Business Ethics
According to the Anglo American (n.d), “business ethics are moral principles that guide the way a business behaves’ (pg 27). Reports from past studies imply that the theories and standards that decide or establish the activities of an individual relate to business philosophies and doctrines. Business ethics include the laws and regulations of behavior in trade and industry engaged with doing what is morally correct. Behaving in a moral and principled manner entails differentiating what is correct and what is erroneous. The next step includes choosing the correct manner and setting aside what is incorrect. Corporations operating all over the world are advised to act in an ethical or moral manner (Chryssides, 1993). This paper defines business ethics, illustrates ethics in practice through offering details on ethical practices in Anglo American and Primark companies. This paper also discusses the costs and benefits of a company operating in an ethical manner.
Unethical behaviors in an organization may include the utilization of child labor, illegally using exclusive rights belonging to other individuals or companies, and corruption. Many corporations have found it difficult to employ ethical behaviors in their daily endeavors. It is therefore the duty of an organization to take care of its workers, take care of its external environment and act in manners that can benefit the community in general. In other words, this is what is known as collective business accountability or liability (Fischer & Janoski, 2000). Organizations should therefore have their own codes of ethics aimed at guiding the manner in which workers and business leaders should conduct themselves within and outside the organization. Most times, the codes of ethics are created based on governmental and organizational regulations.
To understand ethical issues, we will focus on two organizations; namely Anglo American and Primark. Anglo American is a multinational mining corporation headquartered in the United Kingdom. Though its main focus is in the field of mining, it also has vast interest in agriculture and construction. About three quarters of its workers are located in Africa. Its products include coal, platinum, base materials, ferrous metals, and other industrial materials. This corporation has been widely involved in various programs together with international bodies such as the UN. These programs have been established in various nations all over the world especially in Africa. The intention has been to guarantee safety of the natives in these countries from certain risks associated with mining, agriculture, as well as construction. Therefore, this corporation has been keen in upholding human and civil rights of individuals all over the world in countries its services are operational. All workers especially those offering security are trained on ways of protecting the lives and belongings of individuals in these countries (Anglo American, n.d).
The zeal of Anglo American to operate morally and at the same time is illustrated in its declaration of business accountability. This states that regardless of the fact that the corporation’s main aim is to make profit, this must not be attained or realized in disregard to collective, ecological, and ethical concerns. For the corporation to survive there is need for collective accountability between the governments, workers, dealer or traders, consumers, and members of the society linked with the operations of this corporation. To ensure ethical concerns are considered, the corporation ensure that all individuals associated with it as well as the beneficiaries of its operations are collectively involved. Doing so enable the corporations identify and act on the concerns of the beneficiaries of its operations and those affected by the operations. Furthermore, the corporation has created a model known as SEAT (Social Economic Assessment Tool) that aids its directors and other executives assess the effects of its operations on all the stakeholders (Anglo American, n.d). This model also aids the corporation to advance the role and involvement of its operations in quarries to growth.
Many mining corporations all over the world have contributed to the displacement o people in certain areas. In instances where minerals are discovered in particular areas, people living in that locality have to be relocated to other areas. If such cases are not handled in a good and professional manner, it can cause disagreements between the government of the country, the mining corporation involved, and the inhabitants of that locality. There are internationally recognized and approved legal and morally correct steps that are followed in such cases. Room for discussions between the community involved and the government and Mining Corporation is created to ensure that all touched relocated individuals are rewarded and strategies are put into place to re-establish and improve the living standards of these individuals (Fischer & Janoski, 2000). Anglo American has been involved in such cases in the recent past, the most recent being in South Africa where communities in Ga Pila and Motlhotlo were relocate to pave wave for mining activities.
Primark is a British corporation in the clothing industry. It is a branch of Associated British Foods. All its operations are concentrated in the United Kingdom. This company performs its operations hand in hand with its traders. In its objectives, it states that t has the duty of doing what is morally right. It is dedicated to offering the best services possible to its clients and at the same time considers the human and civil rights of its consumers. Primark ensures that all its products are created in a manner that ensures the safety of its workers. All of its workers are also treated a god manner. This company has set in to motion strategies to ensure that its entire associate companies act considers the right of their workers (Primark, n.d).
Primark has also created strategies that ensure moral and principled behaviors in business operations. For instance, the company has employed an Ethical Trade Director with the responsibility of ascertaining or guaranteeing that all products are supplied in an ethical manner. He is in charge of a group of other senior executives to help him in his work. Primark is an affiliate of the International coalition of corporations known as Ethical Trading Initiative that ensures that all member companies work hand in hand to ensure that the living and working standards of all workers are improved. Primark also has a business code of ethics that ensures that both female and male workers have free will, ensures fairness, safety, and self-respect (Primark, n.d). This company has also ensured that its rules and regulations are translated in to various languages with an aim of enhancing and improving communication.
According to Alavudeen, Rahman & Jayakumaran (2008), working ethically has its own costs and benefits. A company is able to create assurances in its products hence its character and repute is enhanced. All stakeholders involved therefore are able to be contented with the services of the company. Working ethically also minimizes the dangers associated with business operations such as pitiable exposure and deteriorated public relations. There are external expenditures involved with working ethically. In the case of Primark, the company tolerates expenditures associated in conducting regular reviews, and other expenses incurred through forming coalitions with other corporations working ethically. Other costs include the salaries of executives in the ethical team, and training both the consumers and workers. In the case of Anglo American, involving all stakeholders is expensive in terms of money and time. Observing and maintaining the interests of the community in terms of safety, and also the environment is very expensive. On the other hand, working ethically for Anglo American ensures that the corporation gains a competitive advantage over other similar corporations. The company is also able to position itself better in the stock market as more people invest in corporations acting ethically.
On the basis of Svennson and Woods model (2007), fostering a good relationship with external stakeholders is of significance. In the case of Anglo American, stakeholder engagement “enables it to understand the perspectives and priorities of external groups that are affected by its activities and to facto them into its decision-making process’ (pg 26). When this corporation was engage in relocation of people in South Africa to pave way for mining activities, this process was made successful through involving and fostering a good relationship with all the stakeholders. Gauging and assessing the significance of a company’s operations is also made possible by ensuring a cordial relationship with stakeholders. In conclusion, though working ethically in an organization has its own limitations in form of extra costs, the benefits out-weight them. It is therefore important for companies to conduct their business in an ethical manner.
References
Alavudeen, A., Rahman, R. K., & Jayakumaran, M. (2008). Professional Ethics and Human Values. New Delhi, India: Laxmi Publication Ltd.
Anglo American. (n.d). Business Ethics and Corporate social responsibility. The Times. Retrieved from http://www.thetimes100.co.uk
Chryssides, G. D. (1993). An Introduction to Business Ethics. London, UK: Thomson Learning.
Fischer, R. J., & Janoski, R. (2000). Loss Prevention and Security Procedures: Practical Applications for Contemporary Problems. Woburn, MA: Butterworth Heinemann.
Primark. (n.d). Providing consumers with ethically sourced garments. The Times. Retrieved from http://www.thetimes100.co.uk
Svensson, G., & Wood, G. (2007). A Model of Business Ethics: Journal of Business Ethics. New York, NY: Springer.
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