Ethical Review of Starkist Tuna: Individual & Organizational Practice

This report examines the ethical dimensions of Starkist Tuna's operations, focusing on the importance of individual and organizational ethical thinking and practice. It begins with an introduction to ethics, values, and moral principles, emphasizing their significance for business sustainability. The report analyzes ethical issues within Starkist, particularly concerning labor practices and modern slavery, and their societal impact. It evaluates the consequences of these issues on key stakeholders, including employees, customers, investors, and government entities. The report also illustrates examples of both good and bad ethical practices in business, providing recommendations for Starkist to improve its ethical standing. Furthermore, it assesses two ethical theories, namely utilitarianism and deontology, that can be applied to address the company's ethical challenges. The report concludes with an evaluation of the qualities needed for ethical leadership and the creation of an ethical organizational culture, offering insights for long-term growth and sustainability.

Importance of
individual and
organisational ethical
thinking and practice

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................3
PART 1............................................................................................................................................3
2. Report for Starkist senior manager..........................................................................................3
2.1 Ethical issue...........................................................................................................................4
2.2 The way Starkist issue affects society...................................................................................4
2.3 Evaluation of impact of ethical issue of Starkist on key stakeholders..................................5
2.4 Illustration of examples of bad and good ethics of business.................................................6
2.5 Recommendation...................................................................................................................7
3 Evaluation of two Ethical theories that can be used by business.............................................7
PART 2............................................................................................................................................9
4 Evaluation of Qualities those are required for ethical leadership and creation of ethical
organisation..................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

1. INTRODUCTION
Ethics, values and moral principle are crucial for both individual and organisation in order
to continuous their smooth operation for longer period of time. Ethics are moral principle and
values that need to be followed by individual and organisation while operating different function
in order to build and maintain strong brand image. Starkist tuna is American firm that is wholly
owned by Dongwon Industries of South Korea and founded in 1917. Company that follows
ethical values can easily established its strong brand image at the same time meet needs of
different stakeholders. It can be stated that there are several human rights are abused such as
labour are forced to work or child labour. As per report of January 2018, it have been surveyed
by business and human right resources centre that 35 companies that operates 80 global brand
are facing challenges related to human right. This report is prepared with an aim to analysis
ethical review of Starkist tuna that is at starting line in its policies and human right due diligence
for smooth operation of business. It has provided various information to manager of Starkist tuna
about ethical practice that has been undertaken by firm and its impact on different stakeholders.
It has also analysis two ethical theories for issues that are faced by company and suggest
appropriate steps that can be taken by management for smooth operation of business.
PART 1
A)
2. Report for Starkist senior manager
The report have been prepared by middle manager of starkist to provide crucial
information about ethical practices or approached that are used by company in supply chain
management. It is made with purpose to know about action in which company lack to follow
ethical consideration that have impacted on brand image and interested stakeholder of firm.
Middle manager has also suggested some of the ethical practices that need to be followed by
ethical leaders and manager so that no harm can be caused to other person (Salampasis and
Mention, 2018). Therefore report has made to improve keys areas and consider ethical practices
for long term growth and sustainability of organisation.
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2.1 Ethical issue
One of the most important ethical issue that is faced by fishing company is that more work
load or exploitation of labour as company want to offers products and services at minimum
prices to customers. So, in order to meet expectancy of customers and enhanced values of
shareholders instead of stakeholder have contributed in more ethical practices. Modern slavery
refers to when company in order to get competitive advantages forces employees to put extra
time and efforts for achievements of overall goals. It can be stated that tuna companies are
unable to support their policies for practical action on modern slavery as only two third firm have
public human right policies. At the same time only four main companies such as Thai Union,
target, Kraft Heinz Australia and REWE group have due diligence policies and procedure which
are specially made to address associated risk in modern slavery in supply chain for smooth
operation of business.
Therefore it can be stated that Starkist is at started line in making policies, supply chain
visibility, human right due diligence, practical action but stakeholder engagement have been
started out by firm to incorporate social and ethical responsibilities for longer term growth and
survival of business (Mitchell, Reynolds and Treviño, 2020). Various steps have been taken by
starkits in order to save people or workers from modern silvery for effective operation of
business.
2.2 The way Starkist issue affects society
Business operates in a society so it needs to take crucial steps for benefits of people such as
CSR activities which helps in retention of customers loyalty and satisfaction level. There are
various ethical issue that are firm are facing while operating its function such as ineffective
policies for safety and protection of labour. Starbuck have not taken proper initiative to provide
maximum benefits to consumers by not following ethical practices in order to earn more and
more profitability. Company rather on blaming on government that it have not able to tackle
modern slavery in supply chain have to take or think crucial steps that can be taken to protect
workers. It is responsibilities of manager of Starkist to follow ethical practice and procedure in
order to remove various ethical issue that have to be faced by firm. Employees of Starkist are
exploited to large extend, child labour is also promoted so such practice affects society and
future of many children (Chen and Hou, 2016). Poor working condition and over time or extra
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work pressure than salary given lead to affects health and well being of individual therefore
Starbuck manager need to take crucial steps so that employees can be happy and satisfied. It can
be stated that it is not about Starbuck but all firms which exploit their labour in order to cut cost,
earn extra profit and satisfied needs of customers. One of the main social issues is slavery that
have been faced by most of the people that work in company so Starkbuck need to make
effective policies for protection of employees.
Starbuck by incorporating various social responsibilities or CSR activities can build and
maintain strong brand image in competitive market. As main purpose of enterprise is to provide
services or products in order to create values for people so manager need to make various efforts
to remove its negative image of firm for growth and sustainability of enterprise in long run.
2.3 Evaluation of impact of ethical issue of Starkist on key stakeholders
There are various stakeholder of company that are interest in its operation or activities such
as customers, employees, investors and government. Company need to effective engage and
satisfied need of each stakeholder for smooth operation of business in competitive market
condition. Therefore various stakeholders that are affected by unethical practices of Starkist can
be illustrated as below:
Employees: It can be stated that slavery practice, exploitation of labour cause adversely impact
on mental and physical health of individual. They are dissatisfied or unhappy with policies and
procedure of Starbuck which may lead to underperformance and poor delivery of products to
customers (Hirth-Goebel and Weißenberger, 2019). Therefore they don’t like to work in such a
company but have been forced so that will never put their best efforts for growth and success of
starkist. Employees of firm have been exploited in term of wages, discrimination on basis of age,
caste, religion and are not allowed to use their identity or move to restricted areas.
Customers: Most of the people in recent trends are aware about increasing case of slavery,
exploitation of employees so customers of starkist are less interest to have any kind of
transaction with company that have bad brand image in market. As most of the customers of
such company are supermarket so they will not takes supply from firms that are involved in these
cases in order to protect their brand image, reputation and maximum customer’s satisfaction.
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Government: There are various policies, procedure and laws that are made by government for
protection of child labours, exploitation of labours in term of wages, equality so that people can
live better life and economy can grow. So, Starbuck by following unethical practice may have to
face legal problem or have to pay penalty, fines and more government intervention so that no
harm can be caused to individual.
Investors: These are stakeholder that has invested their capital in company in order to earn more
profitability for longer period of time through strong establishment of brand image. But Starkist
is involved in unethical practice that has losses interest of several investors to invest their capital
in company for operation of business (Kline and Aristigueta, 2019). Therefore less number of
people are interested to provide fund to company which promote modern slavery in order to earn
profit.
Other competitors: Unethical practice followed by Starkist have provided opportunities to other
company to attract customers of firm as most of the people does not liked to make purchased
from enterprise that is involved in slavery. Such as most of the companies like Thai Union,
bumble bee, clover leaf seafood and Aldi group by taking various initiatives to protect
employees in its supply chain have expand their market share and retention satisfaction of
customers.
2.4 Illustration of examples of bad and good ethics of business
There are two types of ethical practices for business that is good and bad that impact on
overall brand image, customer’s satisfaction and reputation of organisation. Due to digital media
and more use of social sites people having become highly aware about various ethical practices
that need to be considered by business while operating its operation (Halinen and Jokela, 2016).
There are lot many firms that have incorporated unethical practices just in order to earn more
profit margins that have impacted on overall growth and sustainability. Therefore examples of
good and bad ethics practice can be illustrated as follows:
Good Ethics: Various company have incorporated social responsibilities and have taken CSR
activities in order to satisfy needs of customers and retain its market share. Such as Thai Union,
Bumble fee foods, Metrao AG have taken crucial steps or making changes in policies to reduce
employees exploitation for effective operation of business. Thai union have also engaged with
trade union thus all such ethical practices have lead to employees satisfaction level and
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recovering of brand image of enterprise. Therefore, managers of starkest need to learn from
companies about good ethical practices for growth and sustainability of enterprise.
Bad Ethics: On the other hand there are firm that have not taken steps for policies formulation,
supply chain visibility and exploitation of labour. As per survey of BHRRC it can be stated that
Pegasus food and C- food international company are two firms that have not yet respond to
ethical issues which may in long run reduce customer satisfaction level (Fatima and Siddiqui,
2019).
2.5 Recommendation
There are several suggestions or recommendation for starkist to retain its market share and
operation in international market such as:
1. It can make use of ethical theories or practice in order to eradicate modern slavery
so that employees needs can be satisfied.
2. Management need to continuous evaluates various operation in order to identify
slavery and plan effective strategies for removal of ethical issue.
3. Equal wages, good working condition and avoidance of discrimination among
employees can contributed in establishment of strong brand image of enterprise
(Espinoza, Guerra and Velasco, 2017).
4. Various legal laws, legislation that are made by government need to be followed by
manager of Starkist to save itself from penalty and fines.
B)
3 Evaluation of two Ethical theories that can be used by business
Ethics are guiding values and principle that need to be followed by enterprise and
individual so that no harm can be caused to other people. Ethical practice helps individual to
differentiate between work that are correct and wrong so that it can take correct decision to
choose particular ethical theory for operation of business and satisfaction of customers
requirements in best possible manner (Treviño, 2018). Two types of ethical theory that can be
starkist manager for achievement of organisation goals can be stated as below:
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Utilitarianism: It is types of ethical theory that is mostly based on outcome or result such as it
stated that numbers of people are benefits from particular action. The more number of people are
affect from decision or greatest good for society such types of action need to be implemented on
crucial basis. Starkist manager can use Utilitarianism ethical theory while performing in function
in order to provide benefits to maximum number of individual rather than few individual. It is
mostly based on democratic principle thus satisfy need of employees, remove modern slavery
and contribute in retention of large number of employees and customers within firm. Starkists in
order to render services or maximum benefits to wide range of people have ignored its
employees that are in limited number (Chams and García-Blandón, 2019.). It has make
ineffective use of utilitarianism ethical theory as in order to give greatest benefits to customers,
employees of firm have to suffered to large extend. Therefore winner of these theory are
customers and looser are employees that have to bear modern slavery for benefits of organisation
and different range of customers. Therefore manager needs to ensure that it should not harm
either employees or customers for just personal gain. The drawback of this view for starkist is
that poor performance, bad impact on reputation of company and loss of employees and
customers satisfaction.
Deontology ethical theory: On the other hand it is another ethical theory that is based on
principle that there are certain rules, duties which need to be performed by each individual.
Person need to follow certain principle and objectives in its life so that no harm can be caused to
other individual in society. All duties, responsibilities need to be performed on rational basis that
means there should not be discrimination among employees on basis of gender, caste and
religion within firm (Davies, 2017). Therefore, manager of Strakist need to follow deontology
ethical theory or follow various rules, principle and ethical values to fulfil requirements of
customers and various employees. It by following government rules, policies and its moral duty
can reduce chance of slavery within firm can contributed in growth of organisation. Manager of
Starkist have not performed its duties well as it have ignored ethical principle because of the
employees have to be suffered a lot. Not follow of ethical theory have impacted on company
profitability, market share and customers loyalty as they have negative image for enterprise.
As per my point of view organisation follow unethical practice in order to earn more profit
margin by reducing overall cost of production through exploiting employees to work over time
or promoting modern slavery. There are several firms such as C food – international that have
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taken minimum steps to make policies to protect employees from various injustice within
organisation in order to enjoy profit margin. Whereas some companies have fully implemented
various policies and procedure in order to protect their employees and take maximum benefits of
opportunities that are available in environments (Muff, 2016). Manager through ensuring that
child labour is not promoted in the organisation and equal wages are provided to each employees
can rebuilt its image and get support of labour that work hard for company success. It should
perform activities that are give best outcome to number of people but it should not harm others
or its benefits should not cost to other people.
PART 2
4 Evaluation of Qualities those are required for ethical leadership and creation of ethical
organisation
It can be stated that leaders are individual that provide proper guidance to employees the
way task that need to be performed so that best outcome can be gained and organisational
objectives can be attained within minimum cost, time and efforts. While managers are
responsible for planning and arrangement of various resources so that employees can perform
different task easily with minimum chance of errors and mistakes. As per my view both leaders
and manager have strong relationship that helps them to effective manage people and satisfied
their needs so that overall objectives can be achieved (Ihlen and Heath, 2019). I think that
someone in order to be ethical person need to be honest, follow action or practice that are not
harmful for himself and other people. It ensures that while performing any task it result or
outcome should not possess harm to other people. I always thinks that ethical person know
difference between activities that are right and wrong and always prefer right action for benefits
of various individuals.
As per my thinking ethical leadership is an individual does not bias among existing
employees on any basis of gender, caste and region thus always think for benefits of its team
member. It can be stated that ethical leaders have following charatertsicks such as honesty,
integrity, politeness and ability to understand feeling of others that helps it to induce other
individual to put their best so that company can grow and expand its business. On the other hand
ethical manager is a person ensure that equal resources, opportunities and wages are distributed
to each employees or no body is exploited to work extra. Manager always rewards, respect and
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recognise employees that have put best efforts which have contributed in achievement of firm
objectives (Nguyen, 2018). It can be critically analysed as per my view that ethical organisation
is that which ensure employees satisfaction level, provide wages on time, ensure good working
environment at the same time take action for better health and safety of individual.
Starkist can develop ethical organisation by ensuring that no types of harm can be caused to
employees such as it can remove slavery, maximum exploitation of employees and child labour
for earning more profit margin. It can hired ethical manager and leaders within organisation that
put their best in order to provide benefits to employees as well as customers that are essential for
firm. Certain standard, code of conduct and policies need to be framed by manager of company
so that employees cannot be exploited and better services can be renders to large number of
individual in minimum time schedules (Clarke, 2018). Treating every individual with respect,
gratitude and ensure that they are provide best working environment where no harm can be
caused to them. Training and development need to be provided by managers and leaders should
offer friendly, supportive and trustworthy environment to employees so that they can perform
task in best possible manner. Honestly and polite, friendly nature of leaders and manager can
contributed in better operation of organisation and achievement of objectives. Different
motivation, ethical theories need to be considered by manager and leader while performing their
respective function to remove ethical issue.
CONCLUSION
It can be concluded that most of the people are aware about unethical practices of
organisation so it have forced companies in order to retained customers they have to follow
ethical practices. It have also be analysed from above report that labour have to face lot of
problem due to unethical practices that are followed by starkist. It have taken steps for making
policies and rules for protection of labour but that are not effectively implemented so more
efforts need to be made by manager and leader for strong brand image of firm.
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REFERENCES
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