Importance of Ethical Standards in Business

The provided document emphasizes the importance of ethical standards in business, as they play a crucial role in maintaining a good reputation, ensuring smooth operations, and fostering positive relationships with stakeholders. The document also explores various theoretical frameworks, including reflective style, stakeholder theory, and ethical theories, to illustrate the significance of ethics in business decision-making.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
Theory of stakeholder.................................................................................................................1
PART 2 ......................................................................................................................................2
Ethical theories and demonstrate apply stakeholders. ................................................................2
PART 3............................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term business ethics can be termed out as various ethical principles, morals and
problems so that business environment can be improvized (Pearson, 2017). It is code of conduct
that help to have welfare in society. This is based on morale and social values and also contains
moral and social principles for doing business.
In this, business activities of ASOS has been considered and it is working as fashion and
cosmetic retailer and it operates all activities in manner as fashion with integrity. The present
report will look over things as stakeholder and their ethical issue, ethical theories and to conduct
the conditions, ethical standards and ethical leader and compliance. This all things can be
conducted in the effective and efficient mode so that ethical business can able to gain
competitive advantage.
PART 1
Theory of stakeholder
This is the theory that suggest that the aim of firm in terms to create much value as
possible for stakeholder. In order to bring long term sustainability the all individual must
perform their business activities in the effective manner. Thus, ASOS is an enterprise that
conducts the business in ethical manner and they should maintain interest of customers,
suppliers, employees, communities and shareholder so that all things can be conducted in same
direction.
In this, the firm was blames as they are not conducting the business in the ethical manner,
the child labour was practising was impacted in badly manner. ASOS is a firm that is performing
all the things in integration and they also responded that practices was against the code of
conduct ( Hill, 2017). In this, stakeholder theory states that firms the owns the responsibility to
the wider group of stakeholders. This all affected by he action of the business.
The employees, customers, supplies and creditors in terms to the community and
competitors. Thus, in order to conduct the business operation in the effective manner the firm
need to take the various initiatives so that stakeholder can be satisfied with the performance of
the firm. These groups will be inclusive of employees, customers, suppliers, political action
groups and government groups so that all things can be conducted in effective manner. In order
to conduct the things with help of focussing on shareholder so that all things can be conducted in
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beneficial mode. Therefore, legally and morally obligated to serve the interest so that all things
can be done in beneficial mode. Hence, managing for stakeholder so that all things can be
conducted in the beneficial mode.
PART 2
Ethical theories and demonstrate apply stakeholders.
There are generally physically approaches that will help to conduct the business in the
systematic manner. In addition to this, utilitarian and deontological ethics will be conducted in
the following context.
virtue ethics- it is ethical theories that focuses on the character that deals with rightness or
wrongness of individual and it is things that will be helpful in order to carrying out action. It is
helpful term that provides guidance to the sort characteristics and behaviour of good person
seeks to achieved. In addition to this, virtue ethics will help to understand that means to be a
virtuous human being. Thus, living life without giving specific rules for resolving the issues of
ethical dilemmas. Here, some of the common objectives to the virtue ethics so that all things can
be conducted in better mode. Thus, it is the things that provides self centred conception of ethical
that affected the action of the people. In addition to this, it can be said that the virtue and there
are various factors that helps to examine common objective and it is excellent trait of character.
In addition to this, the ethical approach helps to conduct the business in the systematic manner.
In this, term it can be said that the virtue theory provides clear principles for guiding the actions.
It is the ability that cultivate the right virtues and there are differ factors beyond the person
control due to education, society, friends and family. In this there, it can be said that the virtue
action leads to achievement of the values. Virtue ethics provides the manager and business
leaders with an opportunity to ask so that long term goals can be achieved (Ciulla, 2017 ). The
role of the virtue in business to direct and motivate the behaviour so that there can be possibility
in terms to achieve the higher success in the enterprise. In this, virtue theory will provides the
strategic plan, tactics, policies and procedures in order to attend business stated mission and
other relevant values. This are the term that will help to accomplish ultimate goals so that things
can be done in the better manner. This are the the ethical theories this leads to achieve common
objectives.
Utilitarianism ethical theory- This is the ethical theory that is helpful in order to state
something basic, morale or good to produce greatest number of the people. In the ethical theory,
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morales are separates into good and bad terms. The good things is defined as existence of
pleasure and absence if pain. This is the term that is helpful in order to maximize utility that is
morale action that helps to enhance and improve the working of the life. This is useful that
determine consideration of the right conduct so that usefulness of its consequences. This is the
approach that is helpful in terms to promotes the happiness so that employer can conduct the
business in the satisfactory manner (Craft, 2018 ).
In addition to this, motive or intrinsic nature of an action that difficulty of adequately provides
the things in the effective manner. This is an action that will maximise the total utility so that
there can be reduction negative consequences for the largest number of people. According to the
philosophy that is the effective action that leads to serving the public good and the all thins can
be conducted in better manner. In addition to this, it can be said that the Utilitarianism ethical
theory is the kind of the normative ethical concept that focus on right and wrong. This is the term
that is helpful in order to enhance better things so that all things will be developed in the
effective reproach.
This is the framework that helps to conduct the business in the better environment so that all
things can be conducted in better mode. There are the things that helps to define the variation
between the wrong and bad. This are the things that maximise the things in the better mode so
that all work can be in better manner.
In addition to this, it can be leadership in the entity will helps to derive long term success and
also creates positive working environment and also will be helpful in order to provide better
treatment of employees and to make the better interaction with the public so that all things can be
conducted manner (Singer, 2018 ). It is the term that leads to have greater sense of dissatisfaction
so that organisation can derive the long term success. The main motive is to bring long term
retention and turnover the enterprise so that all things can be done in the better mode. The main
aim of ASOS is to provides the things in the manner as fashion with integrity so that all things
can be developed. Furthermore, the role of the business in the society must be in the effective
mode so that all things can be maximised.
Egoism theory- This is the term that is helpful in terms to have normative ethical position that
works as to affects the self interest and this is the term hat hold the moral agents and obligation
to help others. It is the normative theory and under it promotion of the self good must be
accordance with morality. In addition to this, it was always morale to promote the owns good
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and this are the things that promotes the effectively. It is the doctrine that all person ought to act
from their self interest. Thus, it can be stated that the theory of ethics should be for the self
interest.
Personal ethics egoism- it is not the theory because it works as to generalised the others and
personal ethical egoism is the kind of recommendation that is against the own self interest.
Universal ethical egoism- It is that doctrine in which person should pursue their own interest
exclusively. This kind of the theory will be helpful in terms to perform the all the activities
effectively.
PART 3
Ethical standards in business-
The good corporation and business define the ethical standards that defines the work for
the responsible management of enterprise. The ethical standard creates the trust and faith on the
working of the enterprise. In addition to this, it can be said that there must be guideline for
establishing the good pictures as an auditing firm and that will also helps to define about the
strength and weakness in practice and procedures. I feel that ethics and morals helps to creates
sustainable business environment so that firm can able to achieve the higher amount of
profitability and productivity. Thus, ethical standards for the business enterprise concerns with
the various amount of internal policies and procedures (Williams, Agle and Gates, 2018). I think
ethical standards works as to creates high practices, termination procedures, sexual harassment
issues and vendor relationship so that all thing can be done in the efficient mode. It helps to
maintain the integrity in order to foster the a corporate climate that supports the ethical behaviour
of all the employees.
The legal ethical standards are those policies that based on the laws, rules and regulations. In this
term, it can be said that the company ethical standards goes beyond the allegations. Thus, it can
be defined as that non-compliance with the ethical standards can be the grater threat to the
working of the enterprise. In this term, it can be said that it is the responsibility of the business
enterprise is to foster the corporate climate effectively and this kind of working sopports the
ethical behaviour of the employees.
Reflective style
Description-
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In present case study, the event was happened in ASOS is enterprise that deal in fashion
accessories and provides product to the customer in high integrated mode. They argues that they
have run ethical practices in the enterprise but they blamed as they hire child labour. In this, the
reputation of the enterprise reduce with having huge impact as the ethical stands of the firm are
violating in the badly manner.
Feelings- at this level, the image of the enterprise is affecting in badly manner. Thus, ASOS is
taking various initiatives in terms to shed off the blame so that business activities can be
conducted in better and effective manner. Thus, it can be said that the awareness is the crucial
aspect of this phase.
Evaluation- At this level, evaluation is must be made in order to find out the deviation between
the activities. The ASOS is British online fashion and cosmetic retailer and that aimed at young
adults. In addition to this, it can be said that the firm operates business in terms to be scrutinised.
Thus, the investigation found that there is exploitation in the supply chain and this affects the
working of the enterprise in the huge context.
Analysis- This is the phase in which better analysis must be taken so that the things can be done
in the better and efficient manner. With the help of conducting the better analysis the each things
can be done in the better mode.
Conclusion- Based on the above style it can be concluded that it is useful to encourage and
gather the whole information so that business practices must be in the ethical standards. In this,
the information must be gathered so that ethical practices can be carried out in term to conduct
effectively.
Ethical standard-
Business ethics is the morale code of conduct for the all kind of the business enterprise.
By setting of the ethical standards the firm can able to perform its working n the effectively
mode. In addition to this, it can be said that businesses that practices the ethical standards has the
lower risk for the legal claims. The ASOS supply chain put their consideration over the things as
are raw materials, craftsmanship and engaging customers and internal education to help all the
person in the better and efficient manner. Thus, visibility of the supply chains leads to creates the
transparency and business function will able to sustain in the market for the longer period. In
addition to this, it can be said that the working of the business must be based on the laws and
legislation so that each things can be undertaken in better manner.
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The ethical practices creates the better working and that all leads to attend the long term
objectives of the enterprise ( Edel, 2018.). This kind of practices affects the working of the
enterprise in the huge context. I must say that ethical standards will help to perform the business
function in appropriate manner. In order to gain the competitive advantage the Asos must be
compliance with the laws and legislation and this all affects the working and creates the greater
sustainability and it must conduct the CSR practices so that brand image of the firm can be
enhanced in the eyes of public. This kind of the ethical standard will be helpful in terms to
performing the all activities in the significant approach. In addition to this, it can be said that the
ethical can be regarded as to laws, legislation so that things can be developed in the efficient
manner. Therefore, ethics policies and written things will be published to employees so that they
can meet the ethics standards that employees seek. with help of managing the ethical policies in
the enterprise the all things can be taken in better and effective manner. On the other hand, it can
be said that non-compliance with the ethical standard at the individual level will be the costly
process and this impacts the overall working of the enterprise. I realised that ethical standards are
that part of the firm that must be followed so it can able to defined the business project
effectively.
In this, it can be said that the business reputation impacts the customer, employees, potentials for
the growth and to have overall success in the enterprise. Thus, business creates the guideline for
there managers and employees to follow the work in the appropriate manner. The employees in
the organisation has to be fair in their all kind of the dealings so that they can able to conduct the
each operation in the appropriate manner. Therefore, in the instigation of the ASOS the ethical
standards was impacting the overall growth and I was also impressed by the ethical standards
that the company use to treated all the employees in the equally manner and this helps to create
the long term sustainability on the market. In this, I was not sure that company was also dealing
in child labour practices and this kind of the factors affects the working of the enterprise in the
huge context.
Here, the Asos is firm that is famous for the high ethical standards in the manner as to pay
employees a fair wage, offering promotional opportunities to the both man and women in the
equality manner. This kind of the activities will helps to create the better working and image of
the brand name can be sustained for the longer period. In addition to this, it can be said that
ethical standards are helpful in order to create and effective environment. Furthermore, it can be
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said that the ethical quality of the decision and omission to themselves affects the working of the
enterprise in the huge context.
To maintain the ethical standard the firm should work as to treat the employee in the right
and ethical manner. There are the number of the business enterprise that exemplifies integrity in
its products, services and actions that will be helpful in order to maintain ethical standards on the
three levels. In this, it can be said that the policies must be framed that will help to ASOS in
order to collect the better hiring practices, termination procedures and harassment issues and
better relation so that all policies are ethically sounds and removes the improper actions and
decision (12 Ethical Principles for Business Executives, 2018). Under it, there are some notable
consequences in the ASOS that works as to ignore and breaks the ethical standards at the each
level in the enterprise. This kind of the issues can have negative impact on the financial terms
and it is also cost and time involved process that can also works as to damage the reputation of
the enterprise in the huge context.
CONCLUSION
Based on the above report it can be concluded that ethical are one of the essential part in
terms to carry out the all business activities in well and planned manner. The business reputation
impacts its suppliers, employees and customers and that all are essential for potential growth and
success to the enterprise. In addition to this, report will cover the following things as ethical
standards, reflective style and theory of stakeholder and ethical theories so that firm can operates
its function in the appropriate manner. This all are beneficial in terms to conduct the activities
systematically.
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REFERENCES
Books and Journals
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theoryPearson, 2017 Hill, 2017Ciulla, 2017 Craft,
2018 Singer, 2018 Williams, Agle and Gates, 2018 Edel, 2018 12 Ethical Principles for
Business Executives, 2018.. Routledge.
Hill, A., 2017. Just business: Christian ethics for the marketplace. InterVarsity Press.
Ciulla, J.B., 2017. Trust and the future of leadership. The Blackwell guide to business ethics.
pp.334-351.
Craft, J.L., 2018. Common thread: The impact of mission on ethical business culture. A case
study. Journal of Business Ethics. 149(1). pp.127-145.
Singer, A., 2018. Justice failure: Efficiency and equality in business ethics. Journal of Business
Ethics. 149(1). pp.97-115.
Williams, R.N., Agle, B.R. and Gates, D., 2018. Teaching business ethics: current practice and
future directions. In The Routledge Companion to Business Ethics. Routledge.
Edel, A., 2018. Ethical Theory and Social Change. Routledge.
ONLINE
12 Ethical Principles for Business Executives. 2018. [online] Available
through:<http://josephsononbusinessethics.com/2010/12/12-ethical-principles-for-business-
executives/>.
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