Comparative Business Ethics and Social Responsibilities

This essay discusses the ethical issue of prioritizing profitability over employee safety in Rio Tinto. It analyzes the article in the light of various ethical theories and suggests resolutions based on ethical standards.

Comparative business ethics
and social responsibilities

Contents
Introduction............................................................................................................................................2
Article discussion...................................................................................................................................2
Conclusion.............................................................................................................................................6
References..............................................................................................................................................7

Introduction
This essay brings out a discussion on ethical issue in an business in Australia. The chosen article
for the essay is accusing of cutting the corners for the safety amids. Rio Tinto has placed
production over employee’s safety (Garrick, and Walker, 2019). Initially, the essay analyses the
article in the light of various ethical theories. Article has been reported on ethical issue from
“abc.net.au”. The main concern highlighted in this article is that employee`s safety is at danger. As
per the documentation at Rio Tinto operation where union led to organization safety. Further, a
resolution has been undertaken on the basis of ethical procedure so that this issue can be resolved
by complying with the ethical standards so that an organization can take decisions accordingly to
modify its ethical code of conduct.
Article discussion
The article has raised the issue of safety recording in the Rio Tinto. Lloyd Pump has reported that
trade union members feel that there is a steady decline in employee’s safety standards on
production site. They have received a surge up in the membership from supervisory staff. This is
not much usual that they are concerned with senior management who thinks of pressurizing so that
it could cut the corners by increasing the production level of targets (Garrick, and Walker, 2019).
Only meeting the target levels is considered insufficient. One of the employees at Rio Tinto Mines
said that his possibility of employment was terminated only because he denied to compromise the
fear echoed on safety (Cuomo, Mallin, and Zattoni, 2016). The company had to suffer from the
consequences of three incident reports for the last two years. It includes a collision between a light
vehicle and dump truck and other collision was an electric shock during the time of welding. The
company has clearly defended safety records where Rio Tinto committed to dump truck collision

as it is classified as fatal potential injury which are accordance to the global health concerns,
environmental standards, and safety standards (Garrick, and Walker, 2019). The company has
rigorous procedure where they have investigated many incidents, which occur in its operations and
it has implemented several critical lessons from the incident. It had been defending on handling
the safety. It has been defending on its handlings of safety and certain issues in regards to safety
health of personnel seriously. The bossy nature has remained a tight lipped behind the reasons.
This has shown that the production has increased to 35pc (Garrick, and Walker, 2019). As per the
Gove operation, a flyer handed in the community meeting showing to the ABC news as Gove
operations reached production level of 12.5 million tons of bauxite in 2018 that has increased up
to 12 percent since 2017 (Cuomo, Mallin, and Zattoni, 2016). With the increase in production,
workforce number will remain unchanged for the year as due to unsafe health policies. Workers of
Rio Tinto has been feeling that they have no confident in senior management in such a way to
pursue the goals. Employees have clearly understood that in order to pursue targets and earn more
profits but at the same time it will just bring little safety. The company will ensure to maintain a
little safety levels. The company has met the case of fatal accident and in 2014, employees were
crushed to suffer from while completing the maintenance work (Cuomo, Mallin, and Zattoni,
2016).
With the normative nature of code, in specific areas to withdraw health services, occupational, and
environmental health, there are relevant portion of the professional code of conduct has been
extracted (Crowther, and Seifi, 2018). There is a greater importance of integrating the ethics for
day to day activities. Professionals have reminded for all the aspects of professional practices,
recommendation and other decisions leading to consequences associated with the ethical
underpinnings. Health safety is not only accomplishment of professional services but also the

major part of ethical code of conduct. It has been seen that with increasing and cutthroat
competition, it is seen that the potential of conflicting interest has been increasing as there is a
majority of people adhering to the practices of objectivity and truth. It becomes difficult to assess
the difficult situation of insecure health safety and frequency of misconduct conduction (Garrick,
and Walker, 2019). To address the necessity to comply with the ethics, the serious concerns in
regards to pressure to execute under the pressure of reducing awareness of the societal ethics
(Valentine, Hanson, and Fleischman, 2016). This will lead to dictate training at all the levels.
Improper health concerns affect the personality behavior as of employees where he is not feeling
to work anymore where he does not feel secure anymore. Cognitive dissonance demotivates the
environment at the workplace where employees feel that they are feasible to be paid and treated
well but they are considered to get the treatment of a downtrodden employee. Occupational health
has complex disciplines especially to prevent unethical code of conduct (Valentine, Hanson, and
Fleischman, 2016).
This incident has led to breaching of the theories of the corporate governance. Maintaining health
safety is a challenge of the company so that it could comply with theories of corporate
governance. Stakeholder theory emphasis on creating the balance between the responsibilities in
the company as it is direct relationship between employees and balancing other activities such as
ethical code of conduct (Yermack, 2017). On the part of the responsible stakeholder`s responsible
theory, employees and other stakeholders have the right to various relationships and their
maintenance. The company has to consider both its managerial decision and responsibilities in
regards to serve employees, suppliers, and business partners (Yermack, 2017). It is important to
ensure health safety as their family is their first criteria to survive with the underlying interest of
the stakeholders where it has fundamental issues, values and with a set of stakeholder’s

preferences. In this case, death and injuries are the source of increased profits that breaks the basic
code of conduct (Yermack, 2017). Other corporate governance theory such as CSR theory has
come up with fulfilling the responsibilities for the society as Rio Tinto has not been serving people
with adequate medicines as basic healthcare facilities are not provided and given in the wrong
way. The company will not be able to maintain long term standing and the stability as it has
spoiled its name of profitability under the non-compliance of health safety rules (Alam, and Alam,
2019).
Other than corporate governance theories, ethical theories such as utilitarian theory and
dermatology theory are deteriorated completely (Alam, and Alam, 2019). These theories clearly
signify the actions for the company that is reliable and profitable for company, society as well as
employees. It possess to find and identify and save actions to compete with greatest personal
values. Judgments through critical moralities, restructuring and understanding moral judgments
from the competition valued items and similarities. On the personal level, it is seen that job
security plays an important role in avoiding the unfavorable business consequences (Martela,
2015).
When creating a resolution for the unethical behavior on the part of employees, it is observed to be
important that organization will have to opt for a process in light of corporate ethics. Firstly, the
issue has been identified that clearly mentions that job insecurity and unsafe job can be resolved
through relevant information and other stated ethical code of conduct (Martela, 2015). Rio will
have to identify several alternatives that can lead to resolution of the issues regarding health
safety. On the first alternative, the company shall consider to follow the same code of conduct that
leads to greater profitability. On the other hand, the organization shall follow standard code of
conduct that can improve health conditions (Valentine, & Fleischman, 2018). Under the light of

following ethical standards, the company will follow the second alternative. The company would
strive to comply with such code of conduct so that it could improve the employees’ health and
lead to enhance the productivity complied with the health regulation law and act, 1959. Health
fund approaches will address the ethical issue with assurance of the proper attention (Garrick, and
Walker, 2019).
Conclusion
From the article discussed on ethical issues related to business and corporate scandal, it is seen
that Rio Tinto has prioritized profitability and productivity rather than health security. From the
above discussion, this essay specifies how company`s deeds do not follow ethical concerns.
Theories of corporate governance has been applied to evaluate the issue. Therefore, ethical
philosophies are used to check and modify the company`s actions to comply with the a appropriate
code of conduct that can lead to proper implication of health regulation act and concerns.

References
Alam, S. and Alam, R., 2019. THE EFFECT OF PERSONAL ETHICAL PHILOSOPHY,
INTERNAL LOCUS OF CONTROL AND ACADEMIC CULTURE ON PROFESSIONAL
COMPETENCE OF ACCOUNTANT EDUCATORS IN PRIVATE UNIVERSITIES IN
MAKASSAR. JARES (Journal of Academic Research and Sciences), 4(1), pp.13-27.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald Group
Publishing.
Cuomo, F., Mallin, C. and Zattoni, A., 2016. Corporate governance codes: A review and research
agenda. Corporate governance: an international review, 24(3), pp.222-241.

Garrick, M. and Walker, Z. (2019) Rio Tinto accused of 'cutting corners' on safety amid mystery
over executive's departure. Available on: https://www.abc.net.au/news/2019-05-24/rio-tinto-
safety-record-questioned-employees-union/11126360 [Accessed on: 26/05/19]
Martela, F., 2015. Fallible inquiry with ethical ends-in-view: A pragmatist philosophy of science
for organizational research. Organization Studies, 36(4), pp.537-563.
Valentine, S., & Fleischman, G. (2018) From schoolyard to workplace: The impact of bullying on
sales and business employees' machiavellianism, job satisfaction, and perceived importance of an
ethical issue. Human Resource Management, 57(1), 293-305.
Valentine, S., Hanson, S. and Fleischman, G., 2016 Workplace Bullying, Psychopathy, and
Businesspersons’ Ethical Issue Recognition. In Academy of Management Proceedings (Vol. 2016,
No. 1, p. 10041). Briarcliff Manor, NY 10510: Academy of Management.
Yermack, D., 2017. Corporate governance and blockchains. Review of Finance, 21(1), pp.7-31.

(Source: Garrick, and Walker, 2019)