Business Ethics Report: Aston Martin and the Automotive Sector

This comprehensive report delves into the multifaceted realm of business ethics within the UK automotive industry, with a specific focus on Aston Martin. It begins with an introduction highlighting the industry's economic significance and the growing emphasis on environmental concerns. The report is divided into three parts. Part 1 identifies key ethical issues such as security, technology and privacy, health and safety, harassment and discrimination, and social media, and also covers relevant laws, codes, and regulations, including vehicle registration, insurance, and the impact of Brexit, environmental standards, chemicals, and forced labor. Part 2 presents a case study of Aston Martin, examining its corporate governance, ethical commitments, and controversies, including financial misconduct and pre-launch model leaks. Part 3 suggests improvements to regulations, codes, and new laws to enhance ethical practices. The report concludes with a review of ethical theories and provides references for further study.

Business Ethics
Report

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Main ethical issues in the car industry...................................................................................3
Relevant laws, codes and regulations that are affecting business conduct.............................4
PART 2............................................................................................................................................6
Case study of business............................................................................................................6
States values & ethical commitments.....................................................................................6
PART 3............................................................................................................................................8
Suggestions on regulations, codes and new laws...................................................................8
Consideration of Ethical theories ..........................................................................................9
Conclusion ...........................................................................................................................10
References ...........................................................................................................................11

INTRODUCTION
The automotive industry of UK is a significant contributor of UK economy that is
assisting in generation of annual turnover of 77.5 pounds billion and providing employment to
814000 people. This industry represents 13 percent of UK total exported products. There has
been increasing the focus on car emission that is affecting the quality of air, demand of eco
friendly cars, hybrid vehicles and electric vehicles that lead to growth of alternative fuel vehicles
registration are growing. Aston Martin Lagonda Holdings plc is a British independent
manufacture of Luxury sports cars and grand tourers. Robert Bromford and Lionel Martin are the
founders of Aston Martin and it was founded in 1913.
PART 1
Main ethical issues in the car industry
There are certain ethical issues that are affecting the automotive industry of UK :
Security: With the changing technology the cyber security is one of the major concern
driving towards autonomy. 66 percent of the automotive brands are concern with addressing of
different security issues that are associated with connected cars. In case of autonomous vehicles
there has to be patches that have to be is facing cyber attacks. The vehicles have to be protected
from life threatening hacks.
Technology and privacy: The development in the technological security is an important
concept which needs to be addressed. Electronic surveillance ensure productivity and efficiency
if it cross the line or raises difficulties. Internet browser history and emails in the company can
legally monitor the company. It has been suggested that 70% automotive industries have
connections with internet 40% employers track the contents and 40% stores of car industry
review the file as well as monitor email. In relation with Aston Martin, technological issue arises
that there is a need to properly and with more efficiently trained their employees so that the
employees get to know about the new advancement technologies. Also employees of Aston
Martin should examine their privacy policy to see hoe the employees are being monitored and
considered if it can easily reflect a record of job performance.
Health and safety: This component is measured as the most significant and an important
ethical issues which suggested that in the automotive industry, employees and staff members die
from work related diseases and occupational diseases. According to the healths afety and

occupation measure Aston Martin suggested that there is a need of protection after falling the
company, Hazard communications which includes harmful chemicals, scaffolding, respiratory
protection, lockout and tag out which includes controlling of the hazardous energy such as soil
and gas, powered industrial trucks including safety requirements, machine guarding and
electrical general equipments. These all are the needed components that needs to be taken into
the consideration in this ethical issue. Also, it seems out to be the most important ethical issues
which needs regular verification for every individual of the company.
Harassment and discrimination: This ethical issue also suggested out to be the most
important concern that needs to be taken into the consideration. In every business, discrimination
is one of the factor that needs to be face by every employee. In relation with Aston Martin,
employees sometimes suffered from the bad politics in terms of promotion and other
modifications. Also there are high chances of harassment taken place in the work organisation
with the female employee. It needs to suggested that harassment can be possible in terms of
workplace.
Social media: The widespread nature of social media has made it a factor in employee
conduct online and offline business. Nowadays there is great power of social media which has
been suggested that there are some information or sources which needs to be addressed on
websites. It is a good source of information but sometimes people majorly focuses on websites
rather than visiting the stores. It can be also suggested that apart from websites, the employees of
the company post pictures on their social media and promote things on their personal level but it
is a major concern for the ethical issue. The line is complicated because employees onilne
activities are marked as disloyalty towards the company.
Relevant laws, codes and regulations that are affecting business conduct
Relevant laws, regulations and codes are important for the business to protect the
company. The rules and regulations helps business employees to understand what is the
expectation from them and certain punishments if they break the rules.
Aston Martin Lagonda Holding plc is one of the most successful sport car manufacture
company. Some relevant laws and regulations attained by the Aston Martin are mentioned
below:
Registration of Vehicles: It have to be registered with driver & vehicle licensing agency that is
holding a vehicle registration certificate (V5C). The person named as V5C is responsible for

vehicle that is registered as vehicle keeper and fulfil licensing obligations. Without proper
approval vehicle cannot be registered or licensed in UK
Insurance: In the present legislation UK is having a compulsory motor insurance regime where
a person using a vehicle have to get insured their cars to protect against third part damage.
Government of UK has recently published automated and electric vehicles bill that consist of
new insurance measures in the advance of vehicle technology.
BREXIT impact: The car industry and the automotive sector of UK is also subjected to
different EU regulations that is covering different range of issues that consist of technical
standards. Vehicle categorisation, environmental protection and safety. The automotive sector of
UK is subjected to complex regulations that consist of technical standards, vehicle registration,
environmental protection, vehicle categorisation. These regulations from European union are
playing directly on UK and has been incorporated from UK domestic legal framework.
Environmental standards: The EU limits the exhaust of emission of hydrocarbons, nitrogen
oxides, non methane hydro carbons, carbon monoxide. There has to be harmonisation with the
international standards of limit on car of CO2 emissions.
Chemicals: The REACH regulation is regulating the import and EU substances that may imapct
the health of humans and external environment. It is placing a obligation tanmeg o various
automotive manufacturers at different points of supply chain that is placing obligations tange on
different automotive manufactures. It includes those that are producing import parts isvj as
bumpers or engines and those that includes import mixtures & substances.
The transitional period: UK based manufactures have to comply all the regulations of EU
single market. So, that there can be compliance of all legal implications of UK. It will also affect
the future deal of car industry with other automotive car brands.
Forced Labour: Aston Martin has a straightforward and clear rule that physical abuses will not
going to be tolerated in anyway.
National and International codes of the business ethics
IATF16949: Automotive industry support manufacturing of reliable products that are produces
and continually improved to meet the expectations of the customers and require regulatory
authority. Aston Martin has a certificate of this code to work best in conjunction.
ISO9001: It gives a best deal in the automotive industry to improve the satisfaction of
customers, operating the cost, risk management and legal compliance.

ISO 45001: Automotive manufactures constantly provide workers and visitors with a healthy
business environment. This codes helps the Aston Martin for controlling and eliminating the
factors so that there will be a reduction in injuries, illnesses and death.
CIP Code 52.1101: This code reflects individuals of employees to manage business operations.
Aston Martin include principles and process of trade controls, monetary issues, international
business policy and various applications in doing business.
AIS-098: The code is especially made for to take legal action towards company if the purchased
vehicle has an automatic disconnect function.
PART 2
Case study of business
Aston Martin has been suffered from poor corporate governance in 2018. Due to the
violation of laws and regulations with few employees of the organisation, the company got
lawsuits from one of its stakeholders due to some misconduct which was held at that point of
time. That was the time when company take some bad decision, as a result Aston Martin does
not able to manufactured any sports car after 12 months.
States values & ethical commitments
Good Corporate governance fosters a culture of integrity and leads positive performing
and the business which is quiet sustainable. Ethical commitments and states values are necessary
for achieving success and growth. There is a need to have good corporate governance in the
organisation so that Aston Martin will be well managed and that the interest of management are
aligned with the stakeholders. To maintain the good corporate governance there is a need of
following features to be taken place in the organisation. These are mentioned below:
Well maintain environment: It has been suggested that good corporate governance
required top management system. There is a need to understand what is happing with every
employee in the company. In many companies every department has KPIs.
Policy management: Documentation of policies, procedures and processes are required
in the company for a good corporate governance. Every documents to be managed and controlled
so that employees will not face any trouble.

ISO certification: System without licensing and certificate raises many issues and risk
management. Some codes such as ISO9001, ISO14001 are useful for the best practice
management system.
Equipment and maintenance schedule: The leaders and managers have various
responsibilities such as employees are adequately maintained and trained. Equipments and asset
management system provides a central management system for the best practice governance of
equipments.
Reporting: A good data in very important for the good governance. All the leaders and
managers needs a key performance indicators which are useful in providing the better picture of
performance of the organisation.
Supply chain: Extension in the business can simply expand with the formulation of new
suppliers. But because of less experiences and huge number of suppliers, supply chain can easily
enhance or damage the reputation. Good corporate governance requires suppliers to make sure
that what they do and monitor the performances.
Risk management: Managing the risk, identifying and assessment come under risk
management system. The manager of risk management in Aston Martin should responsible for
managing all types of business risks. External risks, operational, strategic can be eventually
measured and the management of organisation notified and create instants reports.
Ethical controversies
Aston Martin had faced a cash flow issues. This British sports car manufacturer
suggested that there were financial misconduct in 2019, as a result lower sales have been taken
place at that time. 2019 has been a very disappointing year because the company failed to deliver
profits that had been planned and because of the reduction in stock levels. As a recovery,
company started taking initiatives to have a good corporate governance so that the company will
take good decisions.
In 2017, the company Aston Martin was in major trouble when one of the employee post
some pictures of Aston Martin Vantage before its launch. Also, when Aston Martin DB11 model
came into an existence then the company was in major trouble because rough sketch of the
model had been posted and as a result other competitors got advantage of them. The company
owner and presidents formerly made a new policy that if, due to any chances the model of any

sport car come in presence before the launch then there will be strict action needs to be taken in
consideration.
PART 3
Suggestions on regulations, codes and new laws
There is a specific need to have a tougher rules, regulations, codes and existing laws so
that there will be a higher possibility to achieve success and growth in the society. Also, there is
a genuine important to implement new policies for the employees and maintenance of the
organisation structure so that thigh will be go in a right and impactful sustainable manner. The
above case study has been suggested that poor corporate governance must be completely reduce
so that things will be perfect and go in the right direction. It has been claimed that even today
Aston Martin is suffering from lack of good corporate governance into which there is genuine
need to implement some new codes of conduct which are firmly based on improving the
functional existence of good corporate governance (Remišová, Lašáková, and Kirchmayer,
2019). It includes
Code for the soft governance regulation: It includes polite and well behaviour in the
organisation with each other. Even today the employees of Aston Martin maintained there
behaviour because of there personal ethical values and standard but company should also
implement the policy which suggest that there is a need in the organisation to have soft
governance behaviour with each other. Every team member include those who are in higher post
should be well behaviour with their team members and staff employees.
Codes to maintain friendly environment with other companies at national and
international level: Stock exchanges, employer associations to address the good corporate
governance that specify in a particular country and to improve the national governance system
especially when the governance mechanism is failed to do so. If Aston Martin have to increase
its goals and success then there is a need to establish and communicate with the investors and
other stakeholders.
Codes in convergence of practices in the good corporate governance: Some evidence have
been suggested that facilitation of government convergence in the countries is the result of
several external forces in which the most powerful are market liberalization, globalization and
influence of the investors which comes under foreign affairs. There are some countries that

experience great pressure in changing the governance practices to improve the efficiency of the
domestic companies but also include best practices to harmonize the international best practices.
Accountability: This code of conduct suggested that there is need to have a proper
accountability so that best actions and decisions are made by the leaders and owner for their
organisation. The board panel of Aston Martin should represent accurate, fair and comprehensive
assessment for the maintenance of corporate position and corporate outlook so that there will be
annual disclosures for the shareholders. It has been also suggested if there is a code of
accountability in the organisation of automotive industry then there will be a broad assessing
nature, risk management and control system to achieve growth and success. Aston Martin should
also raises plans and procedures for improving the report management system and improving the
principles. Plans and procedures must include detailed documentation of internal and the external
auditors to address the accountability in the Aston Martin.
Share holders relationships: The organisation should implement the annual general meetings to
engage with other investors and utilize the annual general meetings on the basis of different
objectives and planning which is on the basis of strategy. The board should also ensure that there
is a genuine satisfaction of communication amongst share holders. A good corporate governance
in the organisation encourage the best practices which are develop from other corporation.
Remuneration: Remuneration packages are taken into the consideration to design and promote
success for the long duration of time in the organisation like Aston Martin which in useful in
direct aligned with performance. There are sufficient executive challenges that are transparent
and applied. Aston Martin should have formal and an amazing process to develop various
remuneration policies and setting of the packages.
Consideration of Ethical theories
The four ethical theories are seems out to be very helpful if taking a good corporate governance
into the existence in Aston Martin. These Ethical issues including
Deontology: This ethical theory suggested that people or employees should clearly understand
their theory and way of doing them. It states that when a person is following his obligations in
another society it will be seems out to be ethically correct. It contains positive attributes which
really attract the customers (Moriarty, 2019).

Utilitarianism: It is an ethical theory which are based on one's ability to predict the
consequences of actions. Utilitarian ethical issue is concerned with achieving maximum the
maximum good (Brenkert, 2019).
Rights: Rights which are based on ethical theory suggested that rights are protected and has been
given the highest priority. Ethical correction in rights and validation since larger population
endorses them. Individuals may also best rights upon others if they have the ability and resources
to do so. For example, a person may say that her friend may borrow her laptop for the afternoon.
But it has been suggested that a major complication in this right states that the society has to
determine what rights wants to uphold.
Virtue: The virtue ethical theory judges a person by his/her character rather than by an action
that may deviate from his/her normal behaviour. It takes the person’s morals, reputation, and
motivation into account when rating an unusual and irregular behaviour that is considered
unethical. For instance, if a person plagiarized a passage that was later detected by a peer, the
peer who knows the person well will understand the person’s character and will judge the friend
accordingly (Dierksmeier and Seele, 2018).
Conclusion
The above discussion concludes that there are some major ethical issues in the automotive
industry. Relevant laws, codes and regulations are affecting the business conduct that are
influence the business organisation conduct in the industry. There is a case study mentioned
below which suggest that good corporate governance is very important for the well maintenance
and functional ability in the society.

References
Books and Journal
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Moriarty, J., 2019. Business ethics. Oxford University Press.
Remišová, A., Lašáková, A. and Kirchmayer, Z., 2019. Influence of formal ethics program
components on managerial ethical behavior. Journal of Business Ethics, 160(1), pp.151-
166.
Soni, V.D., 2020. Art of Managing Business Ethics with Global Perspective. International
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