Thompson Rivers University MNGT 3711 Business Ethics Assignment

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Homework Assignment
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This assignment explores the multifaceted dimensions of business ethics and social responsibility. It delves into the critical interrelationship between businesses and society, analyzing the performance-expectations gap and the impact of awareness on stakeholder relationships. The assignment examines conflicts and the confluence of stakeholder needs, including perspectives and expectations, using examples such as Walmart's practices. It further investigates the impact of ethics and social responsibility on internal and external business forces, as well as the influence of readings and activities on workplace ethics. The analysis extends to the interrelationship between external forces, government roles, and the significance of recognizing stakeholder biases. The assignment also considers the impact of reflection circles in understanding business situations, the adoption of clean cookstoves, and the challenges of workplace diversity. The assignment uses examples like TCCC and Merck to highlight ethical dilemmas and social responsibility, and to demonstrate the importance of ethical conduct in business operations. The conclusion emphasizes the need for organizations to maintain trust, foster a good reputation, and adapt to evolving stakeholder expectations to achieve long-term success.
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Running Head: BUSINESS ETHICS
Business Ethics
Student’s Name
University Name
Author’s Note
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Table of Contents
1. Influence of awareness and understanding of the interrelationship between business and
society..............................................................................................................................................3
2. Challenges related to dealing with conflicts and Confluence of the stakeholder needs, wants,
expectations and perspectives..........................................................................................................5
4. Impact of ethics and social responsibility and their relation with internal and external forces in
business and Society......................................................................................................................11
5. Impact of readings and generally activities on my workplace ethics and corporate social
responsibility ideas........................................................................................................................13
6. Interrelationship between external forces..................................................................................14
7. Government as a force in business............................................................................................16
8. Role of generating activities in recognizing real or potential impact of stakeholder biases
including personal bias..................................................................................................................17
9. Most significant learning in the course......................................................................................18
Reference List................................................................................................................................20
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1. Influence of awareness and understanding of the interrelationship between business and
society
There were several incidents as well as official activities that took place under different
scenarios. These scenarios were considered under various negotiable circumstances and led to
various categories of decision making. In the first place, I would be discussing about the
activities that were undertaken in order to address the performance-expectations gap. Thee
anticipations of the stakeholders on various fronts were addressed on various fronts. In the first
place, there has been a demand for the reduction of the amount of water that was used by the
production department of the organization. In relation to this, the claim that was raised was that
the same sources of water were also being used by the surrounding communities also. Later
allegations were also raised against the company.
The community had expected the stakeholders of the organisation to be responsible towards the
community members and thereby regulate water uses in the industry. In fact, the shareholders is
expected that the organisation was protecting the interest of the community members and thereby
the expected that there would be no chance of any conflict regarding this issue. This is the
performance expectation gap, by means of which we can understand the difference as well as
relationship existing between business and Society (Sodeyfi, 2016). There is some basic
corporate responsibilities which business is have towards the surrounding society and
community is which also form part of the stakeholder community which they serve. In most
instances the organisations use resources, by sharing them with the stakeholders designated as
community members. In the same way as the organisation, in this case had used up access
resources, the community could have also done so there by accounting for crisis of resources,
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which is water in this case for the organisation which would have made it difficult for them to
carry out their operations.
The case study analysis conducted in the second question also highlights that there is an acute
active relationship between organisation and the physical environment. On most instances, as we
have derived as conclusion from the previous study, the organisation is mostly dependent on the
environment for their manufacturing processes. This is the reason which they need to extract,
mineral, fuel, air, water as well as other proponents of land from the environment (Aithal, 2016).
In this case, the model utilised for demonstration idealize is water as one of the resources, which
is required by the other communities more so compared to the organisation. if the organisation is
considered to be another community the availability of water could have been a crucial factor for
them also if it had been limited by theother communities like it.
In the third question, we find the organisation address in this interrelationship and the importance
of balance between business and Society by taking corrective measures to ensure water neutrality
and equality policy.
Another reference to interrelationship between business and Society is evident in the
demonstration of the ways in which Merck acted regarding the testing of vioxx. It is already been
established that businesses need to act in a socially responsible. However, in this case by
establishing that he did not act in a socially responsible manager regarding vioxx in context to
customers and shareholders should be established how negative actions of organisations can have
high impact account surrounding communities. Organisation was observed in fraudulent as well
as unethical actions which cost it later. They disregarded specific information against some
rectifiable risks that was imposed upon the the organisation because of the vioxx (Mory, Wirtz &
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Göttel, 2016). The transactions with the corrupted officials and representation of false report
about safety as well as security ended in in the loss of lives and others were thrusted into severe
diseases. The number of casualties had crores 50000 only because of the use of this medicine.
There was an Exhibition of disregard towards human life and appreciative interest only towards
profitability of the organisation. However, this case analysis and the actions and activities
undertaken in the case, can be highlighted in order to show that organisations need to win back
the trust of the communities within which they exist. This will help in development of good
reputation and that can be an intangible asset working in order to add financial significance to the
organisation. In this case the community affected by the negative actions of the company is the
extended base of customers of the organisation.
2. Challenges related to dealing with conflicts and Confluence of the stakeholder needs,
wants, expectations and perspectives
There are several challenges in relation to conflict as well as Confluence of the stakeholders
needs, wants, perspective as well as expectations. In order to substantiate this view the example
of Walmart, one of the biggest as well as most reputed retail Giants in the world, with their
operations spread in more than 90 countries can be highlighted. Walmart has a lot of activities in
adults towards establishment of organisational ethics as well as social responsibility. Forbidden,
the organisation has indulge in activities like conservation of environment, observing and
fulfilling the rights of workers, ensuring quality products to the customers and so on in Canada.
This shows that the organisation has been able to bring about positive impact on the community
they serve, through impactful implementation of social responsibility. On one hand where we
observe Confluence with the organisational ethics as well as the cost tomorrow and other
stakeholders' requirements, on the other hand it can be observed that the organization has also
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negatively impacted the community by involving into specific actions which tainted the
organisational refrigeration. As observed by Testa, Boiral and Iraldo (2018), the organisation has
been involved into practicing unjust activity regarding various group of stakeholders. In the first
place, they have been punishing their workers in an unjust manner by depriving them of their
rightful compensation or remunerations. Again, more alarmingly, Walmart was observed to be
infringing the rights of children in Bangladesh. This seemed to be knowingly increasing the rate
of emission of harmful Chemicals like carbon in the environment that had a large impact on the
community of children involve in working for the organisation in the less developed countries of
Africa and Asia. Again, it has also been observed that there is a large scale of difference between
the product quality is that organisation cells in the less developed countries and the highly
developed countries. These are some of the conflicting aspects that exist between organisation
and their stakeholders. Speaking of Walmart, it can also be highlighted that they have taken up
significant actions also like development of organisational leadership. The newly introduced
executive leadership of the organisation has made a note of enhancing the the hourly payment of
workers upto $9. Nevertheless, Walmart has also started to sell products which are helpful for
environmental conservation thereby creating a long term impact on the community where the
operate. Besides, in order to establish Confluence with the customer segment, big organisations
like Walmart uses big data over digital platforms in order to to create a database about the
consumers preferences which help them to stay ahead in competition from their competitors.
Researchers like Brammer, He and Mellahi (2015), have highlighted that in order to consider
under taking the best decision in favour of the stakeholders, the pros and cons of every issue that
is being dealt with by means of the decision should be considered.
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As discussed in the previous answer, the breach of ethics practiced by Merckk also violets the
social responsible manner in which organisations should conduct business. This was done
through broadcasting of the advertisement of vioxx. The organisation misinterpreted the
allowance of FDI to promote the drug to the medical Institutions so that they writeabout the new
drug hitting the market.
The organisation adapted to fake advertising by citing Olympics champion Dorothy Hamill. It
was later recognised that the company had been molding information which was vital for uses of
the drug. Like the previous instance, it has been observed on most occasions that the
organisations that generally goes into conflict with the interest of the stakeholders in the first
place, gradually retreats from their position in order to come to Confluence with the stakeholder
groups. This can be perceived to be acts of social responsibility which help them in assuming
brand loyalty among the customers (Martínez, Fernández & Fernández, 2016). Nevertheless, it
can be communicated in this regard that execution of activities as well as improvement of
welfare practices of community is very essential in order to be established as a socially
responsible organization.
The challenges in meeting the stakeholders Expectations have also been greatly reflected in
description of the ways in which widespread adoption of clean cookstoves helps in addressing
environmental issues around the globe. In this context, it should be addressed that stakeholder
groups are all those communities which are impacted by the operations of an organisation.
Naturally, standing in the twenty-first century, the issue of protecting environment is is a
compulsory concern for all business organisations and how to do so can be considered to be a
severe topic of debate. The smooth design of the stove, has a great role to play in limitation of
environmental hazard issues when compared to those gate stoves. This is user friendly and does
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not create any issues, or body damage to the customers like the previous kind of stoves. On top
of that insurance work place. This is how these stoves are not only contributing towards the
community but are also impacting the customer directly.
3. Impact of circles of reflection
Depending on the circles of reflection, I have understood how to breakdown every situation in
two circles of concern and circles of influence. In the initial phase, the researcher should be
taking time to analyse all aspects that kept him or her caught in the circle of concern. After being
reminded of all major circles of concern, he or she has to learn letting them go one by one. This
is when the circles of concern will be replaced by circles of influence. The circles of influence
our about us or processes that can be actually and actively influenced by the researcher himself
or herself. It does not draws evidences from potential sources that has impact in scenario in
business or in community. However it will be acceptable as a circle of influence in the researcher
has had a hand in exercising the influence or might be in a potential position to be able to
exercise that influence.
In the first place the issues facing the TCCC company would be considered for negotiation.
Regarding the issues highlighted in this case, it can reflected that the circles of concerned were
drawn by several incidents taking place. First and foremostly, there was lack of effective
communication between the stakeholders and shareholders of the organisation. On one hand the
shareholders where insured that the company was undertaking prosedure as well as processes so
that the amount of water that it was using could be reduced and thereby water consumption from
the local community source could be kept under a limit. As such, the shareholders were
confirmed that the organisation was generating value for the community (Bason, 2018). The
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disturbance was that the organisation had never implemented such a proceedure and it was a
rather surprise when fervent criticism rocket from the end of the surrounding communities
blaming the company for overuse of the water resource thereby leaving less than marginalized
quantity of water for the surrounding people to enjoy. Another circle of concern was that the
company has been producing products that left traces of pesticides. Hence the foundation of the
circles of concerned could be described as the inappropriate and inexplicable approach of the
organisation regarding their business and their failure in addressing the Expectations of the
surrounding communities, which form a significant part of their stakeholder group also.
In the next step circles of influence should be over taking the circles of concern. Firstly we can
highlight that there was active expectation performance gap in the organisation. Hence in order
to establish the first circle of influence, there should be direct intervention of shareholders for
shareholders representatives in the performance and operations of the organisation so that no
such gap occurs in the future. I believe that as executive heads of the organisation, the employee
should undertake actions for simplifying the hierarchical structures so that the organisational
ideals are not diverged when their undertaking their business operations. Lastly, the organisation
should avoid entering into legal battle by doing some socially responsible activity towards the
community that they have affected so far through their actions. They can take actions so that the
water consumption of the organisation is reduced, as well as in sure that the water supply to the
community households appropriate by establishing pipeline frameworks. We can also hold
meeting with peoples present in leaves of the local communities in order to as sure that they
would take significant measures so that traces of pesticides are not found any more in their
products.
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The next activity that can be highlighted in order to demonstrate circles of concern and influence
is the banning of tobacco promotion by the Canadian government. The Government of Canada
lawfully band in form of public demonstration for promotion of tobacco brands or tobacco
products. The cycles of concerned are that this move of the government will directly impact the
direct stakeholders to the organisations dealing in tobacco (Guerrero et al. 2016). The managers
of these companies who are responsible for running organisations and developing the primary
policies will be affected at first. Besides organisations and their executive members will also be
in problem regarding establishment of strategies that can help in ensuring the profitability of the
company. Nevertheless it is evident that the circle of concerns also includes and impact on the
employees who might lose their work since the business volume might go down abstractly. Lots
of people in Canada are consumed in various departments of tobacco companies like processing,
advertising, marketing as well as customer care. As it seems of now these positions will be
redundant in organisations and therefore the people playing active role in this positions will no
longer be required by the organisations.
The circles of influence are rather negotiable in this context. This is because will influence the
people in the family settings in the country. In the first place people might lose their job from
tobacco companies, but they would be relieved of the tension of lung cancer throat cancer,
Bronchitis stroke, foetus malfunction as well as other forms of cardiovascular disorders. They
would be relieved of the emotional turmoil of family members were always concerned about the
adverse effect of tobacco that the victim might incur any day because of tobacco consumption.
Tobacco consumption also manipulates in development of smoking habits among children who
consistently watch their years for your parents smoking for a considerable period of their life
(Morioka & de Carvalho, 2016). Hence, in this regard it can be highlighted that although the
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circles of influence are not able to amend the disturbances caused to the tobacco companies or
their stakeholders. Nevertheless, the circles of influence can be extended by the government and
other corporate stakeholders to the communities by observing the relieved employees of tobacco
companies in other domains. This is a societal cause that can have large impact upon the society
by manipulating several hundred thousands of people by deviating them from the path of
intoxication. Nevertheless, circles of influence extends two activities that I can undertake myself
in order to make the circles of concern, redundant. In this regard I would say that if I would have
been posted in executive position of such organizations have diverted the budget and Advertising
efforts to promote CSR activities in rather than direct marketing. By extending significant
benefits towards communities I would ensure brand loyalty and brand awareness and thereby
make positive publicity possible, without even having to endorse the products generated by our
brands. The second circle of influence would be indicated towards nullifying the impact of of job
losses. I would do this by engaging activities as well as events that attracts mass population
where organisations attracted to visit and appoint people. Again this event would not use any
brand name other highlighting only the name of the organization that would be endorsing and
arranging such events. As per my expert is I would be influencing and exercising my activities
towards the sports events and demonstrate the company’s name. This will ensure that significant
number of people would attend those events and this would definitely create brand awareness.
4. Impact of ethics and social responsibility and their relation with internal and external
forces in business and Society
Ethics and social responsibility are often not needed to be demonstrated through unique actions
or activities of organisations. The procedures they carry out in conducting their business
activities determine the responsibility towards the society. We can give the evidence of Walmart
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in this context which is a renowned retail organisation with operations spread in most of the
reputed countries of the world. This case study undertaken for this module activity regards the
CSR activities undertaken by Walmart in Canada. The objectives of such activities include
environment conservation, ensuring quality products for the people, providing the rights to the
workers and so on. Ethical responsibilities of the organisation were fulfilled by providing quality
products as well as observing the workers’ rights. Social responsibilities involved environment
conservation and also the other two forms of activities they have undertaken. Considering the
activities undertaken by Walmart in Canada, it can be clearly highlight is that they have impacted
the external as well as internal forces of business and societies. However, the impacts of the
operations of big companies like Walmart are not always positive upon the society (Morioka &
de Carvalho, 2016). For evidence in in several communities Walmart has been alleged to be
engaged in operations which tainted their reputation. For evidence in Bangladesh, The
Organisation was found to be impacting the rights of internal stakeholders. Evidence they were
found to be infringing children rights by appointing a significant number of child workers. On
top of that, poor societal values were demanded by the organisation by providing the children
with less than minimum wage and not even otherwise it facilities like expenses for schooling
other than the minimum wages provided to them.
Moreover, external communities in the society were also impacted by instrument in emission of
harmful Chemicals like carbon as well as sales of products that were of significantly poor
quality.
The evidence of Walmart can also be provided to site how how impacts upon external and
internal communities or business and Society impact the business growth of organisations also.
Social responsibilities are good strategies of attracting customers since customers prefer
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organisation that follow significant business ethics. In this contact, it can be highlighted that
Walmart has impacted several local companies by supporting them in their ventures. Rather than
financial support or supporting their resource allocation, Walmart has helped them to make their
products or services reach for other communities by exporting them.
5. Impact of readings and generally activities on my workplace ethics and corporate social
responsibility ideas
I would like to highlight that the journalling activities most impacted my ideologies regarding
work place ethics or corporate social responsibilities. Breathing help me to register the
theorization of how these aspects take shape in business and societies. Exclude the readings and
understood corporate social responsibility has wider demonstration and significance towards
internal and external communities of business. Again workplace ethics are a significant part and
are closely in relation with demonstration of corporate social responsibility. This was
demonstrated in the case study of the TCCC company. The organisation did not undertake proper
workplace ethics because of which they ended up in violating the community rights of the local
stakeholders (Gond et al. 2017). On the other hand they would not have needed any further
actions in order to demonstrate corporate social responsibility. They should have only limited
their water use and rationally explode the nearby water resources so that equal distribution of
water from the come sources to the local communities and the water is always of the company
would have happened.
The demonstration of workplace ethics with best regards to the values of of the term have been
made by Hewlett Packard in their CSR programs. According to the research evidences of Porter
and Kramer (2019), it can be easily highlighted that the consumer preferences are leaned in
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favour of an organisation that undertakes CSR activities as opposed to the company’s that are
bothered about Shallow profitability. In this regard it can be highlighted that the methods that
organisations implement in order to derive competitive edge are most important. This is because
the customers have a perception that organisations take advantage of them when they purchase
their products. However this perception is nominalized when the customer segments observe that
organization generates value towards society. In demonstrating the ideology behind the concept
of CSR Grigoriou and Rothaermel (2017), highlights that customers feel that they have been
taken advantage of by the organizations that needs advantage of the surroundings. This is a
mystery which held packet is aware of and thereby indulges in several CSR programs. Firstly the
Smart car program of the company helps them to invest in Alternative energy. They have a
strong sense of workplace ethics as well as corporate project holding. The project impact the
writing abilities of of their staff by encouraging them to indulge in exercise like bike riding while
travelling to workplaces. The employees are also encouraged to standby carpal stroll and thereby
practice the recycling attempts. Pulaski, I should speak about the general activities regarding the
case scenario of tobacco companies in Canada. The executive activities demonstrated there,
helped me to understand the value of workplace ethics.
6. Interrelationship between external forces
The Global reach of businesses has made their atmospheric dynamic and Diversified. The Three
Types of diversification that business organisations mainly undergo are concentric diversification
which refers to addition of new processes as well as products or services horizontal
diversification which relates to addition of new or unrelated products or services for the present
customers and lastly conglomerate diversification usable starting new as well as related products
and services. Choose diversification strategies globalisation, Technology, economics as well as
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environment are addressed. In this regard it can also be an exercise to that these factors
determine the level of internal influences of business (Chan, Cheung & Lee, 2017). These factors
also determine the positioning and idealisation of businesses. Firstly, most Global organisations
believe in employee satisfaction and development. Business is about dealing with people and
caring about employee satisfaction and providing for the development needs are some of the
objectives that has enlightened the business Enterprises. We can take the example of
organisations like Walmart which provided for employee satisfaction and development on one
hand and breached the employee rights and confidence on the other hand also. Their practices in
Canada insured stable employee rights and in the other countries it was observed that the same
Organization was violating the employee rights under their corporate veil (Heras-Saizarbitoria &
Boiral, 2015). In specific third world countries, it was observed that Walmart was not offering
appropriate minimum wages to workers and their also depriving the child workers of their human
rights. Nevertheless, the case studies also reflect a professional development strategy of the
organization where by personal leaders would be appointed in order to take major steps to
develop the working condition of Walmart workers. Examples include the enhancement of the
minimum wage rate to $9 Dollars per day.
We can observe a blend of values like offering quality products and services and technological
advancement of organisations. This is evident in the development of the clean cookstoves with
smooth design intended to reduce the environmental hazard chances by creating less smoke and
suit and also provide safe workplaces for people who uses their stoves for their livelihood. Again
a negative demonstration of the the importance of ensuring consumer safety is evident is the
impact caused by the toxic chemical formula of vioxx.
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The case study of the clean cookstoves also demonstrates that innovation is needed for ensuring
market leadership as well as sustainability of advancement. Business environment are often
controlled by the government also and fluctuation of government regulations and policies of it
makes it difficult for organisations to generate value towards their customers for stakeholders
like their employees. The same happened with the tobacco companies of Canada (Trieu, 2017).
After the government establish the policy of prevention of active promotion of tobacco products
or brands in any forms, the marketing, advertising, processing as well as promotional teams of
the several tobacco companies of Canada became redundant. Insert dynamic business
atmosphere, the journalling study of that module helped me to understand how I might undertake
executive decisions in order to amend such situations.
7. Government as a force in business
The government can be recognised as an external force in businesses with the potential of
determining and alternating business decisions. Hence it should be recognized as a potential
stakeholder also. In the journalingactivity of part A made me comeacross the decision of the
Government of Canada regarding imposition of ban on the promotion of tobacco in the country.
Since government decided that consumption could have adverse effects on the country’s
economy, social life and family lives of the people in the country, if decided to ban mainstream
media advertisement suggest TV, radio as well as newspapers along with digital media
promotions. Various stakeholders were affected by this government decision which includes the
companies producing and selling tobacco, the hypermarkets as well as retail shops selling them
as well as advertising and promotional agents involved with them. This proves that the
government is also an active stakeholder in businesses that might alternate business decisions
according to their own free will. There are other indirect groups who are impacted by imposition
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of banned by the government. It is the customers insured by bringing about this market
regulation. Nevertheless, as an external stakeholder to the company the government is also
affected by the monetary value generated against tax collection, licence provision and so on in
order to enable the organisation to fulfill their obligation towards the electorate (Testa, Boiral &
Iraldo, 2018). Thereby eliminating advertising in the industry government also loses significant
revenue through their taxes. The medial uses of big segment of customers with this government
moves since tobacco producing and selling organizations will no longer need advertising.
8. Role of generating activities in recognizing real or potential impact of stakeholder biases
including personal bias
In the first place we should talk about the government decision taken in Canada regarding
putting a ban on together companies making active promotion of their products or brands. This is
the differential perspective imposed by the government on businesses in the country which
exercised a heavy influence upon the media as well as public opinion along with business
decision making and the societal stakeholders also. The master revenue that was generated by the
media by advertisements and promotions in traditional channels like television radio and so on
was stopped suddenly. Besides, the government had the intention of direct impacting public
opinion regarding tobacco consumption and being influenced by the promotion of tobacco
brands. Regarding business decision making of tobacco manufacturing organisations it was
observed that the government could have the maximum impact. The business stakeholders of
organisations at various levels were largely impacted including the employees, managers
customers as well as suppliers and advertisers. This is because creation of demand for product in
the market is largely dependent on Active promotions and Advertising. Instead, the executive
members of the organisations have to take other means like engaging their budget in active social
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responsibilities, by means of which they could create brand Awareness of the organization in the
mind of the potential customer bases. The case analysis of Merck regarding development and
testing of vioxx also explains the impact of Differential stakeholder opinion in various domains.
It was initially a profit making organisationfrom however after exposure of the scandal regarding
the medicine, the media companies in contract with organization have to cancel it immediately
because of which both the organization as well as media Agencies that had processed their
advertisements already, I had to cancel it. Most importantly it is the society and the business
decisions that impacted the outcome. The organisation how to provide heavy compensations
which they were not prepared for and regarding the society the number of death tolls speaks for
the amount of impact.
9. Most significant learning in the course
The most important learning outcome of this course was an understanding of the influence
interrelationship between business and Society. Almost all the journalling activities as well as
case studies in this course starting from the role played by the TCCC company and ranging from
Walmart to the development and testing of vioxx, how business and Society is interrelated where
established. I also founded through the activities that organisations might face a lot of challenges
in fulfilling the stakeholder needs, wants, perspectives as well as expectations. The same
occurred with the case of imposition of ban on promotion of tobacco products in Canada as well
as in the case of TCC company where there was a expectation and performance gap that led to
undertaking of legal action against the company for observing excessive water from common
reservoir as well as leaving behind traces of pesticides in their products. The importance of ethics
as well as social responsibility regarding the internal and external forces is also understood
example in the module. The greatest learning achievement in this course would understand
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through proper demonstration the importance of Corporate Social Responsibility towards
organisations and Society. Finally I would like to comment to that I understood that the intrinsic
aspects in organisation like Consumer Protection, employee rights, employee compensation rate,
workplace diversity and so on are directly related to Innovation and improvisation based on
external forces affecting the companies like globalisation, enhancement of technology, changes
in economic Spheres as well as environmental changes affecting businesses and other
stakeholder communities.
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