Business Ethics and Corporate Social Responsibility

This assignment delves into the critical concepts of business ethics and corporate social responsibility (CSR). It examines the relationship between businesses, NGOs, and sustainable development goals. The assignment analyzes frameworks like the 'Social License to Operate' and explores how businesses can contribute to ethical practices and societal well-being. Key topics include managing corporate citizenship, navigating globalization's impact on ethics, and understanding the role of communication in shaping ethical business conduct.

How Businesses Operate

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Types of organizations in private and public sector..............................................................1
1.2 Different organizational structure in businesses and reasons of variation............................2
1.3 Describe how national,local and global economic environment impact Sainsbury business
.....................................................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Importance of accounting for success of business ...............................................................3
5.1 Different functions carried out by HR department in business.............................................4
5.2 Key features of employment legislations..............................................................................4
TASK 3 ...........................................................................................................................................4
3.1 Interpret data on profit and loss account ..............................................................................4
TEAM 4 ..........................................................................................................................................5
4.1 Stages of team development..................................................................................................5
4.2 Description of motivational theories ....................................................................................5
4.3 Comparison of motivational theories ...................................................................................6
4.4 Various leadership styles.......................................................................................................6
TASK 5 ...........................................................................................................................................6
6.1 Impact of user's service on success of business ...................................................................6
6.2 Benefits of user profiling to business....................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9
Different Types of Leadership Styles. 2018. [Online]. Available. <http://wisetoast.com/-
different-types-of-leadership-styles/>............................................................................................10

INTRODUCTION
Business environment are the different factors which can affect the company in many
ways. So hence it is important for company to research of new technologies and they can
evaluate different factors which are present in environment (Alajoutsijärvi, Juusola, and Siltaoja,
2015). Through this they can make different changes in the organization so that they can create
different and innovative processes for producing various goods and services. Assignment
discusses about the Sainsbury company which is a retail firm. It was found in 1869. Report
describes about the key functions of business environment and different functions of businesses.
It further explains about accounting workshops which can improve accounting skills, theories of
team, motivation,leadership, impact and benefits of customer services on business.
1.1 Types of organizations in private and public sector
In different firms there are various business organizations which can perform all activities
in effective manner so that they can achieve goals. All corporates whether it is private or public
try to earn more revenues and increase the standard of living of all people. So hence it consists of
two sectors that is private and public sector which are mentioned below:
Public company:
It's main motive is to provide services to public. They follow all rules and legislations which are
created by government. Different types of public sector companies are-
Department undertakings:
It is a traditional form of company. Decisions are only taken under responsibility of
government. It is a division of government. It do not have separate identity from government.
Statutory corporations: These are the companies which are created by passing a special
act through parliament. For example national employment savings trust is scheme in U,.K. It
pries various pension schemes to all people.
Government company: It is firm in which not less than 51% of share capital is owned by
members of govt. It many be partially or fully controlled by govt. For example British railways is
under state owned railway which can give services to audience.
Private company: They are owned and controlled by private people. They can create their
structure so that they can easily adopt new trends in market (Aronoff and Ward, 2016). Types of
private organisations are-
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Sole proprietorship: They are the entity which is owned and managed by single person.
Individual person only shares profits and losses.
Partnership: It is the organisation which is run by two or more person. Profits and
losses are shared by all persons which are involved in partnership. For example ben and jerry run
small business in partnership and thus they can earn huge profits.
Limited company: In this companies come together so that they can accomplish their
targets and goals.
1.2 Different organizational structure in businesses and reasons of variation
It is important for company to create various organizational business structure so that
they can achieve the mission and objectives. Sainsbury is a firm which consists of different
employees as it is dealing with grocery and clothing products. They have to collect money so
that they can increase their production.
There are two organization structure. So hence Sainsbury follows a flat organization
structure in which there are less level of management so hence all employees can easily
communicate with each other. Hence manager motivates and give all staff members so that they
can take decisions and can perform well. So they can give good results. It results in improving
the quality of product.
Firm also follow decentralized organization structure in which different responsibilities
are given to all managers and they are given according to skills and specialities of every
manager.
Sainsbury scams external environment and hence they adopt recent and latest technologies so
that they can create good quality of goods and services.
There is Tesco company which is another retail firm. It's organization structure is
described below:
Functional organizational structure:
In this responsibility for product is given to senior management group. This structure is required
in case where effective knowledge is needed.
Divisional structure: There are different functions of a single department such as
HR,finance, marketing etc. It is under departmental manager and are accountable to unit manager
(Aronoff and Ward, 2016).
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1.3 Describe how national,local and global economic environment impact Sainsbury business
There are different factors that are external and internal which can affect operation of
Sainsbury (Bendell, J., 2017). Hence they have to scan environment so that they can adopt latest
techniques and tools and thus they can create good quality of goods.
Sainsbury is affected by local, national and global level and it is done due to change in
preferences and choices of consumers. Influence of local, national and global on Sainsbury are:
Local: There is a change that people want online transactions. Company has opened
operations online but not at drastic level. So hence this can impact operations of firm.
National level: If local inflation and deflation can affect Sainsbury. For example if there
is inflation then they can affect company in negative manner. People do not purchase goods and
it leads to reduction in profits of firm. It leads to reduction in revenues of firm.
Global level: In this there are different laws and regulations which are created by
different countries (Buhmann, K., 2016). They have to follow all changing laws and regulations
and Sainsbury also have to evaluate changing needs and wants of users so that they can create
policies according to user's demand.
TASK 2
2.1 Importance of accounting for success of business
Accounting us important for every company. Importance of accounting for Sainsbury are:
Planning: Through maintaining of accounting records company can manage all activities
related to sales and can create effective and efficient strategies to utilize resource in an optimum
manner so that they can reduce extra expenses and hence they can increase their profits by
receiving accounting data.
Monitoring and controlling: Through accounting information management can evaluate
different information related to employee's performance. So hence they can compare the present
performance with standard performance.
Budgeting: Accounting section can also give data regarding the budgets so they can
create plans to reduce the expenses and they can increase their profits.
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So Sainsbury has to monitor the factors so that they can run their business smoothly and
successfully.
5.1 Different functions carried out by HR department in business
HR sections performs various duties and functions so that firm can run their operation in
a better and effective manner (Charles Jr, O. H., Schmidheiny, S. and Watts, P., 2011). Duties
performed by HR of Sainsbury are:
Training and development: HR section give training to all employees so that they can
perform well. Through this they can increase their selling skills and can enhance their
knowledge. Hence they can attract customers. It results in increasing the sales and revenues of
firm.
Conflicts management: HR department of company tries to communicates with all
employees and hence they solve issues and problems of staff members. It assist employees in
working in a peaceful and successful manner..
5.2 Key features of employment legislations
HR manager have to follow rules and legislations which are created by the government.
HR manager of Sainsbury firm have to create various policies and rules so that firm can run
smoothly and successfully and it also gives different advantages to various staff members
(Crane, A. and Matten, D., 2016). So hence legislations related to workers are:
Minimum wages act: In this act minimum wages must be paid to all workers and company
cannot make any discrimination on basis of religion,,sex and other criteria. So hence as a result
all workers get minimum wages and can increase their standard of living.
Anti discrimination act: Company cannot discriminate all workers on basis of creed,colour and
religion. Hence all employees can get equal opportunities to perform job and in selection
process. Through this company can follow all legal and ethical rules created by this act.
TASK 3
3.1 Interpret data on profit and loss account
It is crucial that every company can create financial statements. Its crucial so that they
can know the profits and losses for firm. Hence they can have knowledge of different expenses
and revenues. Hence they can take steps to reduce extra expenses and they can increase their
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revenues. This also results in improving the performance of firm. It leads to growth and
development of firm.
Interpretation of Profit and loss account:
It has been interpreted that in 2017 firm has earned revenues of around 32580000 and gross
profit of 1880000. Income over continuous operations are 450000. and dividend at end of year is
450000.
TEAM 4
4.1 Stages of team development
Five stages in team which are created by Bruce Tuckman are mentioned below:
Forming stage: In this all employees of team are introduced with each other so that they can
have knowledge of each other (Dalton, M., 2017).
Storming stage: In this more emphasis is given on weights and excitement and feeling of joy is
given less importance.
Norming: In this manager motivate all team members so that they can work with full corporation
and peace.
Performing stage: All ten members are enthusiasm and full of potential to perform their tasks in
firm. Hence they do not require leader for monitoring their work (Demuijnck, G. and Fasterling,
B., 2016).
Adjourning stage: In this project is completed and team members can go to their own work but
they can be connected with each other.
Thus Sainsbury can apply this work style so that team members can perform well in firm.
4.2 Description of motivational theories
Different motivational theories used by Sainsbury are:
Maslow Hierarchy theory:
Through these theory it helps the manager to satisfy needs of all workers. In first strategy
they fulfil physiological needs in which they fulfil basic needs such as water or shelter etc.
Second is security in which all employees are protected from threat or harm. Third is love in
which friendly environment is created for all workers. Fourth is esteem in which rewards are
given to increase motivation of workers. Fifth is self esteem in which people can realize the self
potential and sense of accomplishment.
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Hawthorne theory: It is given by Henry A. Landsberger in 1950. Workers motivation
level can be increased by putting more focus on them and they do not have to change themselves.
4.3 Comparison of motivational theories
All firms can use these motivational theories so that workers can improve their
performance and they can achieve goals of firm (Dutt, N. and et. al., 2016). Difference between
two motivational theories are:
Maslow hierarchy needs Alderfer's ERG theory
It consists of psychological,self realization
needs.
It describes about development needs of
workers.
This theory consists of security and safety
needs.
It explains the existence needs of workers
It describes passion and dreams of workers in
step of self actualization.
It explains about relatedness of members..
4.4 Various leadership styles
Various leadership styles used by Sainsbury for guiding employees are-
Strategic leadership style:
In this leadership style, leader has a top authority and they set a vision for firm. Hence they
motivate all employees to perform better and to accomplish the vision. So it results in improving
the performance of all workers (Hall, N. and et. al., 2015).
Transformational leadership: In this there are changes in structure, policies and team members
etc. Leaders are need to be explained that changes are crucial for them and through this it not
only improves their performance but firm can also achieve objectives.
So, Sainsbury monitors the factors of environment and follows leadership styles which is suitable
to firm and which can enhance performance of workers.
TASK 5
6.1 Impact of user's service on success of business
It is crucial for firm to provide effective services to all users so that they can maintain
good reputation in front of all customers and in market. If firm provide customer services to
customers and maintains strong relationship with all users then it increases satisfaction level of
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users and thus increases the profits of firm. Impact of services service on success of business in
Sainsbury are:
Increases profits: If Sainsbury provide effective services to all staff members then it can
maintain good relationship with all employees (Laszlo, C. and Cescau, P., 2017). So hence it
leads to increase in profits of firm. Thus they can also increases their market hare.
Increasing loyalty of customers: When company fulfil all needs and wants of customers
and solve their all their issues and problems then it leads to increasing satisfaction level of
customers. Hence they take services from Sainsbury only. Thus it results in increasing the loyalty
of user in firm.
Internal benefits: By providing effective and efficient services to all members then it
helps in improving the relationship among buyers and can improve internal system and
procedures. As satisfied customers can give suggestions regarding improving products and
services (Martins, L. L., Rindova, V. P. and Greenbaum, B. E., 2015). Through this firm can
create innovative ideas to create different products and hence they can improve their
performance.
6.2 Benefits of user profiling to business
Customer profiling is very crucial as it gives various benefits to business. Customer
profiling is different process used by every company by calling them or by taking interviewing
them. Different benefits to Sainsbury from user's profiling are:
Improves communication level: If there is customer profiling through interviews then it
leads to interaction among all employees. Hence it increases communication level.
Increases reputation of brand: Through customer profiling it can increase the brand name
through receiving of advices and suggestions from all users. Hence they can improve their
system and procedures of creating products.
Strong relations: It helps in maintaining strong relationship with customers through
profiling. As a result it leads to increasing of profits and market share.
CONCLUSION
It is concluded from above report that business environment is very crucial for every
company. Through this firm can evaluate different factors and can make change in the business.
Business functions which are performed by firm. Accounting workshops are organized to
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improve accounting skills. Working in team is crucial and customer services is crucial for
success of business.
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REFERENCES
Books and Journals
Alajoutsijärvi, K., Juusola, K. and Siltaoja, M., 2015. The legitimacy paradox of business
schools: losing by gaining?.Academy of Management Learning & Education.14(2).
pp.277-291.
Aronoff, C. and Ward, J., 2016.Family business ownership: How to be an effective shareholder.
Springer.
Aronoff, C. and Ward, J., 2016.Family business values: How to assure a legacy of continuity and
success. Springer.
Bendell, J., 2017.Terms for endearment: Business, NGOs and sustainable development.
Routledge.
Buhmann, K., 2016. Public regulators and CSR: The ‘Social Licence to Operate’in recent united
nations instruments on business and human rights and the juridification of CSR. Journal
of business ethics.136(4). pp.699-714.
Charles Jr, O. H., Schmidheiny, S. and Watts, P., 2017.Walking the talk: The business case for
sustainable development. Routledge.
Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dalton, M., 2017.Men who manage: Fusions of feeling and theory in administration. Routledge.
Demuijnck, G. and Fasterling, B., 2016. The social license to operate.Journal of Business
Ethics.136(4). pp.675-685.
Dutt, N. and et. al., 2016. How open system intermediaries address institutional failures: The
case of business incubators in emerging-market countries.Academy of Management
Journal.59(3). pp.818-840.
Hall, N. and et. al., 2015. Social licence to operate: understanding how a concept has been
translated into practice in energy industries.Journal of Cleaner Production.86. pp.301-
310.
Laszlo, C. and Cescau, P., 2017.Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Martins, L. L., Rindova, V. P. and Greenbaum, B. E., 2015. Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic
Entrepreneurship Journal.9(1). pp.99-117.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. InPublic relations theory(pp. 111-131). Routledge.
Santoro, M. A., 2015.China 2020: How western business can—and should—influence social and
political change in the coming decade. Cornell University Press.
Vorley, T. and Williams, N., 2016. Between petty corruption and criminal extortion: How
entrepreneurs in Bulgaria and Romania operate within a devil’s circle. International
Small Business Journal.34(6). pp.797-817.
Online
Different Types of Leadership Styles. 2018. [Online]. Available. <http://wisetoast.com/-
different-types-of-leadership-styles/>
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