Assignment 1: Ethical Philosophies and Business Impact Analysis

This report, submitted for a TEC Level 4 Business unit, examines the intersection of ethical philosophies and their impact on the business environment. It begins by defining and differentiating various organizational types, including profit and non-government organizations (NGOs), and explores their size, scope, and legal structures such as sole traders, partnerships, and limited companies. The report then delves into the responsibilities of organizations, covering social, environmental, ethical, and management aspects, including public relations and corporate image. Furthermore, it analyzes how organizational structure, size, and scope influence business objectives, products, and services, as well as the impact of stakeholders. The report also includes definitions of key business concepts like goals, objectives, market share, growth, and sustainability, while exploring different industrial structures and stakeholder responsibilities. Finally, it provides an overview of the ethical considerations within a business context.

Assignment
title
Aspect of ethical philosophies and the impact of ethical issues on business
ASSIGNMENT <NO.1>
Qualification TEC Level 4 HAND Diploma in Business
Unit number
and title 485 Business and the Business Environment
Assignment
due 11/29/2018 Assignment
submitted
Learner’s name Huynh Hoang Kim Learner’s code GBD18509
Class GBD0821 Assessor name Phan Tran Phuong
Trang
Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
Learner signature Date
Grading grid
P1 P2 P3 M1 M2 D1

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Assessment criteria Expected evidence Task
no.
Achieved
(Stick to
mark as
achieve)
LO1 Explain the different types, size and scope of organisations
Explain different
types and purposes of
organisations; public,
private and voluntary
sectors and legal
structures.
- Profit and non-government organisations
(NGOs).
- Micro, small, medium-sized enterprises
(SMEs).
- Forms of business: sole traders,
partnerships and private limited companies.
P1
Explain the size and
scope of a range of
different types of
organisations.
- Objectives and goals, market share, profit
share, growth and sustainability
- Industrial structures
- Stakeholders and responsibilities
P2
Assignment title Aspect of ethical philosophies and the impact of ethical issues on
business
In this assignment, you will have opportunities to provide evidence against the following
criteria.
Indicate the page numbers where the evidence can be found.

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LO2 Demonstrate the concepts of the responsibilities of organisations
To clarify the
responsibilities of
organisations and
how these theories
apply to a current
company/
organisation
- To understand the terms of organisations’
responsibilities
- Social responsibilities
- Environmental responsibilities
- Ethics and Business
- Management Responsibilities
- Public relations and Corporation image
P3
Assessment
criteria
Expected Evidence Achieved
(Stick to
mark as
achieve)
M1 Analyse how the structure, size and scope of different
organisations link to the business objectives and product and
services offered by the organisation
M2 Analyse the stakeholders and the stakeholders mapping; and
how they impact on the operation of organization.
D1 Provide critical ideas about the impacts of organisations’
responsibilities between public and private sectors; and the use
of organisational responsibilities to suitable case study

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Summative feedback:
Assessor’s Signature Date
Table of Contents
Introduction..............................................................................................................................4
I. Size and types of organization .............................................................................................. 4
1. Profit and non-government organization (NGOs) ..................................................................... 4
2. Size of the organization ............................................................................................................. 4
3. Form of business.......................................................................................................................5
4. The structure, size, scope of different organization effect to business objectives, product
and services…………………………………………………………………………………………………………………………………6
II. Different types of organizations ........................................................................................... 6
1. Mission of Organization ............................................................................................................. 6
2. Industrial structures ................................................................................................................... 8
3. Stakeholders and responsibilities.............................................................................................8
III. Responsibilities of organizations..........................................................................................8
1. Social responsibilities…...........................................................................................................9
2. Environmental Responsibilities...............................................................................................9
3. Ethics and Business...................................................................................................................9

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4. Management Responsibilities..................................................................................................9
5. Public relations and corporation image..................................................................................10
Conclusion……………………………………………….…………………………….……………………………………………….10
Reference List………………………………………………………………………………………………………………………….10
Introduction: Many people, including both the business administration major’s students, and
researchers in today’s world are unable to understand many criteria, definitions and key points
of Business and Business Environment study. Hence, this assignment report will help to provide
many basic and both crucial information upon the explanations of different types, sizes and
scope of organization. In addition, this assignment report will also dive in the demonstration of
the concepts of the responsibility of organizations, and furthermore provides analysis of many
key points that are crucial.
I. Size and types of organization
1. Profit and non-government organization (NGOs):
- Non-Government Organization (NGO) : According to Folger (2018), An association
formed by the citizens, that functions completely independent from the government to
perform a wide of services and humanitarian functions, is called an NGO. Non-government
organization range from local to government. Folger (2018) also claims that these
organization raise its funds through government, foundations, businesses and private people.
Some organizations rely on membership fees and sell services or products to make profits to
help the community.
Note : It can be incorporated as a trust, society or a company.
Example : International Committee Of The Red Cross, Rotary International, International Air
Transport Association (IATA), International Chamber Of Commerce (ICC), International
Organization For Standardization (ISO), etc.
- For Profit Organization : According to Fritz (2018), For profit organization seeks way to
create profit and income for the owners, and employees. Indeed, any business entity, whose
primary aim is to making profit from the regular operations such as selling products and

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services, with a view to maximize the wealth of the company, is called an For profit
organization.
Example : Apple Inc, Samsung Corporation, Mitsubishi Motors, etc.
2. Size of the organization:
Definition of Micro, Small and Medium-sized Enterprises by World Bank standards
Enterprise category Headcount Total assets or total
annual sales
Micro Enterprises <10 ≤$100,000
Small Enterprises ≤50 >100,000; ≤3,000,000
Medium-sized Enterprises >50; ≤250 >3,000,000; ≤15,000,000
Source: Independent Evaluation Group (2018)
According to OECD (2005), Small enterprises are often less than 50 people, while micro
enterprises are less than or equal to 10 people in an organization. Financial assets are measure
to determine the size of the business as well. To the new definition of European Union SMEs
turnover in 2005: revenue of medium-sized firms (50-250 people) should not exceed 50 million
EUR; small firms (≤ 50 people) should not exceed 10 million EUR; micro firms (≤ 10 people)
should not exceed 2 million EUR. As a result, the number of employees in a business depends
on the financial resources and the type of enterprises that split into MSMEs (Micro, Small,
Medium Enterprises).
3. Forms of business:
3.1 Sole trader
The vast majority of small businesses start out as sole-trader. According to Emily (2018), when
you run the business by your own, and without setting up a limited company at Companies
house to run your business through, then you are a Sole-Trader. These firms are owned by one
person, usually the individual who runs the business themselves . Owner owns all the assets of
the business and the profits generated by it. They also have to take complete responsibility for
any of its liabilities or debts. In the eyes of the law and the public, owners are one in the same

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with the business (Emily, 2018). All a sole trader needs for a startup is an enterprise name, a
business account, a website and some clients; complete legal procedures such as registration
of business licenses, sales permits and corporate tax codes. Each type of business will have
different licenses.
3.2 Partnership:
In a Partnership, two or more people share the ownership of a single business. Like sole-
trader, the law does not distinguish between the business and its owners. The Partners
should have a legal agreement that sets forth how decisions will be made, profits will be
shared, disputes will be resolved, how future partners will be admitted to the partnership,
how partners can be bought out, or what steps will be taken to dissolve the partnership when
needed, etc (Murray, 2018).
3.3 Private limited company:
Private limited company (LTD) offers limited responsibility or lawful guardianship for its
shareholders, but places assertive limitations on its ownership. These limitations are
described in the company's bylaws or regulations and are meant to restrict any hostile
powerful attempt. According to Johnson (n.d), Limited Liability Company is a typical
organization that you can set up to run your business, and can be splitted into equity. A
company pays corporate tax from any profit and can then distribute the profit left over
between shareholders.
4. The structure, size, scope of different organization effect on business objectives, product
and services:
The structure, scope and size can affect a company's development goals. Large companies
will have big capital to reach a wide range of market. Products and services will have more ideas
and platforms to grow. Smaller companies, the target will be more limited, the product
marketed less and not as diverse as the big companies.
II. Different types of organizations
1. The mission of the organization:

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1.1 Objectives and goals:
Goal Objective
The final result of a process of actions/efforts Specific actions/efforts that help to achieve
the Goal
May not be measurable Measurable
Broad Specific
Long-Term Short-Term
Source : Pedia.com (2018)
Difference between Goals and Objectives
Goal: An achievable destination/Desired outcome people want to achieve, set out in the
future. Most Goals are broad and do not reveal how it can be achieved, oftenly, they take a
long time to achieve (Hasa, 2018).
Objective: A series of actions or efforts made to achieve Goals. According to Hasa (2018), a
broad goal can be broken down into several objectives, which are more concrete and specific.
Hasa (2018) also claims that, a goal is more achievable when it is broken down into objectives
as it is more realistic and doable.
1.2 Market share:
Market share is a portion of sales in the market of a brand, company or product (Leonard,
2018). The more market share a company has, the cheaper, and larger amounts of raw
materials can be acquired; this leads to cheaper products and ultimately leads to higher
profit.
1.3 Profit share:
Profit share is benefit that is offered by company, depends on the how much percentage of
profits made by the company does it willing to make into Profit sharing program (Kappel,
2013). This is the way to help the company retain employees most effectively.
1.4 Growth and sustainability:

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Growth and sustainability have two main meanings in the business and financial world:
 Sustainable growth, habitually, means the actual growth achieved by a company or
national economy that can sustain without glitches (Peavler, 2018).
 This term is often used by environmentalists, meaning that economic growth can
continue in the long term without insupportable pollution or use of non-renewable
resources (Rouse, 2013).
2. Industrial structures:
Primary Sector Extract Raw Material
(Pettinger, 2017)
Example : Oil extraction, ore
mining, forestry, etc.
Secondary Sector Produce finished Goods
(Pettinger, 2017)
Example : Petroleum
refinery, wood carving, etc.
Tertiary Sector Provide services, and retail
of goods (Pettinger, 2017)
Example : Bank, retail store,
school, etc.
3. Stakeholders and responsibilities:

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Source: United Utilities Group PLC
According to Morphy (n.d) stakeholder is anyone that has concerns, and can affect or be
affected by the company. They can be employees, who have a stake in the success of the
company, business partners, who rely on the company’s success to keep the supply chain going,
or even government, and the community (Stimson, n.d). Every business has a different
approach to the stakeholders. The role of stakeholders varies between businesses, depending
on the rules and responsibilities of setting up the company or when the business develops over
the years.
III. Responsibilities of organizations
1. Social responsibilities:
According to Mukher (n.d), Social responsibility means that individuals and companies are
obliged to act in the best interests of the society. The decisions made by companies can not be
merely to maximize the profit of the company, but must also take the situations, working

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conditions and protections of members of society into consideration, such as workers,
consumers and the community as a whole.
2. Environmental responsibilities:
According to Leask (2014), Environmental responsibility means that companies have duty to
protect the environment, in which they are placed at, and are obliged to recycle all waste the
company produces.
3. Ethics and business:
McNamara (n.d) claims that, Business ethics revolve around what actions taken by
company can be considered as “right”, or “wrong” according to the moral of stakeholders and
the laws.
4. Management Responsibilities:
Cross (2018) states that, the managers of a company are obliged to direct the company’s
talents and resources toward the goal of the company. However, as simple as it may sounds,
trouble can arise when the manager cannot meet the expectations of the company.
5. Public relations and Corporation image:
Public relations of the company soughts to project the image of the organization,
using data as well as subjective and emotional impressions, the image itself is a
complement to the public mind (Wynne, 2016).
Conclusion : As the economy and nature of business keep changing overtime, so does the
definition and understanding of business and Business Environment study. Researcher, scholar
and student must have a correct attitude toward it to avoid tripping in their career, and
knowledge. Hence, the Business and Business Environment must be studied from time to time.
Reference list:

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Cross, V. (2018). List of Business Management Responsibilites. [Online] Chron. Available at:
https://smallbusiness.chron.com/list-business-management-responsibilities-19119.html
[Accessed 29 Nov. 2018]
Emily, C. (2018). What is a sole trader? A small business guide. [Online] SmallBusiness.
Available at: https://smallbusiness.co.uk/what-is-a-sole-trader-small-business-2534818/
[Accessed 29 Nov. 2018]
Folger, J. (2018). What is an NGO. [Online] Investopedia. Available at:
https://www.investopedia.com/ask/answers/13/what-is-non-government-organization.asp
[Accessed 29 Nov. 2018]
Fritz J. (2018). How Is a Nonprofit Different From a For-Profit Business?. [Online] The
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