Reference no: EM133030936

Unit 20 Business Ethics

Purpose of this assignment

The learners will study the importance of human resource management and planning, the relationship between a motivated workforce and business success, and the processes and procedures involved in recruiting, training and appraising the performance of employees. You will also have an opportunity to review the human resource practices in a large organisation, which will enable you to better understand how performance is managed

Assignment Description
This Assignment covers the Learning aims A, B and C

ASSIGNMENT BRIEF

Scenario: You are working in the HR department for "XYZ Company"

"XYZ Company" pays the majority of its employees the minimum wage in order to maximise profit. Several employees have now joined a union and trying to negotiate a living wage to no avail, which has also caused some bad publicity. Due to the bad publicity, 4 large clients have already terminated their contract and as a consequence, the revenue is down 15% compared to the previous year.

You are going to meet with the Senior Management Team to discuss these issues.

TASK 1: Understand how ethical behaviour is applied in a business context.

Explain the concept of business ethics and how they are embedded in industry and professional codes of practice. (P1)

Explain the practical application and impact of business ethics on business organizations and their employees. (P2)

Analyze the concept, application, and impact of ethics in relation to business operations, and the behaviors of employees. (M1)

Evaluate business operations, and the behaviors of employees, in relation to the concept, application and impact of business ethics. (D1)

Things to consider.

A1 Features of business ethics
Definition of business ethics and characteristics and features of operating ethically in a business environment, to include:
o business concepts of honesty and integrity
o fairness and inclusion in a competitive business environment
o concepts of respect and trust in relation to customers, stakeholders, competitors, the general public
o legal governances and obligations in ethics.

The influence of business ethics on corporate image to include:
o vision statement
o value statements
o mission statements.
A2 Industry and professional codes of practice
- Examples, purpose and features of industry codes of practice, including:
o mandatory and voluntary codes of practice
o sanctions.
- Examples, purpose and features of professional codes of practice:

o examples, e.g. ACCA Global and the Chartered Insurance Institute (CII) International Code of Ethics, The International Ethics Standards Board for Accountants (IESBA)
o features, e.g. integrity, objectivity, professional competence, confidentiality, professional behaviour
o sanctions.
A3 The application of ethical values to business practices

Features and characteristics of ethical and unethical practices in business organisations.
• Corporate governance and executive pay:
o division of responsibilities, divorce of ownership and control
o decision-makers have the requisite skills, principal agent problem
o identification of risk
o appropriate internal checks and controls, e.g. remuneration committees.
• Financial responsibilities:
o responsibility to pay taxes promptly/tax avoidance
o corrupt practices, including bribery and fraud
o excessive remuneration, severance packages and corporate bonus systems.
• Employment and diversity policies:
o promotion of diversity in the workplace
o inclusion and equal opportunities in all areas of the organisation, from recruitment to promotion, and training opportunities
o health and safety responsibilities.
• Organisations promoting ethical business behaviour:
o international, e.g. Institute of Business Ethics, Fairtrade Foundation
o national, e.g. Investors in People, FTSE4Good, Business in the Community
o professional associations and institutes; trade unions.
• Potential business risks if ethical issues and considerations are not addressed:
o legal, e.g. - consumer protection - employment practices - data protection
- health and safety
o financial, e.g. - sales and market share - profitability and financial performance - share price and company value
o reputational, e.g. - consumer feedback - impact on the environment.
A4 Business ethics and the individual
• Influence of ethics on the behaviour of individuals, e.g. CEOs, employees, business owners.
• Strategies for promoting ethical behaviour in an organisation's workforce, to include:
o contracts of employment
o induction and ongoing training
o codes of conduct
o professional qualifications
o ethical ambassadors o disciplinary sanctions.
• Discretionary decisions in job roles that may involve ethical considerations by an employee, to include:
o remuneration and sales practices
o dealing with the unethical behaviour of work colleagues
o management and supervision of others.

Scenario- "XYZ Company" is also planning on relocating some of its manufacturing abroad in order to cut down costs, however it seems that it would not really benefit the locals as the subcontracting cost implies cuts, in particular relating to local wages and local use of water. You have been asked to look into Corporate Social Responsibilities as a number of serious issues have arisen.

TASK 2: Understand how CSR is applied in a business context.

Explain the concept and features of corporate social responsibility. (P3)

Explain the benefits and drawbacks for different businesses implementing corporate social responsibility. (P4)

Assess the nature and impact of corporate social responsibility for different businesses (M2)

Evaluate the effectiveness of different businesses' approaches to implementing corporate social responsibility policies. (D2)

Things to consider.

B1 CSR issues and the impact on stakeholders
• Definition of CSR.
• Impact of CSR initiatives on key stakeholder groups, including employees.
• Customers, suppliers, governments, local communities.
• Characteristics and purpose of CSR reports/social audits for:
o internal stakeholders
o external stakeholders.
B2 Sustainability and the triple bottom line
Consideration of the three principles of the triple bottom line, i.e. financial, social and environmental, when applied to business decisions in terms of sustainability.
• Environmental issues:
o waste reduction and recycling
o sustainability of resources
o carbon and pollution reduction initiatives.
• Consumer protection statutory and legal requirements:
o misleading or inappropriate advertising and false descriptions
o effect of products on consumer health, e.g. product safety and food labelling.
• Supply chain and community statutory and legal requirements:
o fair treatment and working conditions of employees of key suppliers
o minimum/living wage for both own and supplier workforces
o restrictive trading practices.
B3 Promoting business ethics and CSR policies
The benefits and drawbacks of applying business ethics and CSR in different types of organisation, including sole traders, plcs and multinational corporations.

• Financial benefits:
o financial performance, e.g. increased sales volume and value, profitability, liquidity, efficiency share price and company value
o access to loans and grants o ability to charge premium prices
o risk reduction.
• Non-financial benefits:
o improved customer loyalty and retention, positive brand image and social media profile
o enhanced HR practices, including recruitment, motivation and staff retention
o quality kite mark recognition and assured standards, and the impact on best practice promoting organisational change.
• Drawbacks of applying business ethics and CSR in different types of organisation, including sole traders, plcs and multinational corporations, including
o opportunity cost implications of implementing policies in relation to the business objectives of large and small businesses
o impact on business strategy, e.g. distraction from core business objectives
o cost versus benefit analysis of CSR, e.g. membership costs and recognition costs of professional bodies, monitoring costs, administration costs,
additional direct and indirect staffing costs, including training costs, public perceptions of ‘green washing'.

TASK 3: Investigate the impact of ethical and corporate social responsibility issues on business practices.

Explain the impact of a business disaster on an organization and its key stakeholders. (P5)

Explain the effectiveness of an organization's response to a business disaster. (P6) Analyze the effectiveness of an organization's response to a business disaster. (M3)
Critically evaluate the effectiveness of an organization's response to a business disaster. (D3)

Things to consider.

C1 Strengthening a business organisation's CSR image
Implementation of ethical behaviour and CSR initiatives in different business contexts, including small and large firms operating in different sectors of the economy.
• Internal environment:
o HR practices, including the promotion of diversity and inclusion in
recruitment practices, training opportunities and initiatives aimed at enhancing career pathways for under-represented groups

o sustainable production, e.g. product innovation, procurement, energy utilisation.
• External environment:
o transparency with consumers, e.g. marketing, sales promotions
o transparency in financial matters, e.g. payment schedules and costs
o education and support for the local community, e.g. sponsorships, charitable donations, environmental initiatives.
• Impact and consequences of activities that result in social and environmental costs:
o public image and perceptions, e.g. TV and press coverage
o financial implications, e.g. lower sales, fall in share price and compensation payments
o legal implications, e.g. fines
o government intervention to address unethical business practices, e.g. mis- selling of financial products.
C2 Organisational responses to addressing ethical and CSR issues
• Strategies available to address social and environmental costs using business communications strategies, e.g. press releases, press conferences, social media campaigns, advertisements.
• Community engagement, e.g. meeting with local community groups and their representatives.
• Changes to business practices, e.g. changes to production schedules, employment practices, changes in personnel and procurement systems.
• Financial compensation, e.g. payments to affected stakeholders.
C3 Reviewing business practices in relation to disaster recovery
Methods and approaches to critically reviewing the effectiveness of organisational response to business disasters impacting public perception of business ethics and corporate social responsibility.
• Public perception of impact of business disaster:
o news media articles
o pressure group activity, e.g. Plastic Pollutes, Greenpeace, Stop Child Labour Campaign
o boycotting or withdrawal of custom
o protests, e.g. social media campaigns, online petitions.
• Review of organisational response information in the public domain, e.g. policy changes, press releases/interviews, rebranding.
• Review of organisational response practices, e.g. personnel changes, compensation payments, remedial action, changes to working methods.
• Evaluating organisational responses and effectiveness:
o scale of response against scale of disaster
o language of communications, e.g. apologetic, evasive, defiant
o effectiveness of policy changes, including short-term, long-term
o evidence of change, or willingness to change working practices
o reduction in negative publicity in media
o public response to organisational response, e.g. returning custom, reduction in protest.

Attachment:- Business Ethics.rar