HC2121 - Woolworths' Ethical Issue: A Comparative Business Analysis

This essay examines a recent news article concerning an ethical issue involving Woolworths, an Australian company accused of copying a baby carrier design from Ubuntu Baba. The analysis summarizes the arguments, including accusations of design theft and undercutting prices, and considers legal and sanction implications. It discusses key ethical concerns such as corporate social responsibility and business ethics, evaluating whether Woolworths made appropriate ethical decisions. The essay also outlines ethical decision-making processes, aligning opinions with moral philosophies like justice, and recommends actions for Woolworths to rectify the situation. Ultimately, the essay underscores the importance of ethical principles and moral values in business, highlighting the potential negative impacts of unethical behavior.

Running head: MANAGEMENT
Management
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Author Note

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Introduction
Business ethics ensures that there should be existence of certain trust levels between
the consumers and the market participants within the business (Crane and Matten 2016). The
business ethics concepts are mostly aware of the rising concerns regarding the social causes,
corporate responsibility and the environment. The business could go beyond the moral values
regarding the right and wrong that is what the companies must do legally rather maintaining
the competitive business among the business (Trevino and Nelson 2016). Woolworths is
considered as one of the major leading business in Australia but they are accused in this
article for not following the business ethics. Woolworths are expected to follow the business
strategies for maintaining their reputation in the business market (Pearson 2017). This is one
of the essential business ethics that is copying ideas or steal any body’s product ideas without
their concern is considered as the violation of business ethics. This can be considered as
business idea theft; this is so because in spite of becoming the small business or large
business, every business should follow the business ethics. The ideas should not be copied
without the concern of the owner and the violation of business ethics will not allow the
business to achieve their desired goals in the long run process (Barry 2016).
The essay is based on a news article that was published on 10th January 2019 in
Timeslive.co. This article states that Woolworths behaved in the most unethical manner by
selling the baby carrier that is copied from another business without their concern
(Timeslive.co.za 2019). This study will also recommend how the issue could be resolved by
Woolworths and the moral values the business should follow.
Summarizing the arguments made in the article including relevant background and
considering any legal or sanction implications
This is found out in most of the cases that Woolworth mostly brags about the ethical

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trade but they mostly behaved in the unethical manner. In this article it have been stated that
Shannon McLaughlin, the founder of the Cape Town-based Ubuntu Baba has accused
Woolworths for copying the designs, colour and names of the Stage 1 and Stage 2 of her baby
carriers. Not only this she has accused Woolworth of copying her baby carrier’s design but
also selling them at two third low prices than their price. As per her allegations Woolworths
was able to provide the baby carriers at such a low price as they have made the product from
the cheaper fabric in China. Shannon was informed by providing the screenshot that
Woolworths was selling the same design baby carrier that made her accuse Woolworths. She
has asked explanations from Woolworths regarding the baby carrier and this was so as her
business was affected and fearing her business loss she has taken steps against the
Woolworths business. Although Woolworths has taken steps for solving the issue it has
apologised for raising such problem for her business and two days later the issue raised, the
retailer of Woolworths business apologised for such problem and also taken back their baby
carriers and stop selling of such products in the business market (Sowetanlive.co.za 2019).
Woolworth also assured that those who have already bought the baby carrier from them
would offer them with the refund process.
McLaughlin also said that she will be in discussion with Woolworths regarding what
will be done with all the carriers of Woolworths. McLaughlin also stated that there were other
businesses in their market that have faced same issues with Woolworths, but was unable to
open up as they are considered as the small business in the business market. McLaughlin has
suggested opening up if they have faced same issues in spite of becoming the small business.
McLaughlin has asked Woolworths to provide the media statement related to what they have
done wrong and how they are going to rectify their fault. On Wednesday Woolworth
apologised by giving media statement and they have said that by mistake they have opted
such striking similarities between the Stage1 and Stage 2 career and the same name was

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given by the eight employees working in Ubuntu’s factory in Retreat. Woolworths twitted
that their baby product developers was not at all responsible for the issue raised as the baby
carriers of Ubuntu was mostly delivered to the pregnant employees workings in the pet foods
and the financial resources. Woolworth have also described in their website that they mostly
love to make innovations with integrity (Timeslive.co.za 2019). They have declared that their
core values depends on the innovative values and they loves to discover new process, new
products and the innovative ideas for bringing beneficial solutions for the business
(Sowetanlive.co.za 2019).
The key ethical issues and concerns raised in the article
The major ethical issues that the article was able to discover regarding the Woolworth
business is that their business have copied the product designs and the product name from
another business (Weiss 2016). Woolworth was also accused for selling that product at the
two third price low than the original price of the product. According to business ethics, the
businesses are not allowed to copy the product and sell the same product a lower price. This
type of actions of Woolworths can be considered as the business idea theft and they should
have their business perspectives and moral values. This is recommended for every business to
follow the business idea and the product designs of various companies, then coming up the
new product design. As copying the competitor’s product idea will stop every innovation in
the business (Timeslive.co.za 2019). Most of the time this is found that the start up
companies are facing such issues that their ideas have been copied but they are unable to raise
their voice or take any steps against the winning companies (Grace and Cohen 2015). The
wining business runs their business by copying the ideas of the small business as they know
that as there are no such laws against copying thus it would make no effects on their business
operations. Most of the entrepreneurs of winning business are dumb enough to generate the
carbon copies and claim them as their own businesses (Jacquette 2016).

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The most appropriate ethical decisions been made? If so why? If not then why not?
There are variable components for considering the ethical decisions, the regulations,
procedures, perceptions and leader’s moral values for playing how the decisions are based on
the questions regarding business ethics should be handled (Moriarty 2016). While there is
approach is based on perfect. When the business will be able to realize that the approaches
are not perfect then a well thought process are required for retaining the business ethical
values and should use proper framework for dealing with the ethical situations in the easier
manner (Vitell et al. 2016).
The recommendations for Woolworths are needed to follow for rectifying their faults
and resolving the issue are:
 Woolworth is needed to stock the genuine product of Ubuntu Baba carriers in their
stores and also for the online services (Sowetanlive.co.za 2019) As by this the
employees will get the steady flow of the orders and this will raise the job security for
the employees. Woolworth will also gain pride by making differences in holding the
unethical operators for accounting.
 This study also recommends Woolworths to pay all the profits those are made by
selling the copied product of Ubuntu Baba carrier to McLaughlin or they can also
provide all the profits made towards any charity for children’s.
 Woolworths also need to make the formal apologize for making the local products
and choosing the manufacturing operations from China instead of doing it locally so
that they can provide the product at the cheap price (Timeslive.co.za 2019).
In spite of taking all the necessary actions the CEO, executives of Woolworths have
apologized for all the unethical actions in the business market for contradicting the
organization's stated values (Sowetanlive.co.za 2019)

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Outlining the ethical decision-making processes by identifying the most relevant of the
seven moral philosophies
The most relevant moral philosophies that the businesses like Woolworth are needed
to follow moral philosophies of Justice that is Justice provides the fair treatments and the
rewards in accordance with the ethical and the legal standards which deals with the perceived
injustice. The justice of the situation is based upon the perceived rights of the individual
business and the people’s intentions involved in the business interactions (Shaw and Barry
2015). Thus Woolworth was required to follow the moral policies like Justice as they are not
comprised of such moral philosophies which was evident from their actions as by copying the
other product’s design and by selling them at low price they have done injustice to the other
business. They are needed to follow their business through Procedural justice that is based
upon the processes and the activities for rectifying their faults in the future business process
(Schminke, Arnaud and Taylor 2015). This Procedural Justice leads to decision making
process; levels of access and the participation in the actions of maintain justice in the
business process (Dion 2017). If Woolworths are able to follow the moral philosophies then
their next step will be to follow the recommended actions for resolving the issues rose and the
rectifying their fault (Hertz and Krettenauer 2016).
The ethical decision making should be based on the moral values like fairness is
important for the business so that every sector of the businesses is needed to be treated
equally regardless of the business position or influence in the business market (Adelstein and
Clegg 2016).
The business leaders should strive to protect the business well being and the ethical
standards should put on lot of emphasis on the relationship values and the compassion of the
fellow man for driving people towards doing good by other (Timeslive.co.za 2019).

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The virtual approach which the leaders are required based on the ethical values like
honesty, compassion, tolerance and others (Dempsey 2015). The business should be based on
the virtual principles that generally impose peoples to strive to be the better shelves and the
business always should keep in mind that any inappropriate actions or the unethical
behaviours can create negative impact on their business (Sowetanlive.co.za 2019)
Conclusion
Therefore from the above discussion it can be concluded that Woolworth is
considered as one of the major company in Australia. This company is recently humiliated in
the business market as accused for not following the business ethics. This is mostly found out
that the winning business copied the business idea from the emerging business or small
business and as they are able to create their brand, the small business are unable to rise their
voices against the business. Thus this is recommended for every small business to raise their
voice whenever they will determine that their product idea or design has been copied. The
article states that Woolworths has copied the baby carrier products design of Ubuntu Baba
and provided same name to the product without the company’s concern. Not only so they
have also sold the product at two third prices lower than the original product price. This
showed that in spite of becoming the winning business, Woolworth id lacking the moral
value and the ethical principles. Therefore this study recommended some ways for the
rectification of their fault and the ways for resolving such issues. Their unethical behaviour
causes effect on the business of Ubuntu Baba thus they should undergo the recommended
steps. Although Woolworths have apologized and stop selling those products but they should
do all the recommended steps for their fault.

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References
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Sowetanlive.co.za. 2019. Woolworths 'behaved totally unethically': baby carrier designer.
[online] Available at: https://www.sowetanlive.co.za/news/south-africa/2019-01-10-
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Appendix