Business Ethics: Ethical Perspectives and Issues Report

This report addresses the BTEC Level 4-5 HNC/HND Diploma Unit 45 on Business Ethics. It explores various ethical perspectives, including absolute and relative ethics, and examines their development with real-world examples. The report analyzes ethical issues within a selected organization, discussing how these issues affect operational activities and business objectives. It evaluates stakeholder ethics and the implications of ethical behavior. Furthermore, the report assesses moral obligations in the workplace, analyzes mechanisms for employee involvement and empowerment, and investigates current ethical issues within a chosen organization. Finally, it reports on how businesses can align practices with ethics, improve quality, and meet objectives while fostering good employer-employee relationships, culminating in the design of a suitable ethical code.

Assignment Brief
BTEC Level 4-5 HNC/HND Diploma (QCF)
To be filled by the Student
Name of the Student :M. FAHAD RAHIM
Edexcel No: JD63261 Registration No: COL/E-001780 Batch No: 46
Unit Assessment Information
Qualification : Higher National Diploma in Business Management
Unit Code & Title : Unit 45 Business Ethics
Assessment Title & No’s : Business Ethics (Assignment 1 of 1)
Learning outcomes and grading opportunities:
LO 01: Understand different ethical perspectives in business
Learning Outcomes AC1.1 AC1.2 AC1.3
LO 02: Understand business objectives from an ethical perspective
Learning Outcomes AC2.1 AC2.2
LO 03: Understand ethics in workplace relationships
Learning Outcomes AC3.1 AC3.2
LO 04: Be able to assess a current ethical issue in a business
Learning Outcomes AC4.1 AC4.2 AC4.3
Merit and Distinction Descriptor
M1.3 M2.4 M3.1 D1.1 D2.5 D3.3
Assessor : Date Assessed:
Internal Verifier (IV): Date of IV:
Date Issued : 12/29/16 Date Due : 30/04/2017
Date of Submission: 29/04/2017

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Student’s Signature: …(FAHAD RAHIM)…… Date:.…29/04/2017…
Assignment Feedback
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Formative Feedback: Assessor to Student
Task 1.1
Include in text citations. First briefly explain the theories and then explain with real world
examples.
Task 1.2
Use a variety of sources and include proper citations. Explain the differences in detail.
Task 1.3
First briefly give an introduction to the company stating the vision, mission, objectives, and its
day to day operations. Then identify the ethical issues in the organization. Explain how these
ethical issues obstruct the organization achieving its objectives.
Task 2.1
Briefly mention the objectives. You can even say as mentioned in 1.3. Discuss how the
organizational objectives are affected by the ethical considerations and how you are going to
implement the ethical behavior.
Task 2.2
Improve evaluating the implications of stakeholders’ ethical behavior. Use more intext
citations.
Task 3.1
Content is ok but can improve more. Use proper meaningful headings. Check the flow of the
answer.
Task 3.2
Rearrange the paragraphs to have a proper flow. Include suitable headings. Analyze the
development mechanisms for achieving employee involvement and empowerment.
Task 4.1
Answer is good. Read the merit and distinction criteria and try to improve. Use appropriate
headings. Explain more how this ethical issue affects the organization.
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Task 4.2
Explanation of being ethical has been explained. Include how the organsiation can be ethical
while meeting their objectives of the selected organsiation.
Task 4.3
Include citations. Can improve more. Show how this is related to the ethical issue identified in
task 4.1
Action Plan
Checking whether the student has done the changes according the feedback given for the
tasks.
Summative feedback
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Include acknowledgement, executive summary, table of contents, list of tables, list of figures.
Feedback: Student to Assessor
My assessor made me feel very comfortable and made it easy for me by explaining the
difficulties I had in regards to this module. I feel much more relaxed and positive now about
this module since feedback was given at the right time.
Assessor signature
[e-mail]
Date
Student signature FAHAD RAHIM Date
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Select and organization of your choice and address task 01 and task 02 taking that particular
organization in to consideration.
Task 01 (Covers LO 01 and AC 1.1, 1.2, 1.3)
1.1 Explain the background and development of early theories of ethics using various real world
examples. (AC 1.1)
1.2 Using different examples understand the relevant absolute and relative ethics and compare and
contrast them. (AC 1.2)
1.3 Select an organization of your choice and identify the ethical issues there. Explain the
consequences that the organization might face with conducting day to day operations. (AC 1.3)
Learners are encouraged to concentrate on M 3.1 in order to achieve distinction and merit
grade descriptors when addressing the above tasks.
Task 02 (Covers LO 02 and AC 2.1, 2.2, 2.3)
2.1 Explain, how business objective s in a selected organization can be affected by ethical
considerations (AC 2.1)
2.2 Evaluate how the stakeholders of a business such as the organization you selected should operate
ethically and the implications of operating ethically. (AC 2.2)
Learners are encouraged to concentrate on M 2.4 and D 3.3 in order to achieve merit
grade descriptors when addressing the above tasks.
Task 03 (Covers LO 03 and AC 3.1, 3.2)
3.1 Asses the moral obligations of the organization that you have selected. (AC 3.1)
3.2 Analyze how the organization can develop a mechanism to encourage the employees to use
business ethics and the ways in which they can be involved and empowered by the employer (AC
3.2)
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Learners are encouraged to concentrate on D2.5 in order to achieve distinction grade
descriptors when addressing the above tasks.
Task 04 (Covers LO 04 and AC 4.1, 4.2, 4.3)
4.1 Select an organization and research about a current ethical issue prevailing in the organization
(AC 4.1)
4.2 Report how the businesses can align their practices with the business ethics and report the ways
in which the organization you have selected can improve the quality and meet the objective while
maintaining a good employer/employee relationship (AC 4.2)
4.3 Design a suitable ethical code to follow by the employees and employers related to the ethical
issue identified in the task 4.1. (AC 4.3)
Learners are encouraged to concentrate on M 1.3 and D1.1 in order to achieve distinction
and merit grade descriptors when addressing the above tasks.
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Assessment Criteria- Pass
Outcome/ Criteria Evidence Achieved Feedback
1. Understand different ethical perspectives in business
1.1 Explain the background
and development of
theoretical ethical
approaches
Explain the development of
ethical theories using real world
examples
1.2 Compare and contrast
absolute and relative ethics
Identify the differences among
the absolute and relative ethics
and make a comparison
1.3 Explain the ethical issues
which can affect the
operational activities of a
business
Identify the ethical issues in a
selected organization and how
those issues obstruct the
organization achieving its
objectives
2. Understand business objectives from an ethical perspective
2.1 Explain how business
objectives are affected by
ethical considerations
Discuss how the organizational
objectives can be affected by the
ethical considerations and how
you are going to implement the
ethical behavior
2.2 Evaluate the implications
for a business and its
stakeholders to operate
ethically
Identify the stakeholders in the
selected organization and what
are the implications of
stakeholders behaving ethically
3. Understand ethics in workplace relationships
3.1 Assess the role of the
company acting as moral agent
Assess whether the organization
treats their employees equally and
fairly, and how they care about the
environment and the community
3.2 Analyze the development
of mechanisms for achieving
employee involvement and
empowerment
Analyze whether the organization is
empowering the employees by
involving them in decision making
processes
4. Be able to assess a current ethical issue in a business
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4.1 Research a current ethical
issue affecting a selected
business
Research about a current ethical
issue and understand it from
business ethical perspective
4.2 Report on how the business
could improve the ethics of
their operations whilst meeting
objectives and ensuring good
employer/employee
relationships
Report how the business can be
ethical while meeting their
objectives relating to the selected
organization
4.3 Design a suitable ethical
code.
Design a suitable ethical code to
follow by the employees and
employers
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Assessment Criteria – Merit
Grade Description (Merit) Possible evidence Achieved Feedback
M1. Identify and apply
strategies to find appropriate
solutions.
M1.3- An effective approach to study
and research has been applied
M2. Select/design and apply
appropriate
methods/techniques.
M2.4- The selection of methods and
techniques/sources has been justified
M3. Present and communicate
appropriate findings.
M3.1- The appropriate structure and
approach has been used
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Assessment Criteria- Distinction
Grade Description
(Distinction)
Possible evidence Achieved Feedback
D1. Use critical
applications to evaluate
own work and justify
valid conclusions.
D1.1- Conclusions have been arrived at through
synthesis of ideas and have been justified
D2. Take responsibility
for managing and
organizing activities. D2.5- The importance of interdependence has
been recognized and achieved
D3. Demonstrate
convergent/lateral/creativ
e thinking.
D3.3- Convergent and lateral thinking have
been applied
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/
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Presented by;
M.FAHAD RAHIM
BATCH NO: 46

Acknowledgement
I would like to express my deepest appreciation to all those who provided me the possibility to complete
this report. A special gratitude I give to my project lecturer, Mrs. Maheema, whose contribution in
stimulating suggestions and encouragement, helped me to coordinate my project especially in writing
this report.
Furthermore, I would also like to acknowledge with much appreciation the crucial role of the staff of
Esoft Metro Campus, who gave the permission to use all required equipment and the necessary materials
to complete my Human Resource Management assignment. Special thanks go to my class mates who
help me to assemble the parts and gave suggestion about the tasks in my assignment. Last but not least,
many thanks goes to my parents who have invested their full effort in guiding me in achieving my goal.
I have to appreciate the guidance given by other supervisor as well who assisted me and gave me honest
feedbacks about my assignment.
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Executive summary
Most organizations today are worried about the effect of their activities on the business environment.
Moral concerns and greater consumer awareness have brought about numerous organizations elevating
their social qualities to guarantee upper hand. Business morals grasps corporate social duty and morals
relating to accounting practices, HRM, advertising, and production. In this unit learners, will inspect the
hypothetical roots to the foundation and development of business morals. They will take a look at the
different sorts of moral issues a business needs to consider and how the development of moral qualities
impacts on business conduct.
It is essential for learners to acknowledge how taking a moral position influences organizations both
externally and internally, including the consequences for stakeholders. Learners will explore the social
implications of business morals for an extensive variety of business exercises that influence the
association itself and the external environment. This will include the moral position behind issues, for
example, employment practices and environmental awareness, environmental awareness and utilizing
new innovations such as genetic modification of food.
Learners will likewise look at how an individual's moral position impacts on the ethical connection
amongst manager and worker, and considering the legally binding duties of both sides. This unit will
give learners the chance to research how a business reacts to moral concerns and evaluate the degree to
which its exercises influence its conduct, while guaranteeing business objectives are met.
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Contents
Introduction to ethics...............................................................................................................................................1
Moral Theories.........................................................................................................................................................2
Comparison of absolute and relative ethics.............................................................................................................6
Introduction to McDonalds......................................................................................................................................9
The ethical problem at McDonalds........................................................................................................................10
Objectives of McDonalds........................................................................................................................................14
Stakeholders of McDonalds....................................................................................................................................16
Corporate Social Responsibility..............................................................................................................................20
Mcdonalds Corporate Social Responsibility............................................................................................................21
Involving and empowering employees...................................................................................................................25
Helping Employees Make Ethical Decisions............................................................................................................26
Introduction to Apple. Inc......................................................................................................................................30
Unethical business practises at Apple Inc...............................................................................................................31
Apple Inc Being ethical while meeting their objectives..........................................................................................33
Code of Conduct.....................................................................................................................................................36
Reference list..........................................................................................................................................................38
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List of Figures
Ethical theories.........................................................................................................................................................2
List of Tables
Comparison of internal and external stakeholders................................................................................................17
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1.1 Explain the background and development of early theories of ethics using various real world
examples
Introduction to ethics
Aero students (no date) points out that the word ethics originates from Greek, which means something
like 'ethics'. Actually, morals are characterized as the systematic reflection on what is moral. In this
definition, morality is the opinions, choices and activities with which individuals express what they
believe is good or right. So, in short, to think ethically, you have to efficiently consider what individuals
believe is good or right.
Keefe (2017) says that morals is not a manual with answers on how to behave, it is just a search for the
right kind of morality. We can recognize two sorts of morals. The descriptive morals which are involved
with the description of existing morality. It is mainly about facts. Descriptive judgments are hence valid
or false. Then again, there is the prescriptive morals, otherwise called the normative morals. This branch
of morals really judges morality. Normative judgments are in this way esteem or value judgments, as
they show whether something is good or bad. (Syracuse University School of Education, 2017).
The most imperative parts of normative ethical principles are values, norms and virtues. It is essential to
know the difference between these three terms.
 Moral values are matters/feelings that are worth striving for in general. For example, justice, charity
and joy. There is difference between intrinsic values and instrumental values. An intrinsic value is a
value in itself, something that is worth striving for. An instrumental value is a value that contributes
to an intrinsic value. For instance, if you need to get cash to help individuals, then getting cash is the
instrumental value, while helping the individuals is the intrinsic value.
 Moral standards or norms are principles that prescribe what activities are required, allowed or illegal.
Indeed, a few standards are so critical and so prescriptive, that they have been transformed into laws.
Norms can frequently found from values. In any case, while values are goals which individuals need
to accomplish, norms are the way to understand these values.
 Moral virtue are character traits that make somebody a decent individual and permit him to lead a
decent life. For example, genuineness, fearlessness, dedication and creativity. Moral virtues appear
to be like values. Values are things you strive for, ethics are character properties that are good to
have (Keefe, 2017).
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Morals is a branch of reasoning that, at its centre, seeks, understands and decide how human activities
can be judged as right or wrong. We may make moral judgments, for instance, based upon our own
experience. The individuals who study ethics trust or believe that ethical decision making is based upon
theories or principles and that these theories can be classified. Given below is a short description of
classes of moral theories (Syracuse University School of Education, 2017).
Moral Theories
Figure 1 ethical theories. Source (author)
CONSEQUENTIALIST THEORIES
Consequentialism- the Syracuse University School of Education (2017) states the moral theories that
fall under the arrangement of consequential-ism sets that the right or wrong of any activity must be seen
in terms of the consequences that the activity produces. In other words, the outcomes or consequences
are seen according to the degree that they serve some intrinsic good. The most well-known type of
consequentialism is utilitarianism (social consequentialism) which recommends that one ought to act in
such a way to create the greatest good for the greatest number. For example, many people would concur
that lying isn't right, but if telling a lie would help spare a man's life, consequentialism says it's the best
thing to do.
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normative theories
consequentialist theories
(Consequentialism)
egoism
utilitarianism
non-consequentialist
theories (Deontology)
natural law
virtue ethics

We don't generally need to concentrate on activities. We can likewise concentrate on results. If we do
this, we end up with consequentialism. Kroll (no date) points out saying one sort of consequentialism is
utilitarianism, established by Jeremy Bentham. The name of utilitarianism is gotten from the Latin word
'utilis', signifying 'useful'. In utilitarianism, the results of activities are measured against one value. This
"useful" value can be something like satisfaction, welfare or joy.
For example, “If you take the time to calculate the best course of action, then the opportunity has
probably already passed you by while you were deciding.” The argument here is that, in the event that
somebody spends time pondering the results of each and every choice he makes, he would get nothing
done. This is more typical in situations where utilitarianism is utilized as a decision-making tool, as
opposed to as a code of morals for individuals to take after.
Ethical egoism, holds that ethical conduct should be judged through self-interest says Rachel (no date).
Pride or egoism expresses that the good outcomes for the individual exceed the results placed upon
others. In egoism, activities could be viewed as moral for the individual if the one making the move is
benefited, while any advantage or disadvantage to the welfare of others is a reaction and not as
important as the outcomes for the person says Kroll (no date). A case of ethical egoism would be a man
who owes cash to a companion and chooses to pay the companion back not on account of that individual
owes cash, but rather in light of the fact that it is to his best interest to pay his companion back with the
goal that he doesn't lose his companion
NON -- CONSEQUENTIALIST THEORIES – (Deontology)
Deontology- In the eighteenth century, the Age of Enlightenment was going all out. Individuals were
starting to depend on the standards or principles of natural law, which expresses that there is a right and
a wrong and that we should utilize reasons, or our own personal sense of logic to figure out the
differences. During this time, a German philosopher named Immanuel Kant built up a branch of morals
that was exclusively based upon one's personal sense of morality to act in the way we see as right
(Keefe, 2017).
Kant's deontology is guided by an individual's very own feeling of morality, or what is correct and what
isn't right to us. Kant was a scientist and scholar whose books included works about science, morality
and history. Kant's deontology, in some cases called deontological morals, begins by recognizing that
activities and their results are independent things. Essentially, there are things you need to do, despite
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the fact that you know they are incorrect, for example, shooting a thief to safeguard your family. As
indicated by deontology, you have to concentrate on the action, for example, protecting your family, and
not the death of the thief. Kant composed a few books about the subject, including “The Groundwork of
the Metaphysics of Morals” in 1785, “Critique of Practical Reason” in 1788, and “Metaphysics of
Morals” in 1797.
Natural law- The natural law theory is a legal theory that recognizes law and morality as profoundly
connected, if not the same. Morality identifies what is good and bad and what is right and wrong.
Natural law theorists trust that human laws are characterized by morality, and not by an expert figure
similar to a ruler or a government. Hence, we people are guided by our human instinct to figure out what
the laws are, and to act in similarities with those laws. The term 'natural law' is derived from the belief
that human morality originates from nature.
Everything in nature has a reason, including people. Our purpose, as per regular law scholars, is to carry
on with a decent, happy life. In this way, activities that conflict with that reason, that is, activities that
would prevent a human from carrying out a decent, happy life are viewed as 'unnatural', or 'unethical'.
Laws have a reason as well and that is to provide justice. From a natural law viewpoint, a law that
doesn't give justice is considered 'not a law by any means.' Therefore, a law that is flawed is one that
nobody ought to follow. In simple, any law that is good is moral, and any ethical law is good. Legal
positivism is a legal hypothesis or theory that is the inverse of the natural law theory. Legal positivists
trust that a law can be deeply defective, yet still be considered as a law. For example, all international
laws, local and federal laws (McKenna, 2017).
For example, you are a traveller on a ship cruising over the sea. All of a sudden, your ship is overtaken
in a powerful storm. You escape to a raft with 25 different travellers. You see that four of the travellers
are seriously harmed, and unlikely to get by for over seven days. You additionally realize that the raft
just has enough nourishment and water to manage 21 travellers. A portion of other travellers are
thinking about tossing the four harmed travellers over the edge keeping in mind the end goal to spare
remaining travellers. In the event that you were a natural law theorist, how might you tackle this moral
issue?
Acts of violence, similar to murder, conflict with our 'humanly reason' to carry on with a decent life. In
this manner, tossing the harmed travellers over the edge is an unnatural act and in opposition to natural
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law. Regardless of the possibility that their passing’s would guarantee the survival of the 21 different
travellers, the demonstration of murder is against our human instinct. Common law restricts killing the
injured passengers under any conditions. A law against murder is a law under the natural law theory
Virtue ethics- virtue ethics comprises of two varying ways to deal with morals and can therefore, be
confusing to understand. Briefly, the principal approach to deal with morals in this theory introduction
suggests that there are sure dispositional character traits that are suitable and praiseworthy when in
general or potentially in a specific role. Formally, virtue ethics represents a "methodical formulation of
the attributes of character that make human conduct praise or blame” (future of ethics, 2014).
The second way to deal with virtue ethics distinguishes the virtues, as well as focuses on their
integration into what can be described as "practical wisdom" or "right reason." Practical wisdom is the
phrase used to describe one’s capacity to pick patterns of activities that are desirable. These patterns of
activities are informed by reasoning that to a limited extent, influenced by habits of emotional
experience or virtues, additionally by the depth and breadth of experience available to the individual as
he or she is put in the public eye (future of ethics, 2014).
For example, an employee who shows moral conduct at work based on the virtues they hold dear are
frequently observed as more reliable and dependable by their bosses. Despite the fact that conduct is not
out of the ordinary at work, seeing examples of it at work can make a worker emerge from their
colleagues.
1.2 Using different examples understand the relevant absolute and relative ethics and compare and
contrast them.
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Comparison of absolute and relative ethics
Relativism is a present-day point of view of morals, although Greek scholars altered it. It follows the
conviction or belief that nothing is intrinsically right or wrong. In this way, every circumstance that we
experience justifies a choice on the morality of our activities, and for the activities in themselves are not
ethically right or wrong (Kemp, 2006).
Absolutism is precisely the opposite. An absolutist would argue that activities are intrinsically right or
wrong, and their morality is fixed in all societies, social orders, all circumstances and for all individuals
(Hodgkinson, 2015). Hence, an absolutist would not accept that in one culture it is valued "ethically
satisfactory" to complete the death penalty, and in another it has been prohibited for moral reasons. An
absolutist would accept one of the two perspectives as the "ethical" activity, and reject the other (Serva,
2017).
The determinants of morality in relativism are much more complex. A relativist would argue that to
judge the morality of activities in any given circumstance, we should investigate the way of life of those
included in it, we must look at the people involved and what they accept is good and bad and so-forth.
Relativists believe that we can just realize what is correct or wrong by relating a given circumstance to
others (All About Philosophy, 2017).
Protagoras of Abdera was one of several 5th century Greek masterminds who expressed that objective
learning is ridiculous, and that the perception of the people included are the best way to dive into the
morality of a given circumstance. In a similar sense, he expressed that objective truth is similarly as
ridiculous, because what someone thinks is right, is right for him or her, but cannot be subjected upon
someone else as an ethical guideline. One would argue that ethical guidelines are expressions of the
culture and nothing more. Experts would likewise agree with this perspective because moral principles
shift so significantly.
Fincke (2011) says "Morality" is basically another word for socially acceptable conduct. Relativism is
separated into two fundamental divisions accordingly. Firstly, individual relativism, which expresses
that we can't make moral judgments based on culture, but solely on the individual included, and their
view of morality (Ployd, 2006). Secondly, is social relativism, which expresses that we can't pass
judgments on activities morally without placing it into context of what is socially acceptable in the
general public in which they live. However, this is the place social relativism shoots itself. It undercuts
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any logical bases to legitimize or justify that we ought to acknowledge other societies' conduct, for if
another country's way of life trusts that it is adequate to different societies, tolerating their way of life
would compromise your own morals. It can likewise be criticized as the fundamental standards in all
social orders which are very similar, and while we may follow up on them in an unexpected way
(Fincke, 2011). For example, the act of killing one's parents when they come a particular age might be
viewed as cruel in Britain, yet in the society of Vikings it was viewed as helping them achieve life
followed by death. In both societies, the action taken would be based on the fundamental principle of
loving and caring for your parents.
Absolutists trust that the ethical nature of an act is intrinsic in the nature of the act itself. Plato (one of
the world’s best philosophers) was an absolutist due to his view on forms. His view on forms was
inspired by maths. Plato believed that a concept for example, 1+1=2 is, unalterable by people, and
constant, and that it applies to all mathematics. Plato clarified this by expressing that numbers were
unique elements that exist in the world of forms. He considered good, justice, truth, and beauty under a
similar light. He believed that they are constant, and considered them to be objects too. He believed that
"decency" was not an idea of acceptable societal conduct (rs revision, 2015). He believed that morality
was not subjective, but rather objective, and everyone's activities ought to be judged by similar means,
paying little attention to culture or individual beliefs as there is only one true good.
Absolutism can be criticized on the basis that it can be utilized by one culture to incur their ethical
beliefs on different nations on the basis that they believe that their ethical qualities are in fact
"absolutes". Colonization was an example of this, with Europeans enslaving, slaughtering, and
imprisoning locals since they knew how the locals should live, as the settlers' ethical knowledge might
have been "absolute". However, to defend absolutism is like a feedback for relativism, in that the
fundamental standards in all societies are similar, and it is accepted by most because the fundamental
standards are right, though different societies may commit immoral acts. Their general morality is very
similar to that of ours, and hence can be judged similarly (Hodgkinson, 2015).
Relativism has its focal points against absolutism; it keeps away from conflicts, and is regularly
observed to be significantly more tolerant towards different societies. However, this could likewise be
viewed as an inconvenience. Additionally, it appears that relativism is more of an excuse to avoid
conflict than encourage moral conduct. Absolutism basically sets rules, and despite the fact that a.
autocratic absolutist rule the world, it would be disastrous (Fincke, 2011).
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The fact that we can accept differences in culture is because of similar moral foundation to their beliefs.
It is difficult to keep up with the general public based on individual relativism. If rapists would be let
loose provided they believed in what they were doing or murderers would be let free provided that they
were angry at the time of the murder to believe that their activities were moral. Absolutism is the best
way to run a general public effectively, and the best way to help with human rights in different nations
(Hodgkinson, 2015).
1.3 Select an organization of your choice and identify the ethical issues there. Explain the consequences
that the organization might face with conducting day to day operations.
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Introduction to McDonalds
In the 1950s another style of eating was introduced by siblings, Dick and Mac Donald. Their unique
burger stand was soon changed into one of the biggest, well-known transnational companies. Ray Kroc,
a milk shake machine sales representative purchased McDonald's from the Donald siblings and made the
burger shack into a business characterized by conformity and uniformity. "Kroc accepted intensely in
the ethic of large scale manufacturing" (Schlosser, 2004).
Under the influence of this large-scale manufacturing ethic, McDonald's created new, uniform
production strategies. For example, utilizing frozen hamburger patties, rather than fresh ground meat,
and building up genetically-modified potatoes rather than using local produce to make sure McDonald's
taste is uniform.
"McDonald's Corporation (McDonald's) is the world's biggest food service retailing chain. The
organization is known for its burgers and fries which it offers through 31,000 fast-food restaurants in
more than 119 nations" (Light and Kiddon, 2015). With McDonald's found around the world, many find
it refreshing to see a familiar place when traveling to unfamiliar places, this is done by homogenizing
items and appearances of the stores, McDonald's offers this sentimental comfort and familiarity.
Mission- “To be our customers' favourite place and way to eat” (McDonalds, 2017)
Vision- “to become a modern, progressive burger company delivering a contemporary customer
experience”. (McDonalds, 2014)
McDonalds, being a multinational organization, sets targets for themselves with expectations of
accomplishing them through procedures and strategies. The objectives of McDonalds are;
 To serve great food in a friendly and fun environment
 To be a socially dependable organization
 To give great returns to its shareholders
 to provide its clients with food of an exclusive standards, quick services and value for cash
McDonald’s Corporation has been developing and spreading universally for as far back as three
decades. In spite of the fact that McDonald’s appears to be convenient, cheap and clean, there are many
negative parts of the business. Disregarding paying their employees low wages and negatively affecting
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different societies, McDonald’s and chains like it, have figured out how to position themselves as a
positive bit of Americana. McDonald’s promotes its positive picture and items with fries, and a clown
named Ronald McDonald. The immoral practices of this large fast food organization are known
however don't appear to detract from the all-American image that the corporation seeks to project extend
(Klein, 2015).
The ethical problem at McDonalds
Despite the fact that McDonald's makes the effort to support kids with life threatening sicknesses, the
diet offered by McDonald’s and others adds to obesity, heart disease, asthma, and possibly mad cow
disease (Tanner, 2006).
Environmentally, McDonald's practices are likewise questionable. Unlike a fresh ground hamburger
patty at a nearby butcher shop, "a typical fast-food hamburger patty contains meat from more than one
thousand different cattle, raised in as many as five countries" (Schlosser, 2004). This raises the
likelihood of a specific patty containing contaminants of obscure or unknown origin. As noted already,
rather than locally grown potatoes, the company utilizes their own genetically modified potatoes. The
acts of utilizing nourishment from outrageous separations, is dangerous naturally. From a public health
perspective, the utilization of hamburger from various sources makes polluted sources significantly
more hard to follow.
 Impact on foreign culture
Not exclusively do McDonald's items hurt individual and natural well-being, they are moreover having
an impact on some East Asian societies with McDonald's entrance into those nations. Critics guarantee
that the quick spread of McDonald's and its fast-food rivals undermines indigenous foods and makes a
homogenous, worldwide culture. Chinese parents need to connect their kids to the world outside of
China, so they reward them with a trip to McDonald's, yet in this manner they are additionally detracting
from their way of life.
An anthropologist named Yunxiang Yan predicted that in 20 years’ time, youngsters in Beijing (like
their partners in Hong Kong today) won't think about the foreign origin of McDonald's which will be
serving ordinary meals to individuals who are more interested in getting a quick meal than in having a
cultural experience” (Watson, 2006).
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Another significant change brought toward the East by the entry McDonald's and American enterprises
came into Asian nations, is the new fixation on American culture. "prior to the entry of McDonald's,
festivities marking youngsters' particular birth dates were unknown in the majority of East Asia. In
Hong Kong, for example, lunar-calendar dates of birth were recorded for use in later life-to help match
prospective marriage partners’ horoscopes or choose an auspicious burial date" (Watson, 2006).
With the presence of McDonald's restaurants in Asian nations along with the American social standards,
kids in these nations are perceiving the potential for celebrating of individual birthdays (Watson, 2006)..
McDonald's exploits this social change to market party packages to Chinese youngsters who need to
praise this new event. In many regards, McDonald's development in Asia is a forever adjusting society,
and standards of the past are being lost in their McDonald's gathering bundles and Big Macs. In adding
to social changes in China, McDonald's has offended other societies through some of its activities
(Tanner, 2006).
The chain has blended up controversy with some United States Hindus, numerous veggie lovers, and
some Japanese. "McDonald's, the fast food mammoth right now entangled in succession. This may
appear like an unimportant debate, however is not a little issue to Hindus who trust that the cow is holy.
In reaction to this offense to Hindus, vegans, and others, McDonald's offered an apology, and paid the
gatherings ten million dollars in settlement.
Moreover, "fast food giant McDonalds is confronting feedback in Japan after many of its apple pies
were found to contain a banned food colouring agent. In 15 McDonald areas, crosswise over Japan there
has been an apple pie recall because of the utilization of an unlawful food colouring known as
azorubine. Since one of their objectives are “To serve great food in a friendly and fun environment”, the
ethical issue mentioned above which states about a banned food colouring agent will be obstruct
McDonalds to achieve their objective.
McDonald's has asserted or claimed that the substance is not harmful, utilizing consumers in the
European Union and Australia as cases where individuals consume apple pies containing azorubine,
apparently without ill effects. McDonald's has however, reviewed the pies and reported that they will no
longer buy their pies from the China-based plant utilizing azorubine. Given below is an example of the
ethical issue McDonald faced due to their ignorance which results in unethical behaviour.
 Contention or controversy in the United States (Example)
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Another contention emerged in a Southlake McDonald ‘because of a bacon ranch salad. Chrissy Haley,
spouse of an assistant coach of the Dallas Cowboys, found a rat in her plate of salads subsequent to
requesting that plate of salads and a Happy Meal for her kid. As indicated by newspaper reports, Haley
and her babysitter large lettuce leaf in a shared salad. McDonald's presently can't seem to react,
apologize, or even inquire as to whether the ladies are alright. "Both ladies have had blood tests tried
more than once in the course of the last five and a half months and are experiencing sessions with Dallas
clinical therapist Dr. Rycke Marshall" (Whitt, 2006).
Chrissy Haley, who was negative for any disease, is suing McDonald's for $1.7 million, for both the
dead rat in her plate of salads and McDonald's reaction to the occurrence. “To provide its clients with
food of an exclusive standards” is another objective that was stated by McDonalds. Having an ethical
issue where a customer found a rat in her salad is going to obstruct their objective as they clearly are not
providing food with exclusive standards.
 labour Relations
Other than medical problems, the organization likewise has issues with its employees. The organization
pays the lowest pay permitted by law to their employees, who essentially do assembly line, factory-type
work. In the event that the work done by burger producers and drive-through clerks were renamed as
factory work, that would "include around 3.5 million assembling employments to the U.S. economy,
when such employments are quickly being traded overseas. From a statistical perspective, it would make
the U.S. appear like an industrial powerhouse once again, rather than a ageing superpower threatened by
low-cost contenders" (Schlosser, 2004). In the 31,000 McDonalds around the world, the vast majority of
the employees get paid the lowest pay permitted by law despite the way that the organization is currently
worth more than a billion dollars.
Conclusion
In the course of recent decades McDonald's has been changed from a local burger shack serving fresh
hamburger patties, into an immense enterprise utilizing large scale manufacturing techniques to deliver
and offer their items. One of the consequences of this global development has been various books,
12

articles, and even documentaries sketching out practices deemed unethical. There are numerous things
that may be done to address the moral issues raised by the conduct of multinational organizations: laws,
legitimate activity and public pressure emerging from activists.
At last, public awareness may be the most important tool. If people are enlightened about McDonald's
practises and their effect on wellbeing, ecological contamination and culture change, we can pick to not
patronize its restaurants. The activity may not close the McDonald's down, but rather it may limit the
effect of the company.
2.1 Explain, how business objectives in a selected organization can be affected by ethical
considerations
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Objectives of McDonalds
With operations in more than 119 nations and more than 31,000 restaurants around the world,
McDonald's Corporation is the biggest fast food service and provider on the planet. To serve the greater
part of their clients and exhibit the incredible size of the organization, McDonald's has more than one
and a half million employees and serves more than ninety-six percent of the total population at any rate
once every year. McDonald's works in the fast food industry and its centre product offerings include
hamburgers and french fries, but the chain also sells chicken, salads, and fish products too.
McDonalds, being a multinational organization, sets targets for themselves with expectations of
accomplishing them through procedures and strategies. The objectives of McDonalds are;
 To serve great food in a friendly and fun environment
 To be a socially dependable organization
 To give great returns to its shareholders
 to provide its clients with food of an exclusive standards, quick services and value for cash
There are huge amounts of systems executed by McDonalds to achieve these objectives, all catering
around the 5p's (People, Products, Place, Price and Promotion) (Leung, 2012)
For example, publicizing their item to make it appear to be more high calibre than it truly is, building
play areas in restaurants areas, building hospitals for youngsters and so forth. The strategies of
McDonald's incorporate briefly diminishing the cost of their burgers, making new types of item,
utilizing celebrities to promote their products, hosting birthday parties for the less blessed kids and so on
(Leung, 2012). The example mentioned above can be taken as an ethical consideration towards the
society. It is the responsibility of McDonalds to help the less fortunate if they want to stay competitive.
Building hospitals and serving to the less blessed children can be taken activities that McDonalds does.
The objectives set by Mcdonalds are all medium to long term targets and can't be accomplished right
away, likewise very hard to quantify. The expressing of the objectives additionally make it appear to be
cutting edge with the words "to" and "to be". It likewise defines the reason or purpose for McDonalds
and what it's goods by just saying "food" in its goals. These goals are additionally very broad regarding
what it remains for. While the procedures of McDonalds are effortlessly quantifiable and furthermore
very particular regarding its arrangement of activity, for example, building a hospital and play areas in
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restaurants and are clear steps to accomplish the goals. For example, building play areas to serve great
food in a fun environment and building hospitals to be a socially dependable organization.
The strategies are apparently short termed choices and activities to briefly help McDonalds benefit and
these strategies by McDonalds are likewise particular contrasting with targets and techniques. E.g.
"Utilizing celebrities to publicize their items" is more particular than "serve great food in a friendly and
fun condition". Dissimilar to goals and procedures, strategies set by McDonalds are all small scale and
does not characterize the motivation behind McDonalds and the explanation behind its existence (Leung,
2012).
2.2 Evaluate how the stakeholders of a business such as the organization you selected should
operate ethically and the implications of operating ethically.
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Stakeholders of McDonalds
A stakeholder is an individual or an organization who is directly or indirectly connected to the
regulations and rules of the organization. Noticing the interest and authority is important, when the
stakeholders are identified (Morphy, 2017).
Even though the approach towards each stakeholder is different, they shouldn’t be ignored. This analysis
specifies the influence of each stakeholder towards the organization and also decides what the
organization needs from them and grade them according to their importance (Sharma, 2013). The
diagram below shows the internal and external stakeholders of McDonalds.
BASIS FOR
COMPARISON
INTERNAL STAKEHOLDERS EXTERNAL STAKEHOLDERS
Meaning The individual and parties that are
the part of the organization is
known as Internal Stakeholders.
The parties or groups that are not a part
of the organization, but gets affected by
its activities is known as External
Stakeholders.
Nature of impact Direct Indirect
Who are they? They serve the organization. They get influenced by the
organization's work.
Employed by the
entity
Yes No
Responsibility of the
company towards
them
Primary Secondary
Includes Employees, Owners, Managers. Suppliers, Customers, Creditors,
Competitors, Society, Government
Table 1 Comparison of internal and external stakeholders. Source (Surbhi, 2015)
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All organizations have various stakeholder groups, each with various interests in what the business does.
owners- maybe the key partners - they need good financial performance from their ventures. Business
managers realize that it is their first duty to convey great financial results.
In any case, while it was constantly recognized that organizations exist in various social, economic and
political conditions, today it is also accepted that a business should be managed with the interests of all
stakeholders in mind (Riley, 2015).
The internal stake holders of McDonalds are;
Employees - employees are essential to McDonald's because they serve clients the items, and they
should have good communication skills so that customers will enjoy talking to the employees. This will
increase the chances of them being loyal and visit McDonalds over and over again due to their fun and
friendly customer service (Lombardo, 2017). Employees interest is to work there hardest and ethically
and it is the responsibility for McDonalds to pay them a reasonable wage and pay them for over time
since they operate 24/7 (Hill, 2017). Another ethical factor is that the restaurants is in great clean
condition to work in which makes the working environment more safe and easy.
McDonald's workers will convey positive outcomes to the business since they help with reaching their
objectives, by giving out a decent support to the clients with great quality food. However, a few workers
might not be committed to servings the client’s great quality food. This in return can lead to bad
reputation. However, this can be settled by watching out for the workers ensuring they are committed to
their jobs (Hill, 2017).
Managers - managers are imperative to McDonald's, they are employed to keep the staff organize and
control the delivery's and client issues (Hunt, 2016). Directors are likewise there to keep staff educated
on timetable changes or general data about the store. McDonald's managers have similar interests to
employees. They are occupied with getting paid the appropriate amount of cash for the time worked
including extra time.
managers have an enthusiasm for keeping the stakeholders satisfied. Additionally, because they get
more cash when the profits rise so they would be occupied with the business McDonald's make.
managers help with McDonald's objectives by giving great returns to stakeholders and they ensure
employees are working and being inspired to give the food in great quality. overall, they give a positive
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outcome on the business since they are focused on making a decent service and profit (ACCA, 2014).
However, few managers can bring about a negative impact by their leadership style. For instance, if the
style was an autocratic leadership style who settles on every one of the choices and guide individuals
without having any say then this can bring a terrible impact on the business. This is because this
leadership style will make the employees dissatisfied as they don't get appreciated for what they are
doing, they cannot express their thoughts and they can be less dedicated and motivated which also
results in poor performance (Hunt, 2016)
The external stakeholders of McDonalds are;
Government - Both governments are critical to McDonald's on account of they have restaurants all
around the globe. They will require arranging agreements on a great deal for the new structures and
extending their old stores. The national government will check if they are permitting the correct things
to happen. They bring both a negative and positive outcome on McDonald's aims because positively
they are giving McDonald's permission so then they can locate more or expand their stores. As a
negative impact, they still collect taxes from McDonalds and in case if McDonalds is facing a loss, by
the government collecting taxes, their profits can decrease.
The Government's position as a Stakeholder will be probably not be impacted significantly (Surbhi,
2015). They will remain an impact on McDonald's, and in all probability, gain a significantly bigger pay
from their establishments or franchises because of their client increment with their new corporate
changes. This will likewise give them a chance to help utilize individuals without occupations, who are
happy with McDonald's (perhaps) new employee wages (Horton, 2016).
Community - McDonald's have to remember the consequences for the community since they are
essential to giving back criticism to McDonald's so they can enhance their business to address the issues
of the community (Boundless, no date). The community is keen on the advancements going ahead in the
area for instance if they somehow managed to build up a store, then it would bring about traffic and
noise pollution which would make clients or the community to complain. They are additionally
interested by new offers (Horton, 2016).
The community would help McDonald's enhance the quality which is one of McDonald's objectives.
This can be done by getting the feedback from the customers through surveys, feedback boxes or reach
out to them directly. Likewise, they would help with making it a fun and friendly environment. Another
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positive influence is can have is that clients can pick up trust with McDonald's which can lead to faithful
or loyal clients who visit consistently (ACCA, 2014). This is useful for the business as they have less
possibility of going to competitors.
However, they can give out a negative result as well. Since the perceptions differ from customer to
customer, some might raise false issues about the company, or make small problems a big deal. Thus,
resulting in a bad reputation to McDonalds. Clients will probably spread the reputation round.
Suppliers - Providers or suppliers are vital to any business because the suppliers are the ones giving raw
materials to McDonalds for them to make their items. They are imperative to McDonald as they pick the
ideal supplier to get their materials. The providers’ interests are how much materials McDonald's
purchase from them to pick up a benefit for their own business likewise to get a good reputation because
a multinational organization buys the products from them (Boundless, no date).
Providers help to increase great quality items additionally they can make a speedy production by
transportation out the materials at the correct time so that the items are fresh and the business never
comes up short on the raw materials. They can likewise bring a negative impact as well. This is because
if the raw materials is not up to standard the business can pick up a bad reputation and lose clients. They
ought to ensure they have a decent trust in the supplies as then they can believe the items will be new,
fresh and clean (CIPS, 2014).
3.1 Asses the moral obligations of the organization that you have selected.
Introduction
With operations in more than 119 nations and more than 31,000 restaurants around the world,
McDonald's Corporation is the biggest fast food service and provider on the planet. To serve the greater
19

part of their clients and exhibit the incredible size of the organization, McDonald's has more than one
and a half million employees and serves more than ninety-six percent of the total population at any rate
once every year.
In today's world, is it simply another cost of working together or is it a productive enterprise worth
perusing maybe both? The motivation behind this report is to research the corporate socially
responsibility nature of McDonald’s Restaurants ("mcdonalds"), benchmarked with current applicable
legislation and best practices. It will audit the business patterns and attempt to set up why organizations
like, mcdonalds go after CSR systems, how they do as such and to what amplify they are powerful.
Corporate Social Responsibility
CSR (corporate social responsibility) is an expensive theme which incorporates numerous parts of a
business, morals and connections. Carroll and Buchholtz (2011) describe it as the "economic, legitimate
and discretionary desires put on an organization by society at a given point in time".
It has likewise been depicted as the way toward taking activities to profit the overall society (Davis and
Blomstrom, 1975) and to be responsible towards society, beyond lawful commitment (McGuire, 1963).
However, Friedman (1970) adopts a narrower strategy to CSR, indicating that it is only a suggestion,
rather than a rule and organizations are not social entities and along these lines have no ethical
commitment. Rather this duty lies with The State. Obviously, there is no single meaning of CSR and it is
entirely up to the way of its interpretation (Schwartz and Saiia, 2012).
CSR is marked as generally a new idea, yet its practice is obvious all through history. Adam Smith
(1776), in “The Wealth of Nations”, definitely pushed that "It is not from the kindness of the butcher,
the brewer, or the baker that we expect our supper, yet from their regard for their personal interest"
recommending that given a free market individuals will act to advance their self-interests and at the
same time create benefit while addressing the requirements of society.
The nineteenth century, advanced 'social Darwinism', the idea that survival of the fittest is vital, both in
business and socially (Mitchell, 2001). It is interesting to note that any likes of Carnegie and Rockefeller
were some of the best philosophers of this time and furthermore CEO's of large successful corporations.
However, it was their very own wealth which they shared and not that of their organizations. Laying the
establishment that it is not companies who are in charge of CSR, but rather in certainty their executives.
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Recently, the idea of corporate duty has ascended in significance and business can't simply consider
their stakeholders being exclusively their clients and shareholders. It incorporates entire supply chains
and entire social orders. As the world turns out to be more connected, and stakeholders can undoubtedly
chat, the demonstration of working together is turning out to be more straightforward and the idea of
CSR an expected quality.
Mcdonalds Corporate Social Responsibility
Mcdonalds CSR development began in the 1980s when it was liable to various claims, for example, the
infamous mclibel case, whereby Mcdonalds sued activists for criticism. The judge discovered
Mcdonalds capably in charge of animal cruelty, child labour and low wages. It was likewise
acknowledged that fast food will expand the danger of heart disease. However, it was found that
Mcdonalds did not have an obligation of care to customers in this regard (HM Courts Service, 1997).
The case offered gave rise to the activists then suing the UK government in the European Court of
Human Rights. The judgment stipulated that UK law did not ensure the privileges of nationals to
condemn huge corporations (ECHR, 2005). While the emphasis was presently on the legislature, and not
Mcdonalds, the decision raised alerts inside McDonalds.
The statutory coalition of executive's obligations states that chiefs must have "regard" for the issues that
affect the accomplishment of the organization. While it is a piece of the UK legislation and does not
matter around the world, for the motivations behind this report it should be utilized as a premise to
benchmark Mcdonalds Restaurants in the UK as well as different nations. It will be expected that CSR
practises which go past what is lawfully required are worthy of recognition.
With respect to general public, Crook (2005) is resolved that dealing with people in general is a
government concern. However, it is clear that enterprises must act to secure their open support
particularly for this situation, as McDonald’s trade is through direct trade with buyers.
In 2012 the organization chose to grasp stakeholders’ engagement further and maybe more so than
whatever other fast food organization. Taking advantage of the interactive nature of communication in
present day times, they created "What makes McDonald’s", an online question and voice-mail. General
society can ask any question they wish on any subject about McDonald’s.
To what extend they vet the inquiries is unknown, yet upon examination, it is clear they do attempt to
answer even the most unbalanced of inquiries; however certain facts stay elusive. None the less, the new
21

interactive engagement is a stage forward to straightforwardness. This is surely a creative and proactive
approach compared and their open engagement back in the 1990's, the place the company utilized the
court to protect their position.
 Liebeck v. McDonald’s Restaurants
 Durham v. McDonald’s Restaurants
 Block v McDonald’s Corp
 Sharma v McDonald’s Corp
 Bansal v. McDonald’s Corp
 Zimmerman v. McDonald’s Corp
The sceptical view being that this straightforward communication with general society is a great deal
less costly than by case. As Bonini et al (2006) communicates, "Business leaders must become involved
in socio-political debates, not because of the fact that their organizations have such a great amount to
include additionally on the grounds that they have a strategical interest for doing as such".
Responsibility towards the environment
The environmental performance of an organization identifies with all elements which affect
contamination, environmental change, eco systems and energy use. McDonalds UK state,
“At McDonald’s we recognize our responsibility to protect and preserve the environment for future
generations to come. Our goal is simple, all of our activities are centered around the key priorities of
reduce, reuse, recycle and redesign with the aim to use less energy.”
In 2008 McDonald’s removed the foam polystyrene packaging it previously used and in the recent past
lessened the size of packaging, which saved 84 million tons of paper in 2012. The organization returns
packaging to providers for reusing and is right now changing its vehicles to keep running on biodiesel.
In conjunction with The Carbon Trust, McDonald’s UK is putting resources into greener sewage
systems and energy saving lighting. McDonalds US has highlighted 2 restaurants in Chicago and North
Carolina which hold the Leadership in Energy and Environmental Design awards(LEED). The point is
to counterbalance rising utility expenses through lessened energy use. The energy efficient construction
is a design lab experiment for future approaches. Reusing efforts have lessened landfill waste by 58% in
this manner decreasing disposal costs (McDonald’s, 2012).
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Responsibility towards the employees
Greenwood (2007) suggests that stakeholder engagement is a related, however separated activity from
social obligation. Contradicting theory contends that the stronger the interactive nature of relationships
between stakeholders and the firm, the more social obligations it ought to take part in (BSR, 2006). The
essential stakeholders are examined beneath with particular thoughtfulness regarding the quality of their
relationship with McDonald’s.
To organize stakeholders, workers or employees are viewed as essential significance to a firm (Philips,
1999, Mitchell et al 1997) acting in "the name of the company" (Crane and Matten, 2004). McDonalds
UK utilizes more than 85000 individuals. Traditionally a McDonald’s representative was a 'secondary
school dropout': However, perceiving the inconvenient knock on impact of this picture as of today’s,
world. The organization has implemented changes to promote professions or careers inside the
organization.
Valuing workers as their 'most valuable resource', the organization puts £40m every year in preparing
towards broadly perceived capabilities, graduate plans and scholarships. (Maybe this figure is connected
to how much duty they choose to pay). The wage rate at McDonald’s is slightly above the lowest pay
permitted by law advancing as per experience and duty. The rate is benchmarked with the industrial
average. A traditionally low paid industry. McDonald’s workers don't have the chance to gather tips, yet
they do have different benefits. For example, 28 days paid leave, and the educational opportunities.
It must be recalled that low skilled employments are imperative to economies, and it is unfeasible for
these openings to pay vast compensations. They give work to numerous individuals from the population
who don't have the obliged capability to pick up business somewhere else. This is particularly
imperative in developing nations, where the main other alternative is to turn to crime, prostitution and
different less attractive professions. Identifying with the academic literature mentioned, regardless of the
employee opportunities inside the enterprise, employees are not the essential stakeholders at
McDonald’s as proposed by Philips (1999). Workers could be described as a gathering to 'keep
satisfied', to avoid them gaining any more interest limiting the need for detailed engagement
(Mendelows, 1991).
Conclusion
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An association like McDonalds needs to participate in CSR owing to the extent of its contribution in
individuals' live. Its business depends enormously on individuals and consequently, it is imperative that
those individuals feel acknowledged not just through the services they get from the organization, yet
through other vital parts of life, for example, education and healthcare initiatives offered by the
organization. The organization ought to keep supporting such activities and turn out to be more involved
in them for better outcomes.
Suggestion
McDonalds ought to make use of solar energy, which is an renewable type of energy. This will go far
towards guaranteeing that there is less carbon discharge. The EPA would along these lines be satisfied
with the efforts propagated by McDonalds.
McDonalds ought to likewise run ads in the media to promote its balanced healthy diet. The ads ought to
likewise contain nutrition advice on different methods for eating healthy fast food diets. The firm ought
to likewise differentiate its weight control plans to guarantee that it meets the prerequisites of various
ages.
3.2 Analyze how the organization can develop a mechanism to encourage the employees to use
business ethics and the ways in which they can be involved and empowered by the employer
Involving and empowering employees
It is imperative for staff members to concentrate on fulfilling key organization objectives and growing
great working connections in the workplace. However, it is similarly important to make sure moral
conduct among employees. Moral conduct makes sure that your business keeps up a reputation for
24

sound professional standards and qualities that are straightforwardly in accordance with the
organization's mission. There are a couple of ways that you can advance moral conduct among your staff
(Belcher, 2017).
Lead by example
Expecting a greater amount from their management group. Workers for the most part take after
organization illustrations put forward for them by management representatives. Holding their directors
to a higher moral standard so they are believable when they convey desires to their staff members to do
the same. Challenging management staff to hold regular discussions with employees to work through
potential moral issues that may come up and discover approaches to brainstorm through them as a group
is a way that can be used by McDonald’s to encourage. In the event that everybody is in agreement, it is
more probable that the group as a whole will receive similar sorts of moral practices (Belcher, 2017).
Educating the staff about ethics
You can't expect or anticipate McDonald’s staff to act morally as per their organization's code of morals
if they don't know what that code is or why it's important. Holding regular sessions on ethics and how to
approach moral problems among staff is one approach to encourage them. The more training and
resources you give, and the more emphasis they put on being moral and acting likewise, the more your
staff sees precisely what you expect in the office (Belcher, 2017).
Rewarding employees for Ethical Behavior
Regularly, organizations expect moral conduct. However, if you need to promote this as a prominent
conduct among staff, then McDonald’s will have to appear and demonstrate, in a manner of speaking.
Give prizes to strong moral conduct. For instance, if they have an employee that goes well beyond to set
her own interests aside to always do what is best for her customers, that is viewed as moral conduct and
she ought to be compensated and held up for instance for others to follow. The more you reward staff
members for sound moral choices, the more probable the masses will go with the same pattern (Belcher,
2017).
Helping Employees Make Ethical Decisions
Employees who make terrible moral choices could bring about issues, for example, harassment,
financial disasters, bribery, customer deception, corruption and customer deception. To prevent moral
25

incidents, McDonald’s need to set up a preparation program to help employees settle on better choices.
Unethical behavior could lead to a disturbance and represent a danger to McDonalds. In addition to the
fact that it is essential to show workers how to settle on moral choices, but also to deal with moral
misconduct (Wood, 2017).
Writing a code of morals for McDonalds and give every employee with a copy. The code of morals
ought to plot McDonald’s desires on how they wish workers to carry on when given a moral decision.
For example, give situational cases and give the good and bad path for a representative to carry on.
Make every worker sign a copy to acknowledge receipt of the document.
Selecting employees and managers in a moral training program. Morals training should be done by a
live individual or through Web-based training. The program ought to outline McDonalds moral logic,
how to deal with complicated moral circumstances and how to settle on moral choices while at work. Go
to sessions with the employees to exhibit how imperative morals are to McDonalds (Wood, 2017).
Requesting employees to take a look at every individual's point of view when settling on a moral choice.
Every circumstance ought to be respected through the eyes of the employee, owner and customers when
applicable. For example, if the employee was the client, would she be glad to know she was being
overcharged for items.
Setting an example for employees. If employees and top level managers are not applying morals into
their business dealings, employees are probably going to take action accordingly. Keep business
communications legit when managing customers, merchants and employees. McDonalds conduct ought
to be in contact with your code of morals and McDonalds vision statement (Wood, 2017).
Employee Empowerment & Employee Participation
Employee Empowerment generally includes management recognizing that workers or employees are in
a better position to manage their own obligations and work forms. Management plays a critical part in
empowerment, as representatives can't oversee themselves without being properly trained (Redsteer,
2017). When workers are very much educated and instructed with respect to problem-solving strategies,
26

management may then transfer some decision-making authority to them. The fundamental start of
worker empowerment includes the possibility that representatives are exceptionally situated to recognize
issues and to solve them.
Employee Participation includes management effectively encouraging staff to help with running and
enhancing business procedures and operations. Otherwise called employee involvement, worker interest
incorporates management perceiving individual representatives' opinions and input, so workers
comprehend that management sees them as remarkable and exclusively profitable to maintaining the
business (Redsteer, 2017).
Relationship of employee involvement and empowerment
Employee involvement perceives that individual workers have the best chance to comprehend and
welcome the issues that are one of a kind to their positions and that the workers additionally have the
best understanding and involvement in recommending methods for taking care of those issues. It doesn't
specifically follow, however, that a mechanism is accessible by which that knowledge and experience
can be put to use in taking care of those issues (Badore, 2017).
This is the function of “employee empowerment". If appropriate advantage is to be taken of the
knowledge that the representative has, it is fundamental for an association to enable the worker to
execute the changes that they know to be vital. By doing so, the venture is making the worker a
fundamental piece of the way toward remaining competitive.
Mechanism to encourage the employees to use business ethics and the ways in which they can be
involved and empowered by the employer
Involvement of representatives is considered as another idea, yet in the present time, there are numerous
managerial activities that should be taken that spring up the worker's contribution and empowerment
idea (Budhwar 2000).The best association around there are empowerment, quality circles, alongside
group preparation that fundamentally interfaces the hierarchical change culture plans, for example,
customer service initiatives which add up to quality management, business process re-designing, and
learning the association (Budhwar 2000). This is referred as the sort of worker's involvement, and it is
otherwise called human resource empowerment activity.
27

It goes under the piece of entire change of culture, which likewise includes, making flat hierarchical
structure and furthermore supporting in-communication. In the earlier year, the organization has begun
the activity of human resource that gives the training to their staff and hence, they additionally try to get
the employees for creating quality work. David Ulrich has additionally built up the model of business
partner that is utilized as a part of huge associations, for example, Mcdonalds with the end goal of
organizing the HR strategies in connection to acquiring change to the business condition. In the tradition
of Human resource model, there are four components like, change agent, strategic partner,
administrative partner, and employee champion. This model additionally incorporates about the shared
services, business strategic partner, and place for brilliance (Holden 2001).
The McDonalds HR division is additionally changed in current time and the managerial and
administration role department is likewise changed in the proactive role inside the association. Every
one of these changes occurred at the strategic level guarantees about the superior resource distribution,
training and abilities which are required for building the workers at various levels of. Human Resource
Management at the strategic level likewise tries to improve the knowledge sharing and also
organizations core capabilities that move towards the feasible culture of learning and intellectual capital,
which is significant for making progress in the organization. Holden (2001) notices that, through
acquiring continuous change, the worker’s abilities can prompt to accomplishing the business objectives.
McDonalds has embraced the procedure for acquiring consistent improvement in workers’ aptitudes that
will develop the devotion and trust of workers in the diverse segments of the organization, and this will
likewise better participate in the operations of organization. All these engagements in the organization
depicts about the comprehension about the parts and obligations of workers, and they even feel more
identified with the organization's activity. In this way, they would better see how to take an interest that
feels different in operation of the organization (Holden 2001).
Human Resource in the organization can be effectively drawn in with the staff since the start of the job.
For instance, McDonalds began their induction program keeping in mind the end goal to enroll new
workers. This upheld the association for starting the advancement of workers (Budhwar 2000). It is
noticed that, workers originating from various cultures bring variation abilities and skills and individuals
from various learning commitments and style could be effortlessly determined.
28

McDonalds likewise tries to give affirmation to their staff about the work levels with a specific end goal
to accomplish the objectives and organization's target. For doing this, McDonalds guarantees that, they
ought to hold the correct abilities for right occupation and finishing the work on time. It's the procedure
of structured recruitment that is completed with the end goal of pulling in the correct level of candidate
at both the administrative and operational level (Budhwar 2000).
Appearance of the economic organization in light of knowledge manages the skill improvement for
offering training to the workers for holding them in the organization. Through giving the persistent
training to the workers, they can undoubtedly scan for right occupation needs. McDonalds has attempted
to coordinate the key Human resource in their plans. It is significant that, supervisors ought to attempt to
consider the HR functionalities in the decision-making process (Budhwar 2000).
McDonalds likewise tries to discuss the hierarchical target with the workers so that, they could without
much of a stretch comprehend the goals and HR division in the organization could work with full
effectiveness. In the current time, there are many changes, which can be seen in the way training is
imparted. Along these lines, HR division procedures are moving towards managerial level. For making
the proactive group to work at the level of strategy, McDonalds tries to grow the training needs. This
type of management supports in empowering the development of workforce and after that motivates to
contend to move at more elevated levels (Schneider 1994).
As McDonalds in the competitive fast food service sector, it is vital to have sustainability in the
development for employment retaining (Schneider 1994). For accomplishing the development,
organizations ought to attempt to recognize the necessities of the workers for accomplishing the
objectives of the association, however in this procedure, the HR branch of McDonalds reinforce it when
required. In fact, the principle component of the organizational strategy is HR, which set up high skilled
workers in McDonalds operations.
4.1 Select an organization and research about a current ethical issue prevailing in the organization
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Introduction to Apple. Inc
Organizations should not take profits alone into consideration while leaving ethics aside, instead;
perform activities ethically to lead the business towards profits. However, looking at the current
competition in the business environment, some managers are drawn towards performing unethically to
bring down the operative cost and increase revenue, which results in a higher margin to rise above their
competitors.
Moral conduct of organizations has got intense interests among researchers or scholars because of
incidents taken place in the recent past about corporate scandals, which has led to expanded government
controls, weight from the media, and partners supporting the significance of moral conduct on
organizational execution. Bamford and West (2010, p.25) and Jensen (2001) state that moral business
practises help organizations to gain a competitive edge because it creates positive consequences vital for
long term performance of the organization.
Reports show that Apple Inc, one of the world's biggest organizations on the planet, undermines moral
practises in search for profits. However, Apple expresses that its business practice are supported by
moral principles. Among the charges levelled against Apple Inc for tax avoidance, child labour and
misleading marketing practises, the unethical behaviour will be discussed below.
Apple (2012) and Morrissey (2010) says that this organization was established by Steve Jobs in 1976
and has grown throughout the year to become the market leader in the smartphone industry. Apple Inc is
to innovate and develop specific products like iPad, iPhone, iPod, iMac and Apple TV. Apple Inc also
offers digital content through the iTunes Store, and Mac App Store.
Apple’s flagship of strong brands in the smartphone and computing section has made the organization to
be exceptionally regarded internationally and donated immensely to the success of the organization.
Apple Inc’s success in the international and local markets, demands this manufacturer to set up ethical
policies to help maintain a positive goodwill to Apple Inc. enjoys in the domestic and international
markets, therefore continue to gain competitive edge over its competitors. Even though Apple Inc does
not deliver its products straightforwardly, they guarantee that the outsourced Chinese firms who act as
suppliers take part in the ethical principles.
30

Unethical business practises at Apple Inc
Despite the fact that, Apple Inc still remains the most appreciated and regarded smartphone and
computer manufacturer in the world, they have engaged in unethical business activities. One main
unethical principle that Apple Inc is practising is, child labour or underage employees and poor working
conditions in the manufacturing plants in China. Vascellaro (2012) notices that Americans are
wondering if owning an Apple Product is ethical due to its poor working conditions in China.
Employees working at the manufacturing plants are mistreated, underpaid and overworked regardless of
the strong profit generated year on year.
A recent study shown by Pratap et al., (2012) stated that the largest manufacturers of Apple products
named Foxconn located in China, has 5% of their whole workers as child labour. This includes
employees who are underage working for more than 16 hours without being paid overtime and staff
being exposed to unsafe working environment. Due to the poor working conditions in Foxconn it has
been observed that an increased rate of death cases as an outcome of exhaustion and suicide. Some
workers have become disabled as a consequence of coming in contact with unsafe chemicals. It is
obvious that Apple Inc is not doing enough to safeguard their staff.
Another research has showed that Apple Inc has been blamed for taking part in tricky promoting
practises by covering vital information to the customer about the iPhone, which is an unethical business
practise. Odies and Hartline (2010, p. 71) says that misleading marketing activities are advantageous to
Apple Inc only in the short run and may harm the organization’s goodwill in the long run as customers
will switch to other substitutes. A market leader like Apple Inc should focus on their customers rather
than profits if they want to build their long-term relationship with them. It has been observed by Lane
(2008), that Apple Inc has been sued for refusing to provide information about the battery life of the
Iphone. Apple Inc failed to reveal information about the life time of their battery, and that it is not user
replaceable and only the manufacturer can replace the battery that is encased in the Iphone for a cost.
Lane (2008) also stated that Apple Inc was charged for "intentional and dishonest disguise" of key
information to their customers. This useful information was released three days after the launching of
the New Iphone which highly inconvenienced the customers. Misleading promoting activities which is
ethically unacceptable, customers should be given the right information about the product so that they
can make a good decision before purchasing an item.
31

Finally, Callahan (2012) states that Apple Inc has be avoiding taxes by transferring their property to tax
havens. Being the market leader and the most profitable organization in the world, they should set an
example or act as a role model to small and medium scaled organizations to practise business activates
ethically.
Conclusion
Organizations operating all around the world are working in a tough business environment. The mind set
some managers have these days are that in order to compete successfully, they must engage in unethical
behaviour. As stated above, large manufacturing plants like Foxconn engage in immoral activities to
bring down the cost of production. The organization employs underage labour, without being paid
overtime and staff being exposed to unsafe working environment which is unethical. It is, therefore,
obvious that Apple Inc is the most profitable organization in the world and the least ethical.
32

4.2 Report how the businesses can align their practices with the business ethics and report the
ways in which the organization you have selected can improve the quality and meet the objective
while maintaining a good employer/employee relationship
Apple Inc Being ethical while meeting their objectives
Apple Inc is on the edge of turning into the ideal specimen for labourer mishandle. Journalists or
researchers are beginning to draw attention regarding the tremendous differentiation between Apple's
quarterly billions in profits, and the dilemma of manhandled laborers in China. Furthermore, the nearer
you look, the uglier this issue gets. Also, it threatens to harm Apple Inc’s long term prospects for
continuous development and achievement. Here's what Apple Inc can do about it.
The CEO of Apple Inc Tim Cook seems to have made the welfare of agreement assembling specialists a
higher need, and also has tried to bring the issue out. Apple Inc stated that they did 229 reviews or audits
a year ago, which is 80% more than the prior year. Apple Inc published a report on supplier
responsibility to talk about this problem and what they are going to do about it. This report includes a
list of providers, something Apple Inc has declined to do in the past since it makes it more difficult for
them to keep secrets about the future products.
Apple Inc won’t be tolerating any child labour. Reviews convey consideration to acts that go against the
law and Apple Inc puts a few organizations on notice stating that they will have to fix this problem or
else they will find another organization. To a huge degree, chasing down violations is an issue between
the Apple Inc and the managers within the contract of the manufacturing companies in China. When
they find a solution to one problem, up pops another one. The issues they face never end. There are
many arguments that are rising asking if the US does not have the capacity to do what China is currently
doing. The cost of production will be very high since they will have to pay each employee a higher wage
and more employees will have to be employed because China was mishandling employees by keeping
them over time. Even if Apple Inc can build products in the US, they will not bring it to the current
quality and standards of the products manufactured in China since the blend of physical perfection and
low cost couldn't be accomplished in the United States. Abused, under-paid and over-worked employees
in the manufacturing plants in China is what makes the Apple Iphone and IPad, even though it is hard to
take in, it is the bitter truth. Given below are some options that Apple Inc can take to solve these
immoral practises.
33

 Move production out of China
 Give a warning to worker welfare.
 Forcefully wear down the issues related with contract manufacturing with a program of related
to change, higher measures, consistent reviews and developing straightforwardness.
 Start a forceful program of paying part providers and contract manufacturers more in return for
straightforwardness, employee welfare and environmental protections.
The first option for Apple Inc says that for the ones who are worried about the welfare of Chinese
laborers, unemployment isn't an answer. Also, for the individuals who like Apple products, moving
manufacturing out of China would diminish quality and increment costs as mentioned previously.
The second alternative says that Apple Inc being the most profitable and recognized organization in the
world they would be devastated in the court of public opinions and become the source of public hostility
that will tarnish the goodwill of Apple Inc. In fact, this is currently happening, even though Apple does
not pursue this option.
The third alternative is the best choice, and in fact the one Apple is effectively seeking, to its credit. The
fourth choice is the other best choice, which Apple is not seeking adequately. Many leading Silicon
Valley organizations effectively pay component providers more to enhance conditions. Apple's present
strategy of requesting from providers about impossible timetables, quality and low costs is driving a
large portion of the issues, even though Apple Inc has the capacity and capability to pay more.
Apple presses each penny out of its providers like Foxconn, compelling or forcing them to survive on
razor-thin edges while the organization reports profits that exceed Google's incomes is the sort of reality
that could make individuals quit purchasing Apple items simply on moral grounds. So, that is the thing
that Apple needs to do continue doing alternative number 3 and start doing option number 4. Wear down
the issue, related to exploring, examining and settling. In any case, likewise pay somewhat more to
manufacturers keeping in mind the end goal to meet these strict requirements. The main objective of
Apple Inc is “To expand their sales to customers who have not yet own any Apple’s products”, this
ideally means to introduce their product to those who down use Apple products. The strategies
mentioned above can be taken by Apple Inc in order to stop the ethical problems they are facing and
continue to manufacture Apple product while being ethical.
34

Apple gets more fault than it deserves for employee mishandling in China, and doesn't get enough credit
for the huge effort Apple Inc has used in bringing work standards up in China. However, there's one
missing piece which is the price Apple Inc pays for segments. There’s already enough of coercive levers
required in Chinese assembling. Apple pushes manufacturers, and manufacturers force their staff.
What's missing is the expansion of positive motivating forces (Elgan, 2012).
35

4.3 Design a suitable ethical code to follow by the employees and employers related to the ethical issue
identified in the task 4.1
Code of Conduct
Ingram (2017) says that the code of ethics is a key document for any organization as breaches of moral
principles can land organizations like Apple Inc stuck in an unfortunate situation with customers,
different companies or government authorities. Making a code of ethics assists Apple Inc in making
decisions at all managerial stages by diminishing uncertainty and considerations of individual points of
view in moral standards.
He also states that the main purpose of creating a code of ethics is to guide or lead all the decisions taken
by the management of Apple Inc and creating a common structure where all decisions are established
(Apple, 2012). This will give a better understanding of the limits inside Apple Inc and the standards set
for connecting with other stakeholders. A formal, properly communicated code of ethics can make sure
Apple Inc's reputation and legal base remain in case of a break of moral principles by a single worker.
Additional importance and complexity is given to the code of ethics taking place in the international
market. Since ethical principles differ from country to country, international or worldwide businessmen
should have a knowledge about the different moral standards in different countries Ingram (2017). The
organization's code of ethics either be written to cooperate with foreign moral principles or to maintain a
single code in all nations. Given below are the ethical code Apple Inc must follow (Kovach, 2013).
Labour and human rights- Apple must trusts all employees in their supply chain, give them a reasonable
and fair environment to work in. Laborers must be treated with the respect, and Apple manufacturers
must maintain high standards of human rights. This ethical code can be related to the ethical issue they
were facing where China is providing poor working conditions to the employees, underpaid, child labour
and overworked to generate strong profits
Anti-harassment and abuse- the suppliers of Apple Inc should focus on a work environment free of
harassment and mishandle. Provider should focus on a work environment free of badgering and
mishandle. Provider might not threaten employees with, or subject them to, brutal or inhumane
treatment, including yet not constrained to verbal abuse and harassment, mental, sexual and
psychological harassment (Kovach, 2013). The employees at China who are the manufacturers of Apple
36

are being mistreated which is causing them to suicide and mentally break down. This conduct will help
them stop or reduce this unethical conduct.
Prevention of underage labour- Apple Inc’s suppliers should employ candidates who are no less than 15
years old, the appropriate age applicable for work. Suppliers should provide legal training programs for
academic benefits. As mentioned previously, underage labour at China is an issue that Apple is facing.
This conduct can be directly related to that issue.
Working hours- A week's worth of work should be restricted to 60 hours which also includes over time,
and employees should have at least one free day every seven days besides emergencies and different
circumstances regular work filled weeks should not exceed 48 hours (Ross, 2015). Suppliers should take
notice of all laws and regulations concerning working hours and days of rest. Apple simple is exceeding
the working hours of employees. This is issue can be addressed with this conduct
Wages and benefits- suppliers should pay at any rate the lowest wage permitted by law and give any
benefits required by law as well as contract. suppliers should pay employees for extra hours worked at
the legal premium rate. The pay structure and payment periods should be clearly communicated to all
their employees (Robinson, no date). Suppliers should also meet every single legal necessity identifying
with wages and benefits, payments made on time and wage deduction should not be used as a
disciplinary measure. The salaries and wages that paid to employees are below the general level that
needs to be paid by any individual employed. Since the wage that needs to be paid for working overtime
isn’t being paid, this conduct will help Apple address this issue.
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