Ethics, CSR, and Responsible Management in the Building Industry

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This report, developed for Greenleaf Consultancy Limited, addresses ethical and corporate social responsibility (CSR) issues within the building industry, specifically focusing on Barratt Developments Plc. The report examines the importance of ethical considerations and social responsibilities, assessing the company's current practices and deficiencies. It delves into responsible management, values underpinned by ethics, and CSR approaches, including brand differentiation, risk management, and stakeholder engagement. The report also explores issues like local social licenses, resource competition, and labor relations. The analysis aims to provide actionable recommendations for Barratt Developments Plc to improve their ethical and CSR performance, ensuring sustainable business practices and enhanced stakeholder value. The report also discusses the importance of ethical theories in decision-making and the impact of construction businesses on natural resources.
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ASSEEEMENT BRIEF: ETHICS ORGANISATIONS AND
SOCIETY
REPORT TO ADVISE THE BUILDING INDUSTRY ON
RESPONSIBLE MANAGEMENT
STUDENT NAME:
STUDENT ID:
PROFESSOR NAME:
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Executive Summary
The objective of this study is to develop a report for the management of Barratt Developments
Plc considering their requirements on corporate social responsibilities and ethical considerations.
This report has been developed on behalf of the Greenleaf Consultancy Limited. The report has
extensively assessed the values of ethical considerations and social responsibilities with the
comparative perceptions in the UK competitive markets. In addition to it, this report also
analysed the present deficiencies in the implementation of social responsibilities and lack in
ethical considerations at the Barratt Developments Plc. The reason behind assessing and
analysing the aspects of social responsibilities is to devise recommendations to the management
of the Barratt Developments Plc.
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Table of Contents
Introduction................................................................................................................................................4
Responsible Management and Corporate Social Responsibility..................................................................4
Values Underpinned by Ethics.....................................................................................................................6
Exploring your issue....................................................................................................................................8
Recommendations....................................................................................................................................11
Conclusion.................................................................................................................................................12
Reference List:...........................................................................................................................................13
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Introduction
Corporate Social Responsibility and Ethical consideration of an organisation are always
considered as massive tools for the success in the current competitive markets. This purpose of
this study is to develop a report for the management of Barratt Development Plc that belongs to
the construction industry of UK, considering their lack in implementing needful activities for
ensuring their social responsibilities. I am supposed to develop this report as a consultant of
Greenleaf Consultancy Limited. In this regard, I am also supposed to assess the current market
position of the company with the comparative values of the other organisations as well in light of
the benefits earned from the implementations of Corporate Social Responsibility and ethical
consideration. Eventually, I am required to advice them in this context and recommend needful
actions for the management of Barratt Development Plc.
Figure: Barratt Developments PLC Logo
(Source: barrattdevelopments.co.uk. 2017)
Responsible Management and Corporate Social Responsibility
Most of the organisations in the contemporary global business have been found prioritising the
ethical consideration benefits for the purpose of ensuring sustainability. Emphasising on the
corporate social responsibility in the business, the managements of the organisations use to
enhance their morale values as well, which are extensively reflected in their mission statements.
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In line with the organisational culture and belief, the managements of the organisations also
target ensuring their productive and economic values as well (Zhao et al. 2012). However, they
are often found considering categorised approaches in this regard with the prior focus on their
objectives. Organisational benefits, in this context, are mostly aligned with the profundity for
financial profits of the organisations by enabling sustainable growth extensively. In more
straightforward terms, business managements are presently observed with the approaches of
ensuring social resources for the purpose of promoting sustainable social values. It is extensively
liable to enhance value creation objectives for the organisations as well.
Sharing sustainable resources with all the stakeholders associated with an organisation are
always found massive gesture from the end of the management of that organisation. Considering
ethical measures are also found liable to emphasise on the objectives, through which the
managements of the organisations focus on enhancing their customer satisfaction goals.
According to Murray (2013), the managements of the organisations also use to acknowledge the
government regulations and legislations under their ethical value statement, through which they
also ensure customer loyalty at a great extent. The management of Barratt Development Plc is
also required to focus on this issue extensively in order to acknowledge customer loyalty at a
large-scale. In addition to it, considering this issue is also liable to enhance their business growth
in UK and expand it to other corners of Europe as well. Managing the maintenance of corporate
social responsibility and emphasising on the ethical considerations are liable to impose an
extensive amount of business growth for the management of Barratt Development Plc., who are
associated with the production of both affordable and private housing in the UK (Schultz et al.
2013). Bing a part of the building and construction industry of UK, the management of Barratt
Development Plc is extensively liable to acknowledge the benefits of corporate social
responsibility and ethical consideration.
The management of Barratt Development Plc has been prioritising the needs of the local
communities in UK in regards to the housing and building construction since their inception.
With the prior focus on the designing concepts, the management of Barratt Development Plc has
also emphasised on their geographical. However, they are required to be specific on their
consideration in order to prioritise the benefits from corporate social responsibility and ethical
consideration. As opined by Cheng et al. (2014), the management of Barratt Development Plc is
also required to impose categorised attention on acknowledging the responsibilities regarding
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social benefits. For this purpose, they are also required to enhance their geographic reach and
approaches on product diversity in order to maximise their opportunity of business development.
CSR stands for corporate social responsibility it is also called as responsible business,
corporate conscience or corporate citizenship. It is in a form of corporate self-regulation
integrated into a model of the business. Policies of CSR functions as it ensures its active
compliances with the help of law, international or national norms and ethical standards and as a
self-regulatory mechanism monitor by the business.
BUSINESS SHOULD MANAGE CSR
Brand differentiation : Business should manage CSR as it builds customer loyalty.
Organisation having strong customer social responsibility activities tend to attract the customer
attention for buying our services and product.
Risk management : Management of risk is very much important of executive
responsibility. If business will manage CSR it will help in building up of reputation of the
organisation take many years and it can ruined in an hour with the environment accidents and
corruption scandals. These makes unwanted attention from media, courts, and government.
Supplier relations : Proper CSR programme in the business increases the attraction of
supplier company to potential corporation of the customers.
Reduced scrutiny : A CSR program in business corporations helps to avoid the
interference in the organisation through regulations and taxation.
BENEFITS OF CSR
Have positive impact on community : As keeping in mind of the social responsibility
helps in encourages the organisations be in ethics and it consider the environmental and social
impacts of their company.
Public value outcomes supports by CSR : Public value is a value of the company which
contributes towards our society. A sound, robust CSR framework and minds are set by company
help company deliver the public value outcomes by focus on how the services make different
from the community.
Employer of choice also support by CSR : Employer of the choice change into the
organisation ability to retain high staff and attract them. Their are various approaches for being
of choice which include the positive conditions of working, workplace flexibility and balances of
work life.
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CSR APPROCHES
According to the Friedman what are the businesses “social responsibility?” Friedman's
said: “ A business responsibility is to make a money from the shareholders as much as they can.”
It was blush at the first it sounds like cruel. Sound uncivil, severe even potentially.
But if they think little deeper, about the issues they will think as a economist would,
having no contradiction between a civil and civilized society and businesses pursuing profit.
Friedman argued that it will likely to produce a social good than rules that company should be a
socially responsible.
Philanthropy : Microsoft has announced that its youth spark program will receive the
amount of $500 million billion for having the opportunity in employment, education and
entrepreneurship.
Community : A business main focus on preventative for donating goods they encourage
to the employees, healthcare, financial resources make less fortunate in every year and their
time.
Creating shared value : A creating shared value is a means where businessman can grow
the communities, economics, grow marketplace and companies with having years of outlook.
ISSUES OF CSR
Operate a Local social license : Debates on a social and environmental impact of
developing a natural gas in a united states, unrest community in central Asia and Africa and
labour, and increasing of application of prior, informed consent principle and free in engagement
with people of indigenous are some of highlights headlines of 2012 and growing a significance
of a social license to operate a driver commercial.
Content of local and demand growing for benefit sharing : It seek out for continue of
countries opportunities for capturing a greater benefits of extraction of resources through
regulations and legislation. Response of a company to their pressures will not influence the
strategies of commercial and relations of host government but also influence a outcomes of
social license.
Competition balancing for resources of water : Changes of climate and a growth of
population are increase a pressure on the global supply of a water in a developing countries.
Greater demand and limited supply by intensive of water industries like as oil sands, mining and
developing a natural gas, concerns with a competition of a resources of water.
Trust of workers regaining and labour relation : Labour issues in a forefront for labour
unions, multinational companies, and other local partners. Improving a labour management
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practices and review increasingly important. Those of their business partners and contractors.
Among gas companies, mining, oil, perhaps and employees more significantly.
STAKEHOLDER MAPPING
Stakeholder mapping is the process of one or more parties of debate, discussion and
research that draw from the multiple perceptions and accordingly made a list of stakeholder
among the entire spectrum of the shareholder. Mapping is break down into four phases:
Identifying : listing of relevant people, groups and organisation.
Analysing : Understanding interest and perspective of shareholder.
Mapping : Relationships are visualizing to objectives and other stakeholders.
Prioritizing : Identifying issues and ranking of stakeholders relevance.
Values Underpinned by Ethics
Ethical considerations refer to the approaches of the managements of the organisations, through
which they ensure the government regulations and legislations to be obliged within their work
places. In most of the cases, the ethical considerations are found to be aligned with the social
responsibilities, where the managements of the organisations are liable to play their positive
roles in order to acknowledge their social responsibility. As stated by Greenwood (2013), ethics
of an organisation are always liable to impose certain degrees of responsibilities to the
management, on the basis of which they are supposed to design their mission statement. The
management of Barratt Development Plc is also liable to acknowledge the values of ethics in
order to ensure customer loyalty and government appreciation. In addition to it, the ethical
values are also considered to playing the most effective roles in the sustainability goals of an
organisation, which allow the managements to ensure long-term bsu9ness benefits as well. Thus,
the management of Barratt Development Plc is also liable to ensure their sustainability
approaches positively under the prior intervention of ethical considerations.
Ethical theories use to provide proper directions to managements of the organisations, with
which they can emphasise on the prior process of their decision-making. In most of the cases, the
ethical theories are found liable to underpin the perceptions of social responsibilities and allow
the managements to enable the most convenient approaches of ethical considerations. As per the
opinion of Hartas (2015), the managements of the organisations are also supposed to ensure
guidance for each member of the organisation with the prior intervention of ethical theories. As
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per the case of the management of Barratt Development Plc is concerned, they are also liable to
focus on the ethical considerations issues since they are associated with the construction
business. Construction businesses are thought to be exhausting the natural resources rapidly,
which another major reason why the management of Barratt Development Plc is required intense
perception for corporate social responsibility and ethical consideration. Through the
implementation of these considerations, the management of Barratt Development Plc can also
enable the most convenient decision-making process. As per the present organisational culture
and financial situation of Barratt Development Plc is considered, normative theory is supposed
to play the most efficient role for their ethical consideration goals (Robichaux et al. 2012). With
the prior impaction of this theory, the management of Barratt Development Plc is liable to
acknowledge the organisational needs related to corporate social responsibility. In association of
this consideration, the management of Barratt Development Plc is also required to emphasise on
the most effective categories of this ethical theory that includes Virtue Ethics and Deontological
Ethics.
Virtue Ethics
Virtue ethics are presently considered as the most effective organisational approaches of ethical
considerations under normative ethics. Virtual ethics are fundamentally imposed on the prior
foundation of the moral characters of the organisations approached towards the emphasis of the
organisational virtues. As opined by Asveld and Roeser (2012), virtue ethics are usually found
liable to emphasise on the capability-based virtues of the organisations, which is extensively
contrastive to the ethics of ‘deontology’ that emphasises only on the rules and the duties within
the originations. In addition to it, the virtue ethics are also distinguished with the
‘consequentialism’ that extensively emphasises on the consequences of actions. In this context,
the management of Barratt Development Plc is also liable to emphasise on their virtues based on
the capabilities they possess within their organisation. For this purpose, they are required toe
gather knowledge on their capabilities on economic, ethical and legal issues. In line with the
ethical, legal and economical standards, the management of Barratt Development Plc is also
required to ensure the benefits of their shareholders and all the key stakeholders as well. In this
regard, the management of Barratt Development Plc is also required to comply with the
government rules and regulations that oblige the social responsibilities of them with greater
aspect (Ray and Smith, 2012). With the prior implementation of virtue ethics, the management
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of Barratt Development Plc is also supposed to manage potential effectiveness for the
governance and management system, corporate social responsibilities, value creation for society,
procurement and design, stakeholders and social community environmental influences, diversity
in employment and occupational health and safety.
Deontological Ethics
Another ethical theory that has been recommended by this study to the management of Barratt
Development Plc is the Deontological ethics. It is also considered to be acted under the prior
intervention of normative ethical considerations. However, deontological ethics is also
recognised as a moral philosophy that emphasises the managements of the organisations to
ensure ethics and occupational morale for all the key stakeholders of the organisation. In the
words of Fewings (2013), deontological ethics are mostly acknowledged through the prior
implication of occupational moral and social duties. As per the deontological ethics are
concerned, they refer to the implementation of obligation or duty-ased ethics and rule-based
ethics. In deontology, action is considered to be one of the major concerns from the perspective
of the managements of the organisations. For this reason, the management of Barratt
Development Plc is also required to emphasise on the implementation of the this ethics, where
they are supposed to protect the confidentiality of the organisational data. Thus, the management
of Barratt Development Plc is also required to adopt this ethics in order to acknowledge the
organisation to develop business growth (Fellows and Liu, 2015). In line with this, the
deontological ethics are also capable of ensuring the flow of proper and right knowledge, which
is another favourable factor for the management of Barratt Development Plc in terms of their
business stake in the construction industry of UK.
Combining both the theories for the implementation at the workplace of Barratt Development
Plc is supposed to play pivotal roles in the strategic business growth. In addition to it, the
implementation of both the theories is liable to encourage the management of Barratt
Development Plc to act according to the needs in regards to social responsibility and ethical
consideration. In the words of Phua (2013), the combined influences of virtue ethics and
deontological ethics use to impose effective behavioural approaches for the managers of the
organisation as well. As per the influences of both these theories are concerned, the managers of
the Barratt Development Plc are required to emphasise on the communication objectives,
through which they are supposed to convey the needful information and knowledge regarding
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sustainability. In line of this, the managers are also liable to conduct frequent surveys and
interviews with the customers and the government officials in terms of gathering knowledge on
the diverse social responsibilities and the process of implementing them successfully.
Exploring your issue
The issue considered for this study encompasses diverse avenues of role playing in regards to
corporate social responsibility and ethical consideration. The objective of this report is to
develop prior knowledge on the present requirements of social responsibilities and ethical
considerations from the end of the management of Barratt Development Plc. In addition to it,
this study is also liable to recommend the most effective processes of implementations
considering their sustainability needs. According to Frazer and Kornhauser (2014), the
management of Barratt Development Plc requires categorised attention on the issues related to
environment sustainability, responsible human resources, and ethical supply chains. These are
considered to be the key factors that are liable to provide benefits to the management of Barratt
Development Plc since they have been associated with the business of construction. As per the
popular thinking, the businesses organisations belong to the building construction sector are
responsible for the rapid exhaustion of the social resources. Thus, the management of Barratt
Development Plc is required to emphasise on these factors for prioritising their mission
regarding corporate social responsibility and ethical consideration.
Environment Sustainability
Barratt Development Plc is widely recognised for their effective participation in building the best
quality homes and obtaining planning consents in UK. They have also become one of the largest
organisations in the industry of construction in UK. However, the management of Barratt
Development Plc is also blamed for playing negative roles in exhausting the natural resources as
well in order to ensuring their large-scale constructions followed by the process of acquiring
land, construction are and deforestation in some places. In the words of Jin et al. (2013), the
constant growth of the numbers of the households and business constructions, the government of
UK has started witnessing massive consequences of land infertility. Thus, they have come
forward in this regard to prevent these consequences for the mankind and future generation.
The management of Barratt Development Plc is also required to acknowledge this effort of the
government and ensure environment sustainability efforts from their ends as well. In this regard,
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they are supposed to consider the flood possibilities categorically, through which massive
damages are occurred every year. Prioritising the government recommendations, the
management of Barratt Development Plc is supposed to continue building their constructions at
the flood areas for the purpose of prevent the negative consequences of flat areas. As reported by
Armstrong et al. (2015), the flat areas in UK are found extremely prone to floods due to lack of
natural resources. Thus, the management of Barratt Development Plc is required to plant trees in
those e areas and make buildings to contribute to the natural resources extensively. With this
prior environment sustainability, they are supposed to become liable in ensuring long-tem
protection for the constructions as well by contributing in the government approach towards
preventing flood damages. In addition to it considering this approach is also found loyal to
increase their customer reliability at large. Besides, with the prier participation in the
government approaches in regards to building constructions at the flood areas and planting trees
at a large extent is also liable to reduce carbon emissions as well at a great level.
Responsible Human Resources
The management of Barratt Development Plc has always been found liable to ensure diversities
in their employee management, which is one of the major credentials from their ends. In most of
the cases, the human resource management of Barratt Development Plc has been found
recruiting competent people irrespective of their skin colours, cultures and regional backgrounds.
In the words of Vallaster et al. (2012), ensuring diversities within the workplaces of the
organisations has allowed the management of Barratt Development Plc to acquire massive
reputations in the construction industry of UK. However, they have still been found lagging
behind in ensuring proper human resource activities related to diversities in sex. In most of the
cases, the human resource managements of the Barratt Development Plc had been found making
differences, while choosing women workers for their organisations. It is a massive negative
consequence for them in terms of ensuring the most responsible human resources. Besides, they
are also liable to prevent the gender pay gap for the in-house employees followed by the lack of
impartial knowledge regarding the company resources for the purpose of enabling Equal Pay Act
1970 (legislation.gov.uk. 2017). This role is extremely liable to ensure their efforts on the
corporate social responsibility and acknowledging the Equal Pay Act 1970 is supposed to
provide them extensive creational from the perspective of ethical consideration.
Ethical Supply Chains
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The consideration of ethical supply chain is somewhat associated with the responsible human
resource management as well, as the effectiveness of the ethical supply chain is partially
dependent on the human resource management activities. As per this ethical consideration, the
management of Barratt Development Plc is required to empower their migrant workers that
suffer from appalling treatment. They are also required to be ensured with the equal payments
and right to work with others. As per the words of Kolk (2016), the migrant workers recruited by
the management of Barratt Development Plc are supposed to be given proper livelihoods and
place to live with their families. In this regard, the management of Barratt Development Plc is
also supposed to ensure their marketing policies with prioritisation on inviting the migrant
workers as well. Ensuring benefits to all the stakeholders of the organisation and the return on
investment for the shareholders are supposed to play pivotal roles en enriching the management
of Barratt Development Plc with desired objectives.
There is certain stakeholder groups that have been affected extremely since the last few years at
the Barratt Development Plc through the issues mentioned here (Mutti et al. 2012). As per the
environment sustainability deficiencies are concerned, people from the flood affected areas have
been found extremely affected. These people are none but their customers or the target
audiences. On the other hand, their inefficiencies in the responsible human resource management
had affected the workers of the organisations by disregarding the equality measures within their
workplaces. The deficiencies in ethical supply chains at the Barratt Development Plc have been
aligned with the issue of migrant workers, where the stakeholder groups belong to the employees
of the organisation.
Recommendations
As per the assessment and analysis of the issues at the Barratt Development Plc are concerned,
certain recommendations can be made on the basis of the findings. In this regard, environment
sustainability, responsible human resource and ethical supply chain have been prioritised.
Considering the approach to employ female workers at the workplaces of the Barratt
Development Plc is strongly recommended to the management, which is liable to acknowledge
massive social responsibility of equality balance. In addition to it, this consideration is also liable
to enhance their customer reliability in the competitive markets followed by the government
benefits. In line with this, the management of Barratt Development Plc is also recommended to
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ensure proper care for their migrant workers as well, considering their financial and emotional
benefits associated to their families. Eventually, the management of Barratt Development Plc is
also recommended to focus on building their constructions at the flat areas in order to prevent or
reduce the possibilities of flood. Planting trees at the extensive areas of UK is also liable to
ensure their social responsibility goals at large extent.
Corporate social responsibility is in the world of business that corporation social role and
larger ethical advocates. The directors structure of companies for maximum profit for their
partners of the company. Due to CSR the risk can be manage of the company and brand
differentiation is also a benefit for the company. Organisation have to apply CSR in their
businesses for increasing their level of profit and good relations with the suppliers.
Conclusion
In conclusion, corporate social responsibility and ethical consideration are always found liable to
provide positive benefits to organisations by allowing them to achieve sustainability in the
competitive markets. This study has tried developing a report for the management of Barratt
Development Plc in orders to advice them about their needful implementations regarding their
approaches of corporate social responsibility and ethical consideration. For this purpose, it has
assessed the responsible management and corporate social responsibility goals of the
organisation in UK followed by prior analysis on the values underpinned by the ethics. This
analysis has been utilised in the process of exploring the issues at Barratt Development Plc in
order to advice them the needful actions to acknowledge their social responsibility and ethical
consideration.
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