Organizational Ethics Assignment in PDF

Running head: ORGANIZATIONAL ETHICS
ORGANIZATIONAL ETHICS
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ORGANIZATIONAL ETHICS1
Introduction:
The aim of this paper is to discuss the issues in the stakeholders management of the profit
making scenario in one of the most reputed company in Australia namely Retail Food Group.
This paper will be analyzing two effective theories to analyze the issues and how the company
can solve these problems effectively. These two theories are stakeholder theory and ethical
leadership framework (Cavanagh et al. 2017). These two concepts will be helping Retail Food
Group to operate successfully in the market of the country and regain the lost reputation by
saving the other stakeholders.
Key issues:
The main issues that the company has been facing are
 The incapability to handle the responsibility of the stakeholders mainly the other
acquisitions (Fassin, De Colle and Freeman 2017). The acquisitions like Donut King,
Gloria Jean's, Brumby's, Crust Gourmet Pizzas, Pizza Capers and Michel's Patisserie all
are complaining on the ability of the company. This company has more than 15
acquisitions operating in the same market which includes the manufacturers and
distributors like Pizza Capers, Crust Gourmet Pizzas, Café2U, coffee chain Gloria Jean's,
DiBella Coffee and Hudson Pacific and many other. This serious player like Retail Food
Group started the business with a great effort and earned reputation by connecting many
of the new acquisitions. Now the company has gone through a tough time as there are
many instances of unethical measures taken by this company relating their business with
the stakeholders which does not ascribe with the stakeholder theory.

ORGANIZATIONAL ETHICS2
 There are systematic wage fraud with the part time workers in the company and attempt
to cut cost for preserving margins. In addition to this the franchises have also pointed out
that the company used to spy on them to observe their performance. The first and most
issue is related to the under payment process to the foreign employees who work in the
company as part time employees and hired on the holiday visas. This became a stress
situation for the company when this incident were reveled in the international media.
These workers were not been paid properly in order to cut the rising labor costs and this
issue was taken into concern in the annual meeting. Here the ethical leadership
framework can be applied (Jones 1991). The issues with the stores include lack of
support from the head office of RFG regarding the payment and other facilities. This led
the reducing of the quality of food and services to the customers this has led the stores to
lose their loyal customers within very short period of time. The stores had manipulated
their sales for avoiding the royalties charged by the Retail Food Group in case of each of
the transaction.
 These unethical initiatives of RFG had led the store owners to lose their motivation and
all their investment turned into ashes. This inability to manage the stores had led many of
these store owns to sell their stores but no one was ready to buy these stores. Finally the
company had followed the process of buying stores for a fraction of original sale price to
place them on the market gain for sale in more price. According to the stakeholder
theory, the company while operates on market is responsible to meet the expectation of
the stakeholders and take care of the fact that these stakeholders do not face unethical
measures by the company (Jones, Wicks and Freeman 2017). In this case of RFG, all the
franchise, employees and customers are being ill-treated (Bosses et al. 2019). Similarly,

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the ethical leadership theory, the company needs to respect and serve the stakeholders,
show justice, manifest honesty and thus build a community. However, in this case, the
franchises are not respected, served and found a little bit of honesty from the side of RFG
while operating with it.
Recommendation:
In this case, the survival in the industry as well as competing in the market have become
impossible for RFG. In order to solve these issues, the company needs to take some very
important steps. These include:
Firstly, the company must apologies to all the franchise and acquisitions for the inconvenience.
These acquisitions have tried to reach the head of RFG through letters and mails but they got no
active answers from the part of the company. The company needs to return the investment in any
way or at least return a percent of the whole amount so that the acquisitions can pay their debts.
This will help the company to gain the trust back from the acquisitions.
Secondly, the employees who are working with the companies a part time or full time jobs must
be provided with the rest of the amount they claim. This will motivate them in working with this
company. This will also reduce the attraction rate and loss of skill in the human resource. This is
a pores of convincing them to get the training for a high standard of service and producing food
up to the standard quality. This the issues of employees and food quality will be solved. This is
also connected with the welfare of the customers also where they will find the high quality food
at cheaper price.
Thirdly, in order to monitor the company was accused to use spy which is very much immoral
and ethical (Miles 2017). This can be a reason why this company can come under the legal