MGT301A - Business Ethics and Sustainability: Restaurant Report

This report analyzes a business ethics scenario involving a Sydney restaurant aiming for sustainability through environmentally friendly packaging. The report delves into the ethical dilemma faced by the venue manager, Bob, who must balance the owner's sustainability goals with cost considerations. It applies stakeholder theory to identify key stakeholders and their interests, including the owner, Bob, suppliers, and customers. The analysis highlights the benefits of sustainable packaging, such as resource conservation, reduced health risks, and positive customer perception, while also acknowledging potential challenges like increased costs. Alternative solutions, such as upgrading existing products and optimizing production processes, are explored. The report recommends package testing to ensure environmental standards and emphasizes the importance of balancing cost with the restaurant's reputation. The conclusion reinforces the significance of sustainable practices in the competitive restaurant environment, advocating for ethical decision-making to ensure long-term success and stakeholder value creation.

Running head: BUSINESS ETHICS
Business Ethics
Name of the student
Name of the University
Author note

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Executive Summary
The main purpose of the report is to elucidate on the scenario of the restaurant in which the
restaurant owner wants to make use of sustainable packaging so that it can help in
maintaining the reputation of the company. The report elaborates on the stakeholder theory
that can help in analysing the problem in the restaurant. The report also states the
recommendations that can help the company in being sustainable. The report states how the
upgradation of the older products can bring benefits for the company. The report recommends
that package testing can prove to be fruitful for the success of the restaurant.

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Table of Contents
Introduction................................................................................................................................3
Summary of scenario..................................................................................................................3
Stakeholder Theory....................................................................................................................4
Analysis......................................................................................................................................5
Alternative solutions..................................................................................................................7
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Business ethics refers to study of the appropriate business policies along with the
practices pertaining to corporate governance, bribery, corporate social responsibility along
with the discrimination. Business ethics is indicative of the professional ethics that helps in
the examination of the ethical problems which can rise within the business environment
(Crane & Matten, 2016). Business ethics is indicative of the organizational standards that
helps in governing the actions of a business organization. It is applicable to all the aspects of
the business conduct that is significant for the conduct of individuals in organization. This
report throws light on the issue of sustainability in a restaurant of Sydney pertaining to the
packaging like straws along with napkins for restaurant.
Summary of scenario
Bob is venue manager of a restaurant that has 150 seats within the tourist area of the
Sydney. Bob is responsible for buying all the takeaway containers along with the boxes like
the straws along with the napkins for the restaurant. Venue owner of the restaurant wants to
lessen waste footprint that the venue is making within the environment. He wants to make the
company into a sustainable one by taking recourse to the environmentally friendly packaging.
Bob has to find a method that can help him in balancing the decree of John and at the same
time keep cost of the packaging within that of the budget. Bob has to face the ethical issue on
account of the fact that he has to implement policy in relation to the sustainable packaging
which has been ordered by the owner. Bob has to take care of the fact that the policy would
not cut into his profit margin (Trevino & Nelson, 2016). This can help in dictating the
viability of the restaurant that can help in the maintenance of the sustainable financial future.
The plan of Bob is to pass increased cost of that of the environmentally friendly packaging

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into the consumer base of the restaurant. It can act as a suitable method that can help in
maintaining current margins of the restaurant.
Stakeholder Theory
Stakeholder theory refers to organizational management theory that helps in
accounting for the multiple constituencies that are impacted by the business entities like the
employees, suppliers along with the local communities. It helps in addressing the morals
along with the values that are used for the management of an organization. The stakeholder
theory can be said to be related to the aspect of the corporate social responsibility along with
the social contract theory. Stakeholder view of the strategy helps in the integration of the
resource-based view along with the market-based view that helps in adding the socio-political
level (Jones, Wicks & Freeman, 2017). The stakeholder theory helps in defining specific
stakeholders of the company. It helps in examining conditions that helps the managers in
treating the parties like the stakeholders. The stakeholder theory can be said to be applicable
to the field of the law and the management that challenges usual analysis frameworks. It puts
the needs of the stakeholders towards the beginning of action. The stakeholders of a company
consists of the customers, suppliers, local communities, financial institutions along with the
employees. The corporate environment can be said to be ecosystem of that of the related
groups that can ensure the success of the company in the long run.
Stakeholder theory suggests that the main aim of a business is the creation of value
for the stakeholders. The business have to ensure that they consider the needs of the
customers, suppliers along with the employees that can keep them ahead of the competitors.
A business in order to be sustainable over a course of time should keep in mind interests of
customers, suppliers along with the employees. Stakeholder theory refers to the capitalism
view that lays emphasis on interconnected relationship in between the business, customers
along with the suppliers (Chell et al., 2016). Stakeholder theory helps in recommending the

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methods that helps the management in giving the due regards to interest of the groups. The
stakeholder theory can help a business in becoming successful as it helps in delivering value
to majority of the stakeholders. The stakeholder theory can help in giving rise to the higher
productivity as it helps in providing the employees with the satisfaction (Andriof &
Waddock, 2017). The stakeholder theory can help in driving profits for the business. It can
help in elevating socio-economic status of that of local community. It can help in creating
healthy competitive ecosystem that can help in bringing benefits to the stakeholders.
Analysis
Bob wants to implement the sustainable packaging policy and he wants to pass the
increased cost of the packaging to that of the consumer base of the restaurant. The venue
owner wants to lessen footprint on that of the venue that is causing him to take recourse to
that of the sustainable packaging. The owner wants to make the make the company
sustainable so that it can make profits. The main stakeholders in relation to the case are Bob,
John, Supplier who is supplying the packaging and suppliers stocking that of environmentally
friendly packaging. Bob thinks that the environmentally sound packaging would prove to be
more expensive for him and it would become difficult for him to make the profits. Bob has to
take care of the fact that the reputation of the restaurant is not harmed and at the same time he
can make the profits. The application of the stakeholder theory can help in ensuring the fact
that all the business parties get the benefits that can help in adding value to the business. The
take away containers along with the boxes should be packed in such a manner that it is
sustainable that can help the business in drawing the customers. The venue owner has to take
into consideration the fact that the policies of the restaurant is in accordance to the norms of
the sustainability. The environmentally friendly packaging can prove to be beneficial for the
customers of the restaurants as it can help them in retaining their health. The conventional
packaging materials can prove to be resource-intensive and it can also prove to be wasteful

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(Lindh et al., 2016). The sustainable packaging methods can help in maximising use of the
recycled materials that can help in the conservation of the raw materials. The conservation of
the raw materials can help in the preservation of the natural resources that can help in serving
the future generations. It has been found that the conventional packaging materials can pose
the health risks for the people. Sustainable packaging can help in minimizing exposure to that
of the toxic chemicals that can help the owner of the restaurant, John in making the benefits.
The packaging crates that are made of the agricultural waste can prove to be safer that can
help in ensuring the health of the customers who buy the food from the restaurants. The
consumers can offer support to the restaurant in the event of the restaurant using the
sustainable products along with the services. Packaging can be said to be a vital component
which can ensure the sustainability of a product (Martinho et al., 2015). The restaurant being
committed to the element of the sustainability can help in winning the confidence of the
customers. The restaurant owner wants that the packaging materials are produced in a
sustainable manner that can help the restaurants in the competitive environment of the high
traffic tourist area of that of Sydney. John has to take care of the fact that the sustainable
packaging of the company should not be at the cost of the quality of the products. Bob on the
other hand has to ensure that cost of the packaging should be within the ambit of budget that
has been allocated in relation to the venue. Bob has to face the ethical issue and he has to take
due care of the fact that the restaurant does not compromise the customers after the
introduction of the aspect of the sustainable packaging. The increased cost that is passed on to
the customers should be such that the consumers would continue to visit the restaurant. The
fragile packaging can make the food susceptible to various elements that includes
contamination along with the damage. It can harm the prestige that the restaurant enjoys
within that of the competitive environment within Sydney. The operational cost would
increase in the event of the restaurant taking recourse to the aspect of the sustainability that

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can severely harm the reputation of the restaurant in the long run (Magnier & Schoormans,
2015). The consumers in the present age are concerned about the issue of the sustainability
as they are concerned about the environmental footprints. The customers in the modern age
are careful about their health along with the environmental impacts that makes them buy the
products that are environmentally sustainable. The restaurant making use of that of
sustainable packaging can be instrumental in making a positive impression on the
environment. The sustainable packaging can draw a large number of the customers that can
ensure the profitability of the restaurant.
Alternative solutions
Bob can take recourse to the alternative solutions that can help him in getting the
packaging at that of a low cost. The new technologies have emerged in the present age and
Bob can optimize the aspect of the packaging that can help him in making the packaging at
that of a low cost. Bob can take care of the fact that the products that have been previously
designed have been upgraded that can help in the reduction of the material cost. The
production process should be reviewed that can help in the aspect of the manufacturing of the
packaging. He can make use of better equipment that can help in ensuring the fact that the
packaging takes into account the principles of sustainability. The investment in that of the
new equipments can help in reducing the cost over the passage of the time. John can adopt
the digital strategies that can help in the arena of packaging (Lindh, Olsson & Williams,
2016). John can switch from that of the conventional printing method to that of the digital
that can help in the process of reduction of the cost. The digital printing can prove to be a
cost-effective method in relation to the various kinds of the product lines. Bob can work with
that of innovative printing expert that can help him in finding the solutions to that of the
packaging needs. It can help the company in possessing the innovative mindset that can help
John in devising the cost-cutting strategies.

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Recommendations
John should ensure the fact that they are investing in the arena of the testing that can
help the company in the area of the sustainable packaging. There should be package testing
specifications that can ensure the fact that the packaging of the company is on the basis of the
environmental standards (Idrees, Rangari & Jeelani, 2018). The package testing can help in
taking care of the fact that the industry standards have been followed that can help it in
dealing with the changing conditions in the environment. The restaurant can take the help of
the package testing labs that can help in offering the packaging solutions that are tailor-made.
Conclusion
Business ethics is indicative of study of the business policies in relation to corporate
governance and that of corporate social responsibility. Bob is the manager of a restaurant
within Sydney and he is responsible for takeaway containers and that of boxes. The
implementation of sustainable packaging policy can help the restaurant in the aspect of its
survival. Bob wants to pass increased cost in relation to the packaging to the customers.
Venue owner wants to reduce that of footprint that made him make use of sustainable
packaging. Bob can make use of new technologies that can aid in the aspect of optimization
of packaging which can produce packaging in low cost. The previously designed products
can be upgraded which can be instrumental in reducing material cost.

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References
Andriof, J., & Waddock, S. (2017). Unfolding stakeholder engagement. In Unfolding
stakeholder thinking (pp. 19-42). Routledge.
Barry, N. (2016). Business ethics. Springer.
Chell, E., Spence, L. J., Perrini, F., & Harris, J. D. (2016). Social entrepreneurship and
business ethics: Does social equal ethical?. Journal of business ethics, 133(4), 619-
625.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Idrees, M., Rangari, V., & Jeelani, S. (2018). Sustainable packaging waste-derived activated
carbon for carbon dioxide capture. Journal of CO2 Utilization, 26, 380-387.
Jones, T. M., Wicks, A. C., & Freeman, R. E. (2017). Stakeholder theory: The state of the
art. The Blackwell guide to business ethics, 17-37.
Lindh, H., Olsson, A., & Williams, H. (2016). Consumer perceptions of food packaging:
contributing to or counteracting environmentally sustainable
development?. Packaging Technology and Science, 29(1), 3-23.
Lindh, H., Williams, H., Olsson, A., & Wikström, F. (2016). Elucidating the indirect
contributions of packaging to sustainable development: A terminology of packaging
functions and features. Packaging Technology and Science, 29(4-5), 225-246.
Magnier, L., & Schoormans, J. (2015). Consumer reactions to sustainable packaging: The
interplay of visual appearance, verbal claim and environmental concern. Journal of
Environmental Psychology, 44, 53-62.

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Martinho, G., Pires, A., Portela, G., & Fonseca, M. (2015). Factors affecting consumers’
choices concerning sustainable packaging during product purchase and
recycling. Resources, Conservation and Recycling, 103, 58-68.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how
to do it right. John Wiley & Sons.