Business Ethics and Responsible Management - Supply Chain Analysis

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This report delves into the realm of business ethics and responsible management, focusing on a case study of SuperValu and its supply chain practices. It explores the significance of ethical considerations in business decision-making, particularly concerning human rights and environmental sustainability. The report identifies ethical issues within the company, such as those related to modern slavery in tuna supply chains, and discusses the role of businesses within society, emphasizing the impact on various stakeholders, including customers, employees, and the community. Additionally, it examines two ethical theories, namely Rawls' theory of justice and utilitarian theory, to provide a theoretical framework for ethical decision-making. Finally, the report includes a reflective essay on ethical leadership, highlighting the importance of integrity and ethical conduct in guiding business practices. The report concludes with recommendations for SuperValu to enhance its ethical performance and promote responsible management throughout its operations.
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Business Ethics and Responsible Management - Supply
Chains and human rights abuses
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1 A........................................................................................................................................3
Business ethics ............................................................................................................................3
Issues of business ethics in the organisation given in case study................................................4
Role of business within society ...................................................................................................5
Effect of business on stakeholders ..............................................................................................5
Recommendations .......................................................................................................................6
PART 1 B.........................................................................................................................................6
Discussion of two Ethical theories ..............................................................................................6
PART 2............................................................................................................................................1
Reflective essay of ethical Leader ..............................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
Business ethics and responsible management can be describe as the practices that leads to
guide company to correctly performing business task. It is very important for organisation to
consider business ethics while taking important business decisions. This will help company to
take correct decisions and successfully dealing with business activities in order to attain goal and
objective (Homann, 2016). It is responsibility of company to consider human rights and
sustainability of environment while performing business task. Chosen company for conducting
this report is SuperValu. This company was developed in 1926 in Minneapolis, Minnesota. This
company is providing different types of food products and it has grocery stores located in
different part of the world. This report will include the significant for business ethics while
performing organisational task. It will include different ethical issues and human right problem
that is faced by company. In this different ethical theories has been determined. Apart from this,
reflection regarding ethical leaders is mentioned
MAIN BODY
PART 1 A
Business ethics
It is very importance for company to look at issues from the perspective of ethics as it
will help in determining different aspects of business. Business ethics will lead to provide
guidelines and framework to company for successfully conducting business task. This will help
company to consider moral and values of business. Companies which is collecting Tuna fish
from sea needs to correctly follow policies that is set by government and needs to focus on
human rights in order to effectively conduct business practices. Business ethics majorly includes
environment protection, employees protection, sustainability development, moral, values,
corporate social responsibility, rules and policies (Kaplan, 2017). SuperValu company is not
following policies and regulation that is developed by government to collect Tuna fish form sea.
Lack of business ethics and responsibility will lead to have impact on performance of company.
There are various benefits and advantages that could be attained by respective company by
consider ethics and responsibility. This is the major issues for SuperValu company and it will
directly impact business performance. By looking issues through the perspective of ethics
company will be able to determine the actual problems and its drawback of business. This will
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help company to take correct decision and enhancing business practices positively. SuperValu
company will be able to earn more profits and revenues by considering business ethics and
moral. Brand image of organisation will be enhance in market area as well as able to develop
strong relationship with customers.
Public image refer as the opinion of people or customers about the company and its
activities. It is essential for SuperValu organisation to consider the impact of this issue on public
image. Respective company is collecting Tuna fish from sea and operating business at very large
scale (Vitell, 2015). Negative public image will lead to have direct impact on sales and
profitability of company. Customers expect honesty, environment protection or health and safety
while conducting business practices and providing products to customers. SuperValu company is
not considering policies of government and human rights while collecting Tune fish form sea.
This will lead to negatively impact on other sea fish and creatures.
Public view is very importance to company as it will lead to impact on organisational
performance and its sales. Public view will lead to have significant impact on brand value of
SuperValu company. It will help in managing the reputation of organisation as well as
developing strong relationship with customers. It is essential for respective company to resolve
ethical issues and follow polices and human right in order to create positive reputation and brand
value.
Issues of business ethics in the organisation given in case study
As per the article through Charlie Hart it has been determined that there are many large
Tuna companies which are failing in order to provide support policies with the practical actions
of modern slavery. Government has developed some laws and policies which needs to be
followed by company while collecting Tuna fish. These policies will lead to have significant
impact on balancing sea life and reducing negative impact of fishing practices on environment.
According to the report of Business and Human Rights Resource Centre Tuna companies are
fallen into pattern of policies over the practices while tackling slavery in supply chains (Wymer
and Rundle-Thiele, 2017). In this case study there are different ethical issues and human right
abuse such as forces labour, human trafficking, slavery, child labour and many more. Tuna
companies failed to successfully follow polices and standards of human right business supply
chain.
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Role of business within society
Business play crucial role in society that will lead to have significant impact on citizens. It
is essential for Tuna company to effectively conduct business activities in order to positively
impact its role with in society. The major role of business in society includes providing products
and services which is as per the need and requirement of customers. It is crucial for company to
develop products that will lead to satisfy customer wants in best possible manner. It is role of
business to conduct different corporate social responsibility activities in order to provide benefit
to society and its citizens (Wettstein, 2015). Sustainability and growth of environment is
essential role of business towards society development. The role of business includes following
rules and gridlines that is developed by government as well as consider human rights and ethics
in business operations.
Effect of business on stakeholders
There are different stakeholders who are associated with the company and these
stakeholders will lead to have major impact on performance or decision making of business.
SuperValu company includes different stakeholder that will lead to have major impact on
business practices. This company consist a group of stakeholder that will influence over the
decision making process of company and guide business operations. Impact of various
stakeholders of respective company is mention below in detail.
Customers – This includes individual who purchase the products and services of the
company and impact on sales of business. In order to become successfully respective company
needs to full fill the needs of customers and provide value through products. By providing high
quality products SuperValu company can influence customers.
Employees – This stakeholder refer as the people who are using their full capability and
potential to conduct task (Ahn, Lee and Yun, 2018). Employees are important stakeholders of
business as they are responsible for conducting business activities as well as attaining goals of
organisation. Performance and productivity of employees will lead to directly impact
organisation activities.
Business partners There are different business partners who are supportive in
successfully conducting services of organisation. Business partners includes suppliers, finance
provider, supporter and other stakeholder who help in successfully conducting business
activities. This will effect on reducing issues of organisation.
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Society or community – This includes different community citizens and society in which
company is performing business activities (Greenwood and Freeman, 2018). It is essential for
respective company to consider society and community while carrying out business practices. It
is essential that this stakeholder is not affected by the business practices.
Recommendations
Through the above case, there are some recommendation that will help SuperValu company
to successfully conduct business operation. It is recommended that top management of respective
company to take necessary steps so that company is conducting ethics and moral in business
practices. It is essential for this organisation to follow all rules and regulation that is develop by
government for Tuna company to catch fish from sea. By following policies as well as
considering ethics or moral in business practices respective company will be able to develop
strong relationship with customers. It is important for respective company to resolve ethical
issues and carry out business practices considering human right standards. Human right and
responsible management will lead to have positive impact on business and enhance growth of
business. Business ethics and standards of human right will guide company to successfully
perform organisational task and attain goals.
PART 1 B
Discussion of two Ethical theories
In an organisation business ethics play essential role within managing as well as handling
work effectively. These aspects will provide assistance in minimising corporate scandals. In
addition to this, main purpose of business ethics totally depended on professional conduct as well
as illegal practices which conduct within workplace. Moreover, ethics include several aspects if
business as well as these are several customers who purchase products and services on the basis
of ethics. It has been believed by customer that companies who conduct business in ethical
manner are moral as well as responsible. Although, ethical conduct is explained as integral
component of how leadership is done. It has been expected by many people that in organisation
leaders has to be model of ethical leader. Government of every nation has formulate several
ethical standards for organisation as well as they have to follow all these for conducting
operations in effective manner. In addition to this, there are numerous theoretical framework
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which business have to follow for avoiding any type of frauds or societal harms within business
operations. There are mainly two theories which business firm use for conducting their
operations in ethical manner as utilitarian theory as well as Rawls theory. Explanation of these
are as follows :-
Rawls theory of justice – John Rawl's theory related justice as fairness is explained as an
attempt for coming distinct ideas together within comprehensive way. According to respective
theoretical framework, there are several advantages of distribution as well as burdens within a
society are there when every employee is given equal rights to the most extensive liberties which
are compatible with equal liberties. Likewise monetary and social disparities are organized so
they are most noteworthy advantage of least bit of leeway. Likewise they give workplaces and
positions open reasonably and similarly to all. As indicated by Rawls, there are two standards for
example rule 1 and Principle 2. the rule 1 is known as rule of equivalent freedom. As per this
rule, every single person's freedoms are shielded from attack and these must be equivalent to
those of others. As indicated by Principle 2 which is known as contrast guideline. It expresses
that means are taken for improving situation of penniless individuals of the general public. As
per Rawls, guideline is good when it is acknowledged in gathering of self intrigued and judicious
people. This joins Kantanian standards of reversibility. In addition to this, there are mainly two
kind of justice i.e., retributive justice and another is compensatory justice. In early edges,
individuals held which an individual has a moral obligation for compensating the injured party
are mention below -
The action was the real cause of the injury.
The person did the action voluntarily
The action which inflicted the injury was wrong or negligent
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Thus, principles as well as steps related to Rawl assume that the manner in which redistribution
related to goods as well as services occurs is agreed through particular person for avoiding any
kind of fairness problem.
PART 2
Reflective essay of ethical Leader
Ethical leader is a person who have capability and potential to influence other to ethically
conduct business practices (Ali Chughtai, 2016). It is very important for an ethical leader to have
complete understanding and idea about how to correctly perform business task as well as manage
employees. As an ethical leader I have to clearly analyse the whole situation before taking any
decision. It is very difficult to define what is right and what is wrong. I always consider that
company should follow the policies as well as consider human rights in order to ethically
perform organisational task. As an ethical leader I am not afraid to do thing which I believe is
right. It is my major responsibility to provide direction and guidance to company and employees
so that they can successfully conduct business practices as well as attain the goals of business.
Some times I have to take decision for business which is unprofitable, inconvenient or unpopular
in order to provide ethical direction to business. I have analysed that there are different skills and
characteristics that will lead to develop an effective ethical leader. Justice is one of the
characteristic of ethical leader. Due to this characteristic I will be able to take decision which is
just and fair. This helps in reducing bias and favourites so that I can treat everyone equally.
Respect of others, honesty and teambuilding skills are essential to become ethical leaders. These
skills are significant for successfully conducting task of leader and perform leadership practices.
I have awareness of values that assist me in communicating as well as discussing values which
needs to be provided by company to its customers and society in order to successfully conduct
business task. I have analysed that I have no tolerance for ethical violation and I always consider
that company needs to full fill the ethics or moral as well as conduct different corporate social
activities in order to achieve business goals. Management of business issues and ethical problems
is the main role of ethical manager (Lawton and Páez, 2015). As an ethical manager I always
focus on determine the root of problem so that it can resolve permanently. There are different
reasons company will face ethical issues. This could be due to failure in following policies,
unable to include all manager and ignoring standards of human rights in business practices This
will lead to have major impact on organisation and affect business practices. I will analyse the
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ethics issues in business strategies and decision in order to suggest modification for reducing
issues. I am able to successfully perform leadership activities by communicating ethics and
morals along with its benefits to company. I conduct different training practices in organisation
in order to increase knowledge and understanding of employees regarding business ethics and
morals. These practices are significant for managing high ethical standards in business.
Personal ethics can be describe as the value or moral which is identified through an
individual or situation. This will lead to direct action and decision making of individual while
taking important decision for business. If I was ethical leader at SuperValu company will make
sure that business and employees is following the rules and policies of government. I will
analyse and evaluate the modern policies for Tuna companies. I will focus on determining the
major reason why company is not following rules or policies while catching fish. This will help
me in identifying the whole situation as well as taking better decision for business (Shapiro and
Stefkovich, 2016). I will communicate and explain the importance of business ethics and
human right for company. I will guide and motivate employees to consider standards of human
rights and business ethics in order to successfully attain the goals of business. My complete
focus will be to ensure the employees are correctly conducting business practices and check the
impact on business operation of environment. I will develop effective business strategies that
will be beneficial for organisation as well as society.
I have evaluated that to be a good leader, there is necessity for managing all the activities
properly in order to manage all business activities properly. There is great importance of the
ethical leadership for managing different activities and tasks. Also, there is need to develop
effective plans and managing the working condition of the company. This is associated with the
management of different business activities for the company. It is very essential to manage the
working of al the business situations properly so that sales of company can be enhanced. I have
concluded that I will always follow ethical standards and regulation while working for the
company. I will keep myself motivated for conducting the business activities in proper manner. It
is important for the leader to work efficiently and manage different employees. I have adopted
various motivational theories in order to motivate my employees and subordinates. I try to
understand problems of my employees and help them in achieving goals. I always focus on
maintaining good bond and relation with the employees. This allows me to make the employees
and staff members to work for the company more efficiently. As the ethical leader, it is my duty
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to manage functioning of all business operations in ethical manner. Due to this, I have to manage
the working and operating of business activities in a more effective manner. I provide all the
rights and regulations to employees at workplace so that there is no case of workplace
discrimination. This is helpful for managing the business activities and tasks in proper manner. I
have organised various activities that motivate my staff and increase employee engagement
towards the company. Also, I have used the four V model for managing people at my workplace.
These V stand for Vision, Values, Virtue and Voice, these V's have helped me to take effective
decisions and develop a wide vision in order to take good decisions. I think as a leader, I am able
to take more effective decisions by using this model. Ethical leadership is more of developing
management in such a way that moral an values of ethical working can be increased. As ,y point
of view, the main thing which affects any workplace is presence of positive workplace. It is very
important for me as a leader to develop positive environment at workplace so that employees
will be motivated and encouraged for conducting the business operations. Values – I think most important thing which allows me to develop potential for good
work is to maintain values. I have to develop and discover vision in order to complete the
business tasks. There are different ways of integrating unique values into the professional
and personal life of individuals. Vision Ethical leadership suggests that all business operations are conducted in ethical
manner. Voice As an ethical leader, I am articulating organisational vision to employees in an
authentic way which is enlivening into action.
Virtue I must provide proper guidance to employees and tell them what is wrong and
right for doing business.
CONCLUSION
This is discussed from the above scenario that business activities are conducted in ethical
manner. It is important to manage the work and activities in an effective manner so that sales can
be increased. But, for this there is no need of using unethical ways of conducting business
operations. On the other hand, if any company is accused of doing unethical business operations,
and if it realises that this was wrong then the organisation can do some good for the society.
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REFERENCES
Books and Journals
Homann, K., 2016. Globalisation from a business ethics point of view. In Globalisation and
business ethics (pp. 15-22). Routledge.
Kaplan, A., 2017. European management and European business schools: Insights from the
history of business schools. In Management Research (pp. 211-225). Routledge.
Vitell, S.J., 2015. A case for consumer social responsibility (CnSR): Including a selected review
of consumer ethics/social responsibility research. Journal of Business Ethics, 130(4),
pp.767-774.
Wymer, W. and Rundle-Thiele, S.R., 2017. Inclusion of ethics, social responsibility, and
sustainability in business school curricula: a benchmark study. International Review on
Public and Nonprofit Marketing, 14(1), pp.19-34.
Wettstein, F., 2015. Normativity, ethics, and the UN guiding principles on business and human
rights: A critical assessment. Journal of Human Rights, 14(2), pp.162-182.
Ahn, J., Lee, S. and Yun, S., 2018. Leaders’ core self-evaluation, ethical leadership, and
employees’ job performance: The moderating role of employees’ exchange
ideology. Journal of Business Ethics, 148(2), pp.457-470.
Greenwood, M. and Freeman, R.E., 2018. Deepening ethical analysis in business ethics. Journal
of Business Ethics, 147(1), pp.1-4.
Ali Chughtai, A., 2016. Can ethical leaders enhance their followers’
creativity?. Leadership, 12(2), pp.230-249.
d’Adda, G., and Et. Al, 2017. Do leaders affect ethical conduct?. Journal of the European
Economic Association, 15(6), pp.1177-1213.
Lawton, A. and Páez, I., 2015. Developing a framework for ethical leadership. Journal of
Business Ethics, 130(3), pp.639-649.
Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.
Online
Slavery policies ‘fig-leaf for abuse’ in tuna supply chains. 2020. [Online]. Available
through:< https://www.cips.org/supply-management/news/2019/june/slavery-policies-fig-leaf-
for-abuse-in-tuna-supply-chains/>.
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