Business Ethics and Corporate Social Responsibility - Essay Example

?Business Ethics and Corporate Social Responsibility Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Describe what is meant by ethical business behavior? Business ethical behavior is an outline of ethical application or ethics in a professional manner, to observe the various ethical principles and ethical issues which occur in a business environment. It is quite relevant in all phase of business conduct, and is applicable in the conduct of individuals and the whole institution. Business ethics posses wide explanatory dimensions. As a business practice and as a matter of professional interest, the area is mainly normative. Academics try to comprehend the ethical business behavior by the application of descriptive means. The variety and magnitude of business ethical issues replicate the communication of profit-maximizing behavior with non-economic apprehension. The importance of business ethics speeded up considerably throughout the 1980s and 1990s, together within main corporations as well as in business. As an illustration, nowadays, most of the major corporations encourage their dedication to non-economic standards under the caption of as ethics codes and social accountability agreement. Administration makes use of law and conventions, to indicate the ethical business behavior in what they make out to be useful directions. Ethics absolutely legalize areas and information of behavior that stretch out further than that of governmental power. Describe how the two companies – Anglo-American and Primark apply ethics in practice? Anglo American provides a lot to the deliberate principles on safety and human rights. The policy sets out beliefs and practices to ensure business necessities the safety of its workers, and also business operation in unstable countries. Therefore the principles direct on how the private and public security services in mining operations should be investigated, qualified in human rights, supervised and controlled. Anglo American plans to ensure that it contribute well in caring the human rights of its staff and confined people in nations, in which it functions. The business always agrees with the values put forward by the ‘Universal Declaration of Human Rights’. The Anglo American strongly declares that the company can extend a helping hand to governments in eradicating famine, economic discrimination and in improving of heath and medical aids. In South Africa, the Anglo American was the chief campaigner for AIDS awarness.It was the first major business organization in South Africa to declare that it could offer retroviral drugs to its HIV victim staff, free of charge. The Primark established its code of conduct on the International Labour Organization's Code (ILO). This inimitable agreement facilitates the ILO to include 'real world' information regarding employment. The ILO code explains certain standards for international labor. It provides immense opportunities for people in vocations of liberty, impartiality, security and self-respect. The code of conduct of Primark is translated to 26 languages, all printed on its web, to guarantee understandable message on standards. The following principles from the code of conduct statement of the company. “The code states, 1. Employment is freely chosen. 2. Freedom of association and the right to collective bargaining are essential. 3. Working conditions are safe and hygienic. 4. Commitment with suppliers. 5. Child labour shall not be used. 6. Living wages are paid. 7. Working hours are not excessive. 8. No discrimination is practiced. 9. Regular employment is provided. 10. No harsh or inhumane treatment is allowed. 11. Legal requirements - Primark is committed to compliance of all countries laws” (Providing Consumers with Ethically Sourced Garments 1995 Pg 3) Primark functions strongly with market suppliers, and factories which manufacture goods. It offers guidance for suppliers, factory and its buyers, so that they realize ethical issues. For example, it put forward guidance on social issues like child labor and migration, and right to work in the UK. The responsibility of Primark buyers is vital in helping to sustain ethical practices. While choosing new suppliers, Primark insists them to be careful in selection process. This makes Primark to set up adequate working surroundings and improvements, as they are essential prior to the approval of suppliers. Discuss the costs and benefits to an organization when that Organization behaves ethically. An ethical business knows its responsibility in reducing the non-financial costs. The Pebble Project, Alaska is an excellent illustration of the method that Anglo American adopted in considering non-financial costs. Alaska is known for gold and copper mining task in its prior stage of assessment. This can grant jobs and profits for the Alaskan financial system in the event of oil and gas drop. By aiming the target, Anglo American wishes to achieve a competitive advantage. By signifying a more considerate and sustainable approach, the company is capable of distinguishing its opponents in mining business, It keeps Anglo American more liable as a partner of choice for several governments, and society in the rising world. It also assists with its place in the stock market. Most of the long-term investors, especially those who have invested in retirement funds know that their investments are used as that run reserves for millions of normal people in the UK. Anglo American understands that it is essential for a company to believe in social and ethical issues not as a mere financial base, but as an agency which promotes the business. Anglo American considers shareholder profits and social and ecological tasks as balancing activities. Working in an ethical method can being supplementary expenses to a company, in comparison with other dealers and companies which may possibly not do business in a likely manner. Primark tolerate the expenses incurred in audits. Then at hand are its expenses connected with the functioning of its ethical partners. An illustration of this is Premark’s joint venture with Nari Uddug Kendra (NUK), which is an association that advocates women's rights and wellbeing in Bangladesh. Expenditure to Primark operations in an ethical way include: the recruitment of the universal Ethical Trade group, guidance to its buyers on all ethical subjects, organizing and spending for external audits, and Serving suppliers to set right the problems hoisted by audits, throughout training and assistance from the Primark Ethical Trade team. However, more than considering these actions as costs, Primark considers that it facilitate the business to function in a maintainable and well-managed manner. Choose one component of Svennson & Woods’ model (found in the journal article “A Model of Business Ethics”), and discuss how your chosen component is relevant for Anglo-American and/or Primark. The Syennon and Woods Model consist of 3 models and they are the expectations, perceptions and the evaluations. The component chosen here for the study is concerned with is the stakeholder relationships. An important procedure used by Anglo American is that of stakeholder engagement. This facilitates it in a better way to comprehend the outlook and priorities of outside groups that are affected by its actions and to feature them in its decision-making process. To sustain the occupation at a local level, Anglo American has created a Socio-Economic Assessment Toolbox, which assists managers in computing the effect of their activities on the company. It also facilitates to get a better idea on the input of a mine to development throughout, for instance, by means of its supply chain requirements to make new businesses or to advance the infrastructure. The toolbox is to connect stakeholders and community executives. “By working towards these goals, Anglo American hopes to gain a competitive advantage. By demonstrating a more caring and sustainable approach, the company is able to differentiate itself from rival mining companies. It makes Anglo American more likely to be the partner of choice for many governments and communities in the developing world” (Business Ethics and Cooperate Social Responsibility n.d page no 28). It also helps with its situation on the stock market. The bulk of long-term deposits, including pension amounts is the current savings for millions of common citizens in the UK, and they consider that it is significant for a business to think on social and ethical issues, and not only on its financial base if the business is sustainable. Anglo American considers shareholder income and social and environmental tasks as corresponding activities. This can place the company in a superior position, and there are quite number of benefits for the company and the stake holders. Reference List Business Ethics and Cooperate Social Responsibility (n.d). Anglo American. Retrieved from < http://www.thetimes100.co.uk/new-downloads-pop.php?getFile=YW5nbG9fYW1lcmljYW4vYW5nbG9fYW1lcmljYW5fMTNfZnVsbC5wZGY=> Providing Consumers with Ethically Sourced Garments (1995). THE TIMES hundred Business Case Study. Retrieved from Read More