Importance of Ethics for Business Managers

This article discusses the importance of ethics for business managers and how it impacts company performance. It analyzes a case study of Boohoo, an online fashion retail brand, and provides recommendations for ethical choices and their impact on stakeholders. The article also explores the role of business in society and the stakeholders affected by ethical choices. The ethical theories of utilitarianism and deontology are applied to the case study. Subject: Business Ethics, Course Code: N/A, Course Name: N/A, College/University: N/A

BUSINESS ETHICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
A) Importance of ethics for business managers ..........................................................................1
Role of business in society...........................................................................................................1
Stakeholders affected:..................................................................................................................2
Ethical choices impacting companies performance....................................................................2
Recommendations .......................................................................................................................3
b) Applying two ethical theories to the case study......................................................................4
PART 2............................................................................................................................................6
Ethical Leader..............................................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business ethics can be understood to be widely essential aspect within keen targets
performance metrics for stable goodwill among competitive domains among shareholders and
also for yielding on new quest domains strategically. The report will be analysing cases study of
Boohoo, online fashion retail brand where there is focus on analysing social standards
advancement domains imperatively, shareholders involved which are employees, management.
Research has also concluded that new Covid -19 measures shall be taken care of imperatively
for keeping up keen standards of ethical domains and safety standards.
PART 1
A) Importance of ethics for business managers
Boohoo business mangers shall fundamentally focus on ethical performance aspects for
enhanced business performance parameters, developing ethical performance standards and also
for developing larger scale connective efficacy horizons. The ethics among company managers
will enable best decisions to be taken informatively, which bring on competent rise within
revenue and goodwill benchmarks aspects and also to upgrade new scale connectivity
imperative. Ethics also raises commitment exploration imperatively and harnesses new
functional scale scenarios which yields on operational scale connective diversity primitively.
Boohoo business managers also functionally raises new scale diversity among horizons by
working on issues and identification of new strategies for improving ethical performance
scenarios widely among stakeholders (Kusumaningrum, Sumarsono and Gunawan., 2019).
Role of business in society
Role of business in society can be understood as widely essential for bringing on wider
shift towards functional fundamental diversity parameters, productive impact among keen
domains and for strategies for generating larger determinants. Boohoo has been imperatively
heading towards new innovations and established exploration aspects, for functional targets and
also to be divergently committed to social standards towards stakeholders. Competitive
functional strength widely raises competency aspects among new domains by focusing on ethical
aspects and uprise keen standards widely. The recent Covid-19 pandemic brings before new
raised competencies widely which shall be put forward for raising best safety standards widely,
and also evolve on new domains of creative efficacy horizons. By establishing safe premises
within workplace, there is innovation enhancement within conducting new scale functional
1

standards for stable keen ethical attributes. This also specifically brings forward new work
domains' growth connectivity widely on which Boohoo will be able to contribute more
specifically to all stakeholders.
Stakeholders affected:
The stakeholders affected with various decreased performance benchmarks and
avoidance of ethical aspects have been analysed to be competently found to be widely impacting
revenue along with goodwill avenues connectively. Stakeholders such as employees within
Boohoo have been found to be widely reducing efficiency levels as they are not given equal
safety standards, also for upscaled innovative competitive standards. Customers and
shareholders are also essential shareholders within brand on which there is competitive
diversion analysed widely, for which new scale connective horizons bring on informative
demands imperatively essential for more strategic performance aspects (Dajani, and Rossert,
2020). The other shareholders such as company management have been also found to be widely
declining among their work performance parameters and also to evolve on new quest goals for
providing essential safety standards productively Boohoo has been also found to be widely
reducing strategic vision aspects on which employees are being underpaid, also the production
standards have been widely unethical for providing new scale aspects of new advanced ethical
determining avenues to keep up with larger business performance targets. Social distancing
provisions have not been implemented at company, where the brand has been facing decline of
goodwill widely on larger scale connective horizons for which there is specific functional scale
diversity components evolving towards new vision perspectives.
Ethical choices impacting companies performance
The ethical choices have been profoundly impacting company performance paradigms
widely on which managers at Boohoo have been irresponsible towards establishing safety
standards among employees. Production workforce efficacy shall be maintained widely by
implementing new testing points efficacy widely and also for keeping operational hygiene
aspects, on which there shall be keen targets developed competently. Workers have been
reportedly working with no or little social distancing aspects and provision of sanitation stations
have been widely lacking, where this has created varied factor for risk among stakeholders. The
ethical choices have been widely impacting new scale commitment rise among company
performance horizons and goodwill targets, on which there has been keen aspects of ethical
2

functional standards lacking which has reduced diversion horizons ( Lindebaum, Geddes, and
Gabriel, 2017). The ethical choices have been also lacking strategic vision at Boohoo, on which
the latest safety compilations are widely lacking due to which there has been also decline
among stakeholder witnessed. The brand by reducing its production cost and new scale
changes into scale have been declining its fundamental aspects for keeping up with work
growth targets specifically to keep up targets competitively rising. Company widely prioritizing
profits over lives of employees has been analysed to be widely strong factor where social work
horizons have been hit, also workers at chain have been put at risk with no safety precautions
taken care of. The online fashion retailer has been found denying payments and factories have
been operating illegally throughout lock down time period, with bare safety standards which has
reduced functional scale connective targets.
Recommendations
Boohoo shall include new strategic vision perspectives widely for measures such as
social distancing aspects with improved sanitation, which will enable shareholders to be safely
working and ensuring new safety standards fundamentally. This will also enhance brand
evolving goodwill productively and also pool on new domains to be profoundly bringing skilled
evolution growth targets. PPE costumes shall be worn by all employees and ensuring new scale
diversion among financial investments to adhere new standards of safety among employees.
Slower production shall be encouraged productively among company warehouses so that
production standards are not hit and also there is varied new scale demand for keeping up new
targets at frame. Boohoo shall also focus majorly on conducting regular medical tests among
employees at company where there is spacious production standards and also upscaled
production fundamentals specifically. This has been found to be profoundly also essential for
keeping up targets at reach and also up scale new horizons for which new quest goals have
profound new scope to also enhance new productive domains (Rodrigues and et.al., 2015).
Recommendation:
As per the above case study, company Boohoo to use best supply chain management
practices which are help to company for smoothly run the business. In addition to that
recommended for company to follows the best quality of production system as per the need of
fashion industry in effective manner. This could be more effective and valuable for the business
to use those aspects in effective manner. As per the situation of covid company need to follow
3

complete and effective guide lines in order to protect themselves from the covid effect. In order
to promote product and services at market place Boohoo need to use best marketing strategy and
advertising which help eradicate negative impact of poor press reporting.
b) Applying two ethical theories to the case study.
There are using two ethical theories which are helped to make effective senses of work in
effective manner. The two ethical theories I will use for the company Boohoo case study which
are utilitarian and deontology. Both are the best ethical theory which are help to make effective
use of work in effective and useful manner. According to the Utilitarian ethical theory which is
one of the best known and most influential moral theories. This will help to assesses the action in
terms of its consequences as well as the outcomes i.e. the net benefits and costs to the
stakeholders on an individual level (Climent, 2018). It is strives to achieve the greatest goods for
the greatest number while creating the least amount of the harm or preventing the greatest
amount of suffering in effective manner. In the businesses analysis the effective decision utility
which is added to each each and the person cost benefits. But the weighting costs as well as the
benefits is not difficult in the case study of the promoting the business as well as the protecting
from the covi-19 effect, as the pleasures is greater in the short terms than the pain caused in long
term in effective manner.
This in exactly going in the case study of Boohoo because they are carried out the false
advertising through the negative press reporting and mislead the supply chain management at the
market place, which is affect a huge number of supply chain in order to seek profits. For that
company look forward to production new as per the covid-19. Our theory utilitarian states that if
there are effective and valuable benefits for the greater number of people affected by then
managers will simply adopt which style of the best decision making, as it is effectively profitable
for the business, which is what company Boohoo have did. The company is aware with the affect
of the negative press reporting in the condition of covid-19, but the short term pleasure outweigh
long term pain they caused to the supply chain and the fashion industry in order to produce new
products in effective manner and for gaining their pleasure and seeks for profits (Everett and
Kahane, 2020). This is generally not in line with the ethical code conduct which the company
claims to be in effective manner.
The company has claimed to be ethical as well as the act in the best interested of their
stakeholder but their marketing practices of promoting and killing the supply chain management
4

due to the lock down. Through that business is highly affected in effective and in respective
manner. This could be affect to company in negative manner which is come through the covid-19
which is corresponds to that Boohoo mission is to provide safe production to customers and safe
working environment to employees in effective manner as well as provide safe production
transfer to the supply chain management in effective manner (Yee and Kodner, 2019). They do
not want to boarded to the customer, supply chain management and employees in effective
manner. The code of conduct of an organization which will let company and customer know
what the company stand for and what are the value of the business. That is clearly, we can tell
that Boohoo did not valued their principles, follow the rules and regulations and covid guideline
in the interest of their customers. Out prediction is that the marketing practices been carried out
the by the company which has been done with an intention in order to raise the revenues. This
sort of the behaviour of not taking care of covid can be affect others at the workplace because
whichever kind of intention managers have will influence their ethical and unethical decision
making process in effective manner.
In addition to that, the ethical theory of Deontology suggested that the actions which are
good and bad as the per the clear of rules. This is refers with the three areas such as maxims,
consistency, human dignity and universality. This is the effective and valuable for the business in
effective manner which is non-consequentialist theory which is compare to the utilitarian which
is the consequentialists theory (Heinzelmann, 2018). This theory help to businesses should act in
the manner which is based in the principals and morale. For that Kant argued that the morality as
well as the decision making about the right and wrong were which is not depend on the particular
situation. This is remind us that as per the to author maxim number one consistency, an action
which is carried out by the company Boohoo in the case of promoting externally dangerous
substances from the Covid-19 on business. Thereby, all the businesses can do the same practices
as well as it should becoming the universal laws. With the help of conception of the society is
business want to achieve and only focus maximize the profits, by effective production of
products in covid. Human dignity is about treating other with humanity at the workplace.
To conclude that, both theory of ethics have their different views therefore which is leads
manager to take better decision making in different manner (Ross and Clayton, 2019). Through
that manager will decide utilitarian is morally right results is greatest amount of customer are
attracted. Whereas, deontology is solely based on the principle. Manager when making decision
5

can consider the three principle of deontology but this may not work in every business situations
as it is subjective and restricted.
PART 2
Ethical Leader.
For becoming a ethical leader it is essential to understand what a ethical leader is and
what makes him an ethical leader. Going with the different case scenarios and studies I have
developed my understanding for the ethical leader. In my view ethical leader means a person
who is able to make people do things in the right manner even in his absence. In theoretical
language leadership involves promoting and demonstrating normative appropriate conduct
through the personal actions and the interpersonal relations. Ethical leadership includes putting
the people in management and at positions from which they will generate maximum revenues.
Leader has a dynamic personality and is followed by number of people (Engelbrecht, Heine and
Mahembe, 2017). An effective and influential leader could drive the whole organisation towards
direction that will help them in achieving the goals and objectives.
For becoming an ethical leader first I have to understand what skills and responsibilities
are required in such leader. I should have the ability define the values to be followed in the
organisation and must have habit of gratitude towards others. Through defining the values and
culture the objectives could be achieved by the organisation. I have to analyse my own moral and
values and ensure that they are ethical and acceptable in the business environment. The role as
ethical leader is much bigger as compared with others as it has to achieve the goals taking the
organisation as whole. To become effective leader it is also essential that I have good knowledge
of the work and processes being carried out in the company. If we do not have the knowledge
about the work and nature of organisation how could be guide others towards what is better.
Leaders may have to work in varied environment and it is not possible to have knowledge about
every process going in company (Ko and Kang, 2018). Therefore he must be flexible and engage
with people to understand them and to know how the productivity could be increased and work
could be improved. There should be open communication where employees could keep their
views and opinions regarding any decision.
With the growth in my understanding about the roles and responsibilities of a leader I
have planned to start my career in this field. A now I am university students of final year and
planned to become a leader that is ethical and who can help the organisation in achieving its
6

goals and objectives along with the employees. I am very ambitious about leading people by
understanding their goals and their expectations from the work. To lead effectively I must
understand people and what are their personal goals and objectives of life so that their goals
could be aligned with the organizational goals and objectives. This creates an environment of
trust and belongingness in the organisation. It helps in the collaborative growth of employees and
company.
Going through the various case studies I have identified what it means to be ethical
leader. Role of the ethical leader includes creating healthy work environment (Walumbwa,
Hartnell and Misati, 2017). There should be proper communication channels in the organization
between the employees and managers where they could share all the information and issues that
can influence the performance of company. It could be stated that effective communication helps
in creating smooth working environment. As ethical leader the responsibility lies on me to create
the values and culture that is highly ethical and everyone follows that culture. It is essential that
people must follow the directions and instructions of the leader but it does not always happen
through strict rules and regulations but through reflecting good ethical behaviour and image that
influences other to follow them.
Ethics is more than just making the people to restrict from indulging in illegal or unfair
practices. It involves demonstrating the people what ethics are and how they could be complied
with. I have to set examples for others showing compliance to all the ethical practices that will
influence others to walk on same path. The theory of Khlberg and Hersh of moral development
provides rewarding employees would keep us at bottom of pyramid. It is seen in various cases
that the leaders who take the responsibilities of their actions and also holds accountability for the
results of actions are considered more honest and authentic. I personally believe that it is
essential to be honest and genuine towards work and others (Dust and Greenbaum, 2018). Leader
must ensure that the actions are followed more than the words said. Employees will follow the
same path followed by leader even when the values and ethics are made at the highest of their
standards. I would ensure that I keep my employees and team members towards ethical path as
business have various opportunities where employees could lose their morale and move towards
the unethical behaviour.
Toxic triangle could also be considered as effective strategy that applies to the
organisation for creating ethical principles. If not applied properly this could harm the company
7

environment and the culture of organization. The ethical leader has to ensure that the interests of
all the employees are taken when making the decisions for the organisation. This creates the
employee engagement in the company and creates encouraging environment. I will try my best
to become the ethical leader and lead the organization towards ethical path.
CONCLUSION
In the conclusion from the above report that the business has to follow ethical practices in
the organization. The unethical practices followed by the Boohoo group by outsourcing the
production to low paid workers for reducing the costs which has affected the brand image. It has
significantly negative impact over the business. Business must provide workers healthy work
environment and should not exploit their rights of minimum wages. The workers were forced to
work in poor working conditions. A business must not exploit the interest of others for the own
benefits. Ethical practices must be followed strictly in the organisation and leaders should
monitor them that they are being complied.
8

REFERENCES
Books and Journals
Climent, F., 2018. Ethical versus conventional banking: a case study. Sustainability. 10(7).
p.2152.
Everett, J. A. and Kahane, G., 2020. Switching tracks? Towards a multidimensional model of
utilitarian psychology. Trends in Cognitive Sciences. 24(2). pp.124-134.
Heinzelmann, N., 2018. Deontology defended. Synthese. 195(12). pp.5197-5216.
Ross, L. F. and Clayton, E. W., 2019. Ethical issues in newborn sequencing research: the case
study of BabySeq. Pediatrics. 144(6).
Yee, A. and Kodner, I. J., 2019. Ethical considerations in the use of Pernkopf's Atlas of
Anatomy: A case study. 165(5). pp.860-867.
Engelbrecht, A. S., Heine, G. and Mahembe, B., 2017. Integrity, ethical leadership, trust and
work engagement. Leadership & Organization Development Journal.
Ko, C. and Kang, M., 2018. Ethical leadership: An integrative review and future research
agenda. Ethics & Behavior. 28(2). pp.104-132.
Walumbwa, F. O., Hartnell, C. A. and Misati, E., 2017. Does ethical leadership enhance group
learning behavior? Examining the mediating influence of group ethical conduct,
justice climate, and peer justice. Journal of Business Research. 72. pp.14-23.
Dust, S. B. and Greenbaum, R.L., 2018. Ethical leadership and employee success: Examining the
roles of psychological empowerment and emotional exhaustion. The Leadership
Quarterly. 29(5). pp.570-583.
Rodrigues, R. and et.al., 2015. Ethics assessment and Guidance in Different Types of
Organisations. SATORI Annex. 3.
Lindebaum, D., Geddes, D. and Gabriel, Y., 2017. Moral emotions and ethics in organisations:
Introduction to the special issue. Journal of Business Ethics. 141(4). pp.645-656.
Dajani, J. and Rossert, B. A., 2020. Embedding ethics in organisations and their operations: a
dynamic approach. Journal of Financial Compliance. 3(3). pp.198-207.
Kusumaningrum, D. E., Sumarsono, R. B. and Gunawan, I., 2019. Professional ethics and
teacher teaching performance: Measurement of teacher empowerment with a soft
system methodology approach. International Journal of Innovation, Creativity and
Change. 5(4). pp.611-624.
9