Research Project: Business Ethics and Ethical Governance at Tesco, UK

This research project analyzes the significance of business ethics and ethical governance within organizations, utilizing Tesco, UK, as a case study. The project begins with a comprehensive literature review, drawing upon secondary sources to define business ethics and ethical governance, exploring their impact on employee trust, workplace productivity, and company reputation. The study aims to ascertain the importance of business ethics, analyze its impact on organizational activities, identify methods for maintaining ethical standards, and recommend strategies for meeting ethical requirements. The methodology employs an inductive approach and interpretivism philosophy, using both primary and secondary data sources. Primary data collection involves surveys distributed to Tesco employees, while secondary research includes books, journals, and articles. Data analysis will be conducted using the qualitative method, specifically thematic analysis, with findings presented through tables and pie charts. The project is structured over a 12-week timetable, detailing activities such as literature review, data collection, analysis, and report writing. The research concludes by emphasizing the importance of ethical dimensions in business practices and the use of thematic analysis to derive valid conclusions.

RESEARCH PROJECT
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RESEARCH PROPOSAL
Title of the proposal
“To analyse the importance of business ethics and ethical governance in organizations: A case
study on Tesco, UK”.
Review of the literature
In order to prepare the section of literature review, researcher will be accessing several
secondary sources which is also useful in collecting appropriate data about the research topic.
Thus, after reviewing the research work of Weiss (2008), business ethics can be denoted as
several codes, moral values and principles that governs actions and decision in a company.
Therefore, it can be said that in business world, standards are set for determining good and bad
behaviour and this also aids in taking appropriate business decisions (Gildenhuys, 2004).
However, on the other hand Swindal and et al. (2013), says that business ethics is a subjective
term which is an easy method to identify unethical practices in the organization such as child
labour, taking bribes or illegally using copyright materials (Swindal and et al., 2013).
In this respect, Mizzoni (2009), contends that when ethical guidelines are followed, trust
is developed among employees and management as well as among public and the corporation.
Thus, business ethics leads to a more productive workplace which also aids in enhancing the
value of service provision (Nelson and Trevino, 2010). Therefore, very company should have
their own moral principles and guidelines because particularly that aids in attracting employees,
customers and investors. For instance- a manufacturing company who provides energy drink
must adhere to the standards and they should not add any preservatives to the drink (Freeman,
2009). Therefore, in this context it is clear that business standards should consider all ethical
terminologies as this has a positive impact on business services (Preston, 2007).
Roth (2005), says that business reputation is one of the most important assets of a
company and at the same time it is also one of the most difficult tasks to rebuild once it is lost
(Roth, 2005). Generally, for this purpose business entities emphasize on ethical governance
which also assist in persuading the attention of potential investors and shareholders as they are
likely to get attracted to the companies which adhere to their moral guidelines and promises they
made. In this way, employees also feel comfortable and they like to stay in the business for long
term especially while working in a company which has strong business ethics (Mackinnon,
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2010). Thus, in terms of significance, it can be said that business ethics aids in improving
productivity of the organization; whilst also reduces labour turnover (Reath and Johnson, 2012).
Aim and objectives
Aim
The main aim of the research proposal will be to analyse the importance of business
ethics and ethical governance in organizations: A case study on Tesco, UK. In this respect, Tesco
has been selected because the organization has a lot of things which needs ethical attention and
consideration.
Objectives
 To ascertain the importance of business ethics and ethical governance
 To analyse the impact of business ethics on organizational activities
 To identify the methods of maintaining ethical standards in business entity
 To recommend the strategies through which ethical requirements of business can be
attained.
Statement of the design and methodology
Research methodology seems to be the most important section of the research study in
which researcher uses different tools and sources to meet the defined aim and objective. Thus,
according to that, in the present proposal as well, researcher will be using different approaches,
philosophies and methods to reach towards the aim and objectives (Bhattacharyya, 2009). Thus,
inductive approach will be used in the study as that aims to generate meanings from the data set
collected in order to identify patterns and relationships which also builds a theory. Furthermore,
researcher will be using Interpretivism philosophy because in that technique, researcher can
interpret the elements of the study in appropriate manner and it also allows to integrate human
interest into the study (Bryman, 2008).
Sources and acquisition of data
For the present proposal, researcher will be using both primary and secondary sources of
data collection. Under primary source, survey will be carried out in which questionnaire will be
given to the employees of Tesco so that they can assist researcher in knowing the concern of
company regarding business ethics (Budgell, 2008). Data will be collected through conducting
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survey; hence random sampling technique will be used to segregate the population. Furthermore,
under secondary research, researcher will be accessing several sources like books, journals and
articles.
The source will be selected as that will assist researcher to grab feasible data about the
subject matter (Cassell and Symon, 2010). In this respect, researcher will also be focusing on
several previous studies that are made on the same topic. Moreover, researcher will also be
considering random sampling technique in which on random basis, sample size will be selected.
Therefore, for the present research work, 20 employees of Tesco will be selected who will be
taking part in the research procedure (Hakim, 2012).
Method of data analysis
Data analysis is also regarded as the most crucial sections of a study wherein researcher
evaluates the collected data on the basis of a specific technique. Thus, among the two major
techniques, researcher will be selecting Qualitative method to conclude the collected responses.
Under that, Thematic analysis will be done in which each and every aspect of the study will be
discussed in detailed manner (Gobo, 2004).
Forms of presentation
Different forms of presentation will be used in the research work so as to make the
findings more clear and comprehensive. Thus, in the present research study, investigator will be
using tables and pie charts to specify the responses collected from the participants (Goddard and
Melville, 2004).
Timetable
As per the Gantt chart, the study will be completed in 12 weeks wherein all the different
activities will be carried out. In between, researcher will be reviewing the entire process so that
the areas of improvements can be found out (Gomez and Jones, 2010).
Activity Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
Writing
Research
Proposal
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Reading
various
literature
Finalizing
the aims
and
objectives
Draft
literature
review
Collect
secondary
data
Analyze
secondary
data
Develop
research
approach
Draft
research
methodolo
gy
Develop
questionna
ire
Arrange
the
interview
Conduct
the
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interview
Accumulat
e the data
Draft
Findings
Analyze
data
Complete
remaining
chapters
Submit it
to tutor
and await
for
feedback
Revise the
draft
Print and
bind
Submit
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RESEARCH PROJECT
INTRODUCTION
Research project is a detailed study conducted on a specific research topic and it also uses
different tools and methods for the purpose of reaching towards aim and objectives. Thus,
considering this, the present research study has been made on analysing the importance of
business ethics and ethical governance in business practices (Nelson and Trevino, 2010). In this
way, discussion has been included regarding importance of ethical dimensions while carrying out
different business practices. Thus, after collecting data, researcher has also analysed it with the
help of Thematic analysis. This further has also helped in framing valid conclusion. According to
the research aim, researcher has reviewed different studies which also helps in managing
credibility of the study (Mizzoni, 2009).
LITERATURE REVIEW
Literature review is also one of the imperative sections of a research study in which
researcher analyses different sources such as books, articles, previous studies and journals and on
that basis, the entire section is being completed (Bhatia, 2008). Literature review also enhances
the scope of the study through using past research work which also defines the level of accuracy.
Thus, array of studies have been considered in the section and all are discussed in detailed
manner.
As per the research done by Mackinnon (2010), ethics is known as the branch of
knowledge that deals with moral principles and it also governs a person’s behaviour, business
standards and ways of carrying out organizational activities. Usually, it covers different sort of
aspects like respect for others as it builds good relations with clients; moreover it is also worth
emphasizing because it enhances organizational productivity (Gildenhuys, 2004). This also states
that a business must keep their promises which they provide to the end users and that must be
accurate in all domains. Ethical behaviour is based on written and unwritten codes of principles
and values held in society. Therefore, apart from the generalised view, it can be said that ethical
standards are useful in many ways (Reath and Johnson, 2012).
On the other hand, Aristotle (2006), contends that every company has several spoken and
unspoken rules which needs to be considered at the time of carrying out all business activities.
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This includes behaviour towards other employees, customers and public and most often these
guidelines also work for different companies. It is also the duty of the human resource
department to ensure that the employees are properly equipped with adequate tools which enable
them to behave ethically in the organization (Boddington, 2012). Ethics are essential as that
results in strengthening the behaviour of employees towards ethical values and dimensions.
From the viewpoint of Banks (2010), ethical values of an organization cerate credibility
in the public eye and people will like to buy the product of a company if the company is honest
and offering value for money. Company which recognise the importance of business ethics will
need to spend less resources in protecting themselves from internal and external behavioural
risks and this is especially supported by sound governance systems and regulatory mechanism.
Supporting the description, Barnett (2001), says that business ethics are needed to improve the
confidence of customers about quality, quantity and price factors. The customers have more trust
and confidence in the businessmen who follow ethical rules; therefore looking towards this
aspect, business entity crucially emphasizes on all ethical standards.
Opposing to the above discussion, Swindal and et al. (2013), contended that though there
is a huge presence of ethical aspects; still business entities experience a lot of ethical issues in
different areas (Swindal and et al., 2013). Hence, it is clear that instead of ethical aspects, some
entities do not consider it because of the intention of fraud and cheating. For instance – most of
the organizations carry out business practices in illegal way because they feel that consumers
would not be able to recognize this fact. Therefore, this is their major view that leads them to
conduct unethical practices and as a result it affects business practices in various ways (Weiss,
2008). A healthy and positive corporate improves the morale of workers in the organization and
at the same time, it also aids in enhancing organizational productivity and performance aspects.
Furthermore, it can also be said that business ethics are mandatory for the survival of the
business and it also assist the entities to conduct all the practices in effectual manner (Mizzoni,
2009). Business needs to consider ethical standards so that large number of customers can be
attracted towards the products and services. The major example of unethical practices can be
observed in the area of promotion in which most of the business entities focus on fake
advertisement (Nelson and Trevino, 2010). This issue happens a lot especially when business
entities are less concerned about customer satisfaction. As a result, customer satisfaction of the
company gets affected and business also experience other problems. Thus, it not only affects
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organizational practices; but also it leads the customers to switch to other brands. Thus,
inadequate concern towards ethical aspects generates several legal issues and this also affects
company’s sustainability dimensions on greater level (Preston, 2007).
Meeting all the ethical values is actually a challenge for the business as it requires many
things to follow in long run. It is also regarded as a great challenge for all the organizations
which leads the business entities to bind with the legal amendments as described by the legal
authorities in order to survive in the market (Roth, 2005). However, on the other hand absence of
such thing highly impacts business suitability; moreover it also changes the value of market
potential. Ethical standards are also required to be followed so as to safeguard the rights and
obligations of customers (Reath and Johnson, 2012). Consumers have many rights such as right
to health and safety, right to be informed, right to choose, right to be heard, right to redress and
etc. But, most often business entities do not respect and protect these rights. Business ethics are
must to safeguard these rights of the consumers. In recent scenario, all the business organizations
are emphasizing on rights of consumers so that they can be retained for longer time period
(Mackinnon, 2010).
Business ethics are typically emphasized upon protecting the interest of employees,
shareholders, competitors, dealers and suppliers (Menzel, 2012). Thus, management of such
thing protects them from exploitation through unfair trade practices. Moreover, relating to this
context, it can be said that business ethics are important to develop appropriate and friendly
relationships with the suppliers, end users and other associated people. This will also result in
supply of good quality services at low prices to the society. It will also result in profits for the
businesses; thereby it results in growth of economy (Freeman, 2009). Most of the business
entities emphasize on ethical values since they know that they are accountable to operate all the
practices in the same manner. This is yet another facet through which value of the business can
be enhanced.
Smooth functioning is one of the benefits that can be acquired through emphasizing on all
sorts of ethical aspects (Gildenhuys, 2004). In current scenario, all the organizations focus on
meeting the moral values; hence in this respect they pay adequate attention towards ethical and
moral values. Shareholders continuously invest in business practices if the company meets all the
ethical requirements; therefore it not only assist in long term sustainability; but also it brings
many benefits to the organization (Bhatia, 2008). Author, says that business ethics are gaining
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importance because of the growth of consumer movement. Today, consumers are very well
aware about their rights; therefore they are more organised; hence this reduces the chances of
cheating and fraud. They usually take actions against those business who indulge in bad business
practices (Boddington, 2012). Thus, this usually boycott poor quality, harmful and high – priced
goods which creates burden on the activities of organization.
Consumers are the major source for which business entities carry out their practices in
ethical and legal manner and this helps the consumers to promote the services to other customer
segment as well (Aristotle, 2006). Apart from this, ethical aspects are also required to be
followed so that the entity can generate competitive edge over the rivalries. Thus, this is requisite
that at the time of dealing with the competitors, business entities must ensure to utilize all the
ethical standards. Healthy competition should be created with the competitors so that all the
business entities can raise their standards (Banks, 2010). Therefore, in this context, equal
opportunities should be given to all the small scale businesses. For instance- some businessmen
indulge in unfair trade practices like artificial high pricing, adulteration, black marketing, selling
of duplicate and harmful products, cheating in weights and hoarding, etc. All these happens
merely for the purpose of analysing business’s codes and conducts (Barnett, 2001). These are
harmful to the customers and business ethics helps to stop these practices.
RESEARCH METHODOLOGY
Research methodology section provides a theoretical representation about all the methods
that are being used in the research study for the purpose of meeting the aim of the study. It uses
various tools and techniques so as to carry the research in optimum manner and this will also aid
in presenting the dissertation in sequenced manner (Lasser, 2010). It is also regarded as a
systematic plan that aids in carrying out the research procedure in effectual way. It also includes
different tools and techniques which helps researcher to collect data suitably according to the
subject matter. Thus, this shows entire research procedure which aids in carrying out the study
integrated with research’s aim and objective (Gomez and Jones, 2010).
Research approach aids in enhancing the effectiveness of report and is mainly of two
types i.e. deductive and inductive (Gomez and Jones, 2010). The present research study has been
using inductive research approach as it starts with observation and theories are prepared at end of
the research process. It has been selected as it involves the search for pattern through a series of
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hypothesis. Therefore, no theories or hypothesis would apply in inductive studies at the initial
stage while beginning the research (Goddard and Melville, 2004). It has also been used as
inductive reasoning is based on learning from experience. On the other hand, deductive approach
is concerned with developing a hypothesis which is based on existing theory and it also designs a
research strategy that further tests hypothesis (Goddard and Melville, 2004).
Further, in the study, Interpretivism philosophy has been used because it involves
researcher to interpret elements of the study. Researcher has used this philosophy because this is
associated with the position of idealism and it is also used to group together different approaches
that views different aspects of the subject matter (Gobo, 2004). According to interpretivist
approach, it is crucial for the researcher to play the role of a social actor so as to differentiate
between people. Thus, in the present study it is employed because interpretivism studies focuses
on meaning and it also uses multiple methods for the purpose of reflecting diverse aspects of the
issue (Bhattacharyya, 2009).
In order to collect the data, focus has been laid on using both primary and secondary
sources so that adequate amount of data can be grabbed. This is also crucial in terms of
enhancing validity and reliability of research study (Hakim, 2012). Data collection is the
technique that is useful in collecting wide range of information from different sources;
henceforth this aspect researcher has selected both the techniques. Primary source is being used
as that aids in collecting fresh hand information which is regarded as highly authentic and
relevant (Bryman, 2008). With the help of primary data, appropriate answers can be found out
about the research topic. On the other hand, researcher has used secondary sources so as to
acquire a formal background for the research topic. Thus, accordingly articles, magazines, books,
journals, industry reports, newsletters and online reference materials have been reviewed greatly
(Cassell and Symon, 2010).
Sampling is the procedure through which a few people from the entire population can be
selected for the present research work (Budgell, 2008). Thus, with the help of random sampling
technique, sample size has been selected by the researcher. Hence, for the present research work,
20 employees of Tesco will be selected who will be taking part in the research procedure.
Random sampling technique has been used so that to provide equal opportunities to the entire
population (Budgell, 2008).
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Coming on to the data analysis technique, researcher has selected Qualitative method in
which the collected responses are discussed in appropriate manner according to Thematic
analysis. Several themes are being prepared so as to show the responses in concise manner.
Furthermore, charts and diagrams are also prepared for the purpose of showing the responses
(Bryman, 2008).
In the subsequent research work, ethical considerations have been given great importance
because that has a direct impact on efficiency of the research work. Under this, confidentiality
about the responses of the participants have been maintained and information about them have
not been disclosed in any stage of research (Bhattacharyya, 2009). Further, while collecting data
researcher emphasized only on relevant and accurate websites; hence only a few sources were
considered (after analysing the degree of authenticity).
Questionnaire
Name
Designation
Age
Q1. Do you think that your company has any concern towards ethical values and moral duties?
 Yes
 No
 Do not know
Q2. Are you provided any sort of ethical guidelines while handling any new project?
 Yes
 No
 Always
 Sometimes
Q3. Do you agree that your company pays much attention while having any sort of ethical and
legal issue?
 Yes
 No
 Always
Q4. Do you think that your company is highly concerned about the ethical values for
customers?
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 Yes
 No
 Always
Q5. Do you agree that all the promotional values of business are accurate and relevant?
 Yes
 No
 Sometimes
Q6. Do you think that the company delivers exact products which they show in
advertisements?
 Yes
 No
 Always
 Sometimes
Q7. Under ethical terminologies, the interest of clients, stakeholders and employees are being
maintained?
 Yes
 No
 Always
 Sometimes
Q8. Do you consider the feedback of customers in terms of service improvement?
 Yes
 No
 Always
Q9. Do you think that ethical aspects aids in enhancing performance and productivity aspects
of the company?
 Yes
 No
 Always
Q10. Do you agree that ethical values are useful in amending the ratio of customers?
 Yes
 No
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 Always
Q11. Do you think that consideration on ethical values protects customers from cheating and
fraud?
 Yes
 No
 Always
 Sometimes
Q12. What suggestion would you like to give to the company in terms of raising concern
towards ethical values?
 Focus on customer rights
 Involvement of all employees and stakeholders in decision making procedure
 Huge consideration on meeting legal values
RESEARCH FINDINGS
Research finding is the major section through which the collected data is analysed and
this section also aids in framing valid and appropriate conclusion (Cassell and Symon, 2010). In
order to complete the section, researcher has used Thematic analysis; hence all the themes are
discussed in detailed manner.
Theme 1 Company has concern towards ethical values and moral duties
Criteria Responses
Yes 15
No 2
Do not know 3
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15
2
3
Yes No Do not know
At the time of asking this question, 15 respondents said that company has much concern
towards ethical values and moral duties and looking towards this concern, company has also
established several legal practices. Furthermore, 3 employees said that they do not know
anything about this and remaining 2 marked it to no. Therefore, as per the majority of responses
it can be said that Tesco is much concerned about moral and ethical facets.
Theme 2 Company pays much attention while having any sort of ethical and legal issue
Criteria Responses
Yes 12
No 3
Always 5
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12 respondents said that company pays adequate attention at the time of having any sort
of legal and ethical issue. However, on the other hand 5 said that Tesco always gives appropriate
attention towards ethical and legal aspects. Remaining 3 said that company do not pay adequate
concern towards ethical and legal aspects which sometimes also leads to customer
dissatisfaction.
Theme 3 Company is highly concerned about the ethical values for customers
Criteria Responses
Yes 10
No 2
Always 8
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While asking this question, 10 participants said that Tesco has huge concern about the
ethical value for customers. In addition to this, they also said that because of this concern,
company has started focusing only on quality dimensions which is also useful in amending
customer base. Furthermore, 8 participants said that Tesco always show much concern about
ethical value for customer retention and remaining 2 marked for no.
Theme 4 All the promotional values of business are accurate and relevant
Criteria Responses
Yes 8
No 5
Sometimes 7
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While asking this question, 8 respondents said that all the promotional values of business
are accurate and relevant and considering the same, the company advertises the product in
relevant and accurate manner. 7 participants also agreed for this and they said that sometimes
promotional values are accurate and remaining 5 said no. Therefore, from the responses it can be
said that because of accurate and relevant promotional campaigns, customer base of the company
is amending.
Theme 5 Company delivers exact products which they show in advertisements
Criteria Responses
Yes 8
No 3
Always 4
Sometimes 5
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8
3
4
5
Yes No Always Sometimes
Tesco has been delivering the exact products which they show in the advertisements and
this is agreed by 8 participants. Whereas, on the other hand 5 participants said that sometimes the
exact products are delivered and sometimes not. 4 participants marked for always and remaining
3 marked for no. Therefore, looking towards this aspect it can be said that Tesco must show
greater concern towards accurate and relevant promotional values.
Theme 6 Company consider the feedback of customers in terms of service improvement
Criteria Responses
Yes 12
No 2
Always 6
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Feedback from the end users is essential to consider so that appropriate changes could be
made to the services; therefore while asking this question, 12 respondents marked it to yes.
Whereas, on the other hand 3 marked for always and remaining 2 marked for no. Therefore, from
the collected responses it is clear that feedback collection is essential in terms of improving the
service capability of organization.
Theme 7 Ethical aspects aids in enhancing performance and productivity aspects of the
company
Criteria Responses
Yes 11
No 2
Always 7
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Ethical aspects aids in enhancing performance and productivity aspects of the company
and this is evident from the responses of 11 participants. Further, 7 participants marked for
always and remaining 2 marked for no. Ethical aspects helps the business entity to carry out all
the operations in effective manner which gives many benefits such as sales enhancement,
increased customer base and long term sustainability.
Theme 8 Ethical values are useful in amending the ratio of customers
Criteria Responses
Yes 10
No 3
Always 7
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At the time of asking this question, 10 participants said that ethical values are useful in
increasing the ratio of customers. Whereas, 7 participants said that focusing on ethical values
always enhances the ratio of customers which is a profitable state for the company. They also
added that customer can observe company’s ethical concern by focusing on quality dimensions.
Remaining 3 said that ethical values do not amend the ratio of customer.
Theme 9 Consideration on ethical values protects customers from cheating and fraud
Criteria Responses
Yes 7
No 3
Always 5
Sometimes 5
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At the time of asking this question, 7 particamts said that consideration on ethical value
protects consumers from cheating and fraud; therefore towards this aspect, it can be said that
business always emphasizes on the same dimension. Supporting the aspect, 5 respondents said
that ethical dimensions always protects consumers and 5 marked to sometimes. Remaining 3
marked for no as they had no idea regarding the same.
Theme 10 In terms of suggestions, company should pay attention on involving all the
employees and stakeholders in decision making process
Criteria Responses
Focus on customer rights 5
Involvement of all employees and
stakeholders in decision making procedure
12
Huge consideration on meeting legal values 3
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At the time of asking this question, 12 participants said that business needs to focus on
involving all the employees in decision making process under ethical terminologies. Further, 5
respondents said that company needs to focus on customer rights and remaining 3 marked for
huge consideration on meeting legal values. Engaging employees in decision making process is
essential as that helps the employees to carry out all the activities in effectual manner.
CONCLUSION AND RECOMMENDATIONS
Concluding the entire work, it can be said that business ethics are highly considered by
organizations which also aids them in meeting changing requirements of clients and as a result,
market potential can be enhanced accordingly. Further, from the study it is also ascertained that
in order to survive in competitive market place, organizations need to focus on internal and
external business practices so that adequate concern can be given towards customers and
employees both. Thus, in this respect it is evident that while managing business activities,
organizations are required to show greater concern towards moral and ethical values.
Typically, ethical standards are considered as ethics are the principles and values an
individual organization uses to govern the activities and decisions. Employers as well as
employees are accountable to focus on ethical standards as ethical behaviour among workers in
an organization ensures that they are working with complete honesty and integrity. It is also an
apparent aspect that employees who use ethics to guide their behaviour also adhere to employee
policies and rules; whilst they strive to meet the aim of the organization. This typically assists
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them to attain quality aspects which not only encourages business reputation; but also enhances
customer base subsequently.
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