Ethical Issues and Impacts in Telegraph Media Group

This report discusses the ethical issues and their impacts in Telegraph Media Group, including the gender pay gap, the role of business in society, stakeholders, and examples of good and bad ethics. Recommendations are provided to address these issues.

Telegraph Media
Group

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
A. Report......................................................................................................................................1
Ethical issues and their impacts...................................................................................................1
Role of business in society...........................................................................................................3
Stakeholders.................................................................................................................................3
Good and bad ethics.....................................................................................................................4
Recommendation ........................................................................................................................5
REFERENCES 1A...........................................................................................................................5
B. Two Theories ..........................................................................................................................7
Description of two theories..........................................................................................................7
Application of theories.................................................................................................................7
Critiques of theories.....................................................................................................................8
Recommendation.........................................................................................................................9
REFERENCES 1B...........................................................................................................................9
PART 2..........................................................................................................................................10
Ethical leadership management within ethical or unethical organisational culture...................10
Ways to maintain integrity and compliance in un/ethical business environment......................10
Reflection of own experience and knowledge...........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES 2...........................................................................................................................12

INTRODUCTION
Business ethics refers to type of applied or professional ethics which examines morals,
ethical principles and issues which arise within business environment. It also assist or guide
organisation to build and maintain better connections with stakeholders and accomplish set of
objectives within determined time frame (Kalshoven, van Dijk and Boon, 2016). The assessment
is all about Telegraph Media group which is subsidiary of one of Press Holding whose
headquarters are situated at England, UK. Its main products are newspaper and websites. The
mission of the entity is to deliver trusted, award winning as well as quality journalism. The
employee of the company is been asked for writing a report that outlines gender pay gap as one
of ethical issue.
The assessment is prepared in two Parts in which Part 1 is a report that includes ethical
perspectives of issues and their relevant impacts on organisational public image, roles performed
by the business in society, stakeholders impacts on scenario and the ways they have impacted on,
some of examples related to good along with bad ethics and certain recommendations to the
company. Second part of report includes ethical theories and their applications. Part 2 is a
reflection about ethical leadership management.
PART 1
A. Report
Ethical issues and their impacts
Telegraph Media group have revealed around 35% gender pay gap. As per the report, it is
identified that female employees that works in the company are paid nearby 35% less against
than males employees on an average. According to statements of Nick Hugh, Chief Executive of
the company said that the gender pay gap was unacceptable as well as committed to reduce or
close it to zero by 2025.
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Illustration 1: Gender pay report of Telegraph Media Group. 2018
(Source: Gender pay report of Telegraph Media Group. 2018)
From the data, it is interpreted that women in Telegraph Media Group are paid much less
than men. The data shows overall mean as well as median gender pay gap on the basis of hourly
pay rate of snapshot date. Women's hourly mean rate of pay average 35% less than from men.
From media data, it is said that hourly pay rate of women was 23.36% than males. Moreover,
there was around 46.19% difference among bonuses paid to men and women in the entity. This
gender pay gap have raised ethical interrogation around equal pay practices, discrimination,
opportunities of growth for both genders etc. Following are some identified issues and their
impacts:
Limited female representatives at senior levels: In Telegraph Media Group, the main
reason of the unequal gender pay is because of lack of female representatives at senior levels. It
is seen that equal gender pay encourages more women at top positions for flourishing the
company and also bring desired employee diversity which facilitates decision making at top
positions (Quarshie, Salmi and Leuschner, 2016).
Discrimination at workplace: This is another identified issue as gender pay gap is
concerned with human equality in today's era wherein employees evaluate payments in context
to particular notions of what compensation ought to be. As per Neate, 2018, the highest paid
employees in the Telegraph Media Group are male that makes around 26.9% of top quartile of
earners. At same time, women makes around 61.6% of bottom quartile.
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Role of business in society
In present era, businesses have multiple responsibilities and roles in society. The have
more role than just increasing their profits. As per Jabeen, Faisal and Katsioloudes (2017),
Corporate Social responsibility is one of self regulating framework which assist organisations to
become accountable as well as interactive with internal addition to external stakeholders
including public authorities, employees, investors, customers, suppliers and many more.
Business have alternative role of sustainability culture and development (Schumacher,
2019). There are also set of initiatives which have reduced economic and social inequalities.
However, issues in gender gap impacts contributions that have set by the entity in domestic
nation and to meet financial struggles of female towards retirement. This can demotivate females
to work with Telegraph Media Group and discouraging existing female employee to take lead in
higher positions.
The company have made progress in reducing the ender gap from 35 % to 28% and have
implemented good CSR practices. Furthermore, its effective governance role and opportunities
to all employees have reduced discrimination among male and female which reflects fairness in
filling top positions by staffing women (Schaltegger and Burritt, 2018).
Not all CSR actions results in positive for image of companies. There are chances of
negative impacts also. While developing society, huge investment are made and various
additional costs are meet that reduces profits and decrease position on company in financial
terms.
Stakeholders
These are people which are crucial for success together with survival of entity (Esteban-
Sanchez, de la Cuesta-Gonzalez and Paredes-Gazquez, 2017). When positive vales are devised
for stakeholders then they responds in favourable manner as well as help in meeting objectives.
In context to Telegraph Media Group, following are key stakeholders which have been benefited
and affected by identified ethical issues:
Employees: These are the people which are hired by entity and are paid for the
contributions and efforts. Gender pay gap had negative effects on motivation, self esteem and
drives of employees in Telegraph Media Group as lower wages have put female employees at
risk of poverty as well as impacted drastically on their pension contributions. They feels treated
unfair which has reduced their performance and efficiency.
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Suppliers: These are the stakeholder which provides or delivers something that is
required in devising a products or service in order to keep production ongoing (Bearth and
Siegrist, 2016). In Telegraph Media Group, suppliers supply material to print newspapers and
create strong infrastructure. Suppliers are dissatisfied and unhappy with gender pay in the
company and this affects in delivering values to entity on time.
Investors: These puts money into business and help in maximising profits. Gender pay
gap have impacted drastically on interest of investors on Telegraph Media Group and refrain
them from investing further. Investors have also made decision to withdraw their investments
and charge huge for returns as they do not have any desire to connect their names with the
company that performs unethical pay practices. It is essential for the publishing company to
narrow compensation gap for maintaining interest of investors.
Customers: These stakeholder have huge interest in offerings of company and makes
decision to buy them as per requirements. Gender pay gap within Telegraph Media Group had
negative impact on customers as unfair compensation to female than male have reduced interest
of customers and generate frustration that made them unhappy addition to dissatisfied customers.
The company have also loss large customer base due to its gender pay gap (Quarshie, Salmi and
Leuschner, 2016).
Government: Stakeholders that govern organised community are said to government. It
is means that enforces policies for companies and mechanism to determine policies. Government
of UK expects that all companies must pay equally to its employees and should comply with
Equality Act 2010, Discrimination Act 2019 and so on. However, Telegraph Media Group have
failed in paying equally and this have impacted negatively on government to enforce strict
actions against the entity.
Good and bad ethics
Ethics are moral principles which governs behaviour of an individual or organisation
while conducting activities. The examples of companies with good and bad ethics are as follows:
Good ethics Bad Ethics
 Tesco is a supermarket organisation which has
reported 12% mean gender pay differences.
For addressing the gender gap, Tesco have
 Amazon is multinational
technology organisation which
thrives off low as well as
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introduced gender diversity target to have at
least third of women on the board by 2020.
(Scott, 2018). it has also signed up to 30% club
that encourages the business to attain equality
in leadership roles till 2020.
 Telegraph Media Group is been committed
to treat its people in equal manner and also
ensures that they have equal opportunities for
growth and development. It have made positive
progress in addressing its gender pay gap. In
2017, the company had hourly pay gap of 35%
which it has reduced to 28% in 2018.
(Telegraph Media Group Ethnicity and gender
Pay Gap Report 2018, 2018)
convenience price. The entity
have made $11.2bn profit in the
year 2018 yet has avoid paying
taxes which have got it where it
was on first place (Ethical
issues with Amazon, 2020).
 As per Topham (2018),
Ryanair have revealed the
worst gender pay gap of nearby
72% in the entire airline
industry. In this organisation,
women are only able to make
3% of top quarter of earner in
the budget airline.
Recommendation
On the basis of identified issues along with published research on ethics of Telegraph
Media Group, following are some of recommendations to the company:
 Telegraph Media Group is requires to promote its staffing of female at higher superior
positions. It is seen that gender pay gap reduction is time consuming process but when
adopted by the company it will increase proportion of female in superior positions with
equivalent to male.
 For mitigating discrimination at workplace, Telegraph Media Group is recommended to
provide equal opportunities and participation of female and male in discussions, group
meetings and decision making.
 The company should also facilitate two way communication and adopt effective
communication models in order to integrate recruitment transparency at all hierarchical
levels.
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REFERENCES 1A
Bearth, A. and Siegrist, M., 2016. Are risk or benefit perceptions more important for public
acceptance of innovative food technologies: A meta-analysis. Trends in Food Science &
Technology. 49. pp.14-23.
Esteban-Sanchez, P., de la Cuesta-Gonzalez, M. and Paredes-Gazquez, J.D., 2017. Corporate
social performance and its relation with corporate financial performance: International
evidence in the banking industry. Journal of cleaner production. 162. pp.1102-1110.
Ethical issues with Amazon. 2020. [Online]. Available through:
<https://ethicalunicorn.com/2019/01/12/how-ethical-is-amazon/>
Gender pay report of Telegraph Media Group. 2018. [Online]. Available through:
<https://www.telegraph.co.uk/content/dam/pdfs/The-Telegraph_Gender-and-ethnicity-
pay-report-2018.pdf>
Jabeen, F., Faisal, M. N. and Katsioloudes, M. I., 2017. Entrepreneurial mindset and the role of
universities as strategic drivers of entrepreneurship. ournal of Small Business and
Enterprise Development.
Neate, R. 2018. Telegraph Media Group reveals 35% gender pay gap. [Online]. Available
through: <https://www.theguardian.com/media/2018/mar/26/telegraph-media-group-
gender-pay-gap>
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.
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.
Schaltegger, S. and Burritt, R., 2018. Business cases and corporate engagement with
sustainability: Differentiating ethical motivations. Journal of Business Ethics.147(2).
pp.241-259.
Schumacher, H. R., 2019. The role of business in society. [Online]. Available through:
<https://businessmirror.com.ph/2019/08/27/the-role-of-business-in-society/>
Scott, K. 2018. Tesco reports 12% mean gender pay gap. [Online]. Available through:
<https://employeebenefits.co.uk/issues/february-2018/tesco-gender-pay-gap/>
Telegraph Media Group Ethnicity and gender Pay Gap Report 2018. 2018. [Online]. Available
through: <https://www.telegraph.co.uk/content/dam/pdfs/The-Telegraph_Gender-and-
ethnicity-pay-report-2018.pdf>
Topham. G. 2018. Ryanair reveals worst gender pay gap in airline industry. [Online]. Available
through: <https://www.theguardian.com/business/2018/apr/03/ryanair-reveals-worst-
gender-pay-gap-airline-industry>
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B. Two Theories
Description of two theories
Ethical theories are said to the frameworks which attempts to describe existence along
with facts related to ethics together with ethical behaviours (Filip and Etl Al., 2016). Two ethical
theories are described, applied and critique below:
Rights and justice theory. The theory is working of John Rawls and John Locke. Locke's
theory of rights is based on the belief that fundamental natural rights are life, property as well as
liberty. For serving the purpose, Locke have reasoned that individuals have rights and duties for
preserving their own livings. The theory advanced from basic rights to an individual ranging
from life, property together with freedom to concepts that includes fair treatments, consent, fair
legal procedures and privacy. The theory maintains that there are certain things which an
organisation cannot perform against individuals as they holds moral rights (Sriram, Martin-
Ortega and Herman, 2017. War, conflict and human rights: theory and practice. Routledge.).
Similarly, Rawls's justice theory is model of fairness which states that a society of free
population holding equal rights as well as cooperates in egalitarian economic system. The theory
presents normative model that decides how a society must look like. Justice is concurrent fair
treatment wherein people in certain situation achieves what they deserves as well may assess the
ways in which rights are fair and equal. The theory is developed with major sides of fairness that
are fair procedures and fair results.
Utilitarianism Theory: The theory determines right from wrong through emphasizing on
results. It was propounded by Bentham addition to Mill. It is type of consequentialism and holds
effective choice that produces largest great for greatest number. It is common framework to
moral reasoning which is used in business as it accounts for benefits along with cost. It is also
based on largest happiness principle and strives for pleasure of majority. As per perspective of
utilitarianism theory, one cannot predict future and it is also complex to have knowledge of
certainty whether the results of actions or practices will be bad or good (Purshouse, 2018).
Application of theories
Rights and justice theory: Employees have duty of care rights for safety and health
within workplace. In Telegraph Media Group, employees of recruitment team have rights to
facilitate fairness, provide information about workforce planning, perform unbiased recruitment
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and adopt effective selection criteria. By applying theory of rights and justice, entire hiring
practices of Telegraph Media Group will be assessed as per effects of decisions in applicants
rights. As per distribution of men and women employee with quartiles, it is assumed that the
human resource department and recruitment panel may be biased or involuntary gives more
preference to male applicants rather than female applicants. Similarly, justice comprises fair
methods and fair results. In context to Telegraph Media Group, injustice is clearly visible in
employing male more than females. For decreasing gender pay gap, reverse discrimination risk
always exist in which women are favoured less than men which applied unfair procedures. For
ensuring fairness as well as effective employment results, application of theory of justice will
assist the entity in having fair hiring and reducing unintentional biasses (Handayani and Et. Al.,
2018).
Utilitarianism theory: By applying the theory, Telegraph Media Group is able to found
good outcomes or results from poor decision on gender pay. The theory will produce good
amount of decisions on largest number of people of company. When the entity will pay equal
payment rates to minor people that are male and female employees which represent the company
then it have huge chances to reduce its gender pay gap to huge proportions.
Critiques of theories
Rights and justice theory: The advantages of right and justice theory is that it provides
compensation or employment to people on equal manner as per rights governed by political
system. It can benefit Telegraph Media Group in proving employment to male and female with
justice. However, cons of the theory is that its advocate strict equality which permits to accept
least advantages. The theory is also critique on the basis on primary distributive grounds wherein
it ignores claims that employees deserve benefits in light of their skills and contribution (Moore,
2018).
Utilitarianism theory: The pros of utilitarianism theory is that it benefits the majority
through making decision that is best of all employees. The theory do greatest good for maximum
number of employees whether male or female. However, cons of the theory is that it forces
decision makers for guessing results of the choices. The other con is that it harms minority and
benefits majority which may fail to build mutually advantageous relationships within Telegraph
Media Group. It is not possible to predict results for decisions for employments done on equal
and fair manner.
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Recommendation
 As per Utilitarianism theory, Telegraph Media Group Wil be able to find effective
solution for decreasing gender pay and this needs assessment of consequences or issues.
By recruiting female staff as equal to male employees in leading senior position, it will
do good to reduce gender pay at largest level. Moreover, when utilitarianism principles
are applied in the entity then it will assist in overcoming the gender pay gap effectively.
 Thorough theory of rights and justice, Telegraph Media Group is able to provide
employment to female and male employees as per their rights and doing justice with
them. This reduces discrimination at workplace as when payments are given with rights
of employees then it improves motivation of female and male to work without
discriminating on the basis of religion, sex and many more.
REFERENCES 1B
Filip and Et. Al., 2016. Morality and ethical theories in the context of human behavior. Ethics &
Medicine. 32(2). p.83.
Handayani, G. A. K. R. And Et. Al., 2018. Retributive Justice Theory and the Application of the
Principle of Sentencing Proportionality in Indonesia. Journal of Legal, Ethical and
Regulatory Issues, 21(4), pp.1-8.
Moore, M., 2018. Reply to critics. Critical Review of International Social and Political
Philosophy. 21(6). pp.806-817.
Purshouse, C., 2018. Utilitarianism as tort theory: countering the caricature. Legal Studies.
38(1). pp.24-41.
Sriram, C. L., Martin-Ortega, O. and Herman, J., 2017. War, conflict and human rights: theory
and practice. Routledge.
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PART 2
Ethical leadership management within ethical or unethical organisational culture
Ethical leadership refers to exhibiting moral together with values at management
position. This form of leadership is majorly directed through respect for ethical values, norms
and rights to others in workplace. Ethical leadership management is not restricted to avoiding
scandal but is concerned with inspiring employees towards attaining huge while acting ethically
and responsibly (Kalshoven, van Dijk and Boon, 2016). In large business concerns, ethical as
well as compliance managers are hired and are responsible to perform ethical leadership such as
overseeing social responsible codes, ensuring that the form compliances with set of standards
and ethical codes. Various leadership theories are adopted and properly followed by ethical
leaders to develop and maintain an influencing work environment that encourages standardised
behaviours within collaborations, actions, performances, decision making and communication.
As per Xu, Loi and Ngo (2016), it is analysed that ethical leadership management within
collaborationist, long term orientation, positive and uncertainty avoid index improves potentials
of leaders and makes employee satisfied and motivated to contribute in productivity. Moreover,
ethical leaders always listens to its team members and supports their ideas and creates a
supportive business environment. However, in opposite situation that is ethical leadership in
unethical organisational culture, leaders fails to manage circumstances and forces their decision
on employees. For instance, leaders of Amazon have tried to make sales target by making their
employees work unethically and fool the customers. The leaders in this situations have gained
success but only for limited duration and this made them reporting about their working as well
as resigning form the business.
Ways to maintain integrity and compliance in un/ethical business environment
Integrity is defined as trait or quality to become honest as well as have strong moral and
ethical principles. It is one of practice of leaders that shows consistency as well as
uncompromising adherence towards ethical principles as well as values. Integrity plays
significant role in ensuring that all the activities and practices are placed ethical and are adhered
by business (Stimmler and Tanner, 2019). At same time, compliance in business aims to generate
huge values and ensures survival of company. The practice is key for ethical leaders as it covers
all rules, controls and policies which are conform to perform ethical practices. It is significant for
10

ethical leaders to ensure faithful compliance and control entire processes and procedures to meet
identified objectives.
In ethical business environment, integrity and compliance are maintained by leaders
through leading others with appropriate example, anticipating ethical conflicts, communication
with honest and civility manner and accepting that people have distinct standards and values. In
other scenario, leaders maintains compliance and integrity in unethical business environment
through challenging people and becoming destructive leaders (Bohinská, 2019).
Reflection of own experience and knowledge
Within my last employment in Information technology sector in which I was head of IT
department and was responsible to look after the whole division. In the workplace, I perceived
unethical practices of human resource management while recruiting, staffing, training and
compensating to newly hired candidates in marketing department. Within marketing department,
human resource manager hired more number of males against female. The manager believes that
male employee have more know;edge and capabilities then female employee and because of this
they were paid around 40% more than females. Furthermore, I also noticed unethical practices of
marketing manager who gave much more preference to female candidates while allotting works
and tasks. While working in the company, I also analysed that respect for others have not meet
organisational codes of standards and regulations. This type of practice has violated rights and
justice for female against male. In this situation, I believed that employees should be allotted
workings and given all their rights.
CONCLUSION
The discussion concludes that business ethics assist enterprises to work as per norms,
rules, standards, codes and ethical practices for focusing towards integrity, sustainability addition
to accurate behaviour within business world. Ethical issues in business and discrimination and
limited female representatives at senior most positions. Business have roles in society for
developing, meeting CSR, uplifting society, reducing environmental and social issues and
fulfilling needs of al stakeholders. Key stakeholders which are affected more due to unethical
practices are investors, customers, government, suppliers and employees. Two theories of ethics
are Utilitarianism theory addition to justice and rights theory. Ethical leaders are fair and
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promotes justices, respect others, emphasis more on team building, encourages initiatives and
values awareness.
REFERENCES 2
Bohinská, A., 2019. Compliance program and ethics program: Does an organization need both?.
Journal of Human Resource Management. 22(2). pp.1-9.
Kalshoven, K., van Dijk, H. and Boon, C., 2016. Why and when does ethical leadership evoke
unethical follower behavior?. Journal of Managerial Psychology.
Stimmler, D. and Tanner, C., 2019. Preventing wrongdoing and promoting ethical conduct: a
regulatory focus approach to corporate ethical culture. In A Research Agenda for
Economic Psychology. Edward Elgar Publishing.
Xu, A. J., Loi, R. and Ngo, H. Y., 2016. Ethical leadership behavior and employee justice
perceptions: The mediating role of trust in organization. Journal of Business Ethics.
134(3). pp.493-504.
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