Ethical Considerations for Companies

This assignment delves into the ethical considerations faced by companies, examining how various ethical theories can guide their operations. It analyzes the importance of responsible human resources management and discusses relevant issues such as talent management ethics and stakeholder relationships. The project provides specific recommendations to enhance a company's ethical culture and performance.

ETHICS
ORGANISATIONS

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Responsible management and CSR........................................................................................1
Values Underpinned by Ethics...............................................................................................2
Exploring the issue.................................................................................................................5
Advising Berkeley Group Holdings Plc.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A code of ethics within workplace is set of principles that is used to guide the client in their
effective decision making. An organisation forms in case an individual with varied interest and
various backgrounds unite on the same platform. They work together towards predetermined
aims and objectives those are set by the company. One of the major housebuilding company
“Berkeley Group Holdings Plc” is hire ethical and CSR consultant of “Greenleaf” to assess
contemporary issues associated with responsible human resources. The project aimed at
determination of benefits of CSR along with their downsides. Apart from this, essential ethical
theories which provide shape to action and reliable decision making is also under this project
(Beaumont and Cloke, 2012). On the basis of proper analysis, specific advice is being made to
the company in order to resolve issues in context to the ethical aspects are mentioned clearly in
this report.
Responsible management and CSR
In most of the company, they believe that the business owners of tomorrow would uphold
and endorse sustainable, responsible and ethical operational value. “Berkeley Group Holdings
Plc” is the British property developer that is situated in Cobham. There major aim is to make
focus on the executive housing on individual plots or small sites. There major emphasis is given
on the sustainable, responsible and ethical operational practices that attracts draws the attention
of various employees toward their own business. Management of responsibility within
organisation is important aspect as this will help to attain the support of stakeholders while
performing their functions in market (Parrott, 2014).
Definition:
CSR is an essential concept under which enterprises integrate with both environment and
social concerns in their activities done with the benefits of stakeholders. Generally, it is a wider
term that consists of different factors such as corporate governance and human rights. It has been
found that human resource is one of the primary department which is responsible for hiring,
placing and orienting new employees. They do have various other responsible for organizing
various functions of Berkeley Group Holdings Plc. There are some companies those are using
CSR in order to attain all the necessary changes towards sustainability and Berkeley is one of
them. Basically, CSR is a self-regulatory mechanism that is incorporated by business entity with
their own business model. This is the most common term which indicate the activities executed
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by the company around the nation to provide maximum benefit to the society. CSR is held
responsibility of corporation to contribute to a better society and cleaner environment. Social
responsibility is analysing as effective part of business model, it can attract positive publicity that
can assist and retain top most talent as well as improve relationships with the customers. There
benefits can be more and longer that consist of client retention and financial success. Some
reliable benefits of using CSR for “Berkeley Group Holdings Plc” is mentioned below:
Benefits: There are various positive point of using CSR within an organisation. It will
provide more reliable benefits to society as well as the business at the same point of time. Some
of them are discussed below:
 Responsible business reputation: It is essential for the “Berkeley Group Holdings Plc”
to maintain effective goodwill. Corporate social investment can assist company to build
reputation as they are responsible for gaining competitive advantage in near future.
 Cost savings: The another advantage of using CSR is to reduce the use of resources,
waste and emissions Berkeley can help environment and save specific amount of money.
 Finding and allocating skilled employees: Being a valuable, sustainable business can
make it more simple to recruit new employees or retain existing ones. They get motivated
in case company keep them for longer time, thus reducing costs on recruitment can keep
balance in the company (Swailes, 2013).
Limitation:
 CSR activities are very expensive in nature, simultaneously it is difficult to calculate
return on investment. In this regard, organisation must required to employ team of people
to effective attain the plan of CSR, salaries of team members become the costly aspect.
 There are certain areas where people cannot get any sort of corporate social responsibility
facilities such as in rural areas of the nation because of lack of awareness among the
people.
 In case of managing corporate-divisional relationship negative issues can be arises which
will affect the growth and performance of the company.
Values Underpinned by Ethics
Responsible management is all about making business decision according to the interest
of shareholders and also takes into account all the outside parties stake. It is the duty of
subordinate to perform organisational activities, functions that are assigned to them by the
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“Berkeley Group Holdings Plc”. As a CSR consultant, it is important to make use of appropriate
ethical theory in order to inform their responsible management. There are certain theories that is
taken into consideration by the company. Ethics seeks to resolve various questions those are
associated with the human behaviour and morality. It is essential to make use of appropriate
ethical theory that can help “Berkeley Group Holdings Plc” to make reliable decision making at
the office premises (Jindal-Snape and Hannah, 2014).
Kantianism theory:
It is Kant’s theory which is an example of a deontological model theory. According to
this particular theory, the right or wrong actions cannot depend on their values, but they fulfil
their duties effectively. It states moral behaviour of employees that determine through proper
intention rather than consequences. There are supreme principles of morality that is associated
with unconditional imperatives. These are considered as moral obligation that must be
implemented irrespective of desires. Every actions are performed in accordance with certain
underlying maxim or principles which are vastly varies from one another. It is related with the
moral worth of any action done by employee within Berkeley. There are major formulas of
unconditional necessities which cannot make exceptions for themselves for all kind of acts that
employees would not allow other to do so.
Thus, every principles people acts must be one that they are willing to rationalise for
everybody. In case, this theory is being applied in Berkeley holding plc, they must anticipate the
effects that can occurs, if housebuilding company were to deliver specific information to their
employees. In the long period of time, it causes an unsustainable situation, whereby the market
collapses. The second is Maxim principles of closing itself, Kant said that one must treat people
as an end in themselves and cannot as means to an end. In accordance to use people individually
company have their own interest of gain., but to deal with them as close is to treat people in their
own norms (Riivari and et. al., 2012). This can be use uses in Berkeley holding plc, because
employees are working for generating more reliable outcome for the company in any kind of
situations. The universal acceptability state that all the people would anticipate their actions as
universal regulation, hence company should only subject to people to laws that can be happy to
do any kind of activity.
Benefits to the Managers: By the help of this particular theory manager can easily be
able to increase ethical thinking that can assist them in taking effective decision in near future
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time. However, this would also contribute to the management of diversity. In case firm adopt
reliable ethical theory in their business operation that assist Berkeley holding plc in order to
create and maintain positive image of enterprises.
Implications to the client: This will guides the employees to perform their duties
appropriately. Afterwards, Kantian ethics faces various critical difficulties of their own. First,
because of every duty are absolute, it cannot assist to help us to resolve all kind of conflicts of
duty. It discounts moral emotions such as sympathy and remorse as appropriate and ethical
motives for all kind of actions (Wiles, 2012).
Virtue ethics theory: According to this particular approach to ethics that make more
emphasizes on an individual character as they are key elements of ethical thinking. This can be
used to analyse the appropriate and unreliability of actions through relating with specific choice
to worthy character traits. It is an act or selection which is morally right if, in carrying out the act
as well as development or a morally virtuous characters of employees within “Berkeley holding
plc”. It is unlike normative theories, virtue theory is making more emphasises on the significance
of employee’s character and moral aspects for effective decisions rather than perceived
consequences. This can be implemented in Berkeley holding plc. Although, it has a code of
conduct of ethics, employees are presently making compromising with the honestly and
principles of justices. Often staffs within the department is have virtue to comply with moreover
they are not guided on how to develop them as virtuous persons (Parkes and Davis, 2013).
One of the primary advantage of utilizing a moral hypothesis is that it supports and guide
company on constant premise to take right choice at working environment. This demonstrate
administrator to give measure up to chances to development to each person and there ought to be
no separation at work environment on premises. This theory keeps up a positive situation at
working environment and increase the profitability of firm which specifically increase maximum
benefits to Berkeley holding plc. Moral research help administration in take right and reasonable
choice at working environment. One of the fundamental advantage of moral hypothesis is that it
features the qualities at working environment which effect on choice of directors. Moral
speculations influence the choices of administrators as well as in the meantime affect all business
exercises and guarantee their fulfilment in moral way. A successful moral research help firm in
better fulfil of necessities of its partners and satisfy the demand of the customers.
Implications to the client:
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One of the key aspect which is beneficial for organisation that emphasis is provided each
and every single employee character. This will help to attain their passion towards working
activities. There are no single and definitive answers to what is to be done in moral dilemmas
associated with the employees within Berkeley holding plc. It is hard to tell someone’s motives
and can even want to develop moral virtues among each other which is more tough task for the
company. Although Virtue ethics strives at making the individual a better persons and instilling
virtuous qualities in an employee. It does not really assist in encountering an ethical dilemma, as
there are certain guidelines on what to do as normative ethics which will affect the internal
operation of the company (Niebuhr, 2013).
Utilitarianism theory: This is said to be normative ethic that define morality of action.
This particular theory used to consider a cost-benefit analysis for the effective decision making.
It states that ethical decisions are made which is being based on whether consequences generate
the greatest good to the majority. Thus, if a decision creates a good outcome for the plenty of
people, but because of bad consequences to the minority, it is an ethical decision. An act-
utilitarian thinks regarding each decision individually under which case it would be considered
ethical for employees to deal with CSR issue and other kind of risks in the Berkeley Group
Holdings Plc.
Exploring the issue
Human Resource has been a very crucial resource for any organisation and thus it is
essential that effective management of those resources are done, as it will help in increasing the
overall productivity as well as growth of the organisation in longer run (Kettunen, 2015).
Importance of Human Resource
Human capital of an organisation is very important; they help the firm in achieving their
objectives as well as aims in a more calibrated manner. They are the face of company who deals
with customers on a continuous basis, thus it is equally important to make sure that this resource
of the organisation is contributing effectively within the business and its operations. Effective
Human Resource management can lead to better and effective management of the whole
business over period of time for Berkeley Group Holdings Plc. The cost structure of a company
can be reduced to a great extent if the productivity level of an organisation will be increased and
better working condition as well as environment is being provided to Human resources in the
longer run.
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Comparison with another Organisation
The importance of Human resource is equal in every organisation as well as industry, It is
an important part of any business and their day to day activities as well as affairs are managed by
the human resource of the organisation. JCB is an organisation which is engaged in the business
of providing heavy machinery for agriculture industry. This will comes under manufacturing
industry of equipments. The company was also facing issues related to lack of skilled labour who
could handle the operations related to management of heavy machinery and effective
maintenance of the same until they are being supplied to the ultimate customers. This will be
relevant for the Berkeley also as in construction industry also required need to of large skilled
employee’s to perform work in appropriate way. So, the issue of skilled labour is resolved in the
same manner by providence of training (Matter and et. al., 2015).
Problem Resolution
The company resolved this issue of Lack of skilled labour by organising proper training
and development programme for its employees and allowing them to take a much bigger
responsibility which filled them with confidence over period of time and thus resulted in higher
productivity as well as efficiency.
Strategies Used
Berkeley Group Holdings Plc is an organisation which follows the strategy of Kantianism
and Utilitarianism, these strategies help the group in maintaining its human resources, these
theories try to manage the human beings by understanding the mental situations and standards of
them. There is a specific need to assess their requirements and accordingly make business
policies that will allow their career growth as well. The strategy of Kantianism basically
specifies that every individual has his own self-worth inherent within him and thus it is the
responsibility of the management of an organisation to value the worth of that individual and
make them work for the growth of the organisation accordingly. In the strategy of Utilitarianism,
the ultimate aim is to achieve happiness at the end and it is not important as to what means are
adopted for the same. This will create employee satisfaction and thus result in greater
productivity as well as efficiency over period of time.
Stakeholder Map:
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(Source: Marlene Gundlach, 2017)
It is an effective business tool and techniques which allow company to see a visual
presentation of Berkeley Group Holdings Plc stakeholders, their level of interest in the company
as well importance to them (Andriof and et. al., 2017). As there are various stakeholders with
various interest invested in the bank, it is incredibly difficult to make appropriate decision that
would work to gain maximum benefit them. In order to deal with these issues, the Berkeley
Group Holdings Plc must priorities which stakeholders are more significant. The responsible
human resources have a duty to provide specific information to the investors about the issues
those are affecting the business(Marlene Gundlach, 2017.). However, it is deceptive that every
business present within society, this will specify that there are more stakeholders that required to
be considered rather than just the shareholders. It as the main matter is related with the human
resources so employees and internal staffs will get more affected. While external stakeholders
such as government, suppliers and customers would be least. However, in the longer period
shareholders are at a high risk of bankruptcy if the valuable amount of profit cannot be available
them. Consequently, most of the employees will lose their jobs and high risk clients can also
have to face certain impacts.
Advising Berkeley Group Holdings Plc
After making proper analysis about the ethical and CSR issues within the company, lot of
positive and negative aspects are taken into account. for making ethical decision at the workplace
as well as contribute effective development of society (Carroll and Buchholtz, 2014). There are
certain things which are found during the research are mentioned below:
 It is seen that firms wants to reduce discrimination at the office premises in order to
satisfy the requirements of employees and retain them for longer period of time. Different
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types of ethical theories are used which can be helpful for the overall management of
Berkeley Group Holdings Plc.
 It has been also analysing that concept of CSR offers wide range of benefits to an
enterprise but at the same time increase the business cost so that every people must be
taken into account by the firm during CSR planning.
 It is utmost crucial for the firm to examine essential requirement of their stakeholders and
then effectively formulate strategies as this will help company in getting reliable support
of all stakeholder.
 Certain ways related laws, fair remuneration and equal treatment to all workers would be
provided to the employees so that they get motivated in performing their role effectively.
Every associated factors would be collected by the firms during the time of formulating
policies and regulations.
 Berkeley Group Holdings Plc can also donate valuable amount of capital for the
development of the society and their members so that their goodwill can be maintain for
the long term.
 They can also manage diversity of the workplace by the help of appropriate policies those
are associated with sustainable development of the company.
 Company must need to increase the moral as well as interest of employees through
providing valuable rewards and other thinks to understand that to identify the variation of
each other in accordance to the same (Garavan and McGuire, 2012.).
Corporate social responsibility provides a viable structure and helps organisations and
opportunities to undertake the essential decisions subject to growth of society and organisation
itself. Maximising benefits and profitability by considering the interest of society is the main
objective of CSR. Promote appropriate administration of decent variety ought to be there at
work environment. Major portion of CSR activities are engaged in emerging the basis living
structure of society to sustainable living structure.
CONCLUSION
From the above project information, it can be concluded that this concept of corporate
social responsibility used to provide number of advantage to the “Berkeley Group Holdings Plc”.
Under this companies used to make integrated activities of social development with their current
business aims and objectives. This will provide number of advantage to an organisation that can
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assist in attainment of set goals in effective manner. Different ethical theories which can be
profitable for the company is being used to evaluate the ethical aspects of the company. In
addition to this, various types of issues those are associated with responsible human resources is
being discussed effectively in above project research. On the basis proper analysis, specific
advice is being recommended to the company.
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REFERENCES
Books and Journal:
Beaumont, J. and Cloke, P. eds., 2012. Faith-based organisations and exclusion in European
cities. Policy Press.
Parrott, L., 2014. Values and ethics in social work practice. Learning Matters.
Swailes, S., 2013. The ethics of talent management. Business Ethics: A European Review. 22(1).
pp.32-46.
Jindal-Snape, D. and Hannah, E. F. eds., 2014. Exploring the dynamics of ethics. Policy Press.
Riivari, E., and et. al., 2012. The ethical culture of organisations and organisational
innovativeness. European Journal of Innovation Management. 15(3). pp.310-331.
Wiles, R., 2012. What are qualitative research ethics? A&C Black.
Parkes, C. and Davis, A. J., 2013. Ethics and social responsibility–do HR professionals have the
‘courage to challenge’or are they set to be permanent ‘bystanders?’. The International
Journal of Human Resource Management. 24(12). pp.2411-2434.
Niebuhr, R., 2013. Moral man and immoral society: A study in ethics and politics. Westminster
John Knox Press.
Kettunen, J., 2015. Stakeholder relationships in higher education. Tertiary Education and
Management. 21(1). pp.56-65.
Matter, A., and et. al., 2015. Impacts of policy and market incentives for solid waste recycling in
Dhaka, Bangladesh. Waste management. 39. pp.321-328.
Andriof, J., and et. al., 2017. Unfolding stakeholder thinking 2: Relationships, communication,
reporting and performance. Routledge.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Garavan, T. N. and McGuire, D., 2012. Human resource development and society: Human
resource development’s role in embedding corporate social responsibility, sustainability,
and ethics in organizations. Advances in Developing Human Resources. 12(5). pp.487-
507.
Online
Marlene Gundlach, 2017. [Online]. Available through:<
https://www.brighthubpm.com/monitoring-projects/10426-example-of-stakeholder-
analysis/ >.
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