SBM 3204 - Analyzing Sustainability and Ethics in Telstra's Decisions

This report provides a critical review of Telstra Corporation Limited's approach to sustainability and ethics in its business decisions, addressing the relevance of ethics, examining the company's rules and policies, and highlighting specific decisions that demonstrate ethical considerations. It explores Telstra's commitment to corporate governance, social responsibility, and environmental stewardship, emphasizing the importance of ethical behavior in attracting customers, retaining employees, and building a positive reputation. The report also discusses Telstra's values, policy framework, code of conduct, and initiatives such as managing sustainability risks, promoting digital inclusion, committing to reconciliation, and upholding human rights. Furthermore, it underscores the relevance of ethics for businesses of all sizes, emphasizing its role in building a positive corporate culture, boosting customer confidence, and minimizing financial liabilities. This comprehensive analysis offers valuable insights into Telstra's efforts to integrate sustainability and ethics into its core business practices.

Running head: SUSTAINABILITY AND ETHICS
Sustainability and Ethics: Telstra Corporation Limited
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Relevance of Ethics in Business Decisions for Telstra Corporation Limited..................2
2.2 Examination and Analysis of Rules and Policies of Ethics in Business Decisions
Making in Telstra Corporation Limited.................................................................................4
2.3 Inclusion of Decisions for Showing Telstra is Considering Ethics in its Business
Decision Making....................................................................................................................7
2.4 Relevance of Ethics in Smaller Businesses......................................................................8
3. Conclusion..............................................................................................................................9
References................................................................................................................................10

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1. Introduction
Business ethics refer to the fact that only correct decision and course should be
undertaken in any organization. Being ethical includes each and every factor for doing
business like production, business processes as well as organizational behaviour with the
various customers and communities, where it is being operating (Crane and Matten 2016).
Maintenance of business ethics is highly required for defining the five core values of
responsibility, excellence, integrity, understanding, and unity. Each of these values is evident
for driving the ethical behaviour of that specific organization.
Sustainability, on the other hand, is an enduring as well as balanced approach towards
economic activity, societal benefits and environmental responsibilities. Sustainability is
regarding fulfilling the challenges for ensuring that every customer of the company is gaining
various advantages (Trevino and Nelson 2016). It includes undertaking a long term
perspective on the balance of economic, environmental as well as social impacts of the
business. The following report outlines a brief discussion on the sustainability and ethics in
one of the major and the most significant business organizations in Australia, Telstra
Corporation Limited. Relevance of ethics in business decisions for this specific organization
will be provided in this report.
2. Discussion
2.1 Relevance of Ethics in Business Decisions for Telstra Corporation Limited
The system of ethical as well as moral beliefs, which guide the respective values,
decisions and behaviours of business organization and associated organizational members is
termed as business ethics (Weiss 2014). Ethics majorly concerns the moral judgments of an
individual regarding right and wrong. The decisions that are undertaken in the organization is
either made by groups or by individuals and hence the entire organizational culture is being

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influenced by this type of ethical practice. The decision for behaving ethically is the moral
one and employees should decide the correct and incorrect course of actions for the business
(Hoffman, Frederick and Schwartz 2014). It could even include subsequent rejection of route,
which can lead to the biggest short term profit in the business.
The ethical behaviour and corporate social responsibility could easily bring out some
of the core advantages to the business, like attracting customers to the organizational products
and hence boosting profit and sales, making the employees to remain with the business,
reducing employee turnover and incrementing overall productivity, drawing more employees
for working in this business and allowing the organization for getting the talented staff
(Lawrence and Weber 2014). An unethical behaviour or the lack of CSR might damage the
organizational reputation for making it less appealing to the stakeholders.
Telstra Corporation Limited, being one of the largest telecommunications
organization in Australia, follows ethical behaviour in their every business decision and
business process. They have always treated their stakeholders fairly and customer satisfaction
is enhanced here (Ruggie 2013). Telstra has ensured that a creative as well as a well-managed
corporate or social responsibility program is within the best interests for every stakeholder
like shareowners, other business partners, suppliers, customers and employees who are
working together. Telstra Corporation Limited has ensured that the employees are
understanding organizational corporate values and the business principles are followed by
employees.
Telstra has codified their business requirements into environmental regulations, laws
and even restrictions against the insider trading. The organizational management team has set
the tone on the process of entire organization running on regular basis (DesJardins and
McCall 2014). The management team of this particular organization even directs the

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employees for guiding them in undertaking relevant decisions that are not only advantageous
to them as distinctive individuals, but also to the entire company. They have also enhanced
their ethical behaviour for the core purpose of creation of long lasting positive effects in any
organization by inclusion of the capability of attracting and retaining highly talented
employees and finally building as well as maintenance of a positive reputation in their
business. The organizational employees are completing their work in a way that is eventually
based on integrity and honesty (Koslowski 2013). They are also demanding a high standard
of business ethics in every operational facet for performing the job duties at high level.
2.2 Examination and Analysis of Rules and Policies of Ethics in Business Decisions
Making in Telstra Corporation Limited
Sustainability Report of Telstra Corporation Limited
As a large telecommunication organization in Australia, Telstra Corporation Limited
has recognized that the long term ability is responsible for enhancing their social and
environmental expectations for stakeholders. They are committed to excellence in
accountability, transparency and corporate governance. The organizational management
regularly review their governance arrangements and developments in market practices and
regulations (Sustainability Report Telstra. 2015). Telstra has complied with the ASX
Corporate Governance Principles and Recommendations. The core purpose of Telstra is to
build their values after considering the Telstra Group Code of Conduct as well as policy
framework. They have even defined the behavioural standards for achieving the main
strategies. They believe that there should be a commitment to good corporate governance,
their customers, work force as well as the communities, in which they are working (Minus
2013). Telstra even provides a proper structure by which they maintains compliance with
every legal obligation.

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Telstra has considered five specified values, which are as follows:
i) Showing their Care: As per this value, Telstra provides care to the customer
satisfaction and demands.
ii) Being Better Together: The second value ensures that the employees should be
together and work collaboratively for working in a better manner (Sustainability Report
Telstra. 2015).
iii) Making the Complex Simplified: The third important and significant ethical value
of Telstra Corporation Limited is that the complex should be simplified for making the entire
business process much easier and specific.
iv) Trusting one another for Delivering: Telstra ensures that the organizational
employees are trusting one another so that they could deliver better products to their
customers (Pearson 2017). This even enhances the overall business management majorly and
subsequently.
v) Finding Courage: The fifth value of Telstra is to find the courage of every
organizational employee and hence it is being spread amongst the staff by organizational
management.
Regarding policy framework, Telstra regularly review their organizational policies for
the purpose of ensuring that they remain absolutely relevant and can reflect on compliance
with their current regulations and laws. Telstra needs every employee for observing high
standard of business and personal ethics while conducting their duties (Sustainability Report
Telstra. 2015). The Ethical Behaviour Framework eventually provides a clearer guidance on
the responsible and ethical behaviours and decision making. The major integrity policies are
as follows:

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i) Anti Bribery as well as Anti Corruption.
ii) Conflict of Interest as well as Outside Activities.
iii) Criminal Conduct and Fraud.
iv) Hospitality, Prize and Gifts.
They have maintained proper and effective policies and regulations regarding
whistleblowing (Barry 2016). Telstra encourages their people for taking action when they
have any concern about improper or illegal and unethical behaviour. The whistleblowing
policy provides proper protections for the organizational members. This particular process is
being supported by the service provider to specialize in handling disclosures and confidential
reports. The compliance trainings are the integral elements of the compliance framework
(Davies 2016). This type of training ensures that the contractors and employees are aware of
the compliance, regulatory and legal responsibilities.
Code of Conduct of Telstra Corporation Limited
The Code of Conduct in Telstra explains their working procedure of strategy
delivering. It even lays out the expectations for stakeholders’ behaviours (Code of Conduct
Telstra. 2019). The ethical principles of Telstra Corporation Limited are as follows:
i) They act within the best interest of the organization and stakeholders and they work
as a team for delivering solutions to the customers.
ii) Telstra even maintains an inclusive and safe working environment, in which they
treat one another with respect.
iii) Telstra also competes fairly and complies with the law within the various
countries where they are operating.

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iv) They seek to make sustainable and positive environmental, social and economic
contributions for the locations they are being serving.
v) They act with subsequent integrity and honesty and do not make as well as receive
improper payment, gains and benefits (Code of Conduct Telstra. 2019).
vi) Telstra communicates responsibly and utilize technology in a correct manner.
vii) They secure as well as protect the organizational properties and resources after
inclusion of personal and organizational information.
viii) At Telstra, they are individually accountable to eventually comply with the Code
of Conduct and they call things out, which do not seem correct.
2.3 Inclusion of Decisions for Showing Telstra is Considering Ethics in its Business
Decision Making
The decisions that Telstra has included for consideration of ethics in their business
decision making are as follows:
i) Management of Sustainability Risks: The first decision that they have undertaken
after considering ethics is management of sustainability risks (Code of Conduct Telstra.
2019). They should progress on integration of sustainability issues within the risk
management process of the business. Strategy and governance are involved for proper
identification of the key sustainability issues. A part of the risk management procedure of
Telstra includes creation of risk profile for their international operations. The sustainability
related risks are being identified, which mainly includes third party management, unethical
behaviour and corruption (Code of Conduct Telstra. 2019). The third party is often linked
with their displaying behaviour, which is unpredictable with the policies and values of
Telstra.

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ii) Digital Inclusion: The second important and significant decision of Telstra for
proving that they are considering ethics in their business is digital inclusion. They remain
connected with modern communication technologies for bringing major social benefits to the
business (Code of Conduct Telstra. 2019). They remain connected to programs and regularly
reviewing the approach regarding customer preferences and changing technologies.
iii) Commitment towards Reconciliation: Telstra has commitment towards
reconciliation and it undertakes several forms after reflecting on the depth of their
interactions with indigenous Australia (Code of Conduct Telstra. 2019). The respective
indigenous programs involve employment program at Telstra with the suppliers,
infrastructure project within remote community, sponsorships of arts, sports, scholarship and
awards program and community investments for Telstra Foundation.
iv) Human Rights Maintenance: The final decision that eventually shows that Telstra
is maintaining ethics in their business decisions is human rights maintenance (Code of
Conduct Telstra. 2019). They respect as well as support their human rights for setting out
within the Universal Declaration of Human Rights. Moreover, distinctive ten principles of
this UN Global Compact and are eventually committed to Human Rights Policy.
2.4 Relevance of Ethics in Smaller Businesses
Ethics is extremely important and significant for all types of businesses, irrespective
of its size. It is also required to be maintained even in the smaller businesses (Michaelson et
al. 2014). They need a code of ethics and it could be hard for knowing where to start and
what should be included. The small business owners need to maintain their own code of
ethics so that they can develop their interest presence. Ethics is extremely relevant to the
smaller businesses it helps in building a positive corporate culture. Moreover, it is required
for boosting customer confidence and reduces financial liabilities (Stanwick and Stanwick

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2013). Ethics is also needed for minimizing the potential lawsuits and hence maintaining a
proper high ethical standard.
3. Conclusion
Therefore, it can be concluded that sustainability is referred to as one of the major
requirements in any business that provides a commitment to ethical behaviour for ensuring
CSR policy in a business. Businesses not only have the capability to supply products, but also
over the manner of delivering and their impact on the society as well as environment. Telstra
Corporation Limited is one of the major and the most significant organizations in Australia
that provides mobile phones, prepaid phones, broadband services, Internet connection and
many more for their customers.
Ethics is maintained in every business decision in Telstra and hence decision making
process is much easier and Telstra does not face any complexity while executing their
business processes. There are few laws and regulations that eventually encourage the ethical
as well as sustainable practices within the organization. The above provided report outlines a
detailed description on the sustainability and ethical practices in Telstra with relevant details.
Moreover, the relevance of ethics in business decisions and business processes of this specific
organization is also described in this report.

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References
Barry, N., 2016. Business ethics. Springer.
Code of Conduct Telstra. 2019. [online]. Accessed on 13 Mar. 2019.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Hoffman, W.M., Frederick, R.E. and Schwartz, M.S. eds., 2014. Business ethics: Readings
and cases in corporate morality. John Wiley & Sons.
Koslowski, P. ed., 2013. Contemporary economic ethics and business ethics. Springer
Science & Business Media.
Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public
policy. Tata McGraw-Hill Education.
Michaelson, C., Pratt, M.G., Grant, A.M. and Dunn, C.P., 2014. Meaningful work:
Connecting business ethics and organization studies. Journal of Business Ethics, 121(1),
pp.77-90.
Minus, P.M. ed., 2013. The ethics of business in a global economy (Vol. 4). Springer Science
& Business Media.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
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Ruggie, J.G., 2013. Just Business: Multinational Corporations and Human Rights (Norton
Global Ethics Series). WW Norton & Company.
Stanwick, P. and Stanwick, S.D., 2013. Understanding business ethics. Sage.
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Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.