ORGB60390 - Business Ethics: Ethical Issues and Stakeholder Impact

This presentation provides an overview of business ethics, defining it as the study of relevant business policies and practices concerning potentially controversial aspects. It emphasizes the importance of ethical practices for organizations to establish a strong market position and achieve their goals. The presentation identifies environmental responsibility as a major ethical issue faced by IKEA, discussing its impact on shareholders and employees. It proposes steps for IKEA to address these issues, including going green, forming an EMS team, using renewable energy, and training employees. The conclusion highlights that adhering to ethical standards enables businesses to create a positive image and gain a competitive edge, while ethical lapses can negatively affect stakeholders.

Business Ethics

Introduction
 Business ethics is
defined as study of
relevant business policies
and practices regarding
potentially controversial
aspects. It is also refers
to as standards for rights
and wrong conduct in the
business.

Ethics issue that the company have
faced
 Ethics are the moral principles
that enables business to
determine what is right and what
is wrong.
 It is essential for the
organization to follow ethical
practices in order to create
strong position in the market and
achieve desired goals and
objective.
 It also help them to gain
competitive advantage in the
marketplace. In context to
IKEA, one of major ethical issue
faced by the company is related
to the Environmental
responsibility.

How did the ethical issue faced by the company affect
different stakeholders
 Shareholders: Any kind of ethical
issues directly impact the
profitability of the company, which
in turn not shareholders not able to
get proper return or share of profit.
 Employees: Ethical issues will
also impact the employees of the
organisation, in terms of not able
to get satisfied services of
outcomes. Also lack of clarity of
roles and responsibility will also
impact the performance of
employees.

How company dealt with the ethical issue
The various steps that can be
considered by IKEA to deal with
ethical issues are mentioned below:
 Determining and analysing the
ways to go green
 Developing EMS team in order to
implement and oversee changes
 Moving towards use of more
renewable energy as well as
sustainable products
 Training and motivating employees
to work towards changes and
strategies implemented in regards
to environment.

Conclusion
From the above presentation, it has been concluded that
following required ethics enables business organizations
to creative strong and positive image in the marketplace
and gain competitive advantage also. This presentation
helps in analysing that that ethical issue creates barrier
for the company, also it affects the stakeholders such as
shareholders, employees and customers.

References
 Finn, D.K., 2021. Business Ethics and Catholic Social
Thought. Georgetown University Press.
 Hamington, M., 2019. Integrating care ethics and
design thinking. Journal of Business Ethics, 155(1),
pp.91-103.
 Hunt, D.M. and Radford, S.K., 2018. Teaching
Business Ethics: How to Use Experience-Based
Projects to Achieve Higher-Order Learning
Outcomes. Journal of Business Ethics Education, 15,
pp.169-183.