Critical Analysis of Corporate Ethics

This document provides a critical analysis of corporate ethics, discussing the relevance of ethics for business decisions, how ethics is relevant for business decisions in a chosen case organization, and the importance of ethics for small business firms. It explores the literature review, examines case organization rules and policies, and highlights the benefits of corporate ethics. The document emphasizes the need for ethical leadership and the impact of ethics on employees and different industries. It concludes by emphasizing the importance of ethics for both small and large business firms.

Running head: CRITICAL ANALYSIS OF THE CORPORATE ETHICS
Critical analysis of the corporate ethics
Name of the student
Name of the university
Author’s Note

1CRITICAL ANALYSIS OF THE CORPORATE ETHICS
Table of Contents
1. The relevancy of ethics for business decisions?..........................................................................3
 Literature review...................................................................................................................3
 Discussion.............................................................................................................................3
2. How ethics is relevant for business decisions in a chosen case organization?............................3
 Examine and analyse the case organizations rules, policies to ethics in business decision
making?........................................................................................................................................3
 Decisions or cases that states how the organisations is considering ethics in its business
decision making?.........................................................................................................................3
3. Is ethics relevant for the small business firms?...........................................................................3
References........................................................................................................................................4

2CRITICAL ANALYSIS OF THE CORPORATE ETHICS
1. The relevance of ethics for business decisions?
 Literature review 333
According to the author Ferrell et al., (2015), today the present generation managers and the
senior leaders should be concerned with the corporate ethics as such that, these ethics are the
principal means for the future success of the firm. The manager, as well as the employees, must
have concern towards effectively dealing with the ethical issues such that the unethical
behaviours results in legal risks and hamper the healthy well-being of the corporate firm and
cause harm to the stakeholders.
Another author Weiss et al., (2014), proposes that there is an immense need to undertake
measure for what is right over the fact of what is wrong. Ethics should contribute towards the
achievement of the common goals and equalities. Ethics play a principal role within the business
as because very often laws are not sufficient to guide the actions of an individual. However,
making an individual aware of corporate ethics using a training session does not arrive at a
proposed solution for the complex dilemmas.
According to another author Barry et al., (2016), business ethics has become an established
mode of discipline especially within the region of the UK market. The author also states that
practitioners of business ethics are more sceptical of capitalism. He further added that the
business class society is mostly affected by moral criticism.
However according to this author. There still stays plenty of scope for the field of corporate
ethics within the act of ethical leadership. He further claimed that there should be more effort
and contributions towards the influence of strong ethical leadership within an organisation.

3CRITICAL ANALYSIS OF THE CORPORATE ETHICS
How such influences flow down from the top hierarchy level to the bottom down level
within the organisational premises. Once this flow of influence is understood, exploration is
necessary to identify the best procedures for developing and sustaining strong influential
leadership ethics within the organizational structure.
Discussion
It is a means that guides the morale, behaviour and decisions of the business organisation.
Ethics is the means through which government formulates laws in regard to basic salary
structure, minimum wage structure, environmental regulations and the restrictions that takes
place against the trading activity.
Ethics in term of leadership:
The leadership body should consider the organisation as a whole body and should not
give priority to an individual person. The leader must not take advantage of the hierarchy
position and carry on the activities and functions of the organisation in accordance to their
individual preference. A leader should understand the burden of responsibilities that stays within
the hands. Hence, ethics is the means which gives an individual the vision to carry on activities
in an ethical manner (Ciulla et al., 2014).
Ethics in term of employees:
The employee makes use of business ethics in exercising their efforts. When an
individual employee operates in an ethical manner, the achievement of the goal contributes
towards the overall effectiveness of the organisation (Lee et al., 2014).
Ethics differs in terms of the industry:

4CRITICAL ANALYSIS OF THE CORPORATE ETHICS
Corporate ethics vary from industry to industry and in respect of the nature of the
business activities. It is the nature of the business undertaking that results in the formulation of
the particular set of corporate ethics. Example, industry operating on chemical undertakings
should have concern towards the environmental aspect. A business firm serving hospitality
services should have a concern towards the health of the clients.
Whereas, a common CSR objective is towards the environment irrespective of the nature
of the business undertakings.
Benefits of corporate ethics:
It makes sure the loyalty of the employees; it makes sure the loyalty of the business firms
towards the economy. Moreover, it gives moral and path which denotes a specific way in which
we should walk. It brings in the sense of social responsibility. It helps in formulating a positive
brand image, and in terms of the employees, it helps in formulating a positive image (Ogbari et
al., 2016).
In order to retain and form a positive image, the business operations must be committed
to function on an ethical foundation as it is concerned with the treatment of the employees.
2. How is ethics relevant for business decisions in a chosen case organisation?
 Examine and analyse the case organisations rules, policies to ethics in business decision
making?
The code of conduct as implemented by the Wesfarmers firm are as follows:
 Carry on the business activities with honesty, integrity, on fair practices and should be
accountable for each of the decisions being undertaken.

5CRITICAL ANALYSIS OF THE CORPORATE ETHICS
 Have a concern towards the interest of the shareholders and that of the stakeholders in terms
of the financial markets.
 Formulate business relationship and bonding in a professional manner and on honest ground.
 Making positive efforts towards the sustainability of economic, social and environmental
factors in which we operate and function.
 Respecting the need to maintain the data of the company, confidential and secret. In order to
eliminate the threat towards the business firm and that of the shareholders.
 Identification and management of the conflicts.
 Respect and treat other individual employees with respect, integrity, value diversity and to
provide a safe working environment (Emery et al., 2014).
Taking into consideration the above rules and policies of the organisation, it is clear that such
rule is being formulated with the sole objective that any threat or harm causing the business
activities should be eliminated. The business firm makes use of positive grounds in order to
make sure that individual makes efforts in a positive way for the achievement of the
organisational goals along with the personal goals.
The breach of the law will result in a severe threat to the Wesfarmers and for the
employees. They make use of the above rules and policies in order to safeguard their interest and
that of the employees and shareholders interest (Zentes et al., 2017). This brings in corporate
ethics, the manner in which the firm is dealing. The firm has a realisation of corporate ethics and
contributes equally towards it.
The firm makes use of anti-bribery policy, money laundering and much more to avoid
any illegal activity. This makes clear that the firm has a realisation of corporate ethics.

6CRITICAL ANALYSIS OF THE CORPORATE ETHICS
To whom does this code apply to:
This code is applicable to anyone who operates within the Wesfarmers hierarchy.
 Decisions or cases that states how the organisations are considering ethics in its business
decision-making?
The main aim of the Wesfarmers is to gain a significant proportion of the share for the
shareholders and the stakeholders of the company. Besides the firm make use of the eco-friendly
raw-materials for contributing towards the environment. The company stated that they aim
towards providing a satisfactory return to the investors.
On the other contrary as they have made use of the value-creating strategies by means of
strengthening the existing business through operating in an excellent and efficient manner
(Huang et al., 2015). Satisfying consumer needs. They make sure that growth opportunities are
secured through entrepreneurial initiatives. The carry on long term management towards
ensuring sustainability.

7CRITICAL ANALYSIS OF THE CORPORATE ETHICS
Strengthening
the existing
business
environment
through
operating
excellence and
satisfying the
customer needs.
Secure growth
opportunities
through
entrepreneurial
initiatives.
Renew the
portfolio by
means of value
added
transactions.
Ensuring the
sustainability by
means of
response, long
term basis
management
GROWTH ENABLERS
VALUE CREATING STRATEGIES
Outstanding Commercial Financial Introduction of Social
Cultural
People Experience Capability Innovation Responsibility Trends
Integrity, Accountability, Openness, Spirit for
entrepreneurship
Figure: Wesfarmers ethics model
Source: Created by the researcher

8CRITICAL ANALYSIS OF THE CORPORATE ETHICS
3. Is ethics relevant to small business firms?
Yes, indeed it is. It does not matter whether the business is a small firm or a big firm. All
that matters is the nature of the business activities that are being carried out. Each of the business
firm irrespective of the size of the firm perform certain activities taking into consideration certain
motive principles like that of the profit generation, return to the shareholder, satisfaction of the
consumer, welfare of the economy and much more.
While making this criteria’s fulfilled they generate a number of factors that directly
hampers the wellbeing of the economy as well as the sentiments of the normal citizen, they
should not be hampered because of the business decision. As such that there requires a specific
set of rules, regulations, and norms which is to mandatory for each of the business units to carry
out in order to make sure that positive outcome is achieved while carrying out the normal day to
day business activities (Panwar et al., 2016).
Scenarios like the environment get hampered to a huge extent because of the wastage that
is being generated from the company’s operating processes. The chemicals that are present in the
wastage attacks the health of the animals and other passers-by. As such another scenario is that
the chemical waste that is being generated from the company is also being dumped directly into
the sea or nearby local ponds as such the coral systems of the economy gets polluted. Another
scenario as such that the business dealings should not operate in a manner that is illegal in
accordance with the eye of the law.
The government of the economy introduces a specific set of rules and norms that are
required to be followed by each of the business unit irrespective of its size. However, despite the

9CRITICAL ANALYSIS OF THE CORPORATE ETHICS
presence of the standard rules and regulations, there is a requirement of the basic ethics as such
that on should feel and carry out towards the economy. Making an individual aware in regard to
what is good and what is bad is not a positive step one should understand one its own that what is
right.
Why such is important:
The small firms always aim for making profits is this respect they forget to have concern
towards the normal well-being of the economy. They forget that they have a basic set of
responsibilities to carry on for the benefit of society and for their family as well. Moreover, the
small firms have the hunger to occupy a major proportion of the market as soon as possible and
that they are hungry to such extent that they desire to arrive at a top position as soon as possible.
Ethics is a means which gives a way to walk towards. Ethics is not a task of one day; it is
a characteristics trait. The presence of ethics is important as such that before undertaking any
illegal activity for at least once, the firm should think of whether it is right or not. In other words,
ethics is a statement of whether it is right or wrong (Chell et al., 2016). Ethics is a means to
make society more stable. Ethics paves the way for future generation. If the business ethics of
today’s generation are not efficient and effective than the future is in the dark in terms of
corporate development and the economy development.

10CRITICAL ANALYSIS OF THE CORPORATE ETHICS
CORPORATE ETHICS
Honesty, Excellence, Sense of the
responsibility, Respect, Citizenship, and
fairness.
Honesty, Excellence, Sense of the responsibility,
Respect, Citizenship, and fairness.
Honesty, Excellence, Sense of the responsibility, Respect,
Citizenship, and fairness.
Formulating a CSR vision statement, formulating a CSR strategy,
establishing a company’s CSR messages, getting employees on field with
CSR, Aligning behaviour, work practices, and attitudes in accordance to
the CSR vision.
Human rights, corporate governance, Community, Environment, Accountability and
Business conduct
Moral Judgement Moral Rules Ethical
System
Figure: Corporate Ethics
Source: Created by the researcher

11CRITICAL ANALYSIS OF THE CORPORATE ETHICS
References
Barry, N., 2016. Business ethics. Springer.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.
International business. Pearson Australia.
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.
Ciulla, J.B. ed., 2014. Ethics, the heart of leadership. ABC-CLIO.
Emery, D., 2014. Ethical consumer power. Zadok Perspectives, (122), p.21.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Hoffman, W.M., Frederick, R.E. and Schwartz, M.S. eds., 2014. Business ethics: Readings and
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Huang, P.H., 2015. How Improving Decision-Making and Mindfulness Can Improve Legal
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Lee, Y.K., Choi, J., Moon, B.Y. and Babin, B.J., 2014. Codes of ethics, corporate philanthropy,
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12CRITICAL ANALYSIS OF THE CORPORATE ETHICS
Ogbari, M.E., Oke, A.O., Ibukunoluwa, A.A., Ajagbe, M.A. and Ologbo, A.C., 2016.
Entrepreneurship and business ethics: Implications on corporate performance.
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