MB112 Business Ethics: A Media Article Folio Analyzing Ethical Issues

This essay presents an analysis of ethical issues in business, drawing from media articles. It discusses instances where multinational corporations have deviated from ethical standards, leading to adverse consequences such as the Bhopal disaster. The essay explores the impact of unethical behavior and poor corporate governance on various stakeholders, both internal and external to the organization. It applies ethical theories, such as social exchange theory, to understand and address these issues. The analysis covers both positive and negative impacts, and provides recommendations for fostering ethical leadership, implementing robust rules and guidelines, and promoting a democratic leadership style to ensure the well-being of all stakeholders and sustainable business practices. The essay also examines the importance of trust and transparency in maintaining ethical standards within organizations.

MB112 BUSINESS ETHICS _
ASSESSMENT 2- MEDIA ARTICLES
FOLIO

Introduction
The assessment is about an article that showcases some ethical issues identified with the business
operating in the market. The discussion in the assessment is also about the overview of the article
and the theories identify that can help in resolving those ethical issues. The chosen article states
that some of the multinational companies are not following a set of rules in their home country
and acting differently by not obeying the rules and regulations. the discussion in the assessment
is also about poor corporate governance and the other people behaviour that is resulting in-losses
of the company and the environment. From the assessment, is also about some of the
stakeholders that have been affected from the activities of the business. The assessment also
discuss about the positive and negative impact of the strategies and recommendations will also
be provided in order to resolve the issue identified.

Table of Contents
Introduction......................................................................................................................................2
Overview of the article....................................................................................................................4
Theories Management.....................................................................................................................4
Impact on the stakeholder................................................................................................................5
Recommendations............................................................................................................................5
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Overview of the article
The article states that there are some multinational corporations and international businesses that
are following an ethical leadership in countries and environment. Some of the multinational
companies are not following the set of rules and values given to them but are acting differently
which is impacting the overall environment and the business opportunity to growth. The poor
governance and unethical behaviour also resulted in the Bhopal disaster in 1984 where the plant
in India exposed and more than 600000 people were killed due to the poisonous gas released in
the air (Owusu, et.al. 2019).
It has been identified that all the stakeholders interest should be taken into consideration not just
for the financial gain but for making sure that the business is maintained comfortably. It is also
very important to manage that the international presence is have a diverse and have different
values and cultures that are to be respected and treated equally (Painter, et.al. 2019).
Some of the ethical issues identified in the article were mismanagement of the business
operations. Unethical behavior of the company is in the atmosphere and then the business
environment (Owusu, et.al. 2019). Unethical Leadership in the countries. Lack of rules and
regulations are also identified in the business environment. Mismanagement of the values and
rules highlighted in the business environment.
Theories Management
It has been identified that in India, the Bhopal disaster in 1984 occurred because of an unethical
leadership and behaviour of the organisation. The business is the not value in the rules and
regulations provided to them which led to the release of the poisonous gas into the air took lives
of around 600000 people. It has also been identified that an unethical leadership was also
maintained at the business management. There might be a situation where the leaders were not
supporting the managers are following their rules and regulations which led to the incident
happened (Lampton & Razack, 2020).
The factors which contributed in the event to happen were unethical behaviour and leadership
along with the mis management of business rules and policies. The managers and employees are

also responsible because they were not following the rules and regulations provided to them will
lead to the event to occur in the environment.
Impact on the stakeholder
Internal and external stakeholders were impacted by the event because there was a
mismanagement and the rules and policies that also impacted each and every individual in the
business environment. Considering the internal stakeholders, the employees were impacted badly
because many employees lost their lives and some their jobs. Internal stakeholders were
important because the managers were not given proper rules and guidelines and the employees
followed on the direction provided by the managers which took some of the jobs of the
individuals and some were affected by the event (Huq, et.al. 2016).
Some of the managers and leaders lost their trust from the employees as they were given wrong
direction to proceed which led to the event happened. The board members and the owners were
also important because the company is the huge loss and also was responsible for taking lives of
many people that was not even guilty (Lampton & Razack, 2020).
There was nothing positive about the event because many employees lost their jobs. The
business was not able to make profit because many people died and the situation ran out of
control.
Considering the external stakeholders, the investors and the suppliers were affected because they
were not given their money and also was affected by the event. Investors took their money back
which was a loss to the company (Huq, et.al. 2016).
Recommendations
There is a need to implement a leadership style that can help in communicating all the necessary
information to the individuals for smooth management of the business. This can also help in
gaining competitive advantage in to the market by smoothly managing the business operations.
Another recommendation will be implementing rules and guidelines that are to be strictly
followed by the business specially the team leaders and the managers. If the team leaders and

managers are given proper direction, it will be helping the employees to save their jobs and from
the risks of getting terminated (Huq, et.al. 2016).
Democratic leadership style can also be implemented as all the opinions and views of the
employees, managers and team leaders will be given that can help in managing the decisions
accordingly in the favour of every department of the business (Lampton, et.al. 2020).
Title of the article- Linking ethical leadership to employee voice: The role of trust
Media source- Scientific journal publishers limited from Social behaviour and personality: An
international journal
URL- https://link.gale.com/apps/doc/A634039318/AONE?u=61win&sid=AONE&xid=f7c0060b
Date: August 2020.
Overview of the article
The main essence of the article is based on making sure that major distribution in an organisation
are made in areas of behaviours for employees. This will make sure that ethical roles are needed
to be established in different areas. The main terms of ethical leadership has been established and
identified in the article. It has been discussed that main role of ethical leadership is important to
make required development and skills knowledge in the employees (Zeng &Xu, 2020, p.48). An
organisation structure is put into the context to make evidence that ethical leadership really
impact the employees. It determines roles in areas of ethical leadership on part of supervisors and
voice of the employees on their part.
This is majorly based on making university set of areas where participants are collected as the
205 participants from 15 universities in China. From the study, it was clear that there is a
relationship between ethical leadership and making suggestions on the grounds of voice of
employees and making improvement in exiting work processes (Metwally, et al. 2019).
The main ethical issues which are developed in association with the articles and case sections are
as follows,

 The main issues for employees are related to work. These issues mainly due to the
difference in opinions and making improved performance. These areas of issues are
mainly related to work place environment and improper organisation of structure.
 Development in self-realization and setting medicating role of trust in employees. There
are serious lack of trust and this will leads to decrease in the employee outcomes (Zeng
&Xu, 2020, p.48).
Identification on one issue based on consequences
Theory used- Social exchange theory
Issues has been identified in areas of setting important practices in assuring that what is the
reciprocal relationship among supervisors and the subordinates. This will assure that important
sections of the organisation is important to be reviewed. The issues are mainly objected towards
expression of personal opinions and make confidence among employees about its positive
impact. The study also take into context for non-profit organisations as to know the nature of the
business organisation. This will make sure that important practices are always related in ethical
leadership are important from both point of view i.e. ethical leadership and voice of employees
(Arda, Aslan and Alpkan, 2017, p.6).
This ethical issues is considered as main because it will then leads to process important features
of impartiality, trustworthiness and honesty in all employees.
Use of social exchange theory was made as to know about behaviour which one person possess
being holding a particular position. This will make sure that important analysis are made to make
leaders behaviour equivalent to all employees. The application of this theory will leads to make
acceptable suggestions in the management and make sure the positive expectations of the
employees are maintained. The main voice behaviours of the employees are judged into this
study with help of taking hypothesis in three forms as
1. Ethical leadership has the positive relationship with university teachers’ voice behaviour
2. The trust of supervisor will make sure that positive impact of the ethical leadership has
been mediated on university teachers’ voice behaviour.

3. The trust of organisation will make sure that positive impact of the ethical leadership has
been mediated on university teachers’ voice behaviour (Zeng &Xu, 2020, p.48).
Impact on stakeholders by the issue identified in present and in the future
Positive impact in present
As based on the study, the main stakeholders of the study are teachers of the university,
supervisors, and authority members of the organisations. These are impacted positively by the
issue when it is managed and answered properly. With the help of study, the main roles and basis
which is taken are supervisor trust, organisational trust, ethical leadership and voice behaviour.
This positive impact has been guided in the form of hypothesis(Zeng &Xu, 2020, p.48). The
main bonding between supervisor trust and organisation trust makes sure that it has the benefit of
close monitoring to all stakeholders about organisation and individual performance.
Negative impact in present
As based on the study, when there is high level of dissolution among staff and leaders, a wrong
choice of integrity is considered. The main options and chances of improper performance
evaluation of all teachers and opposite impact on positive expectations can be seen if process is
not applied properly. This makes the consequences of breaking of trust and lack of honesty
among employees which can be counted in negative role.
Positive impact in future
The main aim of the study is to make sure that mediating role of trust among all position holders
of a university will be established. As based on the overall study, the positive impact of the trust
factors on both supervisors and teachers will improve the teaching system as well as hiring
system of the organisation. This will also give positive attributes towards increment in the moral
efficacy of the stakeholders (Ghanem&Castelly, 2019, p.12).
Negative impact in future
In the study, there are main elements in association with having problems of trust in some areas
in making unbiased decision making in future. In future, improper setting of system and lack of

authority and responsibility will leads to undesirable job assignments, and uneven termination of
employees also.
Recommendations
The major recommendations of the study will mainly directed towards assessing the role of
employees and university teachers in one direction only and based on objective implications.
This will make sure that data are collected towards potential use of important information
developers. In solving the issue of trustworthiness and setting right sources of ethical leadership,
following steps can be taken,
 Allotment of particular supervisors to different set of teachers which will maintain the
chain of authority and responsibility.
 Ensuring that no comparisons are made in the university and teachers are only hired
based on professional areas of interest.
 In maintaining the role on honesty, it is required to make sure that high level of
transparency is maintained in the form of setting variables in all areas. These are related
to mental, emotional, and physical and fulfilment of basic needs as well.
 Ensuring that all guidelines of ethical leadership are maintained and follow up of
democratic style of leadership are put into efforts mainly (Duan, Liu and Che, 2018, p.
48)

Conclusion
The discussion in the assessment is about some of the ethical issues identified. Ethical issues are
to be followed because they can lead to a smooth business working operation. An article
discussed in the assessment describes that after an event is happened, there are some
stakeholders which are affected by the business operations. The internal and external
stakeholders impacts and their behaviour towards the situation is discussed in the assignment
along with the overview of the article selected. The article was considered to know about the
importance of ethical behaviour and leadership in the organisation. The discussion in the report
also describes about the recommendations that can be provided in order to manage the business
operations and gaining competitive advantage in the market.

References
Lampton, J. A., & Razack, B. I. (2020, February). ETHICS MUST BE GLOBAL: Companies
that operate in multiple locations around the world need to embrace a single code of ethics and
apply it everywhere. Strategic Finance, 101(8), 13+.
https://link.gale.com/apps/doc/A615493927/AONE?u=61win&sid=AONE&xid=9a24e5f8
Owusu, G. M. Y., Bekoe, R. A., Koomson, T. A. A., & Simpson, S. N. Y. (2019). Temptation
and the propensity to engage in unethical behaviour. International Journal of Ethics and
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328647031_Temptation_and_the_propensity_to_engage_in_unethical_behaviour/links/
5e288c62a6fdcc70a14354be/Temptation-and-the-propensity-to-engage-in-unethical-
behaviour.pdf
Painter, M., Hibbert, S., & Cooper, T. (2019). The development of responsible and sustainable
business practice: Value, mind-sets, business-models.
https://link.springer.com/article/10.1007/s10551-018-3958-3
Huq, S. M., Nekmahmud, M., & Aktar, M. S. (2016). Unethical practices of advertising in
bangladesh: a case study on some selective products. International Journal of Economics,
Finance and Management Sciences, 4(1), 10-19.
https://www.researchgate.net/profile/Md_Nekmahmud_Argon/publication/
312160862_Unethical_Practices_of_Advertising_in_Bangladesh_A_Case_Study_on_Some_Sele
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Bangladesh-A-Case-Study-on-Some-Selective-Products.pdf
Arda, O. A., Aslan, T., &Alpkan, L. (2017). Review of practical implications in ethical
leadership studies. International Journal of Organizational Leadership, 6(3), 400+.
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Duan, S., Liu, Z., &Che, H. (2018). MEDIATING INFLUENCES OF ETHICAL LEADERSHIP
ON EMPLOYEE CREATIVITY. Social Behavior and Personality: An International Journal,
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Metwally, D., Ruiz-Palomino, P., Metwally, M., &Gartzia, L. (2019). How Ethical Leadership
Shapes Employees' Readiness to Change: The Mediating Role of an Organizational Culture of
Effectiveness. Frontiers in Psychology, NA.
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Ghanem, K. A., &Castelli, P. A. (2019). Accountability and Moral Competence Promote Ethical
Leadership. The Journal of Values-Based Leadership, 12(1), 136+.
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