Relevance of Ethics for Business Decisions: A Case Study of Woolworths

Running head: ETHICS-MANAGEMENT
ETHICS-MANAGEMENT
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Introduction
Ethics primarily concern an individual’s moral judgements, perspectives in relation to
right and wrong. Decisions taken within an organisation may be made by individuals or groups,
but the decision-maker will be influenced by the culture of the organization. An effective ethics
and compliance typically translates into ethical business decisions. Ethical decision-making is a
discipline and an approach of successfully identifying as well as resolving issues in the business
context (Hair et al. 2015). The purpose of the paper is to analyse the relevance of ethics for
business decisions and the way ethics is relevant for business decisions in one of Australia’s
leading retailers, Woolworths. Additionally, it is focus on the significance of ethics for small
business enterprises.
Discussion
Relevance of ethics for business decisions
Business ethics provides the approaches to appreciate and realize ethical challenges faced
by stakeholders in operating fair and principled business (Drumwright, Prentice and Biasucci
2015). Moreover, in the view of authors, business ethics can aid to recover ethical decision
making by providing organizational leaders with the appropriate knowledge and tools which
enable them to suitably recognize, analyse and offer resolutions to the ethical troubles and
pressures they tend to encounter. According to Chell et al. (2016), applying ethics in the
business context necessitates a responsiveness or understanding to ethical concerns which may
occur and a process to determine relevant issues as part of an overall decision. Furthermore,
addressing ethics and values in business decision making primarily sheds light on the need to

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ensure that core focusing areas have been made and align to organization’s standards and
principles. Coles for example, with its application of suitable diligence on prospective suppliers
has been able to monitor a supplier and assess their adherence to stringent standards in specific
criteria. Drumwright, Prentice and Biasucci (2015) have noted that, one such criterion is its
questionnaire will allow the company’s supplier to put across their propensity of executing audits
or have an environmental policy.
Woolworths Ethical Business Approach
It is essential for every business organisation to ensure principles values and ethics with
its stakeholders in order to sustain constructive relationship with them. Schwartz (2016) has
stated that values and ethics family emphasize on the basic framework within which every
organization tend to operate. In this stage, the ethical sourcing policy for the stakeholders in
Woolworths involves efficient provision of superior products and services to its consumers. The
company primarily sources its products from diverse locations in order to obtain the needs of
global business environment and demands. Woolworths has been trying to accomplish the
demands and needs of its customers by operating its business at both local as well as global level
Woolworthsgroup.com.au (2019). Additional reports of Hair et al. (2015) have revealed that the
company aims to source its products through highly efficient and suitable approach.
Furthermore, Woolworths ensure value and ethical practices of its product distributors and
suppliers by aiming to enhance the environmental and social practices. May et al. (2014) have
noted that the company proficiently has dedicated its role in ensuring smooth and resilient work
practices with its suppliers in order to acquire their reliance, engagement, and satisfaction and
stimulate in order to deliver raw materials through timely approach. Comprehensive studies of
Lawrence and Weber (2014) have mentioned that Woolworths to sustain its competitive