MGT301A: Euro Car Parts Ethical Issues and Solutions Report

This report examines the ethical issues faced by Euro Car Parts, a UK-based company operating in Australia. The report identifies instances of discrimination based on race and gender, particularly between local employees and expatriates. It utilizes stakeholder theory to analyze the situation, focusing on the employees as key stakeholders. The analysis highlights issues such as unequal opportunities, harassment, and lack of skill development. The report offers three potential solutions: proper documentation and immediate action against unethical employees, mandatory training on discrimination laws, and a consideration of recruitment practices. The report concludes with recommendations for establishing a strong anti-discrimination policy and building a productive, equitable workplace. The report emphasizes the importance of treating all employees fairly to eliminate problems and improve the company's performance.

Running head: ORGANIZATIONAL ISSUES
ORGANIZATIONAL ISSUES
name of the student:
name of University:
Author's note:

1ORGANIZATIONAL ISSUES
Executive summary
The objective of this report is to discuss the situation of unethical incidents taken place in the
British company named Euro Car Parts. This company has entered the market of Australia
but cannot work smoothly due to the problems among the local employees and the
expatriates. This report has discussed the company scenario in Australia and analyzed the
stakeholder theory to proper understanding of the problem. This report has produced three
best possible solution which will be helping the company to understand the root cause of the
problem sand solve them entirely so that this kind of problem do not occur in near future.

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Table of Contents
Executive summary....................................................................................................................1
Introduction:...............................................................................................................................3
Summary of scenario:................................................................................................................3
Stakeholder theory:....................................................................................................................4
Analysis:.....................................................................................................................................4
Identification of alternative solutions:.......................................................................................6
Recommendations......................................................................................................................7
Conclusion:................................................................................................................................7
Bibliography...............................................................................................................................8

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Introduction:
The aim of this report is to discuss the ethical issues created in an international
company named Euro Car Parts. The unethical issues that has been understood that as Euro
Car Parts has started to spread its business in the Australian market for the first time, there
has been issues regarding discrimination on the basis of race and gender within the
employees. This report will be however discussing the stakeholders’ theory to understand
various issues emerging in this company. Towards the end this report will be discussing three
solutions to these problems recommend steps to eliminate such problems in the organisation.
Summary of scenario:
Euro Car Parts is an UK based company which has been working in that country for a
long time. It has branches in that country in more than 200 places with no unethical record
found yet. This particular company has entered the Australian market and has been doing
business founding local offices where the employees both local as well as expatriates have
been assisting the company to reach its organizational goals. The local employees as do not
have much experience are not given higher posts hence they have been employed in the lower
posts and the employees from the head office occupied the higher posts. This created issues
in the organization as these expatriates have no experience in working with the cross-cultural
teams. Therefore, the team leaders are found to be discriminating the aboriginal employees of
the organization and depriving them from all the opportunities and scopes of development. In
addition to this, the victims of the discrimination are found to be affected from the company
policies and their team leaders are not responding to their wants and needs. They are not
being able to get trained to utilise their personal skills. On the other hand the women
employees of this particular firm are claiming that they are also facing this type of

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discriminative problems from them higher authorities. They are being mentally tormented
and verbally harassed.
Stakeholder theory:
This theory is the theory of organizational management and ethics which address
morals and values of the organization in the managing of business ethics. This theory
identifies as well as models the group of stakeholders of the organization (Jensen, 2017). This
theory also describes and recommends various methods through which the management can
effectively serve the interests of their stakeholders. In one word, stakeholder theory attempts
to address the principles of what or who actually count for the company. The stakeholders’
perspectives are the most traditional view of the companies. To this view, the only the
shareholders and owners are the most important and whatever the company does, aim to
serve the interest of the owner and shareholders (Jones, Wicks, & Freeman, 2017). However,
this scenario has drastically changed with time. In this recent era, the company is bound the
make decision in favour of the customers, employees, commuters, financers, suppliers,
government bodies and most importantly the trade unions associated with the company
(Hörisch, Freeman, & Schaltegger, 2014). In some cases the competitors are also grated to be
one important stakeholder as this gives the company fresh impetus to operate successfully in
the business. In this case however, the employees of Euro Car Parts are the chief stakeholders
for serving whom the company needs to focus on elimination the discrimination issue.
Analysis:
In this case of Euro Car Parts, the key stake holders are the employees of the firm.
They are the second level of priority stakeholders. The particular group is interested in their
career development, equivalent opportunities, equal treatment and high wages. These
stakeholders are motivated to develop their own skills by working in such a reputed

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international company (Andriof, Waddock, Husted, & Rahman, 2017). This is the reason why
the company’s Australian branch should consider them to enhance productivity, reputation
and understanding the new market. However, as they are being harassed by their colleagues
in the workplace, hence they need the proper information regarding the policies of
discrimination. (See figure 1).
Figure 1.
The main interest area of the employees is job satisfaction, job security, salary and
motivation (Ngo, 2017). They have the power to manipulate the policies of the organisation.
These employees when do not get the opportunity to develop their skills and efficiency, they
react. In this case of Euro Car Parts, the employees are facing harassments which are
affecting the production quality of the company and many employees are leaving due to this
reason. This is due to the fact that the employees are facing issues regarding the
discrimination issues in the workplace. In mitigating these issues, the company must engage
in the interest area as the company will be needing to invest more if it does not employ the
local people (Kosny, Santos, & Reid, 2017). Therefore, these employees need to get ample
P
o
w
e
r
Interest
Meet their needs
 Engage in interest
area
 Increase the level of
interest
Key player
 Key players focus
efforts on the group
 Engage regularity
 Involvement in the
decision making
process
Least important
 Informing via
newsletters, open
communication and
websites
Show consideration
 Making use of
interest by involving
in the low risk areas
 Potential supporters.

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power in their hands to effectively support the production (Jones, Peddie, Gilrane, King, &
Gray, 2016). This is the reason why the company needs to prioritise these stakeholders over
others and mitigate the issue as soon as possible.
Identification of alternative solutions:
` For preventing any further problems of discrimination, the company can take
three very important measures. These are-
 Proper documentation and taking immediate action to the immoral employees
 Proper training to the employees
 Reducing the cultural diversity in the workplace
The company needs to employ a team to properly document all the versions from both the
victims as well as the accused. This is the initial process to keep every details and up to date
records. This process will be helping the management to answer question from the other
stakeholders. The time, place name of the employees associated in the harassment incident
will be noted (Davis, Whitman, & Nadal, 2015). Based on this documentation of the
incidents, the employees will be found guilty and directly terminated from the workplace be
they be most important or productive employees of the firm.
The company must take mandatory action to train the interviewers who will recruit the
employees, the managers and all the employees about the discrimination laws of the country.
These laws may include disability act, age discrimination act, medical leave act, equal pay
act, pregnancy discrimination act and civil rights act (Ruggs, Martinez, Hebl, & Law, 2015).
This will help to build an efficient workplace without any incident of discrimination and
associated problems. Thirdly the company can reduce the recruitment of the aboriginal
people of Australia because of which all these issues have been emerged in the workplace.
However, this may not be very good aspect to maintain a company’s reputation as this will

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also go against the discrimination act of the country (Cheung, King, Lindsey, & Membere,
2016).
Recommendations
In order to solve this issue of discrimination, the company need to build
discrimination policies attacking racial and gender discrimination in the workplace. The
employee hand book must carry the definitions of the harassment and discrimination issues
originated from them. The employees must know the consequences to violate any of the
company’s policies. This is very important to take all the complaints strictly so that the
employees in the firm do not feel the workplace unsecured for working. By treating all the
employees in a similar manner in the aspect of racial and gender discrimination, the company
will be able to eliminate all the problems and build a strong and productive workplace.
Conclusion:
Therefore, it can be concluded that the international company like Euro Car Parts does
not have any experience in working in a diverse work culture like that of Australia. Hence
there are some issues regarding discrimination and harassment of the aboriginal employees
and women in the organization. However, through stakeholder theory and its analysis the
prioritisation has been done and based on this analysis, three solutions have been given. The
company immediately needs to form a strong policy backed by the Australian laws, in order
to prevent discrimination in the company’s Australian branch.

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Bibliography
Andriof, J., Waddock, S., Husted, B., & Rahman, S. (2017). Jensen’s approach to
stakeholder theory. In Unfolding Stakeholder Thinking. Routledge.
Cheung, H. K., King, E., Lindsey, A., & Membere, A. (2016). Understanding and reducing
workplace discrimination. In Research in personnel and human resources management.
Emerald Group Publishing Limited.
Davis, L., Whitman, C., & Nadal, K. (2015). Microaggressions in the workplace:
Recommendations for best practice. Sexual harassment in education and work settings,.
Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in
sustainability management: Links, similarities, dissimilarities, and a conceptual framework.
Organization & EnvironmenT , 27 (4), 328-346.
Jensen, M. C. (2017). Value maximisation, stakeholder theory and the corporate objective
function.In Unfolding stakeholder thinking. Routledge.
Jones, K. P., Peddie, C. I., Gilrane, V. L., King, E. B., & Gray, A. L. (2016). Not so subtle: A
meta-analytic investigation of the correlates of subtle and overt discrimination. Journal of
Management , 42 (6), 1588-1613.
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.
Kosny, A., Santos, I., & Reid, A. (2017). Employment in a “land of opportunity?”
Immigrants’ experiences of racism and discrimination in the Australian workplace. Journal
of International Migration and Integration , 18 (2), 483-497.

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Ngo, H. Y. (2017). Sociocultural adaptation, perceived workplace discrimination and
psychological well-being of immigrant workers. In Migration in Post-Colonial Hong Kong.
Routledge.
Ruggs, E. N., Martinez, L. R., Hebl, M. R., & Law, C. L. (2015). Workplace “trans”-actions:
How organizations, coworkers, and individual openness influence perceived gender identity
discrimination. Psychology of Sexual Orientation and Gender Diversity. Psychology of
Sexual Orientation and Gender Diversity , 2 (4), 404.

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