Business Management Assignment PDF

Business Management

Executive Summery
Business ethics is a moral standard of an organization which helps to serve the benefits to
society by taking effective decision in the business activity. It is crucial for the business to
operate the business operation in the effective manner by concerning the legal standard which
retains the employees as well as customers. In this context, the findings of present report reveals
the importance of ethical behavior for a company and identify the negative consequences of
avoiding the ethical standard in the organizational practices. For this purpose, the
implementation of ethical theories on the organizational practices increases its standard.
Therefore, by concerning those conditions which brings the ethical behavior in the firm, the
management of the firm reduces the unethical practices in the firm.

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Managing practices for employing couriers as an ethical question for Deliveroo......................1
Role of business in Society and effect on the stakeholders.........................................................2
Ethical decision and competitive edge........................................................................................3
Recommendations........................................................................................................................3
ETHICAL THEORIES....................................................................................................................4
Utilitarianism theory of ethics.....................................................................................................4
PART 2............................................................................................................................................7
Importance of ethical behavior in the management.....................................................................7
Drivers of unethical practices in the firm....................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the current scenario, the management of business decision is a most difficult task
because any wrong decision leads many complications for the business by affecting the
productivity and profitability of the business (Weiss, 2014). In this regard, by following the
ethical standard in the organization practices, the management of the organization ensures the
enhancement in the brand image (Demirtas and Akdogan, 2015). In this context, the present
report is based on the analysis of unethical practices adopted by of Deliveroo; the British
delivery firm which delivers the food products of British restaurants among general public.
(Butler, 2018). Apart from this, the report consists the deeper analysis of unethical practices in
the terms of management, impact on the competitive edge, society and the stakeholders of the
firm. In this series, the unethical practices of Deliveroo are also analyzed with the help of
utilitarianismandKant theories of ethics.
PART 1
Managing practices for employing couriers as an ethical question for Deliveroo
According to several studies,it is the responsibility of the business to be lawful for the
employees' wages and ensures that all employees of the organization is paid fair wages (Trevino
and Nelson, 2016; Klein, 2010; Hart, 2010).In this regard, Deliveroo; the British food delivery
firm also faces the criticism for inappropriate wage distribution in the different level of
employees andother rights of employees such as paid holidays of the delivery boys(Taylor,
2017). In this regard, the delivery boys of Deliveroo claim for their employment rightsand
demand for theproper wages (Butler, 2018). In this context,Cavico, Muffler and Mujtaba(2012)
asserted that employeediscrimination is negatively affects the reputation of the business in the
market. Owing to this, poor awareness of Deliveroo for the delivery boys’rights who deliver the
meal to customers in the high traffic street in minimum time degrades its market
reputationbecause of those riders are dissatisfied from the wages distribution policies of
Deliveroo where as they are the key factor of Deliveroo’s success (Washtell, 2017). On the other
hand, the low focus on employee dismissal policies increases the amount of compensation
money (Leigh Day, 2017). Despite paying the claimed money,Deliveroo continuously faces
criticisms such as the representative of Deliveroo's riders mentioned that Deliveroo knew about
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the employee harassment and loses the employee tribunal (Butler, 2018). However, the
employees are the valuable assets of an organization, the success or failures are greatly
depending upon the thoughts of the employees (Lindner and Wald, 2011). Therefore, the poor
focus on the employees’ rights discloses the unethical behaviour of Delivroo in the public and
creates the cause the increased financial expenditure from the claim’s settlement money.
Role of business in Society and effect on the stakeholders
In the present scenario, it is crucial for a business to elevate the market reputation by
contributing to societal activities (Brik, Rettab and Mellahi, 2011;Saeidi et al. 2015). In this
regard, the business has the responsibility to serve the benefits to the society by involving in the
corporate social responsibility (CSR)(Saeidi et al. 2015). In this manner, the management of
Deliveroo, by focusing on the CSR can emerge the positive image in the society and
stakeholders. The key stakeholder of Deliveroo are employees, delivery boy, the general public,
competitors and customers which affected by the unethical behaviour of the firm.The delivery
boys of the company are dissatisfied from the unconcern of the company for their rights (Butler,
2018).However, if the company does not treat its employee fairly then it is considered as the
unethical practices which consequently affects its reputation.These types of practices also
degrade the company’s profitability because of the poorlysatisfied employees do not work with
their full efficiency. Apart from this, it also forces employees for taking such action like striking
whichcreates the barrier in the firm’s productivity and in turncausefinancial losses (Lima
Crisóstomo, de Souza Freire and Cortes de Vasconcellos, 2011).Therefore, for enhancing the
productivity of the organization the focus the employment right is most necessary through
allocating the satisfactory wages to the employees of the organization.
The policies of the gig economy prevent Deliveroo to give their riders sick pay; thus, it
finds another method for enhancing the riders' safety when they deliver the food items. For this
purpose, it appoints 50 new staff for riders' safety and uses the cameras on the riders' helmet for
getting evidence of victim and useful for police investigation (Nye, 2017).At this juncture,
Collier and Esteban(2007, p.19) asserted that the CSR policies of the organization influence the
employees' attitude and behaviour for the firm by enhancing the integration in the business
process and enhances their commitment towards the firm.It shows that by promoting the riders’
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safety Deliveroo gain the trust of their riders and motivates them for improving their
performance.
Ethical decision and competitive edge
According to Kain, and Sharma (2014) by incorporating business ethics management in
various business strategiescompanies can sustain for long run. In building the reputation, growth
and financial stability of any firm, ethical culture plays important role. As companies are
primarily business organization which runs for the benefits of shareholder. Further companies
have to act ethical towards society where they do business. Along with this, they also have
responsibility towards their customer, suppliers and employees.Thecorporations which are
grounded on ethical foundation recognize these responsibilities and make a serious effort to fulfil
them and in so doing making use of their business ethics drive as a source of competitive
advantage(Ferrell, and Fraedrich, 2015).
In recent time after facing the criticism about the working condition of their riders,
Deliveroo implemented various ethical decision related to their workers which majorly influence
competitive edge of the business. In this regard Deliveroo provides flexible working hours with
well-paid wages i.e 10£ per hour to its employees which is above from minimum national wages.
Along with this, they also provide incentive on receiving regular feedback about drivers and
reward them accordingly. Rapid on boarding is other way out according to which employees can
on board whenever they want to work or can leave. They also facilitate riders to be part of
company culture by inviting them in company’s activities and social activities which makes feel
them to be part of the company. These ethical changes made by Deliveroo advocates to rebuilt
their brand image and attract the rider more towards to company as compared to their
competitors viz Ubereats, Foodpanda etc. (Anna Tims, 2017).
Recommendations
As per the above discussion, the unlawful behaviour of the Deliveroo negatively affects
its profitability and productivity. In this regard, it is suggested to the management of Deliveroo
that they should properly discuss the employment rules and regulation when they appoint a
delivery boy. For this purpose, they can clearly mention the employment rules for self-
employment in the contract documents and as well as in the recruitment process. It will increase
the employees’ awareness for the firm's regulations and will help Deliveroo to minimize the
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employee’s frustration for the employment rights. Therefore, by enhancing the communication
for the facilities which provided by the organization for the employees at the beginning of the
relationship with the employees, Deliveroo can ensure the employees’ compliance for the
organizational behaviour.
For enhancing employees’ satisfaction onthe employment policies, Deliveroo should be
focus on the organizational laws and forced the management to update the employment rules
according to the legal standards. It will also help Deliveroo in the case of the employment
tribunal and increase the winning chances of Deliveroo.Moreover, it will also prevent the
financial losses of giving compensation money to the losing employee tribunals. On the other
hand, Deliveroo should focus on the employees’ dismissal policies because in the compensation
money the dismissal took a major part. Therefore, Deliveroo should build new strategies which
can be implemented in the organizational practices and enhance the employees' satisfaction.
ETHICAL THEORIES
Utilitarianism theory of ethics
Ethical theories play an important role in the development of ethical decision making of
the business (Blakely, 2015). Ethical theories are helpful to business to take the right decision at
the right time by concerning the key stakeholders of the business (Broad, 2014). The
Utilitarianismis one of the popular ethical theories whichconcentrates in reducing the negative
consequences of the decision and enhances the goodwill of the business (Blakely, 2015).Apart
from this, utilitarianism theory relies on the breakup of some the moral rules for increasing the
positive impact of the business decision (Hayry, 2013). The major focus through this theory is
laid on the overall good of sufferers who are involved in the organizations. It also suggests to
avoid the existential risks and increase the well-being of human elements through which
involved parties can be satisfied.However,in the case of Deliveroo, the management did not
ensure the consequences for the negligence of delivery boys which the unrevealed the poor
image of Deliveroo in the stakeholders and negatively influenced them.But, through giving
compensation money to the affected delivery persons and includes them into the social activities
conducted by Deliveroo shown its ethical behaviour.. It reveals that the after following the
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unethical practices in the organization, the Deliveroo faces dissatisfaction from the one the key
stakeholders which foster organization to follow ethical behaviour.
The utilitarianism theory consists of two form including act utilitarianism and rule
utilitarianism. The acts utilitarianism is based on the consequences of particular action whereas
the rule utilitarianism is based on the consequences of the kind of the actions and obeys the laws
(Mill, 2016). In the case of Deliveroo, the leader of the organization does not follow the legal
rule for the employment right if the Deliveroo could focus on the employment right in the
organizational practices then it would have prevented this type of crisis. In this regard, Anderson
and Handelsman (2013) stated that a proactive approach is helpful for taking the ethical business
decision because it analyzes the consequences of the decision in advance. Owing to this, if the
Deliveroo could have been analyzed the impact of their unethical practices in advance then it
would have converted the harmful impact into the beneficial impacts.
The utilitarianism has some loopholes in the ethical aspect because this theory reveals
that the experience of management is helpful for taking an effective ethical decision in the
business but sometimes prediction can go wrong and turn a decision to unethical decision (Kant,
2009). Thus, the rule utilitarianism is more suitable for taking an ethical decision in a lawful
manner. Apart from this, variation in the condition like changing government laws lead the
changes in the actual decision taken by the organizational management (Choi, 2017). It reverts
the consequences of the management decision. In the same manner, Deliveroo does not establish
the balance between the rules of gig economy and the UK’ employment rules in the business
practices which resulted in the weaker sideof Deliveroo in the case of employee tribunal (Leigh
Day, 2017). It reveals that low awareness of management in the legal obligations harm the
organization in many ways.
Kant theory of Ethics
In decision making process of business various ethical theories are used as per the
demand of the situation. To understand the decision making in case of Deliveroo multiple
theories can be used but Kant ethical theory is most suitable because it is duty-based theory. In
this context, Kant stated that there is a single, self-evident fundamental principle of duties that
also known as categorical imperative. He further focused on treating people well and considering
their rights so as to improve their working conditions and offering them fair treatment (Kant,
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2009). This indicates that people should be treated as the important asset of the business rather
considering them as the instrument of working. This proves to be effective in boosting their
morale and increasing their focus towards the work.
In the case study ofDeliveroo, firmcould have been applied theethics-based theory in
decision making of employment. According to that approach, Deliveroocould have treated their
employees as part of the company rather than labelling them as self-contractor. To achieve that,
Deliveroo could have been invite all the employee in firm’s social events andmaking them as a
part of the company culture irrespective of their designation. Furthermore, theory argues that a
person is good or bad depending on the motivation of their actions and not on the goodness of
the consequences of those actions (Anderson and Handelsman, 2013). Similarly, company also
need to focus on the its own obligations towards the employees and provide them fair wages in
the proportion of efforts they are putting for the success of the business. In revert of the company
action in their favour riders would have also followed the company regulation and did not claim
for the unethical behaviour of the company.
Furthermore, theory suggested that one can have moral worth only if one is motivated by
morality (Demirtas and Akdogan, 2015). In this context Deliveroo also emphasizes on the riders’
safety and regulations. In this context, company being ethical towards the workers,uses cameras
in helmets and upgraded their app to ensure that riders are safe. They alsoappointed more new
staffs to focus on rider safety which shows the ethical behaviour of Deliveroo. However Noys,
(2010) argued that Kant theory could not advocates in all ethical decision because it is
permissible to do lie when doing so will save a life which means if the wrong decision which is
being made for benefit for other is would be right .In this scenario as discussed above decision
made by Deliveroo related to riders wages, and other facility was beneficial for company
because it was cutting operational cost of the company but it could not justify the unethical
behaviour towards riders of the Deliveroo.
PART 2
Importance of ethical behavior in the management
According to the several studies, ethical behaviour is crucial for an organization because
it affects the reputation of the company in the market as well as among the stakeholders
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(Blakely, 2015). On the contrary, if an organization follows the unethical practices like uses of
children for the business operation or their clients use the child labours for increasing the
profitability of the business. It affects the sustainability of the business (Taggart, 2011; Demirtas
and Akdogan, 2015). In this regard, as an ethical manager, I would ensure that all the clients of
the business do not use the child labours in the business contract and tie-ups with only those
clients who follow the ethical standards.Further, the decisions taken from the leaders affect the
whole social system and organization (Dolgoff, Harrington and Loewenberg, 2012). For this
purpose, by promoting the involvement of social communities in the business, I would ensure
ethical behaviour of the organization because every community has a different perspective on
ethical behaviour. These perspectives are helpful for taking effective decisions which are less
harmful to the societies.
Drivers of unethical practices in the firm
In the present scenario, the competition in the businesses is increasing to a great extent
where companies are moving fast in the race of success and management of these businesses are
focus on earning high profitability as soon as possible (Love, Roper and Bryson, 2011). This
tendency of companies for the success forced the management to bring unethical practices like
poor wages distribution in the organization and save the financial expenditure of the organization
(Brown and Mitchell, 2010). In the same manner, UK' delivery companies like Uber and
Deliveroo executes this type of unethical practices in the organization and shown the unethical
behaviour globally (Butler, 2018). In that case, as an ethical manager, I would ensure tofollow
the ethical practices by equal distribution of wages among employees. Not only this but I would
also ensure that their efforts are rewarded for their increasing satisfaction. Apart from this, I
would maintain the transparency in the business policies by providing the printed material of the
policies to each of the employees in the organization. This will also boost morale of employees
and brand image of the business can be increased.
In the contemporary era, many of leaders promote only those employees in the
organization who are the favourite of the leader. This type of leader's behaviour brings the
unethical leadership in the organization (Mainiero and Jones, 2013). Apart from this, it also
decreases the productivity of the organization because of favouritism promotes the low skilled
employees which negatively affects theskilled employees of the organization and enhances the
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dissatisfaction among the employees (Bello, 2012). Furthermore, it degrades the moralities of the
employees which further stunning the growth of the businessby using unethical behaviour and
increase the employees' turnover (Taggart, 2011). However, in this situation, I would understand
this concern for organization as well as other workers through increasing professionalism. Not
only this, but I would make it sure that employees working in my company feel satisfied and
motivated without the feeling of bias at workplace because being ethical leader it is my
responsibility to be role model for my employees who in turn promote the brand image.
The management of all the aspect of international businesses like clients, customers and
employees are the most difficult task. The loophole in themanagement of supply chain creates
the cause for offering poor quality products in the consumers (Weiss, 2014). For example, the
horse meat scandal of Tesco revealsthe unethical behaviour of firm towards the customer
because the Tesco offer beef patties on the store but the patties contained the horse meat. It was
most disappointing for Tesco’s customers (Lawrence, 2013; Fletcher, 2013).In such kind of
situation which bring the unethical practices in the company, I would ensure to select the
material every day on the basis of set criteria. Also, the selected suppliers would be ethical who
ensure to meet the quality standards set by the business. For this purpose, in would appoint the
employees who check the quality of raw material on the basis of standard measure of quality
when the consignment from the suppliers will unloaded in the warehouses. Apart from this, I
would also enhance the communication with customers and apologize for the lack of
management along with taking the strong action against the supplier who does not provide the
quality products. It will reveal the ethical behaviour of the company in the potential customers.
CONCLUSION
On the basis of the above report, it has been concluded the focus on the employment
rights in the business practices is most necessary to save the organization from the harmful
impact of employment rights’ negligence. In this regard, this low focus negatively affects the
competitive edge and the mindset of the stakeholders. Apart from this, according to the
theoretical analysis of Deliveroo’s practices, it can be concluded that the ethical theories are
helpful for preventing the unethical behaviour of the firm by applying several techniques.
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Therefore, the consideration of the organizational practices is imperative for the emerging the
brand reputation.
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