Business Ethics Report: Analyzing Ethical Issues at ASDA and Vodafone

This report delves into the realm of business ethics, examining the significance of ethical practices within organizations. It begins by defining ethics in business and providing real-world examples. The report then analyzes the ethical behavior of ASDA and Vodafone, two companies that have faced ethical challenges. It applies Sethi's typology and Mintzberg's Conceptual Horseshoe to evaluate their actions. Furthermore, the report investigates the ethical decision-making processes within these businesses, highlighting how ethical issues have impacted their operations. The analysis covers topics like discrimination, data security, and the broader implications of ethical lapses on profitability, market share, and employee morale. The conclusion emphasizes the importance of business ethics for achieving organizational goals, attracting customers, and fostering a positive work environment.

Ethics in
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1.1 Discuss what is meant by ethics in business with reference to three examples....................1
1.2 Analyse an organisations ethical behaviour using Sethi’s typology and Mintzberg’s
Conceptual Horseshoe.................................................................................................................3
Sethi’s typology:- .......................................................................................................................4
1.3 Using two examples, analyse and evaluate the ethical decision making process within a
business setting............................................................................................................................5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Business ethics is refers to study of policies and practices of a business. It also refers to
various factors related to an organisation operations and functions such as standard, behaviours
of an individual and values as well as norms that guide activity which is conducted by a
company (Kolk, 2016). If a company didn't follow business ethics, they may face issues and
problems in conducting their business at marketplace. This report is based on two organisations
that have faced some ethical issues, during expansion of businesses in global market- ASDA and
Vodafone. Topics include in this report are meaning of ethics with examples, evaluation of
ethical behaviours of organisation using theories. Along with this it explain ethical decision
making process.
TASK
1.1 Discuss what is meant by ethics in business with reference to three examples
Meaning of ethics:-
Ethics refers to the set of principles and policies which is adopted by a company for
conducting business in effective manner. It also related to system, moral, theory, principles and
values which guide a employees and employer of a company in conducting businesses in
appropriate manner (Crane and Matten, 2016). It is important for business to adopt ethics in
effective and efficient manner because it help them in various ways, some major of them are
explain below:-
 When a company adopt ethics they able to attract customers which leads to enhancement
in sales and profitability.
 If company work according to ethics employees feel satisfied and motivated, that lead to
retention of employees for a long time and reduction of staff turnover. Along with this it
will increase productivity of employees.
 This will also attract more candidates who want to work with business which reduce
recruitment cost of company. Moreover they able to get talented employees.
 This will also attract investors and shareholders and keep share price of company at high.
 It will also provide competitive advancement for a business at a marketplace.
Kolk2016CraneandMatten2016Weiss2014LawrenceandWeber2014DesJardinsandMcCall
2014
1

But when a company not adopt business ethics in effective and appropriate manner they
face various issues which hamper business functions. Such as there will be reduction of
production of employees this will reduce profitability of company. Along with this it will reduce
customers bases and numbers of investors. According to different different authors meaning of
ethics which is adopted at workplace is different (Weiss, 2014). Along with this there are various
rules and principles to adopt ethics at company's workplace. Some of the major examples are
given below according to different authors.
According to view point of Andrew Crane, ethics can be defined as study of situation,
activities and decisions related to business where issues are issues of correct and incorrect is
being addressed.
According to view point of Raymond C. Baumhart, ethics if related to business and its
responsibilities. It is responsibilities of a business man that he/ she will not harm anyone by there
knowingly.
According to Gaurav Akrani, there are various rules or principles of business ethics
which help an organisation in conducting business in effective and appropriate manner (Weiss,
2014). By adopting these ethics principles company able to attract customers which leads to
enhancing profitability and market shares. Some of the major principles are mentioned below:-
 Debar exploitation of customers and clients so that they become loyal towards company.
 Don't conduct any unhealthy and illegal activities only for the sake of earning more
profit.
 Ensure accuracy of products and services so that customers get satisfy with goods. For
which company can check accuracy of product quality, packaging, weight and many
more.
 Pay taxes at proper times and conduct business operation and functions according to
policies and government regulations.
 Do fair and proper treatments to employees so that they feel motivated and conduct there
work in effective manner.
 Company must fulfil expectation and demand of customers in order to satisfy them and
attract as well as encourage them for purchasing.
2

When a company take care of these rules, principles and regulations they able to conduct
there business in effective manner. Along with this they also able to attract customers at high rate
which enhance there profit.
1.2 Analyse an organisations ethical behaviour using Sethi’s typology and Mintzberg’s
Conceptual Horseshoe
Mintzberg’s Conceptual Horseshoe:-
According to Mintzberg’s Conceptual Horseshoe model organization structure is divided
into five part and which is responsible for any conducting activities that is for profit or not for
profit motive. This factor includes various elements of an organisation such as industry norms,
size, experience, culture, external forces like competitions, inflations, minimum wages,
legalisations and many more (Lawrence and Weber, 2014). Explanation of five parts which is
discussed in respective model are explained below:-
1. Strategic Apex
This refers to most senior or higher level at an organisation. There peoples are chairman,
CEO, Executes and non executive directors of a company. These peoples basically set objectives
3
Illustration 1: Mintzberg’s Model of Organizational Structure
(Source: Mintzberg’s Model of Organizational Structure,2019 )

and goal which other employees has to follow to attain these objectives in effective manner. This
level peoples or employees didn't deal with customers and suppliers of a company.
2. Middle Line
These peoples are basically middle level employees who instruct lower level staff. These
peoples conduct activities like design budget, receive report from management as well as
accountant, monitor staff performance, develop actions according to requirement and many more
(DesJardins and McCall, 2014). They take investment and financial decision of a company.
Along with this they direct employees how to conduct work in effective manner.
3. Operational Core
This department is refers to those who conduct and take care of day to day activities of an
organisation. They generally deal with external stakeholder like suppliers and customers. These
department workers are responsible for conducting work and task in effective and appropriate
manner. They provide essential information which is required to develop budget and strategies.
They help an organisation in attaining goal and objectives in effective and appropriate ways.
4. Technostructure
These are those employees who are not related or take part directly in decision making of
budget or other financial related activities. They perform there work in effective manner in order
to attain goal and objectives in efficient manner.
5. Support Staff
This department peoples are least important for an organisation as there absence didn't
affect company directly. There department are related to canteens, cleaning and maintenance.
But this department help an organisation in conducting day to day activities in effective and
appropriate manner.
Sethi’s typology:-
Sethi’s typology is develop by Suresh P. Sethi and this will describe about the process of
how to sales include in overtime which is related to advertising. In this rate of changes are
mentioned which is of three type: react on advertisement which acts as positive at unsold section
at the marketplace (Ruggie, 2013). Second is accruing of loss due to forgetting various
competitive factors which is negative on sales section at market. Along with this third one is
random effect which can be occur at any time or at any place.
4

1.3 Using two examples, analyse and evaluate the ethical decision making process within a
business setting
The two business which have faced ethical issues while conducting there business are
mentioned below and evaluation of how it will affect there decision making.
ASDA:-
ASDA is a one of the leading retail supermarket which is established by Peter and Fred
Asquith in 1947. Its headquarter is situated at ASDA house, South Bank, West Yorkshire,
England. They are offering variety of products like grocery, general merchandise, financial
services and many more. There are approx 1,65,000 employees are working in respective
company. The working partner of ASDA is Walmart and ASDA promote itself by using slogan “
Save money. Live Better” (Stanwick and Stanwick, 2013). Respective company operating there
business through approx 700 stores in United Kingdom. There are various competitors of
respective company such as Tesco, Ocado, Waitrose, Hotfrog, ikart, aldi and many more.
Respective company have faced ethical issues while operating there business operations
and functions in marketplace of United Kingdom. Issues which is face by company is that they
are doing discrimination between men and women workers. According to article of BBC news,
women workers of respective company claim that they are not getting equal payment as compare
to men staffs. Even they both are working at same working profile, due to this female workers
are feeling demotivated and disconnected towards the company (Asda faces mass legal action
over equal pay for women, 2019). The female staffs of respective company want that there
higher authority take same actions or they want to complain about it on legal basis. In this
process male staffs are also taking part and encouraging and motivating females workers to fight
for there right. This issues is effecting decision making of manager and leaders of ASDA. Along
with this respective company profitability ratio, market shares and employees productivity get
decreased. To overcome this issues manger and leader of respective company adopt various laws
and legalisations such as minimum wages, equality act and many more. By adopting these they
get overcome form this issues and now employees are also treated on equal basis which motivate
them.
Vodafone:-
Vodafone is a British telecommunication company which is founded by Ernest Harrison
and Gerry Whent in Year 1991. its headquarter is in London and registered office is in England,
5

United Kingdom. Respective company serving there telecommunication service in worldwide
market. Areas in which Vodafone is operating there business are like Asia, Africa, Europe and
Oceania and many more. Overall they are operating there business in approx 25 countries and
they have near about 47 partners network countries. There are also several products which is
offer by respective company such as fixed line telephone, mobile phone, broad bands, internet
television, digital television, IPTV and many mores.
Ethical issues which is face by this company when they are bringing up 3rd generation
mobile technology (3 G) that is going to enhance speed of internet and phone call quality. This
technology is also expanding sales of Vodafone and other companies. Ethical issues which they
feel is that how to prevent there new technology of high speed data from getting hacked from
internal or external hacker (Vodafone Issues, Risks and Opportunities, 2019). For this manger
and leader of respective company adopt varies strategies for security of data and informations
related to new technology which they are going to launch. Along with this they also develop
several strategies, policies and rules related to respective issues and they also adopt new and
advance security system to protect there data in effective and appropriate manner.
CONCLUSION
From above discussed point it can be concluded and evaluated that business ethics is
essential for an organisation in order to attain goal and objectives in appropriate manner. It is
responsibility of a manager and leader of a company to maintain business ethics at there
workplace. This is so because by it they able to various benefits such as increase in customers
bases and goodwill of a company. Along with this by adopting business ethics company able to
attract and satisfy customers as well as employees in effective manner. This will directly and
indirectly enhance productivity and profitability of a company in effective and appropriate
manner.
6

REFRENCES
Books and journals
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public policy.
Tata McGraw-Hill Education.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Ruggie, J.G., 2013. Just Business: Multinational Corporations and Human Rights (Norton
Global Ethics Series). WW Norton & Company.
Stanwick, P. and Stanwick, S.D., 2013. Understanding business ethics. Sage.
Online
Asda faces mass legal action over equal pay for women. 2019.[Online] Available
thorough<https://www.bbc.com/news/business-29753702>
Vodafone Issues, Risks and Opportunities. 2019.[Online] Available
thorough<https://www.ukessays.com/essays/marketing/the-issues-faced-by-vodafone-
group-plc-marketing-essay.php>
Mintzberg’s Model of Organizational Structure. 2019.[Online] Available
thorough<https://www.mbaknol.com/strategic-management/mintzbergs-model-of-
organizational-structure/>
7