Ethics and Sustainability Report: Ethical Issues and Frameworks

This report examines ethical issues faced by Woolworths, a major Australian supermarket chain, focusing on its unethical practices and their implications. The report identifies two key issues: substandard commodities potentially harming consumers, and involvement in child labor scandals within its supply chain. To address these issues, the report applies two ethical frameworks. Utilitarianism is used to analyze the first issue, suggesting that actions should maximize overall benefit, but also considers the company's responsibility to integrate ethical practices. Deontology is applied to the child labor issue, emphasizing the inherent wrongness of certain actions regardless of their consequences. The report concludes that business leaders must consistently apply ethical decision-making processes and integrate ethical frameworks into their operational choices to address unethical practices. The report provides a framework for addressing such issues and a practical guide to business ethics. The report cites relevant academic literature to support its arguments.

Running head: ETHICS SUSTAINABILITY
Ethics Sustainability
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................1
Identification of issue 1...................................................................................................................2
Ethical framework for addressing issue 1 and justification of choice.............................................2
Identification of issue 2...................................................................................................................3
Ethical framework for addressing issue 2 and justification of choice.............................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................4

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Introduction
This assignment provides an overview on the application of proper ethical frameworks to
the real world issues. This study focuses on two ethical issues facing an enterprise and various
methods of dealing with them. The chosen company for this study is Woolworths Group Ltd that
is one of the biggest supermarket operating in Australia. The different aspects of the unethical
practices within the businesses operating in Australia are common for both at micro and macro
levels. Few unethical issues are dominant within the Australian businesses. However, the
organizations are adopting effective strategies and ethical framework in order to mitigate such
problems (Crane & Matten, 2016).
Identification of issue 1
Even though Woolworths is the biggest supermarket in Australia, it has been achieving
criticisms as well as condemnations from different groups in the nation owing to its unethical
practices (Mason, 2017). Woolworth does extensive advertisement and promotional campaigns
for promoting their commodities. Recent evidences reflect that its commodities especially
foodstuff commodities do not meet the customer’s needs. The findings from these facts highlight
that the commodities manufactured by the company sometimes end up in harming consumers
health. It has been evident from certain facts in the year 2010 that Woolworths had been sued by
ACCC (Australian Competition and Consumer Commission) for offering substandard
commodities to the customers. Even in the year 2013, the ACCC found this organization guilty
for fixing product price involving Unilever. Again in the year 2014, allegations occurred that
Woolworths dairy goods did not meet ethical standards. In fact, this company marketing strategy
also involves unethical practices as they targeted customers.

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Ethical framework for addressing issue 1 and justification of choice
The ethical framework that is used for addressing the above issue is utilitarianism. The
perspective of utilitarian framework argues that morally appropriate action relates to the action
that manufactures most products (Ruggie, 2013). Another way in analyzing this framework is
that best action must be taken by the company in order to optimize consequences of taking
actions. Within this framework, it permits individuals to suffer if it signifies that many might
benefit. However, if the organization specially prioritizes to satisfy profit-seeking shareholders, it
can maximize good for large number of people. Therefore, the company should not only focus
on making profit of the company but also concentrate on integrating ethical practices within the
business operation.
Identification of issue 2
Several evidences reflect that Woolworths are embroiled in the child labor scandal. The
investigations by the Associated Press has found out that large number of workers working at the
organization factories under poor conditions with other workers specially from Myanmar. In fact,
the children were mainly seen to be working within the production line (Danckert, 2018). Several
researchers also witnessed that children are providing service under threat of violence. The
children had never gone to the school and work in this business for long hours. Even
Woolworths did not cover the children treatment, which in turn adversely affected their health.
Few evidences reflect that poor migrant laborers as well as the children are being sold to the
factories situated in Thailand and were forced to work in the global supply chains. According
ACCC, Woolworths sought to attain payments from different suppliers for reducing shortfall of
profit (Marsh, 2013).

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Ethical framework for addressing issue 2 and justification of choice
The ethical framework that can be used for addressing the above issue is deontology
framework. The deontological framework perspective argues that regardless of the moral
consequences and there are few choices that are forbidden as well as ethically wrong. This
framework argues that every enterprise has moral obligation to assure well-being of the workers.
There exists huge conflict between upholding employees moral duty and maximization of utility.
However, the theory of sacrificing few for benefit of several people is not permitted as per
deontology framework (Lawton & Páez, 2015). According to ethical trading initiative (ETI) base
codes- child labor must not be used by the company, children under the age 18 years should not
be employed in hazardous condition. This framework has been selected as the condition of
workers and child labor issue can be mitigated by this company. Furthermore, this can improve
the condition of workers working in this company and aid the managers to take correct action
regarding workers.
Conclusion
From the above discussion, it can be concluded that business leaders are required to be
consistent in ethical decision-making procedure. Business ethics should be kept in managerial
process at all levels by using decision- making framework. Ethical framework is the employable
tool that each company must integrate for ensuring ethical actions within the operational choices.
This also helps to address issues regarding unethical practices within the business that an
enterprise face regularly.

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References
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Danckert, S. (2018). Woolies, Coles, Aldi caught up in child labour scandal. Retrieved from
<https://www.smh.com.au/business/consumer-affairs/woolies-coles-aldi-caught-up-in-
child-labour-scandal-20151214-glnagx.html> (online). [accessed on 15th Oct, 2018]
Lawton, A., & Páez, I. (2015). Developing a framework for ethical leadership. Journal of
Business Ethics, 130(3), 639-649.
Marsh, C. (2013). Business executives’ perceptions of ethical leadership and its development.
Journal of Business Ethics, 114(3), 565-582.
Mason, R. O. (2017). Four ethical issues of the information age. In Computer Ethics (pp. 41-48).
Routledge.
Ruggie, J. G. (2013). Just Business: Multinational Corporations and Human Rights (Norton
Global Ethics Series). WW Norton & Company.