Ethical Considerations in Business Operations

This document discusses the importance of ethics in business operations, including the background and development of theoretical ethical approaches, a comparison of absolutes and relative ethics, and an exploration of ethical issues affecting operational activities. It also examines how businesses are affected by ethical considerations and evaluates the implications for stakeholders. The document provides insights into the role of companies as moral agents and analyzes the development of mechanisms for employee involvement and empowerment. Additionally, it discusses current ethical issues and suggests ways for businesses to improve ethics in their operations.

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explains background and development of theoretical ethical approaches............................1
1.2 Compare and contrast absolutes and relative ethics..............................................................3
1.3 Explains the ethical issues which affect to operational activities.........................................4
TASK 2............................................................................................................................................4
2.1 How business objectively are affected by ethical consideration...........................................4
2.2 Evaluates implication for a business and their stakeholder to operate ethically...................5
TASK 3............................................................................................................................................6
3.1 Assess role of company as moral agent................................................................................6
3.2 Analysis development of mechanisms to achieve employee involvement and
empowerment..............................................................................................................................7
TASK 4............................................................................................................................................7
4.1 research current ethical issues which affect to the company................................................7
4.2 How the business could improve ethics of operations to meet objectively and relationship8
4.3 Design suitable ethical codes................................................................................................8
M1 Strategies to find appropriate solutions................................................................................9
M2 Methods and techniques to collect information....................................................................9
M3 Structure and approach that can be used for findings...........................................................9
D1 Improvements through critical reflection..............................................................................9
D2 Responsibilities for managing organisation activities.........................................................10
D3 Demonstrate convergent/ lateral and creative thinking.......................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Ethics is an integral element for enterprises in the 21 century, which involves both the
company’s employees and management, as well as the shareholders. The importance for ethics in
an organization ensures that working climate is harmonious and promotes effectiveness in
achieving objectives (Šuleić, Dragin and Vujičić, 2014). The fact that ethics is a requisite for
maintaining an equilibrium on the rights and interests of all in the business community. It is
important to put strategies for ethical requirements in a business.
TASK 1
Task 1: Information Pack
This section aims to assess the different categories ethical consideration that a company like
Superdrug Plc should implement in order to flourish as well as maintain a harmonious
relationship with the staff community and shareholders.
1.1 Explains background and development of theoretical ethical approaches
There is renewed interest from researchers about the meaning of ethics in our day to day
lives. This comes as a result of rampant cases of unethical and vice actions at our areas of work
and more so within the reach of working environment. Globalization is seen to take the blame for
the recent change. Indeed, businesses are operating within a rapidly growing global environment,
moving beyond the borders of politics and cultures, and inevitably there arises dilemmas in
ethics. It is a key consideration to know how decision making is done when managers are faced
with ethical problems (Mezgár and Grabner-Kräuter, 2015). It is arguably true that how
managers perceive ethics is subject to change due to influences from the environment for
example religion, values, culture, customs and demographic structure. Besides, managerial
approaches of a business, traditions and organizational culture also have an effect to the
perception and character of the managers tasked to make decisions. The following are the most
significant theoretical approaches of ethics:
Consequentiality theory
This theory is relies with determining moral actions of the person with consequences.
Main consequences actions can be delivered results in good and bad term that are favourable or
damaging. Main contributes in this theory is assessment of need and demand of a person and
maintains relationship in Superdrug Plc.
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Teleological Theory
In essence, this ethical approach affirms that the determined results will be so if the
character involved are morally acceptable and good. From this theoretical approach we come to
understand egoism and pragmatism as two distinct groups of teleology whose aim is the outcome
of a behaviour rather than being right or wrong, and hence referred to as consequentiality
approach. Teleological ethics is a theory or morality which drives duty and moral obligation
which determines goods and desirable that achieved within the business environment. Hence,
this theory is develops to create nature of the end that taken for actions ought to promote (Fu, He
and Zhang, 2014). Moral obligation is also taken to create good environment which attain
objectives. Jeremy Bentham is determines this theory in modern time. Focus of this theory is to
determine consequences that are states as per the best results. This is suggested about the
decisions' framework that assists to accomplish objectives and goals in successful manner. This
theory is contributes management in respect to develops framework of decision-making.
De ontological Theory
De ontological ethical approach simply emphasizes on the social rights for humanity as
opposed to the motivations and design of particular behaviours. In this theory there two
approaches i.e. justice and ‘rights that emerge’ approaches. Superdrug Plc is aware that there is
harmony in reasoning not according to end utility but principles rules for our actions. This theory
is mainly based on normative ethical position which judge morality of every action and activity
which are based on different rules (Gupta, 2014). Hence, it is special emphasize on relationship
between duty and morality of each person action. Basic standards are deontological theory is
defines principles in 18th century so that critical philosophy Kant held determination in this
aspect. According to moral law, this is working as an unconditional demand. This will explain
results of certain actions that are not fully important but creates matters in it. Safety is the main
elements which assists to serves accountable laws that are taken as actions which could be
breaking the moral principles. Hence, in the chosen enterprise actions taken by the people that
considered ethically and morally correct when they understand duty and responsibilities. It is
mainly contributes actions that are taken by people in respect to ethically and morally correction
when they are trying to understand duty and responsibilities.
Relativity Theory
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This approach views that morally right behaviour comes about due to intuitive
judgements associated with people and their experiences. Furthermore, it also takes into account
the belief that the different societies or cultures are influenced by certain moral values other than
the general ethical principles and rules (Arnold, 2015). This theory is also known as theory of
gravitation that is developed by Einstein in 1907 to 1915. At last he determines field equations
which is related with curvature of peacetime with mass, energy and momentum within it. This
theory is contributes morality that is relative to the norms of one culture. It is demonstrates right
action which is practised in the same action which may be right in one society instead morally
wrong in another.
Act Utilitarianism Theory
Utilitarianism examines the correct decision to take based on the fact that the measures
will have maximized the goodness at the end. It aims to favor all people, and hence, to determine
an ethical move to make, it is so that everyone gets to be considered (Scherer, Palazzo and
Matten, 2014). Utilitarianism is one is the best known of influential moral theories. As another
forms of consequential ism, it is determines core idea that whether actions are relevant and good
to produce results. Most important classical utilitarians are Jeremy Bentham in 1748 to 1832 and
John Stuart Mill in 1806 to 1873. In this theory, contribution is managed as per act utilitarianism
that states person act which is morally right and best possible results has been take place in
specific situations.
1.2 Compare and contrast absolutes and relative ethics
According to Pai, Lai and Yang, (2015) absolutism in ethics refers to moral rules or
principles that are acceptable and true in all times, experiences and places. Therefore, in
absolutism if an action is wrong, it is taken from an objective perception as opposed to an
individual’s point of view. Absolute ethics advocates that to live morally right is by
demonstrating deeds that are objectively good and detest objectively bad actions (Pai, Lai and
Yang, 2015). For example, immoral actions are intrinsically wrong notwithstanding the
situations or outcome caused but because they violate a moral rule. However, relative ethics
implies the fact that people’s moral perception is dependent on different factors influencing
them. For example, different cultures are associated with different moral principles. Jorge and
Peña, (2014) explains that the objective in relativism lacks knowledge simply because the
available knowledge is dependent of the perceptions of the people. Cultural relativism is a good
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example that support the idea of morality being a set of socially acceptable behaviours (Jorge
and Peña, 2014).
On the other hand, absolute ethics advocates for undeterred code of conduct that evaluate
actions. For example, it would be right to condemn a wife-beater. Absolutism provides harmony
in understanding the guidelines of conduct that support the worldly perception of humanity.
However, there weaknesses in absolutism as people can become intolerant of widespread cultural
diversities. Below is a table showing the comparisons between absolute and relative ethics:
Absolution Relativism
Moral truth is objective There is no objective moral truth, or if there is
we cannot not know
Moral actions are right or wrong intrinsically
(in themselves)
What is morally true for you is not necessarily
true for me
Moral truth is universal and unchanging in all
circumstances, cultures, times and places
Morals are subject to culture, religion, time
and place
Act Utilitarianism and Deontology are fundamental ethical theories that influence moral
actions of a person. By comparing the two ethical theories, one can underscore the significant
reasons of absolute and relative ethics. Therefore, Deontology is a good example of absolutist
ethical concept that can be seen by Superdrug Plc in commitment to lobby for the reduction of
Value Added Tax of certain drugs. The maxim is universal and can be applied to the society as
an end in themselves and not as means to an end (Tan and Ko, 2014). There is much
consideration given to the customers by Superdrug who should be treated fairly. However, Act
Utilitarianism as a characteristic of a relativist ethical approach would have the challenge of
lobbying for VAT exemptions simply because decision is not made under the influence of strict
absolute rules. It is not an objective for the company to treat its customers beyond its capability.
1.3 Explains the ethical issues which affect to operational activities
Ethical is describes as accepted code of conduct which includes set of moral values which
need to be address to carry business and operations. Every organization operates their functions
in society so that structure is around with moral values. In order to attempt boost sales,
businessmen determines promotional methods which can be mislead to customer which
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conveyed message to give exact details of the product and services (Lütge, 2013). Following are
some issues which can creates impact on global environment:
 Ethical advertisement decisions: In most of the organisations, advertisement is given in
respect of one time or another. In this way, products and services must be given in
effective manner. It will assist to enhance positive customer base at workplace. As
results, ethical advertisement is considered honestly and truthfully. Advertisement is
considered negative degrades in competitor products so that organisation could make
better look in it. Hence, Superdrug Plc occur high cost in order to make advertisement.
 Ethical pricing strategies: This is another ethical issue that creates impact on
operational activities on company. In the selected target market, pricing strategies of the
businesses could be differs from person to person. Thus, cost is associated with
manufacturing which would be develops in unethical limitations. This creates impact on
operations in respect to set price for it. Therefore, Superdrug Plc need to analysis their
performances as per business environment requirement.
 Fundamental issues: The most fundamental issues which face by business is integrity
and trust. Basic understanding of integrity includes ideas which are conducted in
organization affairs with honesty and commitment to treat every customer in fair manner.
 Diversity issues: It is essential to reach and diverse place to create full support and
interesting culture at workplace. They are learned with great deal and create support in
ethical response to diversify enterprise. Maximizing the values of each employee
contributes key elements in success of the company (Maniora, 2015).
TASK 2
2.1 How business objectively are affected by ethical consideration
Main objectives of Superdrug Plc is inclined with bringing advancement treatment,
prevention and wellness of people. Therefore, they recruit skilled people who can face
challenges in the business. They have also aims to setting the quality standards with safety.
Hence, in global presence, the chosen enterprise will easily enhance variation in world and local
communities as well. They are also demanding to promote the passion, curiosity with
implementing person ability. Hence, following ethical consideration creates impact on it
 Comply with rules, laws and fair dealing: In this aspect, the chosen enterprise need to
comply their operations and functions with oversee the compliance by their officers,
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directors and employees. Hence, rules and regulations could be applied in company.
Hence, fair dealing need to be implemented that are made for competitors, customers and
employees.
 Encourages to the reports in illegal behaviour: It is another important aspect which need
to know in respect to take initiate towards ethical behaviour and ensure interaction with
managers. Directors need to try for encouraging employees with implementing certain
rules and regulations in term of proper caring.
When the business is operating functions at global level, they are interacts with different
culture and commercial system. Thus, Superdrug need to considers various ethical consideration
through they can protect the business environment. Thus, ethical consideration can hamper to
reputation of organization which suffer to extent in the market. Following are some ethics which
create impact on operations of the enterprise:
 Treat employee fairly: An ethical approach towards employment promotes in overall
well being of employee so that security and safety need to be maintain at workplace. It
suggests to the enterprise to pay effective wages to employee with creating benefits to
address unexpected emergencies. It creates positive impact on the cited firm because they
are determines fair treatment with all employees (Silver, 2015).
 Engage in sustainable manufacturing practices: Ethical consideration requires
minimizing negativity from the workplace to operates functions and reducing
environment footprint as much as possible. In addition to this, local regulations and
legislation are also lenient and creates negative impact which can be affect to local
community in manufacturing process. When Superdrug engage in manufacturing
practices, they will able to develop effective results easily.
 Insist on integrity in business relationship: Integrity in the enterprise includes respect
to contracts which develops fair relationship with supplier and customer as well
(Marques, 2016). In addition to this, the company is also accepted competition without
influencing on the awarding of different orders. It will helpful to the chosen enterprise to
maintain their relations with different people.
2.2 Evaluates implication for a business and their stakeholder to operate ethically
There are different types of stakeholders which can be creates impact ethically on the
company through stakeholder and company. They are as follows:
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Local community
Local community is determines station in which organization operating their functions. In
this aspect, majority of people powered transport which additionally hiring different people in
which local community never affected (Nicolăescu, 2013). For them, Superdrug need to protect
environment so that they will able to demonstrate positive results at workplace.
Customer
Customer are also important stakeholder of the enterprise who serve needs and hope to
determine continue which can be satisfy customer easily. If any customer is regular, enterprise
need to determines services in effective manner through providing services. In this aspect, the
cited firm need to offers qualitative services and products so that sustainability can be attain
easily.
Employee
Employees are another stakeholder who providing services on time to different customer.
Thus, it is very important to run successful business operations and continue to make high profits
with good chance (Nguyen, Mujtaba and Tran, 2013). To employee Superdrug has
responsibilities to offers them effective working environment and wages so they can give full
participation in objectives and goals.
Requirement of stakeholders of the chosen enterprise is enhances the value and earn
respect within the society through generating awareness regarding operational activities. In this
aspect, it is also tries to invest and allocate needed resources in respect to generate results in long
term. With the help of different stakeholder interest in Superdrug Plc such as employee,
customers and local community, improvements can be made easily.
In order to make positive implication, awareness program must be implemented
regarding health in UK. Further, Superdrug Plc also tries to formulate partnership with the
enterprise in respect to involved actively. However, there is also some negative elements exist
such as creating awareness in term of health awareness charity. In term of working in local
marketing, sales team need to be develops advertisement regarding awareness that helps in order
to completing outcomes in successful manner.
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TASK 3
3.1 Assess role of company as moral agent
Moral agent is refers as the individual ability that undertaking different judgements that
are based on similarly right and incorrect notions. It is also relates to holding the actions which
considered in term of quality, trust and value, etc. For example, holding the trust is very
important concept in Superdrug Plc. In this way, responsibilities for saving the countries'
heritage is needed that assists to follow policy and procedures within the enterprise. Hence, the
organisation need to comply with UK laws in which country operating their functions and
operations.
In addition to this, another example is taken as the taking initiatives that assists to depict
most recognized, reputable and sustainable results. With the help of devised plan, ethical
standards and rules also taken as initiatives that are drive towards handling issues that consist
very low wage. Another role is occurs towards success tool for customer that assists to generate
high profits and revenue to make loyal people. Hence, it is important for Superdrug Plc.
There are different types of roles that playing by Superdrug as moral agent of company
which are as follows:
Power to act
Major sources of the cited firm is determines as moral agency which collect power as an
act. This is because, they have power to which assist to make responsibility to make ethical
decisions. For instance, Superdrug company can choose to pay wages either it is low wages or
living wages for workers. Thus, the cited firm can choose suppliers based on environment
sustainability practices (Kim, 2016).
Effects
All the business decisions of Superdrug will affect to the whole world from start to end so
that customers and extending in larger community can determines low wages. This is because,
lower wages can create impact on employee they are not happily work at workplace. Low-skilled
and unhappy workforce made dangerous products which can harm to organisation and their
results (Dent and Parnell, 2015).
Viability
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Actions of the chosen business can affects to its viability within the enterprise. For
instance, Superdrug supports environment in friendly manner so that suppliers not long last
choose low cost supplier to undercut their prices.
Responsibilities
All members of Superdrug has responsibilities which can be affects to their initiatives.
Hence, top level managers of the company have access to information that can support to low-
level employees. This is because, they are bear larger portion of responsibilities for make
decisions (Cullingford and Blewitt, 2013).
Legality
Government regulations controls the behaviours of the company and it also protects
public from unethical practices. These regulations can limits to legal liability which creates
morality than the self protection. For example, Superdrug can meet with minimum government
requirement for disclose utility and healthiness of beauty products.
3.2 Analysis development of mechanisms to achieve employee involvement and empowerment
Employee involvement is considered as very important concept that assists to take
managerial decisions and initiatives. There are several elements take place in which the
organisation can take participation of their employees:
Decision-making: In this aspect, Superdrug Plc can take their employee participation in
term of share employees ideas and opinion. It will assist to develop effective results and
outcomes in the organisation. Employees are encouraging towards certain goals and objectives
that assists to frame positive results at workplace.
Taking feedbacks: In respect to take feedback from various employees, the selected
business will easily determine their outcomes and performances in successful manner. With the
help of feedback, improvements can be made at workplace. Therefore, it assists to enhance
effective results in successful manner.
When employee are getting participation in decision-making, successful values can be
created in Superdrug. Hence, employee should take part through the business can enhance their
performances (Šuleić, Dragin and Vujičić, 2014). The cited firm can take participation in
following manner:
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 Participation at board level: Representation of employees at board level is determines
as industrial democracy. This can be taken as important role that protect interest of
employee at workplace. Thus, Superdrug can invest employee benefits schemes.
 Participation through ownership: It is another way through workers' participation can
be taken at workplace to make decisions. In this aspect, the cited firm induce their
employee to buy shares, advancing loans in great extent (Mezgár and Grabner-Kräuter,
2015).
 Participation through collective bargaining: These is refers as participation of
employee through collective bargaining determines certain rules and regulations. It is
ideal way to ensure participation on employee in managerial process. Hence, Superdrug
need to be carefully control each party otherwise other business can take benefits.
 Participation through suggestion scheme: In order to attain various benefits, the cited
firm also encouraging them with unique ideas. Thus, employee take part through
providing different benefits and add value in organisation functions (Fu, He and Zhang,
2014).
TASK 4
4.1 research current ethical issues which affect to the company
In the complex business environment, there are various issues which face by the
company. Thus, Superdrug has responsibilities to enhance codes of conduct and ethics which
abide to every member of the business. Fundamental ethical issues includes concepts that
includes integrity and trust to accommodate diversity, decision-making and compliance and
governance (Gupta, 2014). Following are such issues which affects to the business: Issue related to health: In respect to develop effective results, Superdrug Plc face issue
to deal with several issues of health that faced by people at workplace. In this aspect,
sufficient facilities are needed to implemented at workplace. Therefore, it is creating very
big issue in front of customer and organisation as well. Issue of child labour: There is another issue face by the selected business is issue of
child labour. Hence, condition is creating issue to involves several actions to assess the
problem and issue that need to meet with corporate social responsibilities. Fundamental issues: Most fundamental and ethical issues that face by business is
integrity and trust. Basic understanding of integrity determines ideas which is conducting
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for affairs with honesty and commitment to treat customer fairly. Relationship of trust
and Superdrug determines success which need to be develops for successful operations.
 Diversity issues: Whole world is rich and diverse place which creates full of interesting to
determine culture and people to deals in effective manner (Arnold, 2015). Ethical
response to diversity begins with recruiting a diverse workforce that enforce equal
opportunities to determines training programs and fulfil employee need in Superdrug.
Thus, the organisation need to maximize values of each person who can contributes key
elements in success of enterprise.
4.2 How the business could improve ethics of operations to meet objectively and relationship
Employer and employee relationship is ethically sound (Scherer, Palazzo and Matten,
2014). There are various requirements which expects in each side to respect employment
relationship and effects on stakeholder of Superdrug. In order to maintain relationship, employer
possess following responsibilities: Corporate social responsibilities: In respect to make effective results, corporate social
responsibilities play a vital role in success of business. With the help of implementing
corporate social responsibilities, Superdrug Plc can easily solve child labour issue that is
currently faces by them. It assists to promote the results in effective manner that create
challenges in enterprise.
 Implement business principles: Business principles are related to the environment in
which the organisation operate functions and operations. In this aspect, several elements
need to be implemented as principles at workplace of Superdrug Plc. It includes clean
drinking water, effective food products and many more things. In this aspect, manager
can maintains their relations with employees and it will assist to accomplish goals and
objectives in successful manner.
 Moral responsibilities: Employer need to protect their employee to provide them effective
working environment. In this aspect, they can get effective participation to take safe
place. In this aspect, Superdrug need to pay proper wages, health benefits and excellent
working conditions.
 Loyalty: The chosen organisation also need to keep themselves loyal in front of
employees. They have not lay off workers to take necessary changes at workplace. Thus,
the company need to provide them effective benefits of wages (Pai, Lai and Yang, 2015).
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4.3 Design suitable ethical codes
Covered in poster
M1 Strategies to find appropriate solutions
In order to draw recommendation, it is determines that Superdrug need to concentrate on
employee performances. In this aspect, they have to determine training and development
programs which assist to enhance their skills and knowledge for attain business objectives and
goals (Tan and Ko, 2014). Thus, workers serve products and services according to customer
needs and requirement. Hence, judgements can be made for development of the enterprise
solutions. In addition to this, the company also requires for enhancing online stores so that they
can rich each and every customer easily. Child labour and health related issues create major
impact on the business performances. It creates negative impact on the business outcomes and
results which need to be implemented with appropriate solution. Hence, it assists to cover areas
in that chosen organisation will perform in better manner.
M2 Methods and techniques to collect information
There are various tools which assist to collect information for Superdrug. In internal
outcomes, the company takes views of employee, analysis of financial statement and many more
things (Lütge, 2013). On the other hand, in external part the cited firm can take information from
newspapers, magazines and radio, etc. Hence, they will able to make decisions which assist to
enhance profitability at workplace. In this aspect, two types of methods implement for secondary
and primary research. In order to carry primary analysis questionnaire has been used and for
secondary public sources determines at workplace.
M3 Structure and approach that can be used for findings
In order to serve services in different areas, advertisement can be maintain by the
organisation through the cited firm can serve information to different customer (Maniora, 2015).
In addition to this, internet is also the best resources for developing outcomes of the company is
systematic manner. Hence, Superdrug is able to achieve effective information from different
sources at workplace. Ethical behaviour is the main important aspect that consist with society
and individual thinking values which assists to tend good functions and operations that creates
moral principles such as honesty, fairly, equality and diversity.
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D1 Improvements through critical reflection
As per the view of Silver, 2015, the cited company need to improve their performance at
workplace through deliver information and attract potential customer. Hence, they can easily
manage resources for developing profits of the company (Silver, 2015). However, it is very
crucial because improvements cannot be easily take place so that Superdrug need to create
innovations and creativity at workplace. With the help of taking participation of employee in
decision-making and feedback, the selected business will easily collect relevant information. It
will assist to ensure effective employee participation in success of business results.
D2 Responsibilities for managing organisation activities
Superdrug play various responsibilities through they will able to serve effective products
and services to customer. Hence, they have to conduct it carefully to develop their relations with
customer, employee and governance (Marques, 2016). For employee, the cited firm need to pay
effective wages and working environment so that they are giving positive contribution in the
business. Further, to manage profitability the chosen organisation need to serve effective product
and services so that potential customer can be attracted.
D3 Demonstrate convergent/ lateral and creative thinking
With the help of employee participation, the cited firm can get different ideas and
creative thinking at workplace so that they will able to develop their positive outcomes and
results within the business environment (Nicolăescu, 2013). In addition to this, creative thinking
is also helpful to make innovations within the environment for development of Superdrug. In
addition to this sharing ideas, opinion and views assists to develop effective results at workplace
so that objectives will be achieve in successful manner.
CONCLUSION
A reputable company like Superdrug Plc. Ethical consideration are indeed key
requirements for its successful functioning and production for profit maximization. The
commitment to maintaining a favourable environment, with good practice and social
responsibility goes in handy with inevitable compliance with ethical standards. This has
consequently enhanced efficient production of good and services in beauty and health, and thus
being a leading retail enterprise in the United Kingdom.
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