business
performance it can reflect on transparency, relatability as well as employee engagement. To
survive in any business need to survive different types of business which can help to sustain
business (Pearson, 2017).
4.3 Recommend changes to CSR policy to benefit different stakeholders
After provided changes in CSR policy it can provide benefit to different types of
stakeholders who can direct and indirect way connect to business. There are recommended that
to change in CSR policy that finding and sustain talented staff to engage with company in
effective manner. There are focused on cost savings so it can provide benefits to access finance,
attract positive media attention, identify new business opportunities and reduce regulatory
burden. In CSR need to change in strategy regarding to business policy so as a result it can
provide benefits to shareholders that improved trade name identification, optimistic enterprise
image, functional price savings, easier way to assets, amended fiscal execution and increase in
sales and customer loyalty. The stakeholder reputation can base on the company reputation
which can make through business reputation (Pullen and Rhodes, 2015).
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CONCLUSION
As per the mentioned report it has been concluded that ethical operation is necessary of
each type business and process. CSR has been noticed in reference to do practices and need to
arrange the dignity to belief in the business as well as their entity. A business can associate with
different moral methods to leading its business issues is more than deceptive one. The company
has been focused on CSR to to sustain of different types of stakeholders. To improve business
operation need to improve business ethics because it can analysis internal system and for this
need to follow proper plan. There are providing suggestion to companies how to CSR important
for stakeholders because it can help to increase reputation.
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