The Significance of Business Ethics and CSR: Aston Martin's Case Study

This essay examines the critical role of business ethics and corporate social responsibility (CSR) in the context of Aston Martin, a British luxury car manufacturer. It explores how ethical practices and CSR initiatives contribute to the company's sustainability, responsible management, and ethical behavior across economic, cultural, environmental, and social dimensions. The essay analyzes the importance of CSR in enhancing Aston Martin's public image, brand recognition, and customer engagement, while also emphasizing the significance of ethical compliance in maintaining product quality and ensuring fair labor practices within its supply chain. Furthermore, it discusses the impact of macro factors such as environmental concerns in the automotive industry and how Aston Martin addresses these challenges through sustainable practices. The essay also highlights the role of leadership in fostering CSR and achieving business objectives, concluding that integrating ethics and CSR is essential for the company's long-term growth and success in the global market.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
ESSAY ............................................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES ...............................................................................................................................2
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INTRODUCTION
Business ethics is the study of accurate business practices and policies about potentially
controversial subjects including corporate social responsibility, corporate governance, insider
trading, discrimination etc. In business, ethics is more important because it concern an
individual's moral judgement regarding right and wrong. It attract large number of customers to
the business's products and services, thereby boosting profits and sales (Christensen and et. al.,
2017). Aston Martin is chosen British independent manufacture of grand tourers and luxury
sports cars. It was founded by Lionel Martin and Robert Bamford in 1913 and headquartered in
Gaydon, Warwickshire, England, United Kingdom. Main purpose of this Essay is to analyse
reason why business ethics and corporate social responsibility is important for an organisation to
manage sustainably, responsibly and behave ethically in relation to economic, cultural,
environmental and social issues faced by society. Along with this, Impact of CSR on leadership
in modern organisation at global environmental will also included in this project.
ESSAY
Corporate social responsibility refers as a self-regulating business model that supports an
Aston Martin to be socially responsible to itself, its stakeholders and the public also. By
practising CSR, an organisation can be conscious of the type of effect they are having on all parts
of society including environmental, social and economic. CSR is most essential and important
for Aston Martin at global level. As it will help an enterprise by improving its public image,
increasing brand awareness and recognition, saving operations cost, increasing customer
engagement, more benefits for employees and so on. Along with this, ethics in business is also
essential for growth and sustainability of an organisation.
Compliance and Ethics are vitally essential to the long term success and growth of
dealerships and automotive professionals. Aston Martin wants its customers to have confidence
that products manufactured and sell by Aston Martin or its suppliers, licensees and vendors are
of good quality. The reason for their effective quality is about production in accordance with the
ethics or law set forth herein and are not created under exploitative or inhumane conditions.
Along with this, implementation of global business ethics principles or rules enables Aston
Martin to ensure that manufacturing or selling facilities involved in the production of grand
tourers and luxury sports cars.
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Apart from this, corporate social responsibility and ethics in business is much more
important for an organisation for its growth and sustainability at global environment. Aston
Martin having their operations in too many nations. They have high amount of goodwill in all
over the world. The micro factors which are required to consider in the process of carry on their
functions ethically and sustainably includes employees, Suppliers, intermediaries etc. It is the
duty of the management of the organisation is to build effective policies and norms as per the
nation conditions. It is must to have the overall control over employees and suppliers that no
internal scam is happen over organisational production activities. In this situation, effective
management of the such factors is possible with effective application and adherence of the
policies and norms like daily reporting of work, proper monitoring and control over the
employees activities, rechecking of the material supplied by the supplier. All these aspects have
their huge contribution in strengthening the internal structure of the organisation.
Adherence of these norms not only help in the process of management of the business
activities responsibly but also help in the removal of the negative impact of the factors like
society, economy, culture and environment. Rechecking of the suppliers materials help an
organisation to sustain quality and build their products as per the expectations of the consumers.
In global market, trust of the consumers is must to get success in the market and the same is
replicate by the gross revenue figure of Aston Martin. In respect of the appraisal of the
performance of employees and to ascertain their contribution in the activities supplemental
measures are taken from the management side. The positive impact of this aspect is seen over
continuous and rigorous regulation of the environmental norms. This will further help in
Building effective relationship with clients and the same is considered as the cornerstone of a
well-established of successful organisation. Always having an accurate social responsibility
policy or strategy can influence purchasing decisions of clients and guides the working of the
employees. Some buyers are willing or happy to pay more for a grand tourers and luxury sports
cars if they know a portion of the large number of profit is going to worthy cause.
Aston Martin is a British manufacture of grand tourers and luxury sports cars. They have
to faced different issues due to the presence of macro factors such as social, culture,
environmental and economic (Kolk, 2016). For example: environmental impact in automotive
industry is approximately 80-90% , due to fuel consumption and greenhouse gases and emission
of air pollution that climate subject field say are driving global warming (Automotive industry
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effects the environment, 2018). Apart from this, economic impact despite as a major issue with
low profitability and overcapacity. Therefore, economic, environmental, culture and social issues
highly impact on business growth and success. Aston Marting have their large number of
operations in UK. The economic condition of the nation is quite strong which facilitates the
management of the organisation to effectively follow the social and environmental norms. This
can be seen from the effort of the organisation that they follow the environmental norms
regarding all respect like designing, engineering, manufacturing, servicing and restoration. Aston
Martin is proud of its commitment to corporate and social responsibility including
Environmental, End of Life Vehicle and Battery Recycling policies.
In order to overcome above mentioned all these issues, Aston Martin make an effective
decision about development of corporate social responsibility and ethics. It is important for an
organisation to manage all issues in responsible, sustainable and ethical manner. For example:
Greater sustainability in the automotive sector is about more than just light weighting. There are
different ways suggested to Aston Martin for improvement of sustainability in business. For this,
fueling lasting change, high performance, using less oil, reducing energy loss and friction etc. are
consider best examples for an organisation to mange sustainability and grow faster in automotive
industry. Along with this, DuPont can support Aston Martin to take on the challenges of how to
enhance sustainability via material selection in the automotive sector, and make the vehicles
customers, organisations and legal authority want and require now.
An organisation play a progressively essential role in society as players who influence as
well as determine the wellbeing of workers, consumers and also citizens (Spence, 2018). In
today's globalised globe, then, CSR is of immense significance for society and for an
organisation because it consist of working conditions, environmental issues and taxation. Proper
adoption of CSR and ethics in business operations and activities will help a Aston Martin in
creation of leadership. Leadership is more essential and important part for an organisation
because it will help them in increasing its image and goodwill at globe level. Along with this,
strong leader can support an organisation to increase productivity and accomplish business goals
and objectives (Visser, 2019).
CONCLUSION
From the above mentioned information, it has concluded development of ethics and
corporate social responsibility in business is much important for automotive industry. As it will
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help them in reduction of social, economic, culture and environmental issue which means higher
growth and sustainability of an organisation at global level. CSR is most essential for an
enterprise because it will help them in development of good leadership, which will further assist
them by increasing brand image and goodwill in marketplace.
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REFERENCES
Books and Journals
Christensen, L. J. and et. al., 2017. Ethics, CSR, and sustainability education in the Financial
Times top 50 global business schools: Baseline data and future research
directions. Journal of Business Ethics. 73(4). pp.347-368.
Fassin, Y., Van Rossem, A. and Buelens, M., 2018. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Spence, L. J., 2018. CSR and small business in a European policy context: the five “C” s of CSR
and small business research agenda 2007. Business and society review. 112(4). pp.533-
552.
Visser, W., 2019. The age of responsibility: CSR 2.0 and the new DNA of business. John Wiley
& Sons.
Online
Automotive industry effects the environment. 2018. [Online]. Available through:
<https://www.nationalgeographic.com/environment/green-guide/buying-guides/car/
environmental-impact/>.
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