Paper on Deontological and Utilitarianism Approach of Business Ethics
12 Pages3737 Words125 Views
Added on 2020-05-16
Paper on Deontological and Utilitarianism Approach of Business Ethics
Added on 2020-05-16
ShareRelated Documents
Running head: MANAGEMENT THEORY AND PRACTICEManagement Theory and PracticeName of the Student:Name of the University:Author Note:
1MANAGEMENT THEORY AND PRACTICEIntroduction Managerial ethics is defined as the rules and principles that is handled by themanagement and this helps in analyzing what is right and wrong in a business organization.Ethics is referred to as the science of morality in different business organization. The managersare faced with the important decisions and they need to take these decisions in an ethical way.The managers must also take ethical decisions which have extended consequences. These alsoimply that the decisions taken by the manager must be in accordance with the implications ofbusiness environment. Sometimes, there are also some uncertain consequences and this ethicaldecisions are risk free. In the past few years the managers and authority of 7 Eleven has beenfacing various ethical issues in their business environment due to some of their wrong decisionregarding the employees (Karp, 2018). Managerial ethics is important for organization to settheir ethical behavior within their environment. Any hamper or bad impact of such ethics leads toa lot of issue for the organization. Looking at the theoretical perspective, there are various ethicaltheories showing the ethical options available to the organization such as Utilitarianism,Deontological, egoism and other ethical theories. This paper will discuss Deontological andUtilitarianism approach of business ethics to explain the ethical dilemma faced by 7 Eleven intheir business environment.The thesis statement of the paper is to highlight lack of corporate responsibility andleadership by the management committee of 7 Eleven that has led forced its employees to leavethe job. Discussion
2MANAGEMENT THEORY AND PRACTICE7 eleven is the longest international chain of convenience stores selling variety ofproducts. The company operates various franchisee stores that are licensed. There are more than56,000 stores in 18 countries and the company is still planning to expand in more regions. Itcomes under subsidiary and retail industry. It is a well known brand and loved by its customersin the global market due to its extra ordinary and unique products. The company has alwaysmaintained its growth strategy by offering extended services to its customers. This has helped thecompany to become the leader of the industry it operates. The company has also engaged itself incontinuous innovation over time with its technology. According to the company, supplyingconvenience product is their choice; however, offering the best service is their main businesscriteria (The Conversation, 2018). The company also indulges itself in servant leadership inwhich it focuses on serving the best to its customers. The company has recently come up withvarious ATM services in their store and the stores will remain open 24/7 for the customers. Thecompany has been known to follow strong corporate social responsibilities in its operations. Itfocuses on the people, planet and product. This has helped the company to reduce the energyused in the stores by 20 percent which will reduce further by 2025 and reducing the wastegenerated from packaging of products (ABC News, 2018). The company holds a strongfranchisee chain by offering profitable options of franchisee stores to the dealers and suppliers.The company experiences a good increase in revenue, gross profit and net profit over the years.Increase in net profit in the year 2016 was experienced to be 19.39 percent. Recently, 7 Eleven faced an issue in its employment for the workers by ripping offcapable workers. The workers were rip off from their job because of increase in the average pay.The problem of wages among 7 Eleven workers were investigated by Four Corners and FairfaxMedia. The employees of 7 Eleven are not paid proper wages and they had decided to go on a
3MANAGEMENT THEORY AND PRACTICEstrike, if their wages were not increased. 7 Eleven is one of the largest convenience store chainand after a joint investigation; it has been found that this company has paid the lowest salary tothe employees in the past few years. Thus a huge rage was experienced by the politicians,lawyers and regulators on taking strict actions for solving employee exploitation issues. Thescandal broke out and was found that the company is facing crisis of wages to pay to its workers.This has led them to buy out franchisee. The wage problem was evident in the franchisee storesacross the countries. However, the scandal took a bad turn because 7 Eleven continuouslyignored the wage fraud going on in the franchisee stores (Ferguson, 2018). The business is veryhappy to make huge profit by saving cost and ripping off workers. However, they failed torealize that their working environment has become a mere place for slavery. After the scrutinycarried out by the media team, forced 7 Eleven to keep a check on the wages and fraud going onin the business franchisee. There were many incidence of wage fraud in the organization inwhich workers were forced to work extra per day or carry out extra responsibilities without muchrewards. There were workers that lived two roles in the store for weeks without getting paid forit. This was the strategy followed by the organization to save cost and earn higher profit.According to the report given by Four Corners and Fairfax Media, a worker is liable forapproximately $30,000 unpaid wages. This was the situation of the workers getting exploited in7 Eleven franchisee environment (Franchise.7-eleven, 2018). There were also cases in which thefranchises covered up the true records by falsifying the records.The exploitation of workers due to low wages created a huge rage among the workersstating that the company is a big fraud as they are earning money through them not the business.The company also had to face high penalty for exploiting workers. A penalty of $1 million wasput on the company by the Fair Work Ombudsman and the court. The matter was put in front of
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Theory and Practices | Essaylg...
|13
|3857
|95
Management Theory and Practice Essay Assignmentlg...
|14
|3913
|84
Management Theory & Practices - Doclg...
|14
|4002
|230
The Importance of Business Ethics Reportlg...
|10
|1447
|49
IT Ethics Privacy will Hit Tipping Point in 2016lg...
|10
|1674
|188
Ethical Issues of Cyber Technology: A Case Study of Cambridge Analyticalg...
|7
|1898
|242