Business objectives from an ethical perspective - Essay Example

Higher National Diploma in Business ASSIGNMENT COVER SHEET Please complete ALL sections below. I.D. Sur First Programme: Module Code: Module Name: Submission date: Assignment title:PFIZER, MARKS AND SPENCER AND SHELL NOTE 1 THIS ASSIGNMENT COVER SHEET NEEDS TO BE COMPLETED AND RETURNED WITH YOUR ASSIGNMENT. FAILURE TO SUBMIT A COMPLETED COVER SHEET WILL RESULT IN YOUR WORK NOT BEING GRADED. DECLARATION I have read and understood the London School of Business and Finance Regulations and Policies relating to academic misconduct. I declare that: This submission is entirely my own original piece of work. It has not been submitted for a previous assessment in LSBF or any other institution. Wherever published, unpublished, printed, electronic or other information sources have been used as a contribution or component of this work, these are explicitly, clearly and individually acknowledged by appropriate use of quotation marks, citations, references and statements in the text. I understand that penalties will be incurred for late submission of work. STUDENT SIGNATURE: TSHASHA DATE:02/07/13 NOTE – Please complete the details below Have you submitted any Reasonable Adjustment Requests? Yes / No Date of submission: 12/09/14 LO2. Understand business objectives from an ethical perspective PFIZER Introduction Every business operates on a certain roadmap that guides its decisions, ideas and everything that goes around in the business on a daily basis. This road map gives a guideline on the way the business is to run, as well as its expectations in the short, medium and long term. This road map is what is normally referred to as business objectives; these objectives are vital parts of any business plan. In fact, it is often said that business objectives as the life’s blood of any business undertaking (Hur 2013 102). Business experts and coaches often say that business objectives are important things that owners can share with their company staff, they are statements that comprise of specific, realistic and measurable goals, which have certain periods that any business has to strive to stick to. Business ethics In order to achieve its objectives rightly, there are important measures a business has to refer to in its quest to achieve set objectives, these are the business ethics. Business ethics refers to a certain kind of applied or professional ethics, whose role in business is to make an examination of the manner in which moral values are followed in the business environment (Audi 2009, 67). It is important that a business, having set its objectives, devise ethical values to govern the manner in which it conducts its internal and external activities in achieving its set objectives. Business ethics defines the manner in which a business treats its staff, manages their affairs and responds to arising issues satisfactorily. At the same time, business ethics plays an important role in the way a business relates with its external environment, it ensures that competition is done in the best interest of all players in the industry. If a business fails to observe business ethics, then it is bound to affect its internal and external business operations including a possible confrontation with its stakeholders. How Pfizer’s objectives are affected by ethical considerations Pfizer being a global company; it has a global vision of researching, manufacturing and delivering medicines for all people around the world. In this understanding, the company has created a statement upon which it operates, that is, “good health is vital” to all people. It has a major corporate objective of producing medicines that can prevent several diseases, currently; the company is working extensively to produce medicines that can cure and prevent some of the world’s most terminal diseases like Alzheimer’s and cancer among others. Following the need to fulfill a wide range of health needs for people across the world, Pfizer is compelled to make great reference to ethical concerns in this industry, failure to which there can arise numerous health concerns from its customers and other stakeholders (Ko 2012 201). Being an international company, there is a great need for Pfizer to ensure that it abides by the rules and regulations set for good business and health practice in the different countries that it has established its presence. Ethical considerations Some of the ethical considerations that the company has to observe in the health industry include strict adherence to laid down procedures in research and production of medicines. Here, the company is to ensure that it researches and comes out with medicines that can meet people’s needs, besides giving them assurance for better health. They should not be motivated by making profits at the expense of people’s health needs and concerns. Besides having their ethical codes of conduct in internal operations, the company should study and implement effectively ethical practices that are set in the health and medical industry, this way; they can make a better brand and public image. The health industry just like any other industry is guided by special legislations that govern the activities of players and other stakeholders. Pfizer should ensure that as a multinational company; it thoroughly studies and abides by the different legislations that exist in the different countries; it has to liaise with national and international organizations in the research and implementation of various health goals in different parts of the world. Implications of ethical operations by the company and its stakeholders Ethical operations bring a lot of credit any company in any industry, at the same time, failure to stick to proper ethical practices can have adverse effects on a company’s operations including tarnishing its public image. For instance, Pfizer has found itself in problems in the recent past because of failure to observe some ethical practices in its pharmaceutical and general operations. The company was accused of testing its drugs on children instead of animals, as it is a requirement in pharmaceutical practice. In fact, this phenomenon is said to be common in most pharmaceutical companies in as much as it against ethical requirements in this industry. Besides pharmaceutical testing, the company has also been involved bribery allegations, paying up to 60 million dollars to settle the said allegations. Bribery in itself is an unethical practice that is not acceptable in all industries; this is because it leads to delivery of low standard services besides having crucial effects to people’s general health and well being in the medical field. On the part of stakeholders, Pfizer has to ensure that all people have a certain stake in the company are equally represented, and their values and contributions taken into account. Pfizer should ensure that in fulfilling the interests of their stakeholders and company objectives, they abide by the set legislations and standards of ethical practice. By sticking to the laid down rules of proper business practice and ethical standards, the company can be better placed to have a good public image and increased proceeds due to increased customer base and general public preference for its goods and services to their rivals. REFERENCE LIST Audi, R. 2009. Business ethics and ethical business. Oxford University Press, New York. Hur, S. 2013. The Business of Corporate Learning Insights from Practice. Cambridge University Press, Cambridge. Ko, H. 2012. Self-regulated healthcare therapy industry codes of conduct - tackling current and emerging issues for maintaining good governance in Australia. Journal of Medical Marketing: Device, Diagnostic and Pharmaceutical Marketing. Vol 5, No 2. Pp. 188-191 LO3 AND LO4 Table of Content Marks and Spencer 10 Moral Agent 10 Marks and Spencer as Moral Agent 11 Employee Involvement and Empowerment 12 Employee Involvement in Marks and Spencer 13 SHELL 14 Introduction 14 About Shell 14 Recent Scam in Shell 15 Objectives of Shell 16 Current Employer-Employee Relationship 16 Improvement of Ethics in Shell 17 Code of Conduct of Shell 17 REFERENCE LIST 19 Marks and Spencer Moral Agent Marks and Spencer as Moral Agent Employee Involvement and Empowerment Employee Involvement in Marks and Spencer Shell Introduction About Shell Recent Scam in Shell Objectives of Shell Current Employer-Employee Relationship Improvement of Ethics in Shell Code of Conduct of Shell Reference List Marks and Spencer Moral Agent A Moral Agent is defined as an individual or a living entity that endeavours to operate based on evaluating the right and wrong behaviours. Thus the Moral Agent is held accountable in terms of the decisions or behaviours generated relating to a specific issue or case. The moral agent thus acts as an Ombudsman that has specific rights and responsibilities and also reflects essential powers in helping individuals take on the correct choices and decisions relating to day-to-day conducts. The idea of Moral Agency thus confers the rights on a moral agent to act in an ethical and moral fashion such that the moral agent comes to be identified as being accountable or responsible for the decisions generated. Thus moral agent is an entity or individual that both has rights to conduct duties and generate decisions and thereby is held accountable or can necessarily be blamed or appreciated for the conducts displayed. Further a moral agent apart from being a living creature is also identified to be an entity that is ruled by the power of consciousness that helps in taking of reasoned decisions involving rationale and justification based on set moral standards and value sets. The above potential thus helps the moral agent to rightly evaluate potential alternatives before taking on a concerted decision (Erhard, 2012). Some potential examples of moral agents are like the Clergy in a Church, custodian of Law and legislative systems in different regions, parents of children and also like the business or organizational leaders (Ronnegard, 2007). Marks and Spencer as Moral Agent Marks and Spencer, a retailer based in United Kingdom is identified as a moral agent such that the management of the organization constituted by rationalistic and responsible people is identified to work for the betterment of the social and environmental good. Operating in an ethical fashion, Marks and Spencer reflects effective responsibility in protecting the existing social and environmental structure thereby helping in adding value to the customers. Products and branding initiatives taken by the company are observed to be tested over time to reflect on its usability in enhancing the social and environmental good for the citizens (Weinstein, 2006). Launching of campaigns like Plan A Campaign generated during 2007 reflect greater accountability and responsibility of the company in serving its customers in a moral and ethical fashion. Similarly the brand slogans carried out by the company from time-to-time like ‘Look Behind the Label’, ‘Love Food Hate Waste’ reflect on the generation of social awareness among the consumers to lead a healthy life. Similarly another slogan generated by Marks and Spencer that encourage customers to donate their old clothes for a reward of GBP 5 is also observed to help contribute in the growth of social betterment in the region (Bouckaert and Zsolnai, 2011). A moral agent is an individual or organisation that reflects the existence of self consciousness. The individual or organization is required to be potentially conscious of the right and wrong conducts. The moral agent is thereby required to work based on an effective understanding of moral principles. As a moral agent the individual or organization is required to act in a free manner either in following or opposing the rules set for the task. The moral agent is also required to reflect needed potentilal to help fulfil the objectives of the task set. Intention to abide by or to against the principles of the task also reflects an essential requisite of a moral agent (Ronnegard, 2007). Marks and Spencer is observed to be potentially conscious of the social and environmental needs and thus tends to act in a responsible fashion to help accomplish such needs. It works based on the understanding of ethical principles and thereby operates to generate common good for all. Marks and Spencer reflects an essential understanding of its duty and responsibilities and thus intends to work on effective operational and marketing strategies to help in fulfilling such. Employee Involvement and Empowerment The concept of employee involvement is observed to be broader concept that is narrowed down to empowering people in taking key organizational decisions. Employee involvement activities tend to vary from organization to organization such that in some it reflects on the encouragement of participation or involvement of employees in managerial decision making activities. In some cases the employee involvement activities are undertaken as an effective collaborative mechanism that has emerged relating to the agreement between the trade union bodies and the management. Though effective collaboration or involvement of employees relating to different organizational departments and levels the management aims at resolving of disputes gained with the trade union bodies. Similarly in other cases the management of the organization aims in involving employees to take effective decisions to enhance the parameter of product quality and business productivity. Involvement and empowerment of employees within an organization tends to gain greater impetus through delegation of power, sharing of knowledge and expertise and also through helping and encouraging employees to act based on the right quality of information and also in generating apt rewards. Provision of the above parameters in effective amounts is taken to help contribute in the enhancement of productivity of the people in the organization and thus help in the development of quality of work life in the organization (Cummings and Worley, 2014). Employee involvement and participation is taken to encourage the employees in effectively conducting their tasks entrusted to them by the management. Employee participation is generated in times when employees are encouraged to generate voices about the decisions taken in the workplace while empowerment of employees in generating solutions to potential problems and also in taking quality decisions based on authority and responsibility delegated to them (Griffin and Moorhead, 2013). Employee Involvement in Marks and Spencer The management of Marks and Spencer aims in generating employee involvement through effectively sharing of information along different organizational levels in the form of generating internal memos like newsletters and also through the use of internet mediums like electronic mails, intranet mediums and also generation of blogs. Generation of information on the above accord contributes in encouraging the employees to work in a productive and collaborative fashion to help in the meeting of the stated objectives. In addition to the generation of videos in the intranet mediums reflecting information pertaining to best practices the management body also aims in generation of stated incentives to help in encouraging the employees to work in a productive fashion. Generation of effective incentives financial or non-financial is taken to help in enhancing the level of commitment and responsibility of the employees to work in a productive fashion in meeting of business objectives. The incentive plan of Marks and Spencer focuses on the identification of champions in the organization that contribute in the enhancement of quality of work life in the organization through helping in energy efficiency and reduction of wastage in the different units. Champions are also identified as such that enhance team productivity in terms of sharing of potential ideas and thoughts (Murray and Barthel, 2013). Marks and Spencer works for generating effective training and development activities to enhance the skill, expertise and confidence of the individuals to generate greater productivity in a committed fashion. The company has also an effective leadership program in place that contributes in building talent to meet the objectives of values of Marks and Spencer brand. Trained individuals rightly work in generating quality service in an innovative fashion thereby contributing in value addition and also in enhancement of people’s trust on the brand (Marks and Spencer, 2010). SHELL Introduction About Shell Shell operates as a global conglomerate of energy and petrochemical companies that operate based on a large number of employee groups of around 92,000 people operating in around 70 different nations. The company works based on the use of innovative approach to help generate effective energy solutions for the future. Shell focuses on the generation of sustainable energy resources and also strategizes to enhance its leadership potential in the global oil and gas industry. The company aims to generate effective returns to shareholders through working in the enhancement of profitability and productivity. It also aims in the meeting of energy demands in the global context in a highly responsible fashion. Shell that started its operation around 200 years ago currently operates as a global market leader in the energy industry (Shell Global , n.d.). Recent Scam in Shell In recent times, the performance of the global energy conglomerate, Shell is taken to be largely affected owing to the payment of bribe by the Nigerian unit of Shell to a Swiss Freight Company like the Panalpina World Transport Holding Limited. This rise of the bribery event in Shell is reflected to generate a corrupted work culture in the organization. As a mark of corrupted work culture it is observed that the employees of Shell working in Nigeria requested the employees of Panalpina to generate false and erroneous invoices relating to the different items such that the same would contribute in masking the bribes paid by the Nigerian Shell employees. The total amount of bribes paid by Shell to Panalpina Nigeria is estimated to amount to around $2 million to help in concealing the nature of the transactions conducted from the auditors. The emergence of the bribery scam is observed to potentially impact the operations of Shell in Nigeria that required the company to not only change people employed in senior management positions in Nigeria and settlement of the corruption but also required the company to wind up its Nigerian wing by the end of 2007. The above issue thus not only affected the international operations of Shell but also tarnished the international image of the company as being an ethically responsible organization (Voreacos and Calkins, 2010). Similarly the issue of bribes that rocked the operations of the Shell in Nigeria is also observed to largely deter the investors from making any potential investments. Owing to the issue of bribery and scam, Shell was required to pull out from Nigeria which in turn affected its competitive position in the international markets (Global Witness, 2014). Objectives of Shell The performance and operational objectives of Shell is to encourage the growth of engagements through generating integration of different types of companies relating to oil, gas, chemicals and also of other companies pertaining to oil products such that they work in a collaborative fashion to help in conducting research and development activities and also in the meeting of the needs of its customers on a global scale relating to demands of energy resources. Extraction of the oil and gas products would be conducted by the company in a responsible fashion such that the same contributes in meeting the social and environmental objectives. The company also focuses on operating in an integral and ethical fashion such that the same contributes in generation of effective performance to help develop effective relationship with its potential stakeholders like customers, employees, policy makers and regulatory parties (Shell , n.d.-a). Current Employer-Employee Relationship The current employer-employee relationship of Shell reflects that the company operates based on contractual employment policies where workers or employees are recruited and employed for contractual periods to help in the meeting of stated project objectives. The current employer-employee relationships also reflect of unfavourable wage and employment conditions generated for the employees, which in turn generate considerable dispute (Lombos et al., 2014). The event of bribery that took place in Shell Nigeria affected the employer-employee relationship in that it reduced trust of the company over its employees. Shell is observed to create a 24 hour helpline to encourage employees to report issues of bribery and fraud through use of internet and telephonic contacts. The above practice is taken to enhance the accountability and responsibility of the employees to conduct duties in an ethical fashion (Shell Global, n.d.). Improvement of Ethics in Shell Shell is observed to encourage in the growth of whistle blowing activities by encouraging the people to whistle blow any type of potential issues in a confidential and secretive manner by generating the information to a potential website of the company. The company in addition to generation of a potential website is also observed to generate a 24 hour helpline encouraging the people to generate potential information about issues faced by them relating to the business operations in Shell (Royal Dutch Shell plc.com, 2006). Shell is observed to promote the growth of regulatory practices and legislative standards such that it encourages the staffs to gain effective training from courses taught in the European Universities. Attending such courses is taken to contribute in the expertise and efficiency of the people in generation of regulations and codes of conduct (Royal Dutch Shell plc.com, 2006). Code of Conduct of Shell The Code of Conduct of Shell contributes in guiding the employees to operate in an environment of considerable integrity and honesty that contributes in generating value to the employees and the customers. The Code of Conduct of Shell contributes in the providing guidance to the corporation to help in meeting of rules and regulations in fulfilling its performance and business objectives. Similarly it also focuses on generation of code of ethics to help in integrating the activities of different stakeholders like customers, employees and other social communities. Similarly the Code of Conduct of the company also contributes in generation of Health and Safety standards and also in countering the rise of corruptive practices (Shell , n.d.-c ). Suggested Code of Conduct The suggested code of conduct for Shell needs to embrace the following objectives. The company is required to effectively train, educate and empower individual workers to generate needed productivity. The company is required to reflect needed diversity through employing and respecting people pertaining to different age, nationality and interest groups. The company management is also required to interact potentially with its supplier communities. The organization is also required to generate a safer work environment for the people to thrive and excel. The operations of the organization are required to be carried out to help in meeting of environmental and social objectives and also in generating equal opportunity for growth. REFERENCE LIST Bouckaert, L. and Zsolnai, L., 2011. The Palgrave Handbook of Spirituality and Business. United Kingdom : Palgrave Macmillan. Cummings, T. and Worley, C., 2014. Organization Development and Change. United States : Cengage Learning. Erhard, N., 2012. Moral Habitat: Ethos and Agency for the Sake of Earth. United States : SUNY Press. Global Witness, 2014. Shell’s Nigeria investments at risk from corruption scandal, investors warned. [Online] Available at: [Accessed 11 September 2014]. Griffin, R. and Moorhead, G., 2013. Organizational Behavior: Managing People and Organizations. United States: CengageLearning. Lombos, D., Leberstein, S. and Mendez, E., 2014. The Shell Game of Contingent Employment. [Online] Available at: [Accessed 11 September 2014]. Marks and Spencer, 210. Our People. [online]. Available at: http://annualreport2010.marksandspencer.com/operating-and-financial-review/our-people.aspx [Accessed 26th September 2014]. Murray, B. & Barthel, M., 2013. Engaging colleagues on product sustainability. [Online] Available at: [Accessed 11 September 2014]. Ronnegard, D., 2007. Corporate Moral Agency and the Role of the Corporation in Society. United States : Lulu.com. Royal Dutch Shell plc.com, 2006. Shell Whistleblowers Helpline (perhaps a bit late in the light of recent events). [Online] Available at: [Accessed 11 September 2014]. Shell Global , n.d. About Shell. [Online] Available at: [Accessed 11 September 2014]. Shell , n.d.. Shell Code of Conduct. [Online] Available at: [Accessed 11 September 2014]. Shell , n.d.-a Our purpose. [Online] Available at: [Accessed 11 September 2014]. Voreacos, D. and Calkins, L.B., 2010. Shell Bribes Among `Culture of Corruption, Panalpina Admits. [Online] Available at: [Accessed 11 September 2014]. Weinstein, D., 2006. Equal Freedom and Utility: Herbert Spencers Liberal Utilitarianism. United Kingdom : Cambridge University Press. Read More