Report on Comparative Business Ethics and Social Responsibility Issues

This report provides a comparative analysis of business ethics and social responsibility, examining various aspects of corporate practices and their impact on society. The report explores globalization in the fashion industry, highlighting both its advantages and disadvantages, particularly concerning worker conditions and consumer behavior. It also analyzes Starbucks' social responsibility initiatives, including its commitment to ethical sourcing, community development, and environmental sustainability. Furthermore, the report delves into the mission of the Cotton On Foundation, which focuses on empowering youth and alleviating poverty through education and opportunity. The report also addresses issues in financial and accounting fraud, discussing the causes, consequences, and ethical implications of misleading financial reporting and asset misappropriation. The report concludes by emphasizing the importance of ethical conduct and social responsibility for businesses in today's global environment.

Running head: COMPARATIVE ETHICS AND SOCIAL RESPOSIBILITY
Comparative Business Ethics and Social Responsibility
Name of the Student:
Name of the University:
Author Note:

1COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
Issues in Globalization
I have learned that globalization in the fashion industry implies abundance of fashion that
is sold by the multinational organization or the giant retailers who makes transnational deals and
co-ordinate for worldwide distribution of goods. The tendency of the people to get attracted
towards fashion and different varieties within different geographic location has a homogenizing
effect across different locations and this represents a global paradox. These globalization in the
fashion industry is created with the help of computerization and internet in different global
markets. According to me, I think globalization in the fashion industry has been both
advantageous as well as disadvantageous. It has created pressure among the workers who are
engaged in the factories with low wages. Bangladesh stands third in production of clothes after
Turkey and China and this video clearly highlights the pressure among the factory workers in
this industry. From the video, I have also analyzed that majority of the people prefer to shop
through bargaining. Bargaining helps people to find the perfect piece of clothing at the given
price. I have found that globalization in the textile industry means people are trying to pay the
real cost for the clothing and thus get their desired or preferred choice at the correct time. I have
found that the more than 4 million people to Bangladesh in the textile industry and most of the
companies have opened up their factories in Bangladesh due to the low cost of labor The factory
owners have to keep their prices down due to the steep competition among the companies and
this is improving the business environment of Bangladesh. The raw materials are purchased from
other countries and the products are made at a much cheaper price compared to other countries.
Therefore, I can say that Bangladesh is improving in textile industry and globalization is paving
its path for development (Pumpkin Interactive 2018).

2COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
Starbucks Social Responsibility Video
After analyzing the video, I have found that Starbucks started in 1971 with three partners.
Among these three partners, one partner was the supplier to the company and after a trip to Italy,
they decided to open a coffee shop. After analyzing the coffee market in Italy, These three
partners decided to open a coffee shop of roasted coffee. Starbucks has captured the market
because of its flavor and not because it was dark. I have also found that coffee loses weight and
moisture when it is processed or roasted and thus it is considered as a loss for the company. This
transformation generally begins when green coffee beans are heated in huge drums and they turn
yellow after adequate heating process.
Moreover, Starbucks is also trying to bring more flavors and thus bring unique and
different flavors for people from different places. At Starbucks, they are trying to blend coffee
that will showcase the particular region in the country. For example, In Latin America, the three
coffee flavors has been brewed into one single flavor that exemplifies the best quality of that
region. The company is also trying to blend the beans from different regions to weave the
different tastes and aromas of coffee. On the other hand, I think blends like Gold Coast Blend,
Caffe Verona and Starbucks Christmas Blend offers complex flavors that are not easily available
in other single origin coffee. Starbucks is also carrying out several programs in educating
students as well as training teachers in the rural countries. The coffee industry is also facing
challenges due to overproduction. The coffee that is brought by the common people does not
affect Starbucks by the dynamics of demand and supply affects the company. I have also found
that it is also difficult for the company to stay connected with the farmers on everyday basis and
thus enhance the production of coffee (Prof TabOkWU 2018).

3COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
Starbucks CEO Howard Schultz on Social Responsibility
I have found that from the inception of Starbucks, social responsibility is manifested in
everything around itself and several campaigns are carried out for stock options and health care
options for the employees. It was very challenging and difficult for the company to grow
successfully. The only way that was available to the company is the creation of value through
the shareholders and thus this will also help in value creation for the company. I have found that
Schultz has stressed that the companies must focus on the community group that can help them
to improve from the bottom line. This is considered important because there are many
communities in America and it is important to take care of these companies. Moreover, 42 out
of 50 states are experiencing budget deficit and there is cut to social services. The business
leaders and the companies must realize these problem and they must not keep on waiting for the
other companies. The different displays of social and political concern are becoming common at
Starbucks and it is the responsibility of the company to take care of this and thus help in
community and social development. The scale and size of the company and the different
platforms will allow the management directors of different companies to arise their voice and
thus it will help in carrying out the project successfully. I have also analyzed and found that there
are many companies that talk extensively of the different issues and thus this company also focus
on global environment and different environmental issues. Schultz also acknowledged that he
has taken care of several issues that affects the staffs and the other community members of
Starbucks and it is also trying to educate the people through this programs (genConnect U 2018).
COTTON ON FOUNDATION: WE EMPOWER, WE END POVERTY
I have found that the mission of the company is to empower the youth and show them the
right way to lead in a correct way. I can say that through education and different opportunities,

4COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
Cotton On Foundation and the different supporters of Uganda are trying to break the poverty
cycle. I have also found that it is important to pay attention on sustainable future and this will
help the people of Uganda to generate an income that will help in the continuous growth and
development. It is important that this developmental process take place village by village and
child by child and this will improve the lives of the people. This is regarded as the main
commitment of the people and the vision of Uganda by 2020. I have found that Mannya is
providing healthy and nutritious meals to the school children and thus according to the survey, it
has been found that it is serving more than 800 meals of the students who did not get proper meal
or had to stay hungry. I can also say that planning for a sustainable and proper future is essential
and several schools must be built in Uganda that will help the country to develop and thus
progress on this path. Several initiatives must also be taken and it is important to collaborate or
to be in partnership with the local communities as well as teachers that will help in improving the
life of the people. Therefore, it can be said that the mission of the group is to develop the
educational places, provide healthy and safe drinking water and food to the people and work
together for reduction of poverty and improve the quality of life of the people (Cotton on
Foundation 2018).
Issues In Financial and Accounting Fraud
I have found that most accounting scandals occur due to forgery in financial reporting.
Fraudulent in financial reporting is considered as the misstatement of different financial
statements by the company’s management. This is carried out with the intent of misleading
investors and it also helps in maintaining the share of the company. The effects of misleading
financial reporting will boost the stock prices of the company in the short run and this ill effects
will always hamper the company. The short term focus of a company’s accounts and finances is

5COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
referred to as “myopic management”. I can say that the most common issue is the
misappropriation of assets and this happens because the other company uses the assets of one
company. This may also lead to stealing and misappropriation of assets can occur at any level of
the company. I can also cite different examples in relation to this case. For example,a senior
level executive in most cases may charge a family dinner to the company as the business
expenses that is to be provided by the company. On the other hand, at the same level of
production, the employees may take home supplies to his/her home for personal use. Thus, this
also results of misappropriation of assets. I can also say that penalties are also charged for the
violation of accounting ethics and law. In certain cases, the legislation will allow harsh penalties
for manipulating and destroying the different information and also interfering in the different
investigation process.
I think it is important to be aware of this trend and this has constructed the different
accounting processes and it has also helped in the elimination of boundaries between the
different accounting processes. Therefore, it is important to assume that different accounting
profession that is responsible for sharing their own way of calculation and thus prevent forgery
and miscalculation in the different accounting processes (Markkula Center for Applied Ethics at
Santa Clara University 2018).

6COMPARATIVE ETHICS AND BUSINESS RESPOSIBILITY
References
Cotton on Foundation 2018. YouTube. [online] youtube.com. Available at:
https://www.youtube.com/watch?v=aY_9Y527LVM [Accessed 25 Jan. 2018].
genConnect U 2018. YouTube. [online] youtube.com. Available at:
https://www.youtube.com/watch?v=uHIoK4LviCc [Accessed 25 Jan. 2018].
Markkula Center for Applied Ethics at Santa Clara University 2018. YouTube. [online]
youtube.com. Available at: https://www.youtube.com/watch?v=YZcfq2pa5pQ [Accessed 25 Jan.
2018].
Prof TabOkWU 2018. YouTube. [online] youtube.com. Available at:
https://www.youtube.com/watch?v=Nly_OdvORQY [Accessed 25 Jan. 2018].
Pumpkin Interactive 2018. YouTube. [online] Youtube.com. Available at:
https://www.youtube.com/watch?v=3YAUvDmMGMI [Accessed 25 Jan. 2018].