Business Ethics Report: Analyzing Ethical Practices for Yahoo Company

This report delves into the realm of business ethics, focusing on its significance and practical application within the context of Yahoo, a prominent American multinational corporation. It begins by defining business ethics and its role in guiding organizational behavior, emphasizing the importance of ethical principles in achieving market value, brand image, and competitive advantage. The report then explores various theoretical ethical approaches, including deontology, teleological ethics, and utilitarianism, providing a foundation for understanding different ethical frameworks. It analyzes the concepts of absolute and relative ethics, highlighting how these perspectives shape ethical viewpoints within a business. Furthermore, the report examines ethical issues that can impact Yahoo's operational activities, such as legal and regulatory compliance, employment law, and internet censorship. It underscores the need for organizations to establish ethical codes and mechanisms for employee involvement to foster a responsible and ethical business environment. The analysis extends to the implications of ethical considerations on business objectives and stakeholder relationships, emphasizing the role of organizations as moral agents in upholding ethical standards and practices. This report provides valuable insights into navigating the complexities of business ethics and its impact on corporate success.

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Background and development of theoretical ethical approaches.....................................3
1.2 The concept of absolute and relative ethics......................................................................5
1.3 Ethical issues which can affect the operational activities of Yahoo................................6
TASK 2 ...........................................................................................................................................8
2.1 Business objectives are affected by ethical considerations..............................................8
2.2 Implications for Yahoo and their stakeholders to operate ethically.................................9
TASK 3..........................................................................................................................................11
3.1 Role of organization acting as a morale agent ...............................................................11
3.2 Analysing development of mechanisms for achieving employee involvement and
empowerment ......................................................................................................................12
TASK 4..........................................................................................................................................14
4.1 Current ethical issues affecting business enterprise ......................................................14
4.2 Improving ethics to meet objectives ..............................................................................15
4.3 Stating an ethical code....................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business ethics are generally termed as the principles that define a direction or a way to
the business. Set of principles is helpful for the business as well as individuals because it
determines an action plan to apply an appropriate structure in the organisation. It is also stated
that working as per the specified set of ethics is highly beneficial in distinguishing between the
right and wrong thing/choice. This eventually assists the workforce in identifying the illegal,
unethical and immoral business practices and operations. Thus, it is necessary for an organisation
to define a set of ethics or principles in order to gain better market value, generate brand image
and attain competitive advantage (De George, 2011). Organisation has wider level of
responsibilities and obligations in maintaining a hold on social and culture values of the society.
Moreover, they should decrease the level of environmental and working impacts of the business
by adopting corporate social responsibilities.
The report is providing information about the importance and significance of business
ethics in context of Yahoo, which is an American Multi-National Company (MNC), started its
business from California. It is widely popular for being as a global web portal and a search
engine. It also provides many products and services as sending & receiving emails, online video
browsing, instant messaging, money transferring, news, weather forecasting, etc. In addition to
the information provided by the report, the content of study includes different perspectives of
ethics and impacts of such perspectives (Fassin, Van Rossem and Buelens, 2011). Along with
this, it concentrates on understanding the necessity of ethics in working relationships and
assessing the ethical issues in business.
TASK 1
1.1 Background and development of theoretical ethical approaches
Business ethics are specified as a set structure or a code of behaviour which directs the
management and organisation to work as per the ways and attitude that are appropriate to deal
with the market. However, structuring and constitution of the business ethics highly depend on
formation and working of the business. Business ethics enable the organization to perform the
functions, monitor them and control the outcomes in order to maintain the level of standards and
regulations (Trevino and Nelson, 2010). Every business aims at developing a strong customer
satisfaction level and maintaining it certain position. In that case, management of the

organisation needs to define a set of moral principles which they need to be followed, valued and
overcome in their work in order to be successful and attain higher level of profits.
Similar to this, ethics are essential for organisation like Yahoo in maintaining their
market position, customer value and brand reputation. Such organisation specifies a code of
ethics to control flow of the business and guide employees in further operations and overall
managerial functions (Benn, Dunphy and Griffiths, 2014). In that case, organisation should
consider following concepts of ethical structuring and development: Deontology Theory of Ethics – The approach is based on information about the
importance of identifying perfect set of actions rather than defining the possible
outcomes. It basically deals with the moral systems that are characterized mainly to focus
on the attention of business upon its attachment towards organisational moral rules and
duties. For this, management of the firm needs to address proper moral choice and
understand the significance of moral duties towards corporate social responsibilities.
Further, they need to define a set of actions for regulating such duties. Moreover, the
purpose of this approach is to maintain a control on actions performed by the
management and their individuals (Murphy, 2010). Along with this, it minimizes the
applicability of wrong plan of working and functioning of the business. In addition to
this, it reduces the impacts of negative business operations and functions on corporate
and social image of the organisation. Thus, the approach highly targets on working
morally and increasing the customer's value. Teleological Theory of Ethics – It is termed as the approach which basically deals with
all the consequences which are generally faced by an ethical action. The approach
describes about an ethical perspective that aims at ascertaining positivity or negativity of
actions which are settled solely on the basis of goodness or badness of their
consequences. It is determined that concept of the approach is to maintain the level of
ethical impacts and consequences on the business operations and functions. Because in a
strict teleological theory of ethics, business activities are virtuously neutral when
determined apart from their actual consequences (Jones and et.al., 2013). In that respect,
business needs to assess the proper set of actions and accordingly, define the possible
outcomes of consequences. For example, ethical egoism and utilitarianism are the
examples of teleological theories.

 Utilitarianism theories of ethics – It is one of the most popular and powerful moral
theories based on ethics and morale values. The basis concept of the theories is based on
other forms of consequentiality where the core idea is to generate actions are that are
morally right or wrong which directly depends on their structure and effects. Generally,
the only effects of actions that are applicable for assessing good and bad results. A key
element in this article concerns the discrimination between individual actions and set of
actions. Utilitarian's act focus on the effects of individual actions while rule utilitarians
directs on the effects of types of actions.
1.2 The concept of absolute and relative ethics
Ethical theories are generally based on the effectiveness and results of the business
actions which can be negative or positive but they affect the functions and operations of the
organization. Considering this statement, company focuses on working as per the defined set of
duties and structure stated by business. It is determined that working ethically and morally
supports business in achieving greater values from the customers. This strategy changes moral
belief of the business life over the working period (Moore and et.al., 2012). Customers have
different sets of beliefs and understanding which develop various types of ethics in them. Along
with this, ethics among them are also structured as per their regional and religion beliefs.
Therefore, company like Yahoo needs to address all such aspects that are responsible to structure
ethical viewpoints. Management has to consider their ethical aspects by defining the level of
culture, society and belief present in the individuals.
Absolute ethics Relative ethics
 The theory relates to the ethical belief
that business needs to concentrate on
truth and a single code of conduct
which is followed by every human
being.
 It also specifies that every individual
should follow and be aware of such
ethics. It is termed as general belief
about the ethical viewpoint which
 It is determined as the base of fact that
all the human beings can be attended
with a single universal moral standard
and no other belief applies on them.
 Concept of the theory specifies a moral
idea for considering all the ethical
beliefs and understanding of the
customers with different set of moral
standards.

classifies universal moral and value
standard.
 Moreover, it confirms that there is huge
difference between right and wrong
aspects (Shin, 2012).
 Thus, it depicts that no universal moral
standard can be applied on every
human being.
Deontology ethics
This theory is highly significant for developing professional ethics and morale
philosophy among the individuals of an organisation. However, the theory focuses on the
attention of service users and ascertains that they are able to take actions or decisions on the
organisation's working and business (Mueller and et.al., 2012). Moreover, major principles
formed for such approach are to maintain the level of confidentiality among the persons, reduce
discrimination practices, and obtain the permission of providing wrong information. This
approach is extremely advantageous for Yahoo in overcoming the stated situation. Yahoo needs
to secure the confidentiality of a person in order to maintain its ethics and reputation among
users.
Teleological ethics
The main concept of the theory is stated as a main factor for positioning it as a different
method from the rest of specified approaches. It has been resulted that the main variation in the
theory lies in its concept and result which clear the statement that nothing is wrong in telling
negative and irrelevant things to the individuals (Eisenbeiss, 2012). However, the theory is
supported by the fact which depicts that results of the actions can be wrong or right but the belief
is always correct. Furthermore, the theory also mentions about the appropriateness of the actions
that is judged through the end.
1.3 Ethical issues which can affect the operational activities of Yahoo
It has been witnessed that the market position and share in the sector of an organisation
directly links with their operational and functional activities. In addition to this, the performance
of the HR and their functioning are defining the level of productivity and profitability of the
organisation. For this, the management of the company needs to define the set of principles and
the code of ethics in order to maintain and control the flow of the business operations. The top
level managers needs to be specific and clear about the working structure and following all
compliance which are defined for the business (Collis and Hussey, 2013). Similar to this,

company like Yahoo has to determine their working structure as per the current ethical, legal and
regulatory framework specified for their business. Thus, the following are the aspects which are
to be complied by the organisation in order to build up effective source of working and
functioning in their business operations: Legal and regulatory compliances – These are a set of legal and regulatory framework
which are to be followed by the company in their business as well managerial functions.
Their main aim is to maintain a control on the enterprise processes and other related
procedures. In context of Yahoo, the following are the legal and regulatory abidance that
are to be concerned by their management and accordingly define their ethics.
◦ Employment law – An organisation like Yahoo, which is having high number of
employees in its premises, thus it needs to maintain the employees' participation and
involvement level within the firm (Page and Gaggiotti, 2012). It complies the firm to
maintain a control on setting up the minimum wages for the workers, defining the
working hours and incentives to the employees. However, this may be different as the
business and working environment of the company, but still, every organisation needs
to develop this structure of completing the task.
◦ Internet and censorship – The company which has business related with the online
functioning and providing services to the people at a large level has to maintain a
hold on some typical issues like securing the private information of the users,
reducing the illegal activities, etc. For this, Yahoo has introduced a set of ethics and a
code of conduct which structures a level of controlling and monitoring a security
check on all the activities of internet users and other respective (Smith, 2010).
 Individual ethical responsibilities – The business of Yahoo is providing online services
like web server, browsing, internet surfing, etc., thus, it involves high level of functioning
and operational activities. Along with this, it includes the personal information of all the
internet users who have their accounts on web server. In that regard, the system is liable
to maintain the level of privacy in securing the personal information about the bank
details, address and other confidential data (Samy, Odemilin and Bampton, 2010). For
this, the company has implemented various types of ethics and defined better source of
working. In the stated scenario, Yahoo is concerned on their stated sets of ethics which

depicts that they need to maintain a high level of privacy and hence, the management
should not disclose the information about the user.
TASK 2
2.1 Business objectives are affected by ethical considerations
The business objectives of the organisation are highly dependent on their customers and
the management is also mainly focused on acquiring the attention of their potential clients. The
set of objectives are directly linked with the aim, mission and vision of the company. It is
ascertained that the company needs to define the area of attracting and refining the high potential
customers and achieving the defined sets of targets. The management of the organisation is
responsible to specify the level of working, functioning and operating the business activities in
order to accomplish the set targets (Albrecht and et.al., 2010). Along with defining the targets
and strategies to acquire the attention of customers, an organisation needs to identify the best
source of working as per the ethical and a code of conduct. It extremely helps the organisation in
attracting the high form of clients towards their offered products and services. In accordance to
continue the business, it is necessary for the organisation to develop effective ways to develop
their relations with the stakeholders. As it is ascertained that the level of stakeholder value and
morale support are highly linked with the organisation's market position and profitability. Similar
to this, the Yahoo actions for reducing the level of ethical considerations from the market China
and possibilities of value reduction among the Chinese customers can influence the business
operations of Yahoo in China.
Yahoo is one of the popular web browser which is highly recognised for its internet
services and online facilities. The company provides a wide range of other web services also
which includes news broadcasting, forecasting weather, cricket buzz, etc. But still, providing all
such kind of services, the company is known for its web browser and email services. The service
users are extremely satisfied with the designs, structure and facilities offered by the company
which encourages the other individuals as well. However, the company has to maintain a tight
hold on the internet services provided by them to their users (Kolk and Van Tulder, 2010). The
management of Yahoo needs to take effective and strategical steps in order to maintain the
ethical considerations of the company. The ethical set of principles includes various aspects
which is to be followed by the company as a whole:

 Define a clear set of structure and working direction, the management has to hold the
flow of the business as stated in the plan
 Maintaining the privacy of all the user having account on the web server
 Reduce the level and impacts of hackers by introducing and implementing strong
security checks and breach of this should lead to strong legal actions.
 Disclosure of the personal information about the users only to the users and not to
anyone else (Dierksmeier, 2011).
 Set a clear and specific commitment to all the users and the world
 Upgrade all the security checks regularly in order to reduce the transparency of the
accounts.
It has been ascertained that defining such set of ethics is quite easy than complying and
following them in the business practices. It needs to take several actions in order to maintain the
interest of employees among the business operation of Yahoo. Although, the company has highly
controlled a high level of ethical considerations and engagement in their functioning and
positioned as a company which is strict towards its commitment (Norman, 2011). The code of
conduct formulated by Yahoo is based on various aspects but the main purpose of the ethics is to
maintain a control on all their business operations and functional activities.
2.2 Implications for Yahoo and their stakeholders to operate ethically
Stakeholder are termed as one of the most important element of the business. They are
highly known for their investments and funding the money to the organization. It is evaluated
that the working and participation level of employees has an indirect link with the business
operations and other activities. Any variation in their level of engagement may lead to decreasing
the level of production and profitability of the organisation. Considering this to the case of
Yahoo, where the stakeholders are present in all over the world and thus, the company is focused
on maintaining their relations with all their stakeholders. Moreover, it has been witnessed that
stakeholders has a high source of power to make decision and influence the working of the
organisation (Giacalone and Promislo, 2013). Many of the stakeholders are Yahoo’s business
partner including Alibaba and Bing, whereas the competitors like Google, AOL, Microsoft and
many more. Yahoo's stakeholders include suppliers, employees, shareholders, governmental
authorities and local community from where the organisation address all the required level of
resources.

Along with this, the Yahoo owner on the other hand are likely in wants and motive to
increase a good financial performance and investments from their investors. Besides this,
investors are in hope that organization would provide them a high form profits of financial
results. Furthermore, with an increasing market in the global world, Yahoo has identified a well-
developed set of ethics and code of conduct in gain benefits (Our Values, 2014). It has
introduced many changes in Corporate Social Responsibility (CSR) program which is basically
implemented to form a ne strategy of satisfying the customers and increasing their overall value.
Yahoo is one among the top five web search engines which is having a large part of market and
acquired an ample of users from all over the world. Being in a technical sector, organization has
the responsibility to provide wide range of innovative services and facilities to their large
customer base (Ma, 2010). The company needs to analyse the situation and accordingly, define
the ethical set of principles which is extremely advantageous in maintaining the level of
stakeholders.
In that regard, the company need to specify an effective of strategy of action plan in order
to achieve the customers trust through their operational and functional activities. Along with this,
they have to form a certain sort of commitment which can be fulfil by the company. These
commitments should be ethical and the company must be strong enough to hold up the level of
allegiance in order to encourage stakeholders loyalty. The main purpose of Yahoo is to be a
trustworthy organization that is able to secure the personal and confidential information of their
account holders that are one among their service users. They have to implement better strategies
to enrich the level of their stakeholders. Yahoo is also known for its devotion to follow a high
standard of ethical practices, commitments and CSR activities which is reasoned as a critical and
essential process for enterprise to mark better growth, integrity and success (Grassl and Habisch,
2011). However, CSR is advised as a section of business enterprise which is utilised to
accomplish all the sustainable corporate and social objectives.

TASK 3
3.1 Role of organization acting as a morale agent
Morale agent is the one who is capable of acting with sudden reference to find what is
right and wrong. Further, it is also considered as one's ability to make various judgements which
are usually of same rights as well as incorrect notions (De George, 2011). These agents usually
hold mere responsibility for each and every actions persist within the business organization.
Therefore, the moral agent within the Tesco will be the one who holds acting capability
regarding decisions which are made for the welfare and development of business enterprise.
Mentioned company is a British Multinational grocery and general merchandise store which has
its existence in UK. Company deals in grocery items, books, clothing, electronics, furniture, toys,
financial services and internet services.
Mentioned company has immense responsibility of providing the best quality of services
to their large customer base and value their money so that they get maximum satisfaction.
Further, cited firm has its effective operations throughout the globe and also have large base of
loyal customers (Trevino and Nelson, 2010). Apart from it, they have major competition with
firms like Waitrose, Asda, Walmart, etc. Cited firm focuses on new practices and give customers
maximum satisfaction so that they get a competitive edge over the rival competitors who are
working in the same industry.
Further, customers trust which firm hold is an example of holding the ethical values for
long time period. Further, maintaining this effective trust plays an important role in order to
achieve organization goals and objectives. It only happens when individual because addicted of
organization products and services. Moreover, cited firm has to follow their own Memorandum
of Association as well as Articles of Association which they have prepared at the time of
formation of company. Apart from it, cited firm follows all the laws and regulations which are
related to their business operations in all the nations where they have the establishment. Further,
their code of conduct tells the behaviour which they used to make with their stakeholders in
order to have stable operations (Fassin, Van Rossem and Buelens, 2011).
However, there exist some disadvantages of being moral agent as well because the
decisions sometimes taken are not accepted by the employees and due to this, there exist
conflicts, doubts and disputes within the business enterprise. Further, if an employee becomes a

moral agent then he must possess certain power and responsibility which will not liked by the
fellow members and due to this there will exist certain dissatisfaction in their minds.
Moreover, by abiding all the rules and regulations along with code of conduct, cited firm
is focusing on becoming largest retailer firm of the world. Further, Tesco is also known as
number one retailer within UK. Further, cited firm also has immense support from government
and thus, it is also known as most ethical company in the world. Venture also has effective
Corporate Social Responsibility (CSR) policies which they have made for their stakeholders who
are giving their best contribution in the success of business enterprise. Moreover, Tesco is
focusing on building behaviour outline with employees as they are the real assets of the venture
and they usually support business activities with more fair and honest transactions. Employees
also consider the quality for which they are famous for emphasize on increasing their revenue,
productivity and goodwill in more effective manner (Murphy, 2010).
Moreover, in order to form workplace relationship, it is essential for enterprise to make
fair policies and venture should not discriminate workforce on grounds of cast, creed, race,
religion, etc. Further, for enhancing the workers relations, firm usually motivate them by giving
them financial and non-financial rewards and incentives. This eventually boosts their morale and
they are able to work with best of their efficiency to achieve the organization goals and
objectives. Further, cited firm always been an honest enterprise who provides exact records to
their stakeholders and also pay relevant taxes on time (Sparks and Pan, 2010). Thus, by
analysing the above facts, it is stated that firm is acting as a moral agent in their business
operation.
3.2 Analysing development of mechanisms for achieving employee involvement and
empowerment
Employee involvement is nowadays becomes a common practice where business
organization involves their skilled and multi-talented employees in the decision making process.
Here, organization focuses on getting valuable suggestions from their workforce and by
considering the same, organization prepares their plans, policies, goals and objectives. Moreover,
employee also feel motivated as their suggestions are taken into consideration and they work
with best of the efficiency to achieve their individual and organization goals and objectives (Pies,
Beckmann and Hielscher, 2010).