Exploring Ethical Decision-Making in Business: A Case Study Approach

Desklib provides past papers and solved assignments for students. This essay analyzes ethical factors in business.

University of Suffolk
BA in Business Studies
(Foundation Year)
Context of Business
Essay on
Ethical Factors in Business
Word Count:1049

I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been duly
cited.
Student ID:
Submission Date:

Introduction
It has been seen that in the business environment, a number of macro and micro
environmental factors can work and influence the success and the failures of the business
effectively. It can be stated that the relationship of the macro and micro environmental factors
can depict the future of the organisation and their business effectively. The marketing
environment, the organisations use the macro and micro models as it helps to depict the
nature of the potential market. For making strategy and the tactics to influence the potential
consumers, it is needed that the organisations should use them.
Main body
LO1: Understand the dynamic and changing nature of business and the consideration
of the future of organisations within the global business environment
Macro and macro environmental factors that influenced the changed nature of business
The external marketing environment factors are needed to understand the nature of the
consumer market, where an organisation is going to develop their business. For creating an
effective marketing strategy, it is needed that the needs and demands of the market should be
known (Prajogo, 2016). On the other hand, the external environment influences the decision-
making system in the business.
The micro environmental factors are consisted of the factors such as the suppliers, resellers,
customers, other competitive organisation and the public.
Suppliers: It can be stated that the suppliers are the people that helps to control the success of
the business (Grayson and Hodges, 2017). The products are being supplied by them and they
hold the power to control the success rate of the business. As the supplied products are being
able to attract the new customers, they can control the business.

Customers: The potential and the existing customers of the companies that are doing their
business in a particular market can control the success rate of the business. The customers can
be B2B, B2C or the international customers. It can be stated that they have their standard
reason of buying the products (Janković et al. 2016). Thus, they have a major role to play in
the business and can control the business of the companies.
Resellers: In the external business environment, the role of the intermediaries, whole seller
and the other third parties can be considered as important. The marketing success of the
producer or the manufacturer can be interrupted through this. On the other hand, it can be
stated that the third party resellers have the ability to control the market and the success of the
business.
Other competitors: The external business environment can also be influenced by the other
organisations and resellers that are selling the same products. The market competition can be
developed by the competitors. On the other hand, the success of the business organisation can
be depicted by the help of the competitors (Kim et al. 2019). The differentiation of the
products and prices can also affect the organisation and they can have an advantage out of it.
Public: As the organisations have responsibilities to satisfy the needs and demands of the
public, who are the potential customers of the organisation. On the other hand, the common
public has the ability to help the organisation to achieve their objectives.
Macro economic factors such as the demographic, economic, technological, political and
socio-cultural can also affect the business market of an organisation and they have the ability
to influence the decision making condition of the company.
Demographic: Common demographic factors such as age, race, gender and educational
qualification can influence the different market segments.
Economic: The decision making process of the customers and the production process of the
organisation, both can be influenced by that of the economic segmentation of the external
environment of the business (Ertz et al. 2016).

Technological: For smooth running of the business, it is needed that the technological
advancement should be provided with importance. Production process, services and the
products – all of them are controlled by the technological factors.
Political and socio-cultural: For making a sound decision in the business, both the political
and the socio-cultural factors are required to be taken into account. The political progress and
decisions can affect the business. On the other hand, it is needed that products and services
produced by the company should be beneficial for the society (Otache and Mahmood, 2015).
LO2: Identify the need for individuals and organisations to manage responsibly and
Sustainably and behave ethically in relation to social, cultural, economic and
environmental issues
Importance of managing responsibly, sustainably and behave ethically in business field
Maintaining the ethics should be practiced in the organisation in order to manage the ethical
perspective and sustainability. In relation to the factors such as the social, cultural, economic
and environmental issues in the business, the business can be affected, if ethical behavior
cannot be maintained.
Social factor: People will prefer the products and service provided by the companies that
maintain the social and ethical perspectives. The reputation of the companies would also be
increased.
Cultural factor: Responsible and sustainable development can also direct the business of the
organisation towards success. All of the business organisations have their own culture and
ethic that influence the success rate (Kim et al. 2019).
Economic factor: The economical condition of the area or the country where the business
organisation belong can change. In order to reduce its effect, the ethical consideration and the
sustainable development should be developed in the organisation.

Environmental factors: For managing the business ethically and sustainably, it is needed that
the management of the business organisation should take steps. In order to be socially
sustainable and have a consistent economic growth, it is needed to maintain the sustainable
business environment (Janković et al. 2016). On the other hand, it can also be stated that if
the environmental factors are not taken into account, it may hamper the sustainability and the
ethical consideration of the business.
Conclusion
For concluding the study, it can be stated that the development of the external environment is
necessary for treating the business properly. It is the external environment, rather the micro
and macro factors that should be considered while making any decision in the business. In
order to develop the successful business strategy, it is needed that the organisation should
concentrate into the external environments of the company and micro and macro factors as
well.

References
 Ertz, M., Karakas, F. and Sarigöllü, E., 2016. Exploring pro-environmental behaviors
of consumers: An analysis of contextual factors, attitude, and behaviors. Journal of
Business Research, 69(10), pp.3971-3980.
 Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to
make corporate social responsibility work for your business. Routledge.
 Janković, M., Mihajlović, M. and Cvetković, T., 2016. Influence of external factors
on business of companies in Serbia. Ekonomika, 62(4), pp.31-38.
 Kim, Y.S., Rim, H.C. and Lee, D.G., 2019. Business environmental analysis for
textual data using data mining and sentence-level classification. Industrial
Management & Data Systems, 119(1), pp.69-88.
 Otache, I. and Mahmood, R., 2015. Corporate entrepreneurship and business
performance: the role of external environment and organisational culture: a proposed
framework. Mediterranean Journal of Social Sciences, 6(4), p.524.
 Prajogo, D.I., 2016. The strategic fit between innovation strategies and business
environment in delivering business performance. International Journal of Production
Economics, 171, pp.241-249.

Important points to remember and follow while
doing your Essay.
 Your essay must be in academic English, not as
in daily spoken language etc.
 Your essay must be impersonal, that is in third
person like ‘he’, ’she’, ’him’, ’his’, ’her’, ‘it’,
‘that’ etc, but not in first person like ‘I’, ’me’,
’you’, ’yours’, ‘we’, ‘ours’, ‘us’ etc.