A Comprehensive Report on the Ethical Challenges Faced by British Gas

This report presents a comprehensive analysis of the ethical challenges faced by British Gas, focusing on its business model and the impact on various stakeholders. The report begins by identifying the ethical issues, such as the 'fire and rehire' scheme, and examines the role of business in society, specifically how these issues negatively affect the community and employees. It then outlines five key stakeholders and discusses how they are impacted by the ethical problems. The report further provides examples of good and bad ethical practices, offering recommendations for British Gas to improve its ethical standing. Part 1-B describes and applies ethical theories like egoism and Adam Smith's theory to the case study, providing a critique and suggestions. Part 2 is a reflective essay discussing ethical leadership management and the maintenance of integrity in ethical or unethical business environments. The report concludes with a summary of findings and recommendations.

3 PARTS REPORT ON A
BUSINESS MODEL

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1- A.......................................................................................................................................3
Ethical issue or problems.............................................................................................................3
Role of business in society...........................................................................................................3
Five stakeholders.........................................................................................................................4
Examples of good and bad ethics.................................................................................................5
Recommendations........................................................................................................................5
REFERENCES................................................................................................................................1
PART 1- B.......................................................................................................................................2
Describing theories......................................................................................................................2
Applying theories to the case study of British Gas......................................................................2
Critique........................................................................................................................................3
Suggestions..................................................................................................................................4
REFERENCES................................................................................................................................5
PART 2- REFLECTIVE ESSAY....................................................................................................6
Discussing what is an ethical leadership management is in unethical organizational culture.....6
Analysing how to maintain integrity and compliances in ethical or unethical business
environment.................................................................................................................................6
Reflecting on my experience and knowledge..............................................................................7
Conclusion...................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business model is defined as strategic plan of companies, which enable them to
generate revenue and increase profitability (Pieroni, McAloone and Pigosso, 2019). The current
term of plan plays important role in the world of business, in term of driving the attention of
management toward aim achievement. The current assessment will be based on a specific case of
venture and that is British Gas, which falls under the category of leading UK energy and home
services organizations. The study will explain ethical issue, role of business in society, five
stakeholders, examples of good & bad ethics. It will also define suggestions, based on overall
analysis, description of theories, their implications and critique. Furthermore, the report will also
justify the reflective statement based on ethical leadership management, including key points
such as how to maintain integrity, compliances, and experience as well as knowledge.
PART 1- A
Ethical issue or problems
In the British Gas, high authority had taken decision to implement new scheme that is “
fire and rehire”, which enable firm to restructure its venture. The ethical issue that has been
identified through the case study of British Gas, is self-interest, which means organization
conduct practice to terminate and then recruit people according to organizational requirement,
without providing notice period before a month or more than it. Another ethical issue that
determine is no longer higher rate, which engineers will receive after working extra three
hours, once in a week, which is totally wrong and unethical.
Role of business in society.
Ventures, whether they are small or large, public or private, plays important role in the
society, in term of providing and selling sustainable products and satisfactory services to local
people (Bapuji and et.al., 2020). It helps to enhance the satisfactory level of individuals and also
contribute to fulfil their needs in influencing manner, which is not that easy for any company to
do that as it require a good business plan, strategies, resources and other things.
British Gas, and the two ethical issues that identified affected society in negative manner,
as these two things leads to increase unemployment, as when company hire people with
consideration of self-interest or need, then it outcomes in form of job deduction. In the recent
time, people prefer to work with those companies, who takes their decisions, in more favourable
of their employees, instead of only ventures, which lead to create negative environment in the

workplace. According to the new contract of company, engineers are required to work an extra 3
hours in a week, for which they will no longer obtain a higher rate (Zaman and et.al., 2022). It
affects negatively upon society in term of developing feeling among people about discrimination,
which is not suitable for mental and physical health of individuals.
It is fact that company and its management can play important role in the society in term
of creating positive and productive atmosphere, where individual person feel free to work and
gain chance to grow equally.
Five stakeholders.
Organization-
British gas is also included in category of key stakeholders, who have been impacted by
ethical issues in negative manner. As it faces the worst situation, in term of considering the
decline of sales, and performance of company, which is not suitable for the other stakeholders.
They lose the hope of obtaining desire or predicted outcomes in appropriate manner.
Employees-
Another stakeholder that mention in the case study and have been impacted negatively is
candidates, who are working for the firm, such as engineers, working as full time employees in
the workplace, so that management can take pleasure of increasing sales (van Langen and et.al.,
2021). They want to obtain benefits, in case of working extra, when organization require and
need to considerations of others.
Society or community-
This stakeholder is also engaged in business success and growth, and have been affected
by the above two ethical issues, in term of developing negative feeling among themselves,
because of unethical practice that organization conduct. The candidates who are working in the
British gas, are coming from a specific society in the nations, and feel demotivate when
management requires additional work from them, but do not give any kind of reward to them.
Government-
In the recent time, any organizational activity can put negative impact on governmental
bodies, if it was conducted in form of unethical term. It lead to create more complications and
challenges for the government as stakeholder and put a lot of pressure to take right action in trem
of passing rule or regulation.

Examples of good and bad ethics
The best example that related to bad ethics is confectionery company, whose manager to
make agreement with other toys production organization, visit organization in the north-eastern
part of Thailand. For purpose of finalizing two-year products supply contract, they visit the
location, where they find out that there is no physical outlet on premises. It is unethical for any
company to make fake promises and conduct unethical practice, to gain the trust of others. It
leads to create more complications between, suppliers and stakeholders, who engaged in success
and growth of ventures (Hayat, Jianjun and Ali, 2022). It impacts negatively, upon sales and
growth as well as brand image of the firm.
Aerial power is another example of those companies that conduct ethical practice in good
manner. It has created a drone based system, for purpose of cleaning solar panels, which is quite
challenging for the companies to do that. The unmanned aerial vehicle is self driving, which
make system more effective, valuable and cheaper in term of price and other expense. It is more
environmental friendly than the other traditional cleaning approaches. This good ethical practice
can make company more powerful and popular that help to gain the attention of sustainable
investors and customers, who can make it profitable and productive too.
Recommendations
 British gas can take number of strategic suggestions into their consideration, such as
recognize employee’s performance, especially full time working engineers, who are
giving extra efforts to company (Allen, 2022). It can help to gain the attention of
individual person, across national boundary, which supports organizational productivity
and performance level.
 Furthermore, organization can develop the new strategy or scheme, with consideration of
employee’s needs, which lead to generate more revenue, as aid organization to retain
existing skilled and talented engineers more than 400, who are not agreed to accept new
contract.
 Management can take approach to eliminate the cause behind spread of disease that is
fire-and-rehire scheme, which impact candidate’s performance negatively and lead to
increase high employee turnover. They can ask employees about what are their needs and
requirements, and what they expect from the company, which they can attempt to fulfil in
appropriate manner.

 Along with above considerations related to strategic suggestions, British Gas can take
approach to hire people, who are capable to conduct ethical practice and follow the
concept of CSR, which lead to create more positive environment in the workplace. It
helps organization to be productive and competitive in the corporate world, where
successful and productivity companies are capable to sustain for longer time, instead of
failing. It enables British Gas to gain competitive advantages in bulk, more than rivals,
who are accessible in the similar industry.

REFERENCES
Books and Journals
Allen, S., 2022. Employees’ Perspectives on the Costs and Benefits of Organizations’
Environmental Initiatives. Business & Society. p.00076503221113250.
Bapuji, H and et.al., 2020. Something old, something new: Continuity and change at Business &
Society. Business & Society. 59(5). pp.791-798.
Hayat, K., Jianjun, Z. and Ali, S., 2022. Reinforcing purchase behaviors through CSR and ethical
practices. Marketing Intelligence & Planning.
Pieroni, M. P., McAloone, T. C. and Pigosso, D. C., 2019. Business model innovation for
circular economy and sustainability: A review of approaches. Journal of cleaner
production. 215. pp.198-216.
van Langen, S. K and et.al., 2021. Promoting circular economy transition: A study about
perceptions and awareness by different stakeholders groups. Journal of Cleaner
Production. 316. p.128166.
Zaman, R and et.al., 2022. Corporate governance meets corporate social responsibility: Mapping
the interface. Business & Society. 61(3). pp.690-752.

PART 1- B
Describing theories
Egoism theory in the philosophy is considered as one of those concepts that one's self is
motivating the aim of individual’s action. The current form of theory encompasses two different
variants, such as normative and descriptive (What Is Ethical Egoism, 2022). The first variant
propose that individual candidate should be so encouraged and motivated, instead of what
currently encourage their behaviours. The second variant of egoism theory, refers to conceives
egoism as a factual definition of human affairs. Henry sidgwick is the founder or developer of
this theory, who attempt to introduce the whole concept in the world of business, with motive of
generating awareness among individual about ethical terms.
Another theory that plays essential role in the companies is Adam smith theory, which
focuses on ethics, and other terms cover in CSR. Adam Smith is one of the most popular
philosophers in the world, that wealth is created, via productive and creative labour, as well as
self-interest motivated people to put their key resources to the best and appropriate utilize (Naz
2021). It can be said that the theory drives the attention of individuals toward judging individual
person, on the basis of their behaviour and feedback that they receive from them. According to
the theory, person is capable to act ethically in term of believing to accept and let other adopt
views regarding any subject or concept, that will benefit everyone.
Applying theories to the case study of British Gas
Adam smith theory and egoism theory are relevant in the context of British gas case, as
these two concepts, allows management to focus on considering employee’s needs, instead of
only concentrate on business requirement, because employees such as productive engineers are
the base of organizational success. According to egoism theory, it is quite essential for the
management in the British Gas to understand how their engineers and other employees ought to
behave (Tilley, 2021). It makes them capable to develop better comprehending about their needs
as well as efforts they put to make company productive always, which is quite essential for the
administration to do that in effective manner, without making any mistake that impact negatively
upon their performance and productivity. It also drives the attention of managers and leaders
toward conducting practice of promoting own good, with consideration of morality.
Another theory that implement or apply in the context of British Gas is Adam smith
theory, which enable management and owner of the company to focus on conducting practice
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and taking actions related to employees’ motivation (What is Adam Smith’s economic theory,
2022). As it is important and beneficial too, for the company to take some strategic actions in
term of respecting and considering candidate’s requirement and hard work. Adam smith theory is
also considered as concept of moral sentiments, that teaches individual about how to behave with
others and what require, to consider, while working with individuals, that affect individual
employee performance in the company and give them reason to stay loyal with the venture. Both
theories are covered under the term of normative ethical theories.
Critique.
It has been critiqued or examined that each normative ethical theory such as egoism and
Adam smith, encompasses certain benefits, that put positive impact on user, while it also include
some disadvantages as well as that affect in opposite manner, upon companies who take these
two concepts into their consideration.
Advantage and disadvantages of egoism ethical theory-
 The best thing about chosen theory is that it drives the attention of a person toward
making right decision that guided by themselves, in ethical manner.
 It enables them to conduct ethical practice, b developing good understanding about the
same.
 While, Egoism ethical theory can put negative impact on individual as well, because of
not providing any direction about how to conduct ethical practice.
 Lack of suggestions is the main weaknesses, that the chosen theory do not have. As it
lead to create more challenges for manager and other people to manage everything, in
sustainable and ethical manner.
 It also can create a congested environment that no one wants to live in and where nothing
can ever get accomplished in ethical terms because everyone will be working against
each other. As it is essential for individual person to collaborate and coordinate with each
other.
Benefits and drawbacks of Adam Smith theory of ethics-
 The key advantage of selected theory is that it helps to boost morale and sentiments
among individuals about conducting ethical practices (Pisanelli, 2022).
 Lack of strategies and approaches related to ethics, is the biggest advantage of Adam
Smith theory.
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Suggestions.
 According to the Adam Theory of ethics, management can take approach to identify the
needs of their candidates, which enable them to proceed further, in the context of making
plan to increase organizational performance and profitability. It is quite essential for them
to conduct this kind of practice. According to which they can increase confidence level
among engineers and give them the good reason to stay for longer time period with the
company.
 In regard to second issue, organization can conduct more ethical practice, in form of
following employment laws, according to which they accountable provide extra amount
or any compensatory benefits to those candidates, who working extra and put additional
efforts to make company more progressive and productive. It will help to retain the
knowledgable candidates and enhance their performance, better than last few months or
weeks.
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REFERENCES
Book and Journals
Naz, F., 2021. Amartya Sen and the Revival of Ethical Tradition in Economics. Atlantic
Economic Journal. 49(4). pp.393-402.
Pisanelli, S., 2022. The Sympathy of Sophie de Grouchy, translator and critic of Adam Smith.
The European Journal of the History of Economic Thought. pp.1-21.
Tilley, J. J., 2021. On an Alleged Refutation of Ethical Egoism. The Journal of Value Inquiry.
pp.1-10.
Online
What is Adam Smith’s economic theory. 2022. [Online]. Available Through: <
https://learn.robinhood.com/articles/1EAManQDjRJ20KWcLpOOHx/what-is-adam-
smiths-economic-theory/ >
What Is Ethical Egoism. 2022. [Online]. Available Through: <
https://www.thoughtco.com/what-is-ethical-egoism-3573630#:~:text=Ethical
%20egoism%20is%20the%20view,how%20people%20ought%20to%20behave. >
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PART 2- REFLECTIVE ESSAY
Discussing what is an ethical leadership management is in unethical organizational culture.
Ethical leadership management refers to strategic element that utilized, for purpose of
setting high standards in the companies, in ethical behaviour that helps to reach desire outcomes
(Huhtala, 2022). As element, this concept plays important role in the context of organizational
growth and success in the competitive world, where competition level is high, because of
practices conducted by each organization. By following the term in appropriate ways, a leader
can become a ethical leader, who efforts and have capability to build corporate culture, where
candidates can work even better than last few months or weeks productively.
Ethical leadership management in the context of unethical organizational culture,
contribute in varied terms related to improvement. As it enables leaders and managers capable to
develop or create problem solving approach, through which they can create positive working
environment for everyone (Al Halbusi and et.al., 2021). It helps them to take right decision and
perform their roles as well as fulfil responsibilities successfully, without making any mistake.
With consideration of ethical leadership management, high authority can take pleasure of
increasing and improving business performance, that turns into ethical organizational culture,
which is not that easy for any company to do that. It may affect positively upon businesses and
their productivity, which is essential and beneficial too, in varied manner. As it aid to reach
desire outcomes and gain competitive advantages.
Analysing how to maintain integrity and compliances in ethical or unethical business
environment.
It is quite essential for management to maintain the compliances and integrity in
unethical business environment, because it helps to develop positivity among candidates,
working for the organizations.
The best way that high authority can take into their consideration is talking about
importance of ethics in the workplace, which give them reason to stay productive and
professional as it is important for everyone to be like that (Uroko, 2022). According to the term,
management focus on conducting practice of generating awareness in the work area about ethical
practices and other terms, that aware people about how to behave and work in a such manner that
benefits, both including owner and themselves. Another approach or practice that leaders and
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