Business Ethics Report: OTHM Level 5 Diploma in Business Management

This report delves into the realm of business ethics, focusing on Computing Supplies Ltd, an IT solutions company, and its relationship with Corporate Social Responsibility (CSR). The report begins by defining business ethics and its significance, examining ethical perspectives and their relevance in business contexts. It then investigates ethical issues impacting business operations, including legal and regulatory compliance, censorship, and individual ethical responsibilities. The analysis extends to the roles of directors, investors, and other stakeholders in ensuring ethical practices, exploring conflicts between stakeholder needs and expectations. The report assesses the impact of CSR on Computing Supplies Ltd, particularly in light of a case scenario involving environmental concerns, and suggests how the company can improve its ethical standing. Finally, the report covers the regulatory framework for CSR and current ethical issues affecting business operations, offering recommendations for enhanced ethical practices. The report emphasizes the importance of ethical considerations in achieving business objectives and maintaining a positive brand reputation.

Business Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 : Understand perspectives on ethics and its relevance to business....................................3
1.1 Background and development of ethical approaches ...........................................................3
1.2 Absolute and relative theory ................................................................................................4
1.3 Ethical issues affecting the business activities and operations ............................................5
TASK 2 : Report on the roles of directors, investors and other stakeholders to ensure ethical
practice.............................................................................................................................................6
2.1 Conflicts between the needs and expectations of different stakeholders..............................6
2.2 Impact of CSR on Computing supplies ltd...........................................................................7
2.3 How to improve ethics .........................................................................................................7
TASK 3 : The issues which inform company reporting and their impact on society. ....................8
3.1 Business objectives affected by ethical considerations ........................................................8
3.2 The regulatory framework for CSR .....................................................................................8
4.1 Current ethical issues ...........................................................................................................9
4.2 Potential impact of changes in the CSR on business performance.....................................10
4.3 Recommendations ..............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business ethics can be defined as a type of applied or professional ethics which analyzes
principles, problems and moral values that are built within the business environment. There are
specific set of regulations and rules which are imposed by the government which direct an
organization to provide effective and satisfying services to their customers. This report is in
context to Computing supplies ltd, IT solution company which is influenced by Corporate social
responsibility and ethics of business. The report will identify the various impact of business
ethics on the performance of a business or organization. The study will also identify the impact
of ethical consideration on business objectives. Furthermore, the report will also summaries the
regulatory framework of Corporate social responsibility along with the current ethical issue that
is affecting the business operations of Computing supplies ltd.
TASK 1 : Understand perspectives on ethics and its relevance to business.
1.1 Background and development of ethical approaches
Business ethics can be determined as a set of various values and codes of conduct which
direct and guide the business and management to ensure that they perform their business
operations in a fair and transparent manner. The different types of culture and structure which is
followed in an organisation plays important role in the growth and development of an ethical
business. It helps management to direct, control and monitor the employees as well as their
performance so that the standard or quality of the business can be maintained effectively. Major
objective or aim of a business or company is to generate maximum revenue and leading position
in the market which possible through customer satisfaction. In this context it is essential that the
organisation follows effective principles which can help in attracting more customers. Each and
every company utilizes various set of values and code of conduct which assist in maintaining
reputation of the brand, market position and customer's values. The organisation such as
Computing supplies ltd which offers their customers similar services, Hence it is very important
to follow and impose effective ethics in order to develop unique brand image or value in the
customer's mind.
The various developments related to ethical approaches are as described below -
 Teleological theory of ethics – The technological theory of ethics refereed as the various
types of issues that are faced in ethical activities performed within a business or
organization. It explains diverse perspectives of positive and negative action which

organizational operations tend to follow for achieving the business objectives or goals. It
is commonly followed to keep the level of ethical issues and their effects on the
organizational operations or functions.
 Deontology theory of Ethics – This theory focus on the effective set of actions instead
of the possible results. It is dealing with the moral system which is built so that the
organizational functions can be conducted effectively. In respect to this it is very
important for the management to understand their Corporate social responsibility and
moral duties. It also helps in reducing the negative impact of various activities with a goal
of developing impressive corporate image.
1.2 Absolute and relative theory
All approaches or theories identified with morals depend on creating positive business outomes
and reduce negative activities on account of which management neglects to accomplish their
objectives and targets. At the point when association works ethically and morally, they end up
ready to create an incentive for their customers. Morals are likewise organized according to their
district and territorial convictions. In this regard, it is imperative for associations like Computing
supplies Ltd to ensure that they address every one of the viewpoints which are mindful to
structure moral perspective. Beneath given are some other related morals which are as per the
following:
1. Deontology ethics theory : This empowers in creating moral logic and expert morals
representatives working inside association. Fundamental focal point of this hypothesis is
to comprehend client's discernment and roll out improvements in administrations or
business tasks with the assistance of which destinations can be accomplished. Further, it
ensures that level of classification is kept up, representatives are not segregated and
legitimate and applicable data is given to customers.
2. Absolute ethics theory : This hypothesis centers around single code that for the most part
every individual takes after. It is imperative that individuals know about certain
arrangement of morals. There are cases in which individuals grow wrong recognition
about the moral thought which is taken after inside association. In such circumstance,
firms should ensure that they convey legitimate data related with morals that are followed
in business.

3. Teleological Ethics theory : According to this theory, it expresses that its is not right to
state superfluous or negative things to people. The activity for which positive or negative
data is passed on to clients may not be moral but rather the outcomes acquired will be
certain.
4. Relative Ethics theory : All people can be gone to with single general standard and there
is no conviction connected on them. This theory gives moral thought to think about
understanding of clients and moral ethics(Steenkamp,2017).
1.3 Ethical issues affecting the business activities and operations
The position and market share of an organization or business is greatly affected by its
operational and functional activities. The HR management is responsible for managing
operations related to the employees working int the organization. The Human resource team
develops specific principles and values for the employees which helps in maintaining the smooth
flow of the business activities. There are various types of ethical issues faced by Computing
supplies ltd as described below -
 Legal and regulatory compliance – There are different regulatory frameworks which
needs to be followed by a business or organization. There are many kinds of functions
performed within Computing supplies LTD which are controlled and managed by the
legal and regulatory frameworks. In respect to this, there are various laws and regulations
that are imposed on the organizations such as Computing supplies LTD, as mentioned
below -
1. Employment law – The most important law followed by the organisation is the
employment law, every business needs effective and motivated employee to perform
various business functions. The Employment law is a regulation imposed on every
organisation or company with regards to various right of the employees such as minimum
wages working hours, sick leaves etc(Suliman, Al-Khatib and Thomas,2016).
2. Censorship and internet – Businesses that aims to provide effective services and products
to their customers in the long run they are required to build confidence and trust in
customer's mind and it can be achieved only if the management ensures that they resolve
various concerns regarding security of information, eliminating illegal practices etc.

 Individual ethical responsibility – Each and every individual working in a business also
have certain ethical responsibilities which they need to fulfill while working in an
organization. These responsibilities are regarding their behavior within the organisation
such as following various business policies, HR policies, business culture etc. The
employees working in an organization should not perform any illegal practices while
working in an organization or business.
TASK 2 : Report on the roles of directors, investors and other stakeholders to
ensure ethical practice.
2.1 Conflicts between the needs and expectations of different stakeholders
The Computing supplies LTD have certain aims and objective which they need to
achieve in order to meet the expectations of the various stakeholders. The needs and expectations
of the stakeholders derive from business objectives and goals, therefore when a business or
organisation fails to achieve its goals and objectives it fails is meeting the expectations and needs
of the stakeholders such as investors, employees and customers. Hence, it is very important for
Computing supplies ltd to focus on achieving its aims and objectives. Various objectives set by
Computing supplies ltd with respect to the expectations of the stakeholders are as described
below -
 Profitability – The objectives and aims of every organisation is to generate profit
excluding the charity businesses. The Computing supplies ltd is established with the aim
of generating profit and meeting demand of the various stakeholders connected with the
business or organization. The reduced profitability negatively affect needs and
expectations of the stakeholders such as investors. Profitability is very important for an
organisation in order to meet the expectation of the investors with respect to the return in
investment(Cramer,2017).
 Ethical and social responsibility – The another aim or objective of a business such as
Computing supplies is to be ethically and socially responsible with regards to the
environment and society or its people. The stakeholders such as customers expect a
business to be environmentally and socially friendly.
 The stakeholders such as suppliers, employees and shareholders ensure expect some or
other needs to be full-filled as they contributed to the activities of the business.

2.2 Impact of CSR on Computing supplies ltd
Computing supplies ltd has been highly affected by the CSR recently, according to the
case scenario a 10 year old child burnt computer for gold. The computers consist of various
precious metals and gold which influence people to burn the computers(Walker and Kelly,2015).
The computers generate various dangerous gases and fumes when burnt which is not good for
the environment as well as people. It states that the Computing supplies ltd is not socially
responsible due to the improper management of wastage. The computers and related elements
should not be disposed in open environment. The company should make sure that the computers
are effectively recycled in order to protect environment, society and the people. The negative
impact of not fulfilling the CSR greatly affected the profitability of the business. The another
issue was unsatisfied employees, Computing supplies ltd reduced the wages of employees in
order to increase the profit margin. This negatively affected the employees and forced to join
unions and this damaged the reputation of the company in the market. Due to this many
customers discontinued their contract with the company which lead to reduction in profit of the
business.
Therefore, avoiding the CSR negatively affected the image and brand reputation of the
company which resulted in the decreased profitability of the business.
2.3 How to improve ethics
The term Corporate social obligation allows to the workers of the association to contribute
towards the public or group, Environment and so on. The corporate social obligations may
expedite an awesome change the economy of a nation. In the event that the association has
vowed to instruct poor offspring of a specific town not just it gives a feeling of inward fulfilment
yet in addition pride and happiness(Yakovleva,2017). The Corporate social responsibility goes
long making a positive image for the association overall. Helping out others for instance your
partners would not just take your business to a more elevated amount yet additionally guarantee
the long haul achievement and development. A mindful administration assumes and critical part
in making the association prevalent and draws in clients and in addition more gifted
representatives. Individuals builds up a positive feeling for an association or brand which steps
up contributing towards the public, for instance planting trees, contributing in financial crisis,
instructing poor kids and etc The organisation makes a particular picture of their image among

the general population which helps in building a positive position in the market. (Brammer and
Pavelin,2016).
Corporate social responsibility likewise gives a sentiment joy to the representatives, Employees
take pride when their association steps up with regards to social commitment. This fortify the
bond between the association and the employees. The solid bond among the representatives and
association prompts the advancement of the association and enhancing the profitability and also
brand value. The positive notoriety of an association creates more incomes by pulling in more
clients.
TASK 3 : The issues which inform company reporting and their impact on
society.
3.1 Business objectives affected by ethical considerations
 Treating employees fairly – The ethical approach related to employment
helps in promoting the employee's well-being, safety and security at
workplace. This helps in motivating the employees as well as building
strong relationship with them encouraging them to perform better and
achieve organizational objective effectively(Hopkins,2016).
 Ethical considerations to the products – The companies can apply ethical
consideration to their product in order to attract more customers and high
profit. The ethical considerations to products refers to high quality and safe
safety.
 Sustainable production practices – The Ethical considerations need
organizations to reduce the negative effects on the environment in which
they perform their business functions. This helps in building a positive
image in the market and attracting more customers.
3.2 The regulatory framework for CSR
The government of UK developed a CSP website which states an ambitious
vision of UK organizations to consider social, environmental and economic

impacts of their functions wherever they perform all over the
world(Leipziger,2017). The UK corporate governance code is not specifically
concerned with the CSR but there is some acknowledgment that an organization's
roles extend beyond the shareholder. Therefore, the government has established
laws and regulation for the businesses such as employment act, environmental
protection policies, etc which are imposed in order to ensure that the companies are
operating their operations with respect to their corporate social
responsibilities(Argiolas,2017).
4.1 Current ethical issues
There are different current ethical issues that affects Computing supplies Ltd.
Globalization has made the way of life, budgetary foundations, countries more associated. Thus,
the moral issue identified with ideal utilization of assets has risen. This has affected Computing
supplies Ltd in light of the fact that the assets appear to be drained. Subsequently, as lesser assets
are accessible, Computing supplies Ltd needs to execute more effective methods for completing
its tasks with the goal that the accessible assets can be utilized as a part of a more ideal way.
Another moral issue might be identified with condition. There are different exercises which are
engaged with running of vast associations. A significant number of these exercises may have
hurtful effect on condition which turns into a moral issue. For instance, inappropriate waste
administration, air contamination, water contamination and so forth all these raise moral issues
as these corrupt the nature of condition. Computing supplies lid's business is affected by this
moral issue since it needs to embrace appropriate waste administration forms. Alongside that, it
likewise needs to coordinate its speculations towards actualizing gear and frameworks which
lessen the carbon impression of the organization(McWilliams,2014).
Corruption is another moral concern and incorporates a wide scope of issues which are related
with, out of line and wasteful portion of assets and openings. Any demonstration of debasement
and pay off inside the association influences the workers to lose confide in the business. This
adversely impacts associations like Computing supplies ltd which may lose some of its effective
workers as they discover the organization degenerate. Moreover, corporate social responsibility
(CSR) is likewise a current moral issue. CSR exhibits the responsibility of a business towards an
extensive variety of partners. Ecological assurance and in addition prosperity of workers are the

key regions of CSR The effect of this issue is that Computing supplies ltd attempts an assortment
of CSR exercises, for example, diminishing nourishment wastage, supporting neighborhood
groups and being an awesome manager
4.2 Potential impact of changes in the CSR on business performance
The Computing supplies ltd planned to shift some of its production process to India in order to
cut down the manufacturing cost, the major factor that influenced the organisation to develop
this plan was to decrease the cost of the company. However, the plan may not be that successful
as the local people will not be benefited due to the local wages and local use of water. The
company still not focusing on the wages of the local employees which will still affect the image
of the brand or company, the another issue which will remain in front of the company is the use
of natural resources.
The company utilizes water within their local environment which is affecting the
environment. The performance of the business may rise due to the reduced production cost but
still the CSR of the company is not fulfilled as the local employees within the company are not
satisfied with their wages and the local environment is also getting depleted. Therefore, the
change in the CSR policies can be effective only when the company focus on motivating the
stakeholders such as customers and employees or protect the environment in which they operate
their business(Pedersen,2015).
4.3 Recommendations
With a specific end goal to be an Ethical and Socially dependable organization the Computing
supplies ltd Group ought to takes after the accompanying advances -
 Build up a dream – Corporate Social obligation in an association begins with an attention
to who the association is and what are the convictions of the association.
 Once the choice of stepping up with regards to the social duties is taken, While advancing
a social obligation, The association need to centre around the obvious association
between they say and what they can do(Choi and Moon,2016).
 Propelling solid and screen seriously – Once the Computing supplies ltd aggregate
composed a CSR program they should make mindfulness and execute their drives

adequately without overlooking the continuous techniques for checking how well the
activities function. The Computing supplies ltd gathering needs to consider the clients
needs and inclinations. The vast majority bolster moral business hones. Clients will be
pulled in towards the association as they will have a positive sentiment for them on
account of the social commitment.
CONCLUSION
The report concluded that corporate social responsibility (CSR) is very essential for every
organization, the study consist background and development of ethical approaches to understand
the importance of business ethics. The report also includes conflicts between the needs and
expectations of different stakeholder along with the impact of CSR on Computing supplies ltd.
Furthermore, the report also describe potential impact of changes in the CSR on business
performance and recommendations for Computing supplies ltd in order to improve their business
ethics and outcomes.

REFERENCES
Books and Journal
Pedersen, E.R.G. ed., 2015. Corporate social responsibility. Sage.
McWilliams, A., 2014. Economics of Corporate Social Responsibility. Edward Elgar Publishing.
Hopkins, M., 2016. The planetary bargain: corporate social responsibility comes of age.
Springer.
Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for business.
Routledge.
Walker-Said, C. and Kelly, J.D. eds., 2015. Corporate Social Responsibility?: Human Rights in
the New Global Economy. University of Chicago Press.
Leipziger, D., 2017. The corporate responsibility code book. Routledge.
Choi, H. and Moon, D., 2016. Perceptions Of Corporate Social Responsibility In The Capital
Market. Journal of Applied Business Research (JABR), 32(5). pp.1507-1518.
Argiolas, G., 2017. Corporate Social Responsibility. In Social Management (pp. 43-59).
Springer International Publishing.
Brammer, S.J. and Pavelin, S., 2016. Corporate Reputation and Corporate Social
Responsibility. A Handbook of Corporate Governance and Social Responsibility. p.437.
Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate Social
Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the
Future. p.15.
Steenkamp, J.B., 2017. Corporate Social Responsibility. InGlobal Brand Strategy (pp. 209-238).
Palgrave Macmillan UK