University Management Report: Ethical Issues at Woolworths (MGT301A)

This report, submitted as part of the MGT301A Ethics and Sustainability course, critically analyzes the ethical issues faced by Woolworths. The report focuses on the exploitation of trolley workers, including underpayment and excessive workloads, and examines the impact of these issues on the company's growth and business environment. The student reflects on future workplace behavior, emphasizing the need for ethical conduct, fairness, and employee well-being. The analysis incorporates ethical frameworks and discusses the importance of proper management-employee relationships, fair payment practices, and the implementation of ethical codes of conduct to improve organizational behavior and maintain a positive company image. The report concludes with a summary of the findings and recommendations for addressing ethical concerns within Woolworths.

Running head: MANAGEMENT
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Name of the student
Name of the university
Author note

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Table of contents
Part B...............................................................................................................................................2
Introduction......................................................................................................................................2
Summary of issues and frameworks discussed................................................................................2
Reflection on future workplace behavior........................................................................................3
Conclusion.......................................................................................................................................5
Reference list and bibliography.......................................................................................................6

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Part B
Introduction
In the emerging business environment, the ethical concern has become one of the major
issues faced by the companies (Hollingworth & Valentine, 2015). Analyzing the ethical policies
adopted by Wools worth, it has been identified that due to increasing numbers of ethical flows
the growth process as well as business environment of the company has got affected. The
purpose of the study is to critically analyze the ethical issues faced by Woolworths in the
organization and introduce an effective reflection based on the future workplace behavior of the
company.
Summary of issues and frameworks discussed
Analyzing the issues faced by Woolworths, it has been identified that from the last few
months the trolley workers in this company are being exploited. The major ethical issue aroused
in the company when the underpayment issue of trolley workers has been reviled (Smh.com.au,
2019). In an investigation of Fair Work inspector, it has been identified that serious non-
compliance issue regarding the underpayment of workers and increasing workload has become
the important ethical challenge faced by the employees in Woolworths. High profile wage
scandal has also reviled the irregular payment practices in the company. After the 12 months of
investigation, it has been identified that near about 130 Woolworths supermarket has got the
disturbing allegation due to increasing ethical violence in the workplace. On the other hand, in
case of analyzing the issue, it has also been identified that only the management level workers
are permanent in the company. Rest of the store staffs are the part-time workers, although they

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are working in the company for more than one year. In that case, job security is another
important ethical concern faced by the company (Smh.com.au, 2019).
Reflection on future workplace behavior
Analyzing the ethical challenges faced by the company, it can be said that the increasing
numbers of ethical issue has not only influenced the internal environment, but also due to the
increasing numbers of ethical concerns in the company, it has become highly challenging for the
companies to ensure standard productivity (Guimarães, Pinho & Milani, 2016). As per my
understanding, the increasing numbers of ethical issues in the company has driven the negative
organizational culture, which can indirectly influence the job satisfaction in the company. By
continuing this, I can also say that due to lack of fairness as well as honesty, negative image of
the company in the market influence its competitive advantage gaining changes. I believe it is
true that in the current ethics concerning business environment, moral principles of the company
will get affected. Therefore, it can be said that increasing ethical concern in the company may
drive the future behavioral aspects in the workplace.
As per my understanding in this situation demonstrating the effective organizational
behavior has become necessary for ensuring the positive growth in the company. Without
ensuring the equality, honesty and diversity ion the workplace, it can be highly challenging for
the company to maintain consistency in employee retention process. On the other hand, it is true
that based on the current situational analysis, workplace behavior of the company may
discourage individuals towards achieving the organizational goals (DeConinck, DeConinck &
Moss, 2016). Analyzing the two ethical framework introduced in the study, it can be said that
proper relationship development between the management and employees has become necessary
for ensuring the performance standard in the company. It cannot be denied that economic factor

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is being considered as one of the important motivational factors that encourage the employees
towards contributing in the organizational goals. In this situation, avoiding the conflicts between
the manager and employees, I believe, proper initiative needs to be adopted by both the parties.
As per my understanding, if the manager of the company will share a cooperating
behavior towards the employees, it can be easier for the management to develop employee trust
as well as loyalty towards the organization. As per my understanding reducing the challenges
regarding ethical concern, it is very important to make an effective discussion with individuals’
so that the needs of employees can be understood. It cannot be denied that job security is one of
the basic needs of the employees, which they want from the organization they work for (Xu, Loi
& Ngo, 2016). On the other hand, I strongly believe, in order to maximize the interest of
stakeholders and ensuring the balance between the wealth and health of the stakeholders, strong
ethical behavior is needed to be introduced in the workplace. In case of analyzing the issue, it has
been identified by me that through the effective corporate engagement, progress in the
organizational performance can be ensured. As per my understanding, in order to avoid the
ethical concerns in the company, Equal payment opportunity Act and Equal Opportunity Act
needed to be implemented in the company, so that the corporate culture can be improved
(Alhammadi et al., 2018). By continuing this it can also be said that by focusing on the payment
structure and strong ethical conduct developing process, the future organizational behavior in the
company can be improved. I strongly believe, if the positive organizational culture can be
developed in Woolworths, it not only influence the positive business growth, but also it can help
to increase the ability of 0indeviodiuals, which can indirectly drive the competitive advantage
gaining process in the current business environment.

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Conclusion
In this study, it can be concluded that ethical issue has become the major concern in
Woolworths. It is true that due to increasing numbers of ethical concern regarding Job insecurity
and improper payment structure in the company, the negative image of the company on the
internet has influenced its customer base. In order to improve the situation in the company,
introduction of ethical code of conduct and its proper implication have become necessary so that
the future behavior in the company can be improved.

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Reference list and bibliography
Alhammadi, S., Archer, S., Padgett, C., & Abdel Karim, R. A. (2018). Perspective of corporate
governance and ethical issues with profit sharing investment accounts in Islamic
banks. Journal of Financial Regulation and Compliance, 26(3), 406-424.
DeConinck, J. B., DeConinck, M. B., & Moss, H. K. (2016). The Relationship among Ethical
Leadership, Ethical Climate, Supervisory Trust, and Moral Judgment. Academy of
Marketing Studies Journal, 20(3), 89.
Guimarães, J. A. C., Pinho, F. A., & Milani, S. O. (2016). Theoretical Dialogs About Ethical
Issues in Knowledge Organization: García Gutiérrez, Hudon, Beghtol, and Olson. KO
KNOWLEDGE ORGANIZATION, 43(5), 338-350.
Hollingworth, D., & Valentine, S. (2015). The moderating effect of perceived organizational
ethical context on employees’ ethical issue recognition and ethical judgments. Journal of
business ethics, 128(2), 457-466.
Müller, R., Turner, J. R., Andersen, E. S., Shao, J., & Kvalnes, Ø. (2016). Governance and ethics
in temporary organizations: the mediating role of corporate governance. Project
Management Journal, 47(6), 7-23.
Smh.com.au (2019). Retrieved from:
https://www.sbs.com.au/yourlanguage/punjabi/en/article/2016/06/26/trolley-collectors-
nearly-half-woolworths-stores-underpaid [Accessed on 27th April, 2019]

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Smh.com.au (2019). Retrieved from: https://www.smh.com.au/business/workplace/rampant-
exploitation-of-woolworths-trolley-workers-revealed-20160624-gprari.html [Accessed on
27th April, 2019]
Xu, A. J., Loi, R., & Ngo, H. Y. (2016). Ethical leadership behavior and employee justice
perceptions: The mediating role of trust in organization. Journal of Business
Ethics, 134(3), 493-504.