MMM343 Business Ethics: Ethical Analysis of Business Decisions

This document presents solutions to two case studies in a Business Ethics assignment. The first case study analyzes the ethical issues arising from a fast-food restaurant chain's operational malpractices, identifying impacted stakeholders like customers, suppliers, government, employees, and managers. It explores how organizational factors and culture contribute to these issues and proposes strategies for remediation, evaluating the pros and cons of each. The second case study focuses on Branscombe Co's challenges in fulfilling hotel contracts overseas, including governmental instability and corrupt practices. It recommends strategies to mitigate risks associated with the contractual agreement and suggests improvements to the company's audit committee structure. Desklib provides this student-contributed assignment as a resource for students.

Business Ethics

MMM343: Business Ethics T3 2021 EXAMINATION
Table of Contents
Case Study 1 ..........................................................................................................................................2
Case Study 2...........................................................................................................................................5
REFERENCES...........................................................................................................................................8
Books and Journals............................................................................................................................8
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MMM343: Business Ethics T3 2021 EXAMINATION
Case Study 1
Case questions (all questions carry equal marks of 10 each)
1) Identify at least five (5) stakeholders being impacted by the fast-food
restaurant chain’s employees' actions, and briefly discuss the ethical
issues that impact on each of these stakeholders.
The decision of management of the company is majorly dependent upon the thoughts and
actions of their internal and external stakeholders. A stakeholder is responsible to be aware and take
actions if the functions of the organisation is effected. The external stakeholder are not affected by
any financial changes in the organisation (Shaw, 2022).But still they have the power to change
functions of an organisation. The five stakeholders who are getting impacted by such malpractices
followed by the employees including supervisor will be as follows -
 Customers – They are a type of external stakeholders who are getting directly affected by the
malpractices in food and health safety. Their purpose is to consume goods and services of the
business. They have a right to be assured about the food safety. They can report against the
company as they are following unsanitary practices even after awareness of everybody. The
consumer should get a good qualitative food in the right time.
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MMM343: Business Ethics T3 2021 EXAMINATION
 Suppliers – As the suppliers were providing rotten meat in the company which is unethical in
trading. These are the external stakeholders impacted by food and health safety. The suppliers
are contributing in inputs of the company which is being a source for their good. If the base
of the company is unhealthy then definitely it will be going to affect the products they
deliver. The suppliers even after being aware should stop these harmful practices.
 Government – The government has the authority to test the compatibility of the safety and
health of the products of the company as being an external stakeholder. They need to regulate
among the ethical practices, legal procedure, accounting concerns which should be controlled
by the company (Rhodes, 2022).
 Employees – They are main internal stakeholders who are involved in the procedure of food
making. They handle the daily operations in concern of the safety norms and health practices
being unfollowed by the company. They are aware about the reason for such malpractices
which should be stopped at their own level at first.
 Managers and owners – These internal stakeholders play a big role in organising and
managing of the activities followed by the employees and employers, which should be
changed with the help of their planning of strategies and processes. They should eliminate
those malpractices and make strict rules and policies, so that when attempted by mistake
should be punished. The business must be aware about the needs of community and get
assured about the negative effects they are implicating on their consumers.
2) From your perspective, how have the organisational factors and culture
contributed to the current actions of the fast-food restaurant
employees?
The factors and cultures contribute in such malpractices and unhealthy food deliverance by
the fast-food chain restaurant are mentioned below specifically -
 Menu items – If the menu contains of numerous and complex dishes then the production
time will automatically get influenced accordingly. The more number of dishes in menu
requires as much techniques to be implemented within the time. Weather a menu is having
limited dishes to be prepared which will eventually take lesser time.
 Use of convenience food – The time for making food depends totally on the nature of food.
The starters can be served on time, so these convenience foods can be made in good quality
of content, therefore convenience food can rise up the costs of input. The type of food decides
in the time measurement to get it served (Nissa, Hidayat and Eprianti, 2022).
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MMM343: Business Ethics T3 2021 EXAMINATION
 Type of service – A restaurant's work is more complex in comparative to the cafes,
franchises and fast food outlets. As being a fast-food chain management the time for ready to
serve is instant as when ordered. The order is delivered by the as fast as they can. The
supervisor has set a competition among them of bonus who prepares food most fast. This
hurriedness leads to mistakes at times and would affect the quality of food in hygiene.
 Quantity of meals in the period – Obviously the time would be affected if the number of
meals are not coordinated by the number of workers in a restaurant. The work assigned to the
staff should be efficient and effective to be handled by them on time. The work force
handling their specialized work shouldn't be minimized in relation to the work load otherwise
this will dis effect the time management (Minton And et. al., 2022).
 Facility layout and design and production equipment – A restaurant kitchen should be
equipped with machines and tools in an organised way such that the work isn't done in a
messy way. The layout tells how many persons can work in which area.
 Staffing guide – The staff should be guided to follow the norms, rules, policies and
regulations should be followed while working. They should be guided on how to process the
product in a efficient way in the view of time management. The staffing guide informs the
managers about how much time period is been occupied by all the workers according to the
number of meals ordered.
 Productivity standards – This is is to specify the standards followed in productivity within
the particular time. The standard recipes are being taught at first which are mandatory in the
procedures. The working hours reflect the quantity of work done, thus produces that much
number of meal in a way that is less time consuming.
3) Assume you are part of the fast-food restaurant chain’s decision-making
committee and you have just found out about this franchisee’s
operating methods. What strategies would you put in place to remediate
these operating issues? Critically present the pros and cons of at least
four of your strategies.
If I were the part of the fast-food chain restaurant's decision making committee and I come to
know about such malpractices followed in the franchisee’s operating methods. Then I would adopt
such strategies after seeking these operating issues in the following steps -
 Rules and policies - I would prepare a set of rules and policies in the food safety and health
practices of the restaurant. I will make everyone aware of the misdeeds done and the
consequences there after of the misconduct in their productivities. Thus I will ensure that no
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MMM343: Business Ethics T3 2021 EXAMINATION
customer is harmed by the company's malpractices. I prepare a feedback for them to be filled
after the end of their meal.
 Safety requirements - I will bring concern and rise the strictness among all the workers if
they unfollow the food safety requirements like not washing their hands, vegetables and
utensils. The toilet for staff must also be clean mannered and should be separated from the
kitchen area somehow. The drainage must be proper, in order to prevent the bacteria and
germs the hands of the staff should be sanitized frequently.
 Food – First of all the suppliers should provide a healthy and fresh meat instead of a rotten
meat. The company shouldn't accept such unhealthy food from the suppliers. There should be
a disposable cloth for wiping the utensils. The raw meat should be in walk-in refrigerators
otherwise it would lead to the sickness of consumers. Sometimes the kitchen should get a pest
control in order to avoid contaminating food which is stored (Barnard and Mamabolo, 2022).
 Wastage – The food wastage leads to the unhygienic environment of the restaurant, therefore
also leads to the spread of mosquitoes and bacteria in the outer surrounding. They should
prevent such malpractices and be concerned in all these issues.Case questions (all questions
carry equal marks of 10 each)
Case questions (all questions carry equal marks of 10 each)
Case Study 2
1. As a board member of Branscombe Co, what would you identify as the
Key challenges for the company to fulfil 200-bathrooms hotel contracts
on time? What strategies would you recommend to mitigate the risks
arising from each of the above-mentioned contractual agreement?
The Branscombe Co has planned to expand its operational market overseas which is why
there are various challenges that it faces while completing its contracts which are complying with the
laws and legislation of the Geeland island where they have taken up a contract due to the economic
growth that the island offers to the business. The company has to work making sure that there is no
impact in the operations of the contractual terms of the unstable democratic government, also saving
the business from the corrupt practices because if these are not looked after then it can badly impact
fulfilling of the contractual terms and conditions. It also faces challenges of the shipping of
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MMM343: Business Ethics T3 2021 EXAMINATION
equipments which is from 3000km away with respect to dealing with the corrupt officers which
interfere by asking bribe in the imports and exports (Masiero, Leoni and Bagnoli, 2022). It also
needs to look after the weakening position of its currency when it is getting payments in three equal
installments which can be a major concern for it in completing its contract of building 200 bathrooms
of hotel. These challenges are to be met so that the contract gets fulfilled on time and all the 200
bathroom hotels are delivered on time so that payments can be received on time.
The strategies that are recommended to the company business in order to carry out its
operations easily and fulfill its contracts on time are firstly the business needs to assess the
geographical area where they are likely to make an expansion because the laws, legislations and the
government of the region differ which makes it essential to do so. It also needs to assess the business
benefits that the region has to offer to the company before making any contract. The company while
handling business in Geeland can mitigate its risks by collaborating with the government branches so
that it does not get affected by the corrupt officers. It can have an agreement of shipping with the
government which will minimize its costs of import and export. It can also ask for payments in their
own currency while making and formation of contract so that it does not have to worry about the
weak position of the country’s currency. It can also ask for half payment before the bathroom
construction begins and half payment after the construction of 200 bathroom hotel gets completed so
that fulfillment of the contract on time is easy and efficient (Hyten, 2022).
2) From your perspective, are the current audit committee types and structures
sufficient to mitigate any current and/or future risks for the company? Please explain
your response justification. How might Branscombe Co improve their audit
committee structure and scope? Justify your recommendation using your learning
from the unit to support your arguments.
The FRC is responsible for the audit operations of a company by providing high quality
corporate governance codes which must be complied with so that risk management can be carried
out. In respect of the company it created separate audit, remuneration and nomination committees by
fully complying with the Effland corporate governance code which helped the company in creating
proper audit balance sheets and providing proper salary and remuneration to its employees by noting
down the profits and losses which are made by the business. These committees were headed by the
independent non- executive directors who functioning according to the requirements of the company.
But they proved to be a failure in identifying the present and future risks that come up in the
operations of the company. The company made a bigger mistake by not setting up a committee on
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MMM343: Business Ethics T3 2021 EXAMINATION
risk management because if this committee has been set up it would have helped in analysing the
risks of the expansion of the business in the Geeland island (Cheng and et. al., 2022). The board’s
belief that the audit committee will also be helpful in analyzing and mitigating the risks that arise in
conducting the business and fulfilling the contracts was wrong according to the given case scenario.
While discussion at the general meeting of the Branscombe Co’s shareholders it was required that a
voice was raised among the board members regarding the requirement of a separate risk management
committee as well who can help the business at the time of risks which arise when the company
operates in different regions or expands is business to get large profits.
The company can expand the structure and scope of its audit committee by setting up a
separate department or committee that can deal with foreign expansions of the business so that it can
carry out proper analysis before the company begins its operations in a different region. It can also
study the legislations of the region and the position of the region with respect to how are the
business practices carried out and what is the scenario of the import and export of that island
(Bertino, 2022). It can help in evaluation of the international credit ratings of the country where
they shall form contracts. The risk management committee can also study the currency position of
the country because the primary aim of the business is to earn profits and successfully run for a
longer duration.
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MMM343: Business Ethics T3 2021 EXAMINATION
REFERENCES
Books and Journals
Barnard, H. and Mamabolo, A., 2022. On religion as an institution in international business:
Executives’ lived experience in four African countries. Journal of World Business. 57(1).
p.101262.
Bertino, J.T., 2022. Organizational Ethics and Residency Requirements for Clinical Ethics
Consultation. In Clinical Ethics for Consultation Practice (pp. 111-153). Springer, Cham.
Cheng, X. and et. al., 2022. Strategic Earnings Announcement Timing and Fraud Detection. Journal
of Business Ethics, pp.1-24.
Hyten, C., 2022. On ethics codes, licensure and OBM. Journal of Organizational Behavior
Management, pp.1-4.
Masiero, E., Leoni, G. and Bagnoli, C., 2022. Ideals-based accountability through history: the case of
an Italian glass-maker’s family business. Journal of Management History.
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MMM343: Business Ethics T3 2021 EXAMINATION
Minton, E.A. And et. al., 2022. Drivers of sustainability and consumer well-being: an ethically-
based examination of religious and cultural values. Journal of Business Ethics. 175(1).
pp.167-190.
Nissa, Z. S., Hidayat, A.R. and Eprianti, N., 2022, January. Tinjauan Etika Bisnis Islam terhadap
Pelaku Usaha Jual Beli Bahan Pokok. In Bandung Conference Series: Sharia Economic
Law (Vol. 2. No. 1).
Rhodes, C., 2022. The Ethics of Organizational Ethics. Organization Studies, p.01708406221082055.
Shaw, D., 2022. An Ancient Greek Philosophy of Management Consulting: Thinking Differently
About Its Assumptions, Principles and Practice. Springer Nature.
END OF EXAMINATION -
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