Sustainability and Ethics in Business

This report explores the relevance of ethics in business decision making and its impact on sustainability. It includes a case study of Apple Company and discusses the importance of ethics in small businesses.

SUSTAINABLILITY
AND ETHICS

INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
Literature review..........................................................................................................................3
Relevancy of ethics for business decisions..................................................................................4
Role of ethics in small business...................................................................................................5
CONCLUSION..............................................................................................................................6
REFERNCES.................................................................................................................................7

INTRODUCTION
Ethics is set of moral values and standards that guide individual and company code of
conduct in order to achieve their organizational goal or objective in an effective or efficient
manner. On the other hand sustainability is an enduring and balanced approach to economic
activity, environmental responsibility and societal benefit. However, these two aspects are
interlinked with each other as it enables an organization to carry out their business operation and
function in an organized or systematic manner for acquiring best positioning among competitive
marketplace (Quarshie, Salmi and Leuschner, 2016). This report is based upon a case study of
Apple Company which is one the branded and reputed firm in technological world and it is
incorporated by Steve Jobs in the year of 1976. In this study, it involves literature review about
importance of ethics for organization decision making as well as explain the same in company’s
context. Finally, relevant of ethics on small business is also mentioned here.
MAIN BODY
Literature review
As per the views of Anna Spooner, 2019 , Business ethics deals with the beliefs and
principles that guide management decision as it concern with the duties and obligation an
organization has to its stakeholders, including employees, customers, suppliers and communities.
However, all individuals and firm must follow the law, but they must complying with ethical
beliefs is voluntary, not coerced. Every employees want their organization to be fair, clean and
beneficial to society (Importance of Ethics in Business, 2019). Thus, for attaining the same
company need to abide by ethics or rule of law, engage themselves in fair practices and
competition all of which will benefit the consumer, society and firm. Henceforth, ethical
behavior encourages establishment to implement best strategic decision in order to gain
competitive advantage and obtainment of sustainable profitability ratio. Thus, there are various
reason which proves that ethics is an important determinant for company’s growth which are as
follows:
 Satisfying basic human needs: Being fair, honest and ethical is one of the basic human
needs which every manpower desires to get fulfilled in a better manner. Therefore, an

ethical behavior enable firm to provide equal or reasonable rewards system so that each
individuals can satisfy their basic survival need and it reflect over employee satisfaction.
 Creating Credibility: An organization that is believed to be driven by moral values is
respected in the society even by those who may have no information about business
operation. However, ethics help firm to encourage their manpower to take part in
business activities like problem solving and decision making process which generate high
level of motivation as well as add value to company’s brand image among industry.
 Uniting people and leadership: An enterprise which is driven by values is revered by its
personnel also as they are the common thread that brings manpower and decision makers
on same platforms. This goes a long way in aligning behavior within the organization
towards achievement of common goal or mission (Yin, Qian and Singhapakdi, 2018).
However, ethics tries to create a sense of right and wrong in the establishment and often
when the law fails, it is the moral values or ethical behavior which stop or restricts management
and leader from harming the society or environment and also improves their overall performance
among competitive marketplace.
Relevancy of ethics for business decisions
The study of business ethics is a study of values, principles and standards within a business
environment. It also a barometer of standards that ought to be that should be followed in a wide
variety of business structure. Ethics reflects morals, standards and values from all socio
economic levels and demographics. In regard of Apple, it tries its best to keep an ethical
behavior towards employees and business function in order to enlarge company profitability ratio
and also improves an overall performance of company in a better manner. Furthermore, business
ethics encourages Apple leader to examine each individual’s potentiality or capability and
according to that provide them various platforms like training session, seminar, workshop and
many more in order to enhance their satisfaction level in a productive manner (McNeill and
Moore, 2015). Henceforth, organizational ethics are consider as an integral role in Apple
business function or operation as it the combination of policies, procedures and culture of doing
the right things in the face of difficult and often controversial issues. Some of the reasons behind
application or practicing ethical behavior within Apple business premises are explained below:

 Builds a positive corporate culture: An organization devoting resources to developing
policies and procedures that encourages ethical action builds a positive corporate culture.
In regard of Apple, its mangers r leaders takes an initiative to safeguard employees wants
or desires which generate increased level of motivation and also boost their morale as
they feel protected against retaliation for personal beliefs. Due to this, Apple’s manpower
put their full contribution towards an attainment of increased level of profitability and
productivity ratio.
 Boosts consumer confidence: This aspect is one of the important element within
company as it improves the overall performance of firm and also add value to customer’s
attitude towards brand image. However, ethical practice enable Apple leader to identify
or determine current or emerging trend of marketplace and based on that they implements
a corrective course of action in order to acquire sustainable profitability. Along with this,
it assist them to retain consumer’s loyalty through ethical practices that start with fair and
honest advertising methods and continue through sales process. Additionally, they makes
an attempt to direct their personnel to treat customers ethically and according to its core
values (Setó-Pamies and Papaoikonomou, 2016).
 Reduces financial liabilities: Companies that do not develop policies on ethical
standards risk financial liabilities and in the initial liability is a reduction in sales.
Therefore, in context of Apple they are very attentive in this matter as they finds an
ethical responsible middle ground which is imperative to sway public opinion away from
corporate culture and towards environmental responsibility. Along with this, during
funding the funds from various sources of finance, company be a transparent to public by
providing clear information regarding funding in order to capture population loyalty or
trust. With the help of this, Apple can expand their market share or size for sustain within
an industry for longer period of time.
 Minimizes potential lawsuits: Under this, firm tries their best to adhere with all
government regulation or legislation which help them to reduce an intervention of
government into their business operation and function. Along with this, Apple manager
takes an effort to examine individual’s capabilities as well as encourages them to take
part in business procedures or activities which enhance their morale and motivation level.

Moreover, they remain consistent in the execution of policies dealing with accusations.
This help decrease in frivolous lawsuits that bankrupt smaller organization.
Therefore, ethical behavior or practices plays an important role in Apple business operation
as it help them to maintain their code of conduct as well as generate better working environment
which lead them to acquire best positioning among competitive market in an innovative and
creative style.
Role of ethics in small business
Business ethics are not just designed for huge corporation and organization. Whether a
business employs thousands of workers or 10, business ethics are an important aspect of any
work environment. A common ethical problem which have a big impact on small business as
well as large corporation is discrimination, prejudice or disputes between employer and
employee all have an influence on how well a business is likely to run. Developing a good,
strong relationship between subordinates and superior is essential in order to meet expectation,
and to promote considerations and the rights of all parties involved. Moreover, every mangers
expects that their manpower should behave in a certain manner for surviving within an industry
for a longer period of time. However, some of the role of ethics over small business are
described below:
 Generating equal opportunity: In this 21st century, discrimination is one of the most
talked issue in workplace and it greatly effect over company productivity and profitability
ratio. However, an ethical practices encourage leader or manger to provide enormous
platform to their manpower equally despite of caste, gender, age, religion etc. which lead
them to put their best effort towards an attainment of increased level of proficiency and
also sustainable success among marketplace (Markman and et.al 2016).
 Safe and fair working environment: It is regarded as one of the essential component for
every company growth and development as it directly linked with employee motivation
and performance. Henceforth, with an application of ethics firm will be able to treat every
workforce equally and also to control over sexual harassment which take place in the
form of physical gestures, verbal remarks of sexual nature. Due to this, they can acquire
best positioning within an industry and also enlarge their market share in an impressive
way.

 Control over conflicts: This issues is very common factor in every organization as it
occurs when two people objectivity or judgment compromised by each other it hampers
whole working premises or ambiance. Thus, an ethical behavior assist enterprise leader to
identify employees wants or desires and based on that they make corrective course of
action which lead them to obtain profit maximization and also enhances reputation of
firm in a productive way (Cumming, Hou and Lee, 2016).
 Maintains organization code of conduct: This aspect plays a vital role in small business
as it comes to best practices, adopting or enforcing a code of conduct provides personnel
and managerial staff with training in respect to expectations of behavior and conduct
within any workplace environment. Moreover, a business ethics empowers mangers or
management to prevent and controls unacceptable or unethical behavior in their place of
business and also they can gain impressive goodwill among competitors (Strand, 2014).
Therefore, ethics is not only important for large corporation but also integral for small business
in terms of acquiring high level of profit margin as well as expand market size or growth in an
innovative and creative style.
CONCLUSION
It has been concluded from the above report that ethics and values are important within
business function because they influence morals and behavior or attitude in order to promote
business sustainability. Along with this, an ethical decision making contributes to sustainability
because the employees values and ethics will ensure an establishment to generate the biggest
profit possible and at the same time keeping a good image among challenging industry.
Moreover, these two components contains a crucial role in the enhancement or enrichment of
company success and growth for a longer period of time in an impressive or productive manner.

REFERNCES
Books and journals
Quarshie, A. M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and business
ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-97.
Setó-Pamies, D. and Papaoikonomou, E., 2016. A multi-level perspective for the integration of
ethics, corporate social responsibility and sustainability (ECSRS) in management
education. Journal of Business Ethics. 136(3). pp.523-538.
Markman, G. D and et.al ., 2016. Entrepreneurship as a platform for pursuing multiple goals: A
special issue on sustainability, ethics, and entrepreneurship. Journal of Management
Studies, 53(5), pp.673-694.
Strand, R., 2014. Strategic leadership of corporate sustainability. Journal of Business Ethics.
123(4). pp.687-706.
McNeill, L. and Moore, R., 2015. Sustainable fashion consumption and the fast fashion
conundrum: fashionable consumers and attitudes to sustainability in clothing
choice. International Journal of Consumer Studies. 39(3). pp.212-222.
Yin, J., Qian, L. and Singhapakdi, A., 2018. Sharing sustainability: How values and ethics matter
in consumers’ adoption of public bicycle-sharing scheme. Journal of Business Ethics. 149(2).
pp.313-332.
Cumming, D., Hou, W. and Lee, E., 2016. Business ethics and finance in greater China:
Synthesis and future directions in sustainability, CSR, and fraud. Journal of business ethics,.
138(4). pp.601-626.
Online
Importance of Ethics in Business, 2019.[Online]; Available through
<https://business.lovetoknow.com/business-operations-corporate-management/importance-
ethics-business>