An Analysis of Business Values, Ethics, and CSR at DU Telecom

This report delves into the business ethics and corporate social responsibility (CSR) practices of DU, a telecommunications company operating in the UAE. It begins by defining business ethics and values, then explores different approaches to ethical decision-making, specifically utilitarianism and universalism. The report evaluates DU's organizational culture and its preparedness for implementing CSR initiatives, emphasizing the importance of adaptability and mission-oriented traits. It proposes a CSR program implementation based on Carroll's model, encompassing economic, legal, ethical, and philanthropic responsibilities. The report identifies potential ethical issues in financial reporting, such as faking numbers, asset misappropriation, and falsification of documents, and examines corporate governance from an ethical perspective. Finally, it analyzes how ethical behaviors and corporate values drive and constrain the organization's strategy, concluding with recommendations for strengthening ethical practices and CSR initiatives within DU.

Business Values and
Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Approaches to business ethics.....................................................................................................3
Evaluate the organizational culture in DU and its preparedness for implementing Corporate
Social responsibility initiatives....................................................................................................4
Implementation of a Corporate Social Responsibility Program in du.........................................5
Ethical issues related to financial reporting that may arise in du................................................7
Examination of corporate governance from ethical perspective.................................................8
Ethical behaviours and corporate values driving and constraining strategy of organisation....10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business ethics are those principles that define right and wrong conduct of an
organisation. Business values are guidelines that guide actions and decisions of those managing
and undertaking functioning of business. In this report approaches of ethical decision-making
will be discussed and organisational culture will also be discussed in order to determine its
preparedness for CSR initiatives. This report will also involve designing implementation of CSR
in selected organisation and ethical issues related to financial reporting. Examination of
corporate governance from ethical perspective and impact of ethical behaviour and corporate
values on organisational strategy will also be discussed in report. Organisation selected for the
purpose of discussion is du Emirates integrated telecommunication company and was
commercially rebranded as du in 2007. This is a telecom operates in UAE and was founded in
2005 and is headquartered at Dubai. Company offers services like fixed line, mobile telephony,
internet and digital television services across UAE.
MAIN BODY
Approaches to business ethics
Business ethics are those guidelines that contribute in determination of what is right and
wrong conduct by the business organisation. There are different approaches that can be
considered by decision maker for determining ethical decision-making. Two of approaches for
business ethics are-
Utilitarian
This is one of the highly considered approaches for business decision-making and in this
approach determination of an action of decision to be right or wrong from ethical perspective
depends on their effect. Action can be only be good or bad on the basis of their effect. This
approach of utilitarian considers that purpose of ethics is to increase amount of good things and
decreasing amount of bad things. This means that when result of action brings happiness and
good results for greatest number of people in such situation, it is considered ethically right
(Boone, 2017). This means that when decisions are taken in du, it is very important that they are
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good for highest number of people in order to be ethically correct and right. On the other hand, if
decisions of du cause unhappiness to many people it becomes unethical. In this, approach of
business ethics, ethical dilemma that occurs is that when there is conflict in interest of business
and social good, which one should be considered. This is because with a business interest of
many people such as employees and shareholders are associated and so in case of social good.
Universalism (Denotology)
This is one of the approach of business ethics that considers that actions and decision and
their being good or bad or ethical or unethical is mainly based on clear set of rules. Those
decisions and actions that are in accordance with these set of rules are ethical and when actions
and decisions do not comply with this set of rules, they are considered unethical. This is also
known as rule based ethics. In this there are mainly two types of set of rules perfect duty and
imperfect duty (Ruti, 2017). Perfect duty is one in which there is no middle ground and actions
can be either ethical or unethical. Imperfect duties allow for middle ground. Ethical dilemma that
can arise in this approach is whether a set completely acceptable in every business situation.
In context of business ethics, several dilemmas are likely to incur and develop and in such
situation it is very important that du have a clear set of rules to be considered while making
decision ethical. This means that a clear set of values and rules that outline what are priorities of
organisation while making decisions will help in avoiding any potential ethical dilemmas in
organisation. The set of rules should be such that it considers good and wellbeing of all those
who are likely to get affected by organisational decision.
Evaluate the organizational culture in DU and its preparedness for implementing Corporate
Social responsibility initiatives.
Organisational culture is based on the collection or values, expectations, practices that
guide and inform the actions of all team members. In DU as Telecommunication Company,
organisational culture is one of the set of beliefs, shared values, norms and standards that affect
the way employees feel, think or behave in the workplace. Sometimes, company will be
changing their culture on the basis of need or requirement. On the basis of analysis, it has been
identified that culture of DU organisation in perspective of differentiation (Islam and et.al.,
2021). It is based on the combination of sub-culture and exits within it. Furthermore, it asserts
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that fragmentation perception assume that culture is lack of consensus, vague. DU Company is
always focused on the adaptability, mission traits in which signify an external orientation, while
involvement or consistency are associated with an internal orientation. Therefore, DU that get
high marks on the mission attribute and able to perceive and react to the current environment,
behaviour and process that allows for every employee to adopt new culture or environment.
Manager of DU is always concerned about the organisational culture so that they always giving a
proper training for their employees, where they can easily adopt change environment or culture.
For changing the organisational culture of DU, manager of enterprise is basically focused
on the implementing CSR- (Corporate social responsibility) as initiatives approach in
organisation. When a DU (telecommunication) firm engage in a CSR program and it brings
positive result or outcome outside of enterprise. The employees are likely to align with business
goals and strive to mirror values of responsibility in their operational tasks. By using CSR
program, organisation such as DU become more conscious about how they can handle the
operations when it may affect the communities, shareholders, communities and people around
them. Corporate social responsibility can be included in the organisations and also impact on the
environment, employee volunteer days etc. DU Company will use CSR practices to improve
employee retention and attracting towards different tasks. Nowadays, each and every employees
want to work for socially responsible manner. This is becoming consider as moral aspect in order
to find opinion of every one. On the other hand, CSR can help to improve employee behaviour,
team work skills. In case, if DU enterprise take some responsibility for its actions on the business
tasks. At that time, employee will likely to follow a specific procedures (Anwer and et.al., 2020).
For Example- Employees are 20% more productive and moral in their business tasks. That’s
why, DU telecommunication give a priority of CSR and then manage business operations.
Du’s social responsibility across the globe and involvement of employee wellness efforts
that have helped the organisation. It is helping the enterprise to grow continuously. In most of
cases, CSR allows the business of DU organisation in order to demonstrate their values, engage
with employee and communicate with public about that they operate and select suitable
strategies in business growth and development.
Implementation of a Corporate Social Responsibility Program in du
Corporate social responsibility is a way through which businesses fulfil their social
responsibility. Implementation of CSR program on the basis of Carroll’s model of CSR in du
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requires firstly understanding model of CSR. Carroll’s model of CSR involves four phases and
these are-
Economic Responsibility
This is first and most basic responsibility of organisation to be economic (Zhang, Oo and
Lim, 2019). This is very important for du to fulfil its economic responsibility because it enables
du to provide salary and compensation to employees. In order to be able to provide attractive and
high compensation and salary to employees maintaining strong economic condition is very
important. Along with this strong economic condition of du also enables it to provide high profit
share to shareholders of the company.
Implementation- In order to implement CSR to fulfil this responsibility it is very important that
decisions and actions are taken that can contribute to strengthening financial position of the
company. Along with this, implementation of this also requires that decisions and actions are
right on the basis of ethical approaches.
Legal Responsibility
This is concerned with ensuring that all rules and regulations that govern du are obeyed
by company. These are rules and regulations that are for businesses in general and also those
rules and regulations that affect a particular industry.
Implementation- In order to implement this strategy it is required that du identify and follow all
rules and regulations affecting organisation and telecommunication industry (Askandar,
Machfudz and Junaidi, 2017). In order to fulfil this CSR responsibility by du it is very important
that all regulations are honestly followed by du.
Ethical Responsibility
Ethical responsibility includes that actions and decisions of du are ethically right. This
actions and decisions can be made on the basis of different approaches of ethics. Universalism
and utilitarian are two important approaches of ethics among others. DU can make ethical
decisions on the Battles of any of the approach of ethics.
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Implementation- To implement this responsibility of CSR DU is required to take decisions that
are ethical. Implementation of CSR and fulfilling this responsibility adequate understanding of
impact of decision being taken on different stakeholders is very important to ensure that no one’s
interest is harmed by actions and decisions of du.
Philanthropic Responsibility
Fulfilment of above three responsibilities of organisation in their CSR leads them to
philanthropic responsibility. In this responsibility of CSR du is required to counterbalance
negative impact that it have made on environment and under this do you should give back to the
community (Masoud, 2017). This is highest level of CSR and this is more than doing something
right and is concerned with something that reflect that values of the company are true.
Implementation- In order to implement CSR and fulfil this responsibility DU is required to
firstly identify a group of community that it wants to give back something. However there are
certain things through which it can benefit overall community. On the basis of potential
beneficiaries do you is required to determine a program or action through which benefit will be
given to beneficiaries. On the basis of planned course of action for benefit of beneficiaries
actions are taken and CSR is implemented by du.
Ethical issues related to financial reporting that may arise in du
Faking numbers
This is one of the most important ethical issue in financial reporting in which numbers
can be faked. This mainly happens when documentation of finance is poor and estimate rather
than actual number and in such case it creates ethical issue because estimate may not be valid or
right (Weygandt, Kimmel and Kieso, 2018). There is a very strong probability that estimates can
be incorrect and reporting in correct estimates and fraudulent numbers is an ethical issue that can
arise in DU. Along with being an ethical this is also an illegal act by organisation to record
fraudulent numbers.
Asset Misappropriation
Misappropriation of asset includes using asset of DU for other purposes than for use of
du. This also involves stealing and embezzlement of assets of du and this can occur at any level
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of financial reporting at du. For example, using finance of du for personal use and recording it in
accounts as a expenditure of du. This is a very important ethical concerned because financial
reporting of du should include only those income and expenditure that are related to du and have
been done for the purpose of du.
Falsification of documents
This ethical issues related to financial reporting include making a document that appears
to be right and authorised and is created by someone who is not authorised to sign or create a
document. This involves creating a new document with wrong intention and also includes
manipulating and altering original document without permission from authority and this becomes
an ethical issue in financial reporting in du (Yuliza and et.al., 2021). In order to be ethical this
requires that documents are created by the one who is authorised to do so.
Disclosure Violations
Violation of disclosure is also a very important financial reporting related ethical issue.
This involves that transactions are intentionally recorded in manner that is not in compliance
with Generally Accepted principles of accounting and this is considered as fraudulent reporting
of finance of du. This becomes an ethical concerns because failure to disclosure of information to
investors in correct form that influence their decision regarding investing in company is
unethical. In this it is very important that management in du protect private information of du
and it is very important that information regarding specific event is adequately disclosed to
investors in order to be ethical.
Examination of corporate governance from ethical perspective
Corporate governance is concerned with integration of processes rules and laws through
which businesses are operated regulated and controlled (Bae and et.al., 2018). Corporate
governance include all internal and external factors that influence interest of stakeholders of an
organisation.
To examine issues of corporate governance from ethical perspective natural law theory can be
applied. Natural law theory involved certain elements such as absolutist, deontological and
legalistic.
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Absolutist
This means that there are certain normal ethical values or ethics that are applicable to all
situations. Considering this it is required that action corporate governance byexecutive and also
those who are responsible for corporate governance of du are examined on the basis of normal
ethical values applicable for all situations. For example, stealing Assets of company by those
who are required to govern du is unethical and this does not change in any situation on the basis
of place. This means that stealing is unethical in UAE, UK France Germany everywhere and this
is known as absolutist approach of ethics. According to this corporate governance should be
ethical on the basis of absolutist approach.
Legalistic
This is concerned with obeying laws developed by legislation of state where company
operate.Obeying these regulations make company legal and this is very important that corporate
governance by executives and individuals who are required to govern du obey all the regulations
to make governance legal (Grant and McGhee, 2017). In this regulations affecting Governance
of all the businesses and Governance of business is operating in telecommunication industry are
required to be followed by individual governing du to make it ethical. This is also an ethical
perspective to examine corporate governance. Under this and ability of different decisions and
actions that are taken by executive for corporate governance are examined.
Deontological
This is another ethical perspective to examine corporate governance in which it is
required that executives undertake corporate governance on the basis of set rules. This ethical
perspective does not consider consequences of actions and decisions but in this approach actions
are determined to be right or wrong on the basis of series of rules. This means that in order to
examine corporate governance on ethical basis it is required that executives responsible for
Governance of du follow a set of rules making their action ethical.
This means that in order to examine corporate governance from ethical perspective three
elements are analysed one is universal rules and another is legality which is specific to a state
and lastly set of rules that determine whether actions are right or wrong.
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Ethical behaviours and corporate values driving and constraining strategy of organisation
Ethical behaviour refers to behaviour of corporate that is in compliance with ethical
standards and moral principles acknowledged by the company. Corporate values are those values
that guide actions and decisions of individuals in organisation. Strategy of organisation is plan of
action that is developed for achieving certain goals and objectives. Ethical behaviour and
corporate values are very important for driving and restraining business strategy of du (Pagliaro
and et.al., 2018). Du is working on a vision that is to enhance life of customers, anytime and
anywhere. For this strategy adopted by du is delight customers, becoming best employer for the
best talent and creating optimal value for shareholders through business excellence and
innovation and through contribution to transformation of community. Values of du include
confidence, friendly, honest and surprising and these are values guide their actions.
Ethical behaviour and corporate values together are very important for driving strategy of
business, this is because these values enable employees to understand what is expected of them
while they are working in du and this helps in working in a way that they can make optimum
contribution in strategy of business. Ethical behaviour also enables du to make good image of the
company and this way they become able to get assistance of external stakeholders and
community in delivering their strategy of business. One of the most important way in which
business ethics drive and restrain business strategy is that they help in determining whether
business strategy is in accordance with ethical principles or not (Suh, Shim and Button, 2018).
This is because a strategy that is ethical and morally right can be successful when implemented.
Similarly, business strategy can be successful when they are in accordance with beliefs and
priorities of business and these reflect through values of business. This means that a business
strategy that is according to beliefs and priorities of company is likely to become successful and
this is how business values drive business strategy. On the other hand if business strategy and
plan of action determined for achieving certain objective of business is not in accordance with
business values and also is not ethical in such case it is likely to restrain business strategy.
In case plan is action is not ethical, business is also likely to face different threats from
external and legal threat is always there to affect success of business when actions are unethical
and this is also a way business ethical drive and restrain business strategy.
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CONCLUSION
On the basis of above discussion, it can be concluded that there are several approaches of
ethics and any one can be selected for making ethical decisions by the company. In this report,
utilitarian and universalism theories were discussed. Later organisational culture and its
preparedness was also discussed in report along with designing implementation of CSR program
in organisation. Later ethical issues related to financial reporting and examination of corporate
governance were discussed in report. Lastly, in report ethical behaviour and business values’
impact on driving and restraining organisational strategy was also discussed.
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