British Gas Case Study: Ethical Issues and Stakeholder Analysis Report

This report analyzes the ethical challenges faced by British Gas, focusing on the 'fire and rehire' controversy. It begins with an introduction to business ethics and responsible management, then delves into the specific ethical issues faced by British Gas, including the impact of these issues on various stakeholders like employees, shareholders, customers, government, and suppliers. The report then examines the role of business in society, the impact of unethical practices, and provides examples of good and bad ethical practices. Part B discusses and applies two ethical theories, utilitarianism and ethics of rights and justice, evaluating their advantages and disadvantages in the context of the case study. Finally, the report includes a reflective essay on ethical leadership management, and offers recommendations for British Gas to improve its ethical standing and operational practices, providing a comprehensive analysis of the ethical dimensions of the case.

Business Ethics and
Responsible Management Case
Study Report

Contents
INTRODUCTION...........................................................................................................................3
PART 1 A........................................................................................................................................3
Ethical issues and its importance.................................................................................................3
Ethical issues faced by the company...........................................................................................3
Role of business in society..........................................................................................................4
Five stakeholders.........................................................................................................................4
Example of good and bad ethical practice...................................................................................5
Recommendations........................................................................................................................6
REFERENCES................................................................................................................................6
PART B...........................................................................................................................................6
Discuss and apply two theories of ethics together with its advantages and disadvantages.........6
Recommendations........................................................................................................................7
REFERENCES................................................................................................................................8
PART 2............................................................................................................................................8
Reflective essay on Ethical Leadership management..................................................................8
CONCLUSION................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics is described as the process of adopting as well as correcting the acceptable
practices and methods so that no disagreements arise in the premises of the organization. This is
the study of policies as well as procedures which are utilised in order to make the base for
corporate social responsibility which will lead to the reduction and elimination of the unethical
practices, bribery, discrimination and various more. Responsibilities which are both ethical and
social in which these 2 are the major elements that commercial firm must consider at the time of
making several crucial decisions. In addition to this, Responsible management is an effectual
practice where in every function should be planned with the goal of making sure that the social
as well as environmental standards are addressed by the business. The following report is based
on the company British Gas which is a home service as well as energy provider. Organisation is
almost serving more than 12,000,000 households in United Kingdom alone. Company was
founded by Frederick Albert Windsor (Balasubramanian, Fang, and Yang, 2021). Additionally,
companies having their headquarters in Staines upon Thames, United Kingdom. The following
report will be divided into the 2 parts in which first part will cover about the elements of the
ethical challenges that is being encountered by the firm, role of the legal authorities in the
business, impact of those stakeholders of the company. Moreover, to this, other part will cover
about the ethical theories as well as its application in the following case study and its advantages
as well as disadvantages. Furthermore, reflective essay on what makes the ethical leader he will
also be included in the report.
PART 1 A
Ethical issues and its importance
Ethics are the principles which need to be obeyed by everyone in their everyday lives since it
represents the aspect of understanding that what is bad and what is good for living suitable live.
In addition to this, business ethics are more crucial because of this organization as well as the
staff working in it can operate in suitable direction, making sure that policies and activities as
well as actions do not hurt anyone and which appropriate judgment and decision making can be
attained in order to accomplish the goals in an effectual and efficient way.

Ethical issues faced by the company
Centrica which is the parent organization of the British Gas talks the decision in order to utilise
the fire and rehire of the employees in order to assist the rebuilding of their operations as this has
sparked the controversy for them (Laplume, and et.al., 2021). In simple words, when is
organisation impose this policy to the change the process of its workers by firing them and
rehiring them on their own terms and conditions in which fulltime engineers have been forced to
work more per week have with the existing pay and they will not be paid for their overtime
which is not acceptable for the workers.
Role of business in society
A commercial organization functions in society with having the only purpose to generate more
income, which can be appropriately attend at the time when the organization is satisfying the
wants as well as needs of the consumers. Organizations should concentrate on their Ethics and
values so that they can make optimistic judgement as well as decision on the inside of the
company in accordance to accomplish the objectives of the company without encountering any
type of obstacles. Apart from this if the organization operates in an unethical way then it might
encounter several legal consequences from the legal authorities or the governmental agencies.
This can lead to the decline goodwill and brand awareness off the company. In context to the
given case study, from the point of view of the British Gas which is the service provider
company data is not functioning their missions and taking appropriate decision which is making
the huge issues to their employees as well as their operations. In addition to this it is leading to
enhance the bad image of the organization as they are only concentrating on the revenue making
and profitability.
Five stakeholders
When the organization function in the community or society, then the company is being
impacted from the several unethical actions. In accordance to create a society which functions
more effectually and optimistically (Mousa, 2021). A business should be certain that it is not
carrying out any type of unethical practice. Stakeholders are the vital personnel of the company
who assist it in accomplishing their long terms objectives and targets. In context to the British
Gas the unethical actions of the organization influence the stakeholders and it is mentioned
below in brief:

 Employees- These are the one of the most valuable resources of the organization who are
dedicated to accomplishing the goals and objectives of the company. In the case of any
unethical action performed by the company, employees might become more demotivated
because of their efforts is not meeting the requirements and want of the consumers. In
relation to the company British Gas, their employees are highly demotivated because of
the new policies of fire and rehire and took it they are not able to perform their specific
task effectively which gives the outcome in the poor productivity and performance of the
company.
 Shareholders- These are the vital investors who have authority to the decision making as
well as funds of the company. In relation to the shareholders, at the time when they got to
know about any type of unethical practice company is functioning so that they do not
invest in it because they fear of using their invested amount (Rossi, and et.al., 2021).
Additionally, at the time when shareholder take out, they are invested money from the
organization, the prices of the share apt to fall because investor do not want to encounter
any type of losses and consequences because of the unethical behaviour of the company.
 Customers- Consumers are the people who buy the goods and services of the company
and support the firm in gaining more profit and revenue. At the time when they witness
any type of unethical action in the operation of the organization and switch to the other
brand which is operating their work with more ethical behaviour so due to done ethical
behaviour of the British Gas has influenced the overall profitability of the company
because of declining goodwill. Additionally, when the citizens of the United Kingdom
got to know about the policies which are imposed by the company towards their
employees have led to the bad image in front of the consumers.
 Government- These are the stakeholders who assist the company by imposing several
favourable policies that support the company in operating their work more ethically. In
context to the British Gas, Due to the high protest of the employees in their company
government can impose such policies which can have the negative influence on the
operations of the firm.
 Suppliers- Suppliers are the stakeholders who are responsible for providing the raw
material in other commodities to the company. In case of the British Gas, management
can encounter significant issues as an outcome of unethical, actions because it might lead

to the restrict the suppliers in providing them with suitable techniques as well as tools
which will lead to the company preventing from providing appropriate services to the
consumers that results in the people losing their interest and influence ethical practices.
Example of good and bad ethical practice
International business machines are one of the examples of firm which is following the
appropriate ethical practices and they have also been named as the one of the best ethical
companies across the world for few years (Weiss, 2021). Apart from this Amazon is an online
retailer which has been considered as the one of the unethical organizations in terms of
environmental issues as well as their supply chain management.
Recommendations
It has been recommended to the British Gas that they need to understand that employees are the
one of the most valuable assets if the employees are highly motivated done it can lead to their
enhance productivity which will help the foreman increase the profitability and the success of the
long term. So, management of the British Gas need to provide their workers with the extra pay
for their overtime work as well as they also need to focus on giving rewards and compensation to
their workers in order to motivate them to work more effectively. Moreover, to this organization
need to consider giving the paid leaves as well as sick leaves to the workers as well.
REFERENCES
Books and Journals
Balasubramanian, S.K., Fang, Y. and Yang, Z., 2021. Twitter presence and experience improve
corporate social responsibility outcomes. Journal of Business Ethics, 173(4), pp.737-
757.
Laplume, A.O., and et.al., 2021. Evidence of an inverted U–shaped relationship between
stakeholder management performance variation and firm performance. Business Ethics
Quarterly, pp.1-27.
Mousa, M., 2021. Responsible management education (RME) post COVID-19: what must
change in public business schools?. Journal of Management Development.
Rossi, M., and et.al., 2021. The effects of business ethics and corporate social responsibility on
intellectual capital voluntary disclosure. Journal of Intellectual Capital.
Weiss, J.W., 2021. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.

PART B
Discuss and apply two theories of ethics together with its advantages and disadvantages.
Ethics of business is described as organizations code of conduct or the policies for making sure
that fear work environment and appropriate decision making is being done. A firm can
accomplish their goals as well as objectives with the support of ethical practices that will lead to,
they are enhanced income and productivity in an efficient and effectual way (Christensen, and
Lamberton, 2021). In context to the given case study, the following theories can assist the
organization in reducing the impact of unethical practices or overcoming them and these are
mentioned below in brief:
UTLITARIANISM
This is the theory which is presented by the John and Jeremy Bentham with the aim of giving
basic principles of major happiness. In accordance to the John mill, the foundation behind the
whole theory is that if an activity leads to the satisfaction or joy then it is known to be
appropriate whereas if various activities lead to regret or despair then it is known to be incorrect.
An action of the organization can contribute to the healthier and happier society or management
might encourage unhappiness and that is not the proper move for organization to do. The main
aim of the greatest happiness in accordance to the author which states that nature has position the
people underneath the control of two supreme rulers which are suffering as well as pleasure. It
concentrates on the outcomes and implications of the activities while avoiding other elements
such as encouragement or the need of doing the action. In addition to this other element are
concentrated on the people taking unbiased decisions as this shows that judgments or decision
should be made with the consideration of people in mind by recognising them in which they are
related such as friends, family and stranger (Elali, 2021). This is one of the fundamental concepts
which states that “The big amount of betterment to the largest number of people” It helps in
contributing towards the betterment of the society. In context to the company British Gas
management can utilise this theory and function in order to develop more ethical policies as well
as practices and strategies which is advantages to their employees, society as well as the
company. In addition to this, the company may improve their policies of hiring and firing with
providing their employees suitable leaves and paid leaves whenever they want. It will also help
them in providing the overtime wages to the workers for their hard work.

Ethical Egoism
It is an ethical theory which states that moral decision making need to be govern solely by self-
consciousness (Ji, Tao, and Rim, 2021). This theory is realistic idea which promotes the self-
interest of the people which is ultimate purpose of all the human and it is also usually contrast to
the ethical egoism. This theory basically expresses the universal ethical egoism in which every
people must do whatever they like to do in their best knowledge. Text to the company British
Gas this theory is beneficial for their employees as it will help them in promoting their self-
motivation in order to take their own stand while performing in the organization. One of the
major advantages of this theory is it motivates the of the people where else one of its drawbacks
as it suggests that workers bond can sometime become the major problem in the community as
with this system due to the organization can only serve their own m as the mode to the limit
(Meier, and Schier, 2021).
Recommendations
It is recommended to the British Gas in order to adopt these theories into their management
which can help them in eliminating several unethical practices. Like if the firm take the use of
ethical equation theory it will help the employees in encouraging themselves in order to perform
ethically with their own rights. Moreover, to this it is being recommended to the company for the
utilization of utilitarianism theory so it can accomplish the effectual working in an ethical way.
REFERENCES
Books and Journals
Christensen, M. and Lamberton, G., 2021. Accounting for animal welfare: Addressing epistemic
vices during live sheep export voyages. Journal of Business Ethics, pp.1-22.
Elali, W., 2021. The importance of strategic agility to business survival during corona crisis and
beyond. International Journal of Business Ethics and Governance, 4(2), pp.1-8.
Ji, Y.G., Tao, W. and Rim, H., 2021. Theoretical insights of CSR research in communication
from 1980 to 2018: A bibliometric network analysis. Journal of Business Ethics, pp.1-
23.
Meier, O. and Schier, G., 2021. CSR and family CEO: The moderating role of CEO’s
age. Journal of Business Ethics, 174(3), pp.595-612.

PART 2
Reflective essay on Ethical Leadership management.
Ethical leadership described as a form in which the action of the leader have the optimistic
impact on to the members. It is also defined as the engage in everyday functioning as well as
decision making in accordance with the moral and values of the company. This supports in
betterment of the culture of the company in which staff are expected to do appropriate things. So
an ethical leader is a person that create suitable ideas which assist in the making of ethical
working atmosphere (Ferrell, and Ferrell, 2021). This is well established that the base of the
company’s culture is effectual interaction of the core belief and making sure that the workers
maintain such ethics in their working. Moreover to this, And ethical manager is also the person
who takes ethical measures in the business and higher people who share such beliefs so that
leaders can easily comply in a suitable be in the company and implement ethical practices in its
own way. Leader who is falling at things yes not affected by the partiality and basically said the
appropriate example for their employees with the help of its suitable decision making it can also
sustain the workplace integrity by making sure that the company as well as its staff obeys the
rules as this will lead to the enhanced performance. All the workers should possess the strong
sense of teamwork so that their effect and encouragement can be managed as they work towards
the betterment and accomplishment of the mutual goal and objective of the company. Staff can
be influenced by the manager or leader in order to work with more motivation as well as
integrity, which set the major example for more people. In addition to this performance of the
employee can be more effectual as well as efficient if their manager or leader extremely
increases them to obey the code of conduct as it can permit them to function together as a team.
In the organization and effectual communication channel should be constructed so that managers
or leader can make sure compliance as well as integrity is followed (Slager, Gond, and Crilly,
2021). Additionally, my expertise as well as experience has assisted me and made me realise to
work on myself in order to be more ethical leader. Before forming the team, I have separated the
individual in accordance to their efficiency show that suitable teams might be formed in the
company. At the time when I was leading my team, I basically try to keep spirit of my team by
motivating them and discussing about their issue as well as problems so that effectual channel of
computation can be establish. I recognise the effort of my team members as well as I appreciate
them for their ideas and innovative opinions when it comes to solving the conflict of the workers.

Moreover to this, it has helped me in acquiring more motivation and enhancing the confidence of
my team members as I was conveniently capable to have faith on my capabilities which
permitted me to make the appropriate decisions possible. Several things has supported me in
making suitable as well as advantages decision for my team and the company by obeying all the
ethical code of conduct (Zhao, and Zhou, 2021). I evaluate my decisions as well as their
consequences before coming to any type of conclusion hence I can make more appropriate
decision for the team. As a result of my ethical attitude, I was able to make the required decision
without being biased which gives the optimistic result for my team.
CONCLUSION
From the above section it has been concluded that ethical leaders are people to create search and
ethical environment in the company in which ethical operations is carried out. ethics as well as
morals must be strictly implemented in order for all the commercial practices in accordance to
function smoothly and eliminating the problems. In addition to this and ethical leader engages as
well as integrates the operation and beliefs of the company by establishing effectual
communication in order to communicate the ethics as well as principles of the business to every
worker. As a result, it is the responsibility and obligation of the leader in order to guarantee that
the business functions with more integrity and legality show that stuff performance and
productivity rises and the organization at completion more and more growth and success.
CONCLUSION
From the above report it has been concluded that ethical management is the vital element of the
business in which organization need to take into account that every action and the procedures are
acceptable with its ethics. Unethical practices have the significant influence on the stakeholders
of the company as it can also lead to the negative goodwill of the firm. Additionally, there are
two types of ethical theories which can assist the organization in overcoming unethical practice.
Also, it is determined that the ethically leader can attend the ethical framework which is based on
the genuine practices and vice decision making.

REFERENCES
Books and Journals
Ferrell, O.C. and Ferrell, L., 2021. New directions for marketing ethics and social responsibility
research. Journal of Marketing Theory and Practice, 29(1), pp.13-22.
Slager, R., Gond, J.P. and Crilly, D., 2021. Reactivity to sustainability metrics: A configurational
study of motivation and capacity. Business Ethics Quarterly, 31(2), pp.275-307.
Zhao, H. and Zhou, Q., 2021. Socially responsible human resource management and hotel
employee organizational citizenship behavior for the environment: A social cognitive
perspective. International Journal of Hospitality Management, 95, p.102749.