Business Ethics Report: Ethical Considerations for Superdrug

This report provides a comprehensive analysis of business ethics, using Superdrug as a case study. It begins with an introduction to business ethics, defining its scope and relevance, and providing a brief overview of Superdrug's business. The report then delves into theoretical ethical approaches, comparing and contrasting absolute and relative ethics, and explaining the ethical issues affecting operational activities. The analysis further explores how ethical considerations affect business objectives, assesses the role of the organization as a moral agent, and examines mechanisms for achieving employee involvement. The report also includes research on current ethical issues affecting Superdrug and proposes improvement processes, along with suitable ethical codes. The report draws on various ethical theories and real-world examples, highlighting the importance of ethical practices in business operations and decision-making. It covers topics such as employee treatment, social networking, ethical frameworks, and the impact of ethical considerations on business objectives, providing valuable insights into the practical application of business ethics principles within the context of Superdrug's operations.

BUSINESS ETHICS

Table of Contents
Introduction:...............................................................................................................................2
Task 1:........................................................................................................................................4
1.1 Background and development of theoretical ethical approaches:........................................4
1.2 Compare and contract absolute and relative ethics..............................................................5
1.3 Explain the ethics issues which can affect the operational activities of business................6
Task 2:........................................................................................................................................8
2.1 Explain how the business objectives are affected by ethical consideration.........................8
Task 3:......................................................................................................................................11
3.1 Assess the role of the organization acting as a moral agent ..............................................11
3.2 Analyse the development of mechanism for achieving employee involvement................12

Task 4:......................................................................................................................................13
4.1 Research current ethical issues affecting a selected business............................................13
4.2 Improvement process of business......................................................................................14
4.3 Suitable ethical codes.........................................................................................................15
Conclusion:..............................................................................................................................18
Reference list:..........................................................................................................................20
Introduction:
Business ethics is a form of ethics of any particular business. It also examines the
moral ethical problems which arise in a business environment. Business ethics is applied to
all aspects of business conduct which is also related to the conduct of an individual. There are

generally four elements in business ethics such as responsibility, commitment, quality and
reliability. Superdrug is a popular health and beauty product retailer in UK after Boots.
Superdrug was established by Ronald & Peter Goldstein in 1964 (Superdrug.com, 2016).
This popular retail currently has more than 787 outlets across UK and Ireland. This
popular health and beauty product retailer has appointed a consultancy guide the organization
on its ethical behaviour and conduct. As stated by Bunge (2012), Superdrug has recognized
the importance, value and benefit of managing the business sustainability. It has been noticed
that Superdrug was committed to follow the environmental good practice, social
responsibility and maintain economic prosperity (Rutherford et al. 2012, p.176). The
organization has been purposefully lobbying and the government has not just reduced the
VAT rates out of the blue (Brenkert and Beauchamp, 2012). On the other hand, Superdrug
has started selling of range of beauty products which have not being tested on animals. Those
products carry the logo of “British Union for the Abolition of Vivisection” (Zikmund et al.
2013).

Task 1:
1.1 Background and development of theoretical ethical approaches:
As stated by Ferrell and Fraedrich (2015), theoretical ethics is concerned with norms,
values and beliefs embedded with the social process. Theoretical ethics defines the right and
wrong for the organization like Superdrug. Every organization has a morality because this
constitutes the basis for mutual beneficial interaction. Those fundamental rules are
considered as rules and regulations for the employees. Rutherford et al. (2012, p.179) opined
that ethics is the branch of philosophy which focuses on the morality of things. On the other
hand moral principles are applied to everyday life. Theoretical ethics includes applying value
which may range from religious principles to customs and traditions (Leroy et al. 2012,
p.258).
According to Bondy et al. (2012, p.284), ethics is a set of moral principles which
distinguish between the rights and wrongs. It has been observed that different organizations
have followed different ethical theories such as consequentialist theories, non-
consequentialist theories and agent-cantered theories. The consequentialist theories are
primarily concerned with the ethical consequences of particular action (Acevedo, 2012,
p.199). On the other hand, the non-consequentialist theories are generally broadly concerned
with the intentions of the person for making ethical decisions about the particular actions (a
et al. 2012, p.287). The agent-cantered theories are more concerned about the more ethical
status of individuals or agents. The agent-cantered theories are less concerned to highlight the
morality of the particular actions (Bunge, 2012).
It has been noticed that higher officials of Superdrug have implemented the
consequentialist theories for maintain the ethical consequences of every operation of the
organization (Brenkert and Beauchamp, 2012). The business consultant has critically
observed different approaches such as duty-based approaches, rights approach, utilitarian
approach, virtue approach, fairness or justice approach, common good approach and egoism.
After observing different types of approaches, the business consultant has advised to follow
the duty-based approach. As stated by Bondy et al. (2012, p.286), duty-based approach is
called deontological ethics which was implemented by the philosopher Immanuel Kant.

According to this approach, the activities of the higher officials is not always
highlighted the consequences of the aim of the organization but those activities have proper
intention in performing the action. As stated by Ma et al. (2012, p.287), the fairness or justice
approach is appropriate for organization. Fairness or justice approach is a law code of
Hammurabi in Ancient Mesopotamia. According to this approach, all free men should be
tracked alike, just as all slaves should be treated alike. Organization can combine universality
along with this approach for implementing the justice approach for all human persons or
employees (Zikmund et al. 2013).
Ethics is related to the values and principles that are used by the business organization
so that they can perform their operations in a smooth manner. Through the ethical princilpes,
they will be able to know that how they have to behave in the market in order to provide
benefits to the society. Some of teh ethical approaches can be used by the enterprise such as
virtue ethics, deontology, consequentialist, morale relativism. Now a days this activities are
followed by the Superdrug.
Business Ethics evelved over the time as before people only believe on the cultural
values they does not took into consideration the social values that peotects the environments
and the young minds wantede to make innovations in the products using their own skills and
abilities and the workers in the organisation found their work more ethical than the previous
time. The companies established different code of conduct for the employees so taht thwere
will be systenmatic flow of work in the organisationsb and all the employere will be treated
fairly at the work place.
1.2 Compare and contract absolute and relative ethics
Ethical absolutism is a one side of the spectrum in ethical theory. Ethical absolutism
claims that there are eternal, universally applicable moral principles. According to Voegtlin
et al. (2012, p.12), ethical absolutism determines the qualities of the right and wrong
objectives. It has been noticed that absolutism allows the moral rules which can be evaluated
critically. The management of Samsung and HCL have implemented absolute ethics so that
every employee is treated the same way (Leroy et al. 2012, p.261). According to absolute
ethics, the managers of the organization need not change the moral only when the moral rule
is right (Bunge, 2012). Therefore, the managers would not need to develop different rules for
different employees because absolute rules are universal. It has been noticed that the

absolutist theory has no place for evolutionary nature in humanity in general condition. On
the other hand the absolutism does not consider the situation whereas it simply ignores the
circumstances in which ethical judgements have been made.
On the other hand the ethical relativism provides the morality in the different
departments of the organization. The relative ethics ensures that there are no universal rights
and wrong that can be rationally determined (Zikmund et al. 2013). It has been observed that
the relative morality simply takes the stance that no single set of moral rules can possibly
account for any situation. As opined by Rutherford et al. (2012, p.175), in some
organizations like Tesco, General Electric and Greenergy, a moral decision is made
rationally, taking into account the consequences to each potential choice. It has been
observed that Superdrug fails to appreciate certain moral values which are universal due to
maintaining relativism ethics. On the other hand the managers have observed that the job
ethics is essentially descriptive. Those are most disadvantages for maintaining relativism
ethics.
However, it has been noticed that cultural relativism reduces the meaning of good
which is socially applicable. As per popular news report it has been observed that the
manager of General Electric has terminated 2 employees for poor performance (Brenkert and
Beauchamp, 2012). However, the employee termination is against the company ethics but
poor performance is not acceptable to the managers. Therefore, it may be more difficult to
decide when the rules need changing in different circumstances (Zikmund et al. 2013).
Absolute ethics is related to the one specific ethic or code of conduct that
should be followed by the people. On the other hand, it is said that relative ethic is based on
the concept that no one follow any specific principles because all human beings are different
from each other. On the basis of the absolute it can be stated that Superdrug can idenitify the
difference between the right and wrong and from the another aproach it cannot be analysed.
1.3 Explain the ethics issues which can affect the operational activities of
business

As opined by Myers (2013), the managers have faced ethical issues in business. It
has been observed that more than 30% employees of a Multinational company face
workplace harassment for using of social networking sites. It has been found that comments
regarding employers or colleagues on social networking sites are costing employee jobs
across UK (Hill and Jones, 2013). Therefore, its consequences in the workplace affect the
business industry because the employers are setting policies regarding use of social
networking sites during working hours (Ferrell and Fraedrich, 2015). On the other hand, the
employers have devised a policy about the use of social networking sites when they are off
duty.
It has been noticed that Cisco Systems Inc has developed a software program such as
Cisco SocialMiner which monitors their employees in social media (Ma et al. 2012, p.289).
The organization has claimed that their advance software system monitors the status update,
forum posts and blog posts in real time.
As opined by Rutherford et al. (2012, p.177), some organization has faced issues
regarding equally maintained payment for the employees. If the organization follows the
federal and state laws, organization has to pay equal salary to the employees who perform
same works. On the other hand, the organization is liable to increase the salary of the old
staffs. Therefore ethical dilemma arises (Leroy et al. 2012, p.264).
As argued by Bondy et al. (2012, p.282), maximum private organizations have faced
some ethical issues such as :
 Terminating employees in unsafe working condition
 Producing unsafe products for the customers
 Avoiding proper monitoring process and technology help
 Recycling of waste product
 Profiling from products bad for health or people.
There are some of the ethical issues that can affect the operational activities of
the business organization. Some of the issues are related to the decision making

process, diversity and governance issues. Along with this their are some of the
fundamental issues that are related to the trust and integrity among all the co-workers.

Task 2:
2.1 Explain how the business objectives are affected by ethical
consideration
It has been observed that Superdrug managers have applied the consequentialism
ubiquitously in the organization. The manager wants that, all implemented decisions should
have measurable consequences. As stated by Bunge (2012)),deontology requires a rule to
governs a decision. It has been noticed that not all decisions have a rule or associated duty
with them. Sometime managers have followed the virtue ethics to examine the decision in the
context of one’s character (Brenkert and Beauchamp, 2012). However, due to some ethical
issues the managers follow consequentialism ethics systematically.
It has been noticed that Superdrug has operated their business globally and interact
with different cultures and commercial systems. There is no confusion that Ireland market is
totally different from UK market (Weiss, 2014). Therefore the marketing experts have
followed ethical frameworks to guide the administrative decision in foreign market so that
the business aim remains firmly based and the organization maintains the social responsible
principles (McGee, 2012). However the business ethics of Superdrug has been affected by
ethical consideration such as:
Unfair employee treatment strategy:
The managers have followed an ethical approach to promote the safety and security of
the employees. According to company terms and policies, the organization has to provide the
living wage as a form of additional benefits (Zikmund et al. 2013). It has been noticed that
organization has stopped the proposed benefits for uncertain period. Then organization has
claimed that those employees performance were not good.
Engagement in sustainable manufacturing process:
It has been observed that the organization has implemented a business lobby with UK
government to reduce the Value Added Tax on some lifesaving drugs (Hill and Jones, 2013).

On the other hand the organization has sold their skin care products and other brand products
without tested on animals.
Business objectives of Superdrug are get affected due to the ethical issues. In
order to resolve all ethical delimmas the company have to use all the laws and regulations
that are made by the state government. Some of the objectives are profitability, higher sales,
social responsibilities and so on. For example, the firm of United Kingdom can follow the
equity act in order to provide minimum wage to all the worker.All the employees should be
treated fairly at the workplace this leadas to the retention of the employees for long time in
the organisation.The ethical consideration focuses on the concept that the employees should
minimise the negative effects taht harm the environment and deploy the natural resources of
the environment. There should be proper rules and regulations at the work place which could
have positive impact on the environment.The Superdrugs are the healthy and the beauty
retailers that operates in the united kingdoms and their fulfillb their objectives and the
functions that is not to harm the consumers and the drugs are consumed not to harm the
environment aspects.
2.2 Evaluate the implication for a business and its stakeholders to operate
ethically
As opined by Audi (2012, p.274), management of organization has to follow good
ethics which will be accepted by the society. However, after some days the issues in the
ethics will arise. It has been noticed that management system of Superdrug operated by the
laws of honesty and consideration will be preferred over a competitor. As opined by Ma et al.
(2012, p.292), government is one of the stakeholder of this organization. The UK
Government has already reduced the VAT of some lifesaving drugs. However, it has been
observed that the organization has maintained dual image in the UK. Primarily they sell
lifesaving drugs in cheap price. On the other hand they have sold the untested cosmetic under
the logo of “British Union for the Abolition of Vivisection” (Torugsa et al. 2012, p.485).
Therefore, the organization has not maintained proper ethics in their business operation.
Customers:
Apart from Government, customers are also affected by the business strategy of
Superdrug. The business strategy has expressed the mix effect in the market. Superdrug
maintains ethics by reducing the price of some health and skin care products. On the other

hand the organization has sold untested products along with the government logo. This
particular lobby with Government is unethical.
The activities of the business organization are based on their stakeholders such as
customers, employees, competitors, government and so on. If all these people perform their
operations ethically then Superdrug will be able to improve their growth, competitiveness can
be achieved, all business objetives can be accomplished and overall performance of the firm
can be enhanced in an efficient manner. On the other hand, if they are not performing
business on ethical manner then due to this their image get affected and they will not be able
to attract number of customers towards their services.
The positive aspect of super drug is that it can compete in the market place and they will
never fight any competition with the competitor because the behaviour predicts that may not
obey the law the rules and the regulations are not ethical and they strive for the competrition.
It is also known as the largest retail store and it has its own team of nurses who are running
this store. The negative aspect of superdrug is that it does not harm to the consumer nor the
environment.
Task 3:
3.1 Assess the role of the organization acting as a moral agent
As stated by Voegtlin et al. (2012, p.8), Superdrug has implemented the lobby with
UK government. The government has reduced the Value Added Tax of some health and
beauty care products. It has been observed that the organization has acted as moral agent
through its organizational integrity. Superdrug has implemented the some strategy to
maintain ethics.
Organizational integrity:
Superdrug has not maintained properly organizational integrity. According to ethical
structure, the organization has not maintained the proper accountability, alignment and code
of ethics with the customers as well as employees (Torugsa et al. 2012, p.487).
Working condition: