Case Study Analysis: Woolworths' Unethical Practices and Global Impact

This case study analyzes the unethical business practices of Woolworths, focusing on the copying of a baby carrier design. It explores the ethical responsibilities of the organization, particularly concerning human rights and copyright laws, and examines how these practices breach the principles of the United Nations Global Compact, specifically Principle 10 regarding corruption. The study applies Corporate Social Responsibility (CSR) theory and business ethics to evaluate the case, highlighting failures in ethical grounds such as fairness. The study concludes with recommendations for Woolworths to improve its global responsiveness, emphasizing the importance of avoiding corruption, upholding worker rights, and maintaining open communication with trade unions. The attached media article highlights the unethical behavior of Woolworths, which is a crucial element in this case study.

Management
Case Study

Table of Contents
Introduction.................................................................................................................................................2
Ethical responsibilities of organizations......................................................................................................2
By using principles of United Nations Global Compact analyze of case. Identification of which UN
Principles they have breached.....................................................................................................................3
Application of CSR theory and business ethics for analyze of this case......................................................4
Recommendations and Conclusion..............................................................................................................5
References...................................................................................................................................................6
Appendix.....................................................................................................................................................7
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Introduction
The unethical business practices of the organization Woolworths is considered in this study. The
unethical practices are reflecting the blatant business processes carried out by the owners of
Woolworths. The blatant copying process is indicating the stealing of the business ideas. This is
indicating the unethical practices which are carried out by the Woolworths. The impact is created
on the business image due to the copying of ideas for baby carriers. The mitigation of this issue
is essential and it will be helpful for the company to strengthen the brand image (Knowler,
2019).
Ethical responsibilities of organizations
The ethical responsibilities of the organization Woolworths are reflecting the upholding of
human rights. The policies should be maintained related to the copyright laws and for the blatant
laws. These will be embracing the company to gain the UNGC ethical sourcing processes. The
improvement in the supply chain will be made by the improvement in the supplier working
processes. The protection of corporate reputation and the trust in the brands are essential which
will be carried out by the help of right things (WOOLWORTHS, 2018). Apart from this, the
suppliers will be respecting the company with the help of the criteria set out for the organization.
Apart from this, it will be helping in carrying out the predominant compliance programs for the
purpose of mitigating the issues. The employment norms are maintained which will be helping in
lodging requirements. The act of corruption and bribery should be followed for mitigating the
issues which are raised against the company Woolworths. The freedom of association and the
right to collective bargaining will be helping the company in mitigating the issues. The terms and
the conditions related to the policies and the practices should be maintained in an appropriate
way. It will be providing respect to the company's activities as per the norms are carried out.
Thus, it is essential for the company to identify the appropriate obligations and remove them as
per the requirements. The company should also implement new strategies for providing support
to the organization (Rspo, 2019). Apart from this, it is beneficial for the organization to gain the
objectives in an appropriate way. The company is also aiming at providing the right treatment
process which should be physically included for mitigating this issue. The corporate social
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responsibility practices should be followed with including the ethics theory. It will be providing
support to the development of the environment.
By using principles of United Nations Global Compact analyze of case. Identification of
which UN Principles they have breached.
The 10 Principles of the United Nations Global Compact will help the organizations in
establishing a positive culture (Unglobalcompact, 2018). The employees will be able to uphold
their responsibilities towards organizations and customers and environment. Apart from that, it
will help the organization to sustain in the market for the long run. The 10 principles here
include:
Human Rights:
Principle 1 – Organizations must try to protect and respect the Human Rights internationally.
Principle 2 – Organizations should not complicit the Human Rights.
Labour:
Principle 3 – Organizations should have freedom of association
Principle 4 - Force and compulsory labour should be eliminated from organizations.
Principle 5 – Abolition of child labour
Principle 6 – Discriminatory type of behaviour should be avoided concerning employment.
Environment:
Principle 7 – Organization must follow a precautionary type of approach for environment
challenges
Principle 8 – Must implement environmental initiatives for promoting responsibility towards
environment.
Principle 9 – should try to develop and use environmentally friendly technologies
Anti-Corruption:
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Principle 10 - Organizations must avoid and eliminate corruption in all its forms. The corruption
here includes bribery and extortion.
These were the 10 principles that are required to be followed by the Woolworths. It is the recent
story that Woolworths have blatantly copied the names, design and even the colour of the baby
carrier. They have copied Shannon McLaughlin Ubuntu Baba baby carrier stage 1 and stage 2
(Knowler, 2019). Later period the Woolworths have removed their imitated baby carrier from the
market. Most importantly they have also requested the customers to refund. It is the Woolworths
responsibility to maintain the entire 10 principles to sustain in the Australian market for the long
run.
Woolworths the most known company was accused of being copying the baby carrier stage 1
and stage 2. Moreover, they are also accused of lowering down the price by two-thirds and
making them cheaper in China. Thus, it can be said that Woolworths the popular company has
breached the principle number 10. The principle 10 includes that organization must try to
eradicate all kinds of corruption in all its forms. Therefore, copying or plagiarism is a kind of
corruption.
Application of CSR theory and business ethics for analyze of this case
Corporate Social Responsibility (CSR) is the process of how a company manages the overall
business for producing a positive impact on the society. It comprises of ethics, sustainability and
social impacts. It includes how the company manages to make money. It is the responsibility of
the Woolworths Company to produce a reliable product along with fair price by marinating the
profit margins. This also includes a proper wage to their employees (Pineda, 2018). The CSR is
also responsible for caring for the environment and acting as per the social concerns. Thus, it can
be said that Woolworths did not maintain the CSR. The theories of CSR includes
Business ethics theory – The ethics theory is based on the social obligation and responsibilities
that has Woolworths towards their society. This theory justifies corporate social responsibility on
three different ethical grounds. These three were illustrated below:
Firstly, corporation when become better citizen to the society will be able to contribute better
social well being.
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Secondly, emerging and changing business responsiveness and how Woolworths has responded
to the social expectations. This means how far Woolworth has reacted to the social expectations.
Therefore, it is essential for Woolworths to maintain the current trends. Yet, Woolworth go with
the flow but by copying or imitating the other baby carriers is not ethical.
Thirdly, the eternal values were always inspired by the Kantian ethics. This denotes certain
principles like fairness, human rights and social justice. Woolworth did not carry out their
business activities by fairly. They have breached the principle of fairness. Without maintaining
business ethics they have performed their business activities.
The commencement of CSR get when the legal obligation declines. The business ethics theory
observes CSR as the more ethical responsibilities rather than legal and economic responsibilities.
Recommendations and Conclusion
For continuing the ethical practices and eliminate the unethical practices from the organizations
Woolworth must try to maintain certain policies. They should try to
 Avoid corruption and bribery. The corruption here includes not only bribery but also the
copying and imitation of the products. Woolworth must eradicate the corruption in its all
forms.
 The staffs or the labour must be provided with necessary rights. Workers may leave the
workplace when they are complete with their tasks.
 Workers are free to choose their trade unions without having distinction
(Woolworthsgroup, 2017).
 The employers must try to uphold open attitude towards the trade unions.
The report is on the case study regarding unethical business practices in an organization. The
report has focused on the Woolworth unethical business practices. The report is also comprised
of the 10 principles of the United Nations Global Compact. These principles denote what types
of unethical behavior has been carried out by the Woolworth. It also comprises of several
recommendations that Woolworth should implement.
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References
Knowler, W. (2019). Woolworths 'behaved totally unethically': baby carrier designer. [online]
timeslive.co.za. Available at: https://www.timeslive.co.za/news/south-africa/2019-01-10-
woolworths-behaved-totally-unethically-baby-carrier-designer/ [Accessed 25 Sep. 2019].
Pineda, M. (2018). Theories of Corporate Social Responsibility | Profolus. [online] Profolus.
Available at: https://www.profolus.com/topics/theories-of-corporate-social-responsibility/
[Accessed 25 Sep. 2019].
Rspo (2019). Ethical Sourcing Policy. [online] Rspo.org. Available at:
https://www.rspo.org/file/acop/woolworths-limited/R-Policies-to-PNC-laborrights.pdf [Accessed
25 Sep. 2019].
Unglobalcompact (2018). The Ten Principles of the UN Global Compact. [online]
unglobalcompact.org. Available at:
https://www.unglobalcompact.org/what-is-gc/mission/principles [Accessed 25 Sep. 2019].
WOOLWORTHS (2018). WOOLWORTHS HOLDINGS LIMITED 2018 Social and Ethics
Committee Report. [online] Woolworthsholdings.co.za. Available at:
https://www.woolworthsholdings.co.za/wp-content/uploads/2018/09/WHL_2018_Social_and_Et
hics_Committee_Report.pdf [Accessed 25 Sep. 2019].
Woolworthsgroup (2017). Ethical Sourcing Policy. [online] Woolworthsgroup.com.au. Available
at: https://www.woolworthsgroup.com.au/content/Document/Ethical%20Sourcing%20Policy.pdf
[Accessed 25 Sep. 2019].
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Appendix
Source: https://www.timeslive.co.za/news/south-africa/2019-01-10-woolworths-behaved-
totally-unethically-baby-carrier-designer/
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