Corporate Social Responsibility & Business Ethics - Assignment Example

Corporate Social Responsibility & Business Ethics Introduction The economy of the UK largely depends upon the contribution of the public and the private sector towards the GDP (Gross Domestic Product). In this study, the discussion will be focused upon the public and the private sectors of the UK economy, in their successful business management practices regarding the structure and culture together with effective methods of managing the behaviour and attitude of the business workforce. The private sector is the part of the national economy that comprises of resources owned by private enterprises. The public sector is the part of the national economy offering essential goods and services that cannot be supplied by the private sectors. It consists of national and local governments, public corporations and quasi-autonomous non-government organisations. Management Structure, Culture & Managing the Behaviour & Attitude of the Business Workforce Public Sector Management Structure The oldest public company, Royal Mail has been successful in providing different services to the people of UK. The company’s management structure is different from the private sector. It is formed by the act of Postal Service Act 2000 and EU Directive 97/67/EC (Royal Mail Group, 2011). The management structure has been strictly under the rules and regulations of the government of the UK that allows the management to operate within the power and authority that are derived from the regulations. This way, Royal Mail has been successful in earning and establishing itself as a leading public company in the UK market (Royal Mail Group, 2011). Culture The culture in Royal Mail have been diversified and controlled through the regulations of equal treatment. The regulation has formed a multi-diversified culture that has contributed towards the success of Royal Mail (Royal Mail Group, 2011). According to race and ethnicity, religion, faith and culture, the regulations have been formed to create a common culture within Royal Mail to enhance the performance level and gain success (Royal Mail Group, 2011). In the workplace, there are legislations in place to “ensure the fair treatment of employees regardless of their race or religion. These are generated through EU directives and implemented by the UK government” (Royal Mail Group, 2011). Managing the Behaviour & Attitude of the Business Workforce There are diversified concepts of work behaviour that contribute to the effectiveness of the organisation that are often overlooked in the public sector. In the public sector, transformational leadership and trait theory are present but it lacks the development research that is present in the private sector. The attitude and behaviour is highly influenced by the leadership traits in the public sector (Rizt & Et. Al., 2009). They are bounded by certain rules and regulations that form the behaviour and attitude of the workforce of Royal Mail. This has enabled them a competitive edge over their rivals and as a consequence Royal Mail holds 90% market share of the UK postal service (Royal Mail Group, 2011). Everyday Royal Mail delivers approximately 79 million items to 27 million addresses. The fast moving service delivery system has been the culture and formed the attitude and behaviour of Royal Mail employees (Royal Mail Group, 2011). Private Sector Management Structure Structuring the management is important as the daily operations and activities depend upon the structure. Organisations cannot be merely based upon the assumptions and it requires a proper structure. The structuring is followed by the concepts provided by different philosophers. Frederick Winslow Taylor had provided principles of scientific management and based upon them in general the management structuring is done. One of the principle objectives of management is to safeguard maximum prosperity for the employer with employees (Marxists, n.d.). This is found in Tesco, one of the leading retailers of the UK. The retailer has been successful in establishing its business all over the UK market through proper integration of the management. Over the years it has become a global player in the retail industry. After the recession in the year 1990, Tesco under the new strategic leadership, has shown greater potential and has been successful in leading the UK retail market (Cengage Learning, 2004). Culture It has been found in various studies by different researchers that the performance and the culture are related to each other. The development of a strong positive culture may enhance the performance level and thus helps to attain success (Ogbonna & Harris, 2000). Krefting and Frost (1985) have commented that the organisational culture can develop a competitive advantage. They have recommended the ways in which the organisational culture may develop competitive advantage. This is through defining the boundaries of the organisation in a proper structural way that facilitates individual interaction and through restrictive scope of information processing to appropriate levels (Ogbonna & Harris, 2000). AJ & RJ Limited, a British based cheese making firm in alliance with Yellow Culture has developed the healthy consumption of dairy products. AJ & RJ Limited is the leading producers of cheese in the UK market and their sales have been performing better due to the cultural development in the market (UK Trade & Investment, n.d.). Managing the Behaviour & Attitude of the Business Workforce The behaviour and attitude of the group or workforce is closely related to the satisfaction level of individuals. Individuals are different in their behaviours and attitudes, and are motivated by different means. To bring them together as group, every individual’s needs and motivational requirements should be known. This is possible through Abraham Maslow’s theory of needs and F. Herzberg theory of motivation. Maslow has provided the pyramid of needs and Herzberg’s motivational theory can be implied with the aim to achieve group attitude and behaviour (Boeree, 2006). Diversified work group and management have more problems with management of behaviour and attitude of the workforce. Maslow has provided the five needs stage: physiological, safety, belonging, esteem and self actualisation needs. Every individual is at different stage and they need to be motivated to perform better along with their satisfaction. Herzberg created a two-dimensional theory of factors affecting people's attitudes about work. He stated such factors as “company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators” (Joseph, 1999). In this context, Barclays PLC has managed the diversified workforce properly and has been successful in establishing it as a successful financial institute in the UK. The bank retains all its clients, trainers, recruiters in diversity that comprise of different age group. The bank has aimed to retain knowledge and experience in managing the group behaviour and attitude in attracting and serving more consumers and for capturing a larger share of the market (Hutchings, 2006). Corporate Social Responsibility & Business Ethics In the business context, businesses are expected to have excellent ethical values and act socially responsible. Even the corporate social responsibility (CSR) is known to be an example of good quality ethical behaviour (John Pappajohn Entrepreneurial Center, n.d.). Public Sector Royal Mail has set of standards to maintain the business ethics through the regulations. The standards include the areas of sincerity, commercial confidentiality, proper utilisation of the business property, valuing consumers and suppliers, protection of the personal information and standards need to be communicated and observed on day-to-day basis by all the employees. The process of standards being followed and also obeying them develops the ethical practice of Royal Mail. The standards help in developing positive employee relationship and industrial relationship environment (CWU, n.d.). Royal Mail CSR is focused upon environmental and health safety issues. A Code of Business Standards of Royal Mail includes a CSR policy. The CSR policy enables “the company to ‘do the right thing in all spheres and business activities,’ and policies in the areas of environment, health, safety and diversity” (Maplecroft, 2004). Royal Mail has been addressing wide range of occupational health issues to develop a health conscious environment. They have developed various new initiatives that include a 24 hour helpline service for psychological support. The health promotional events are conducted by them to spread the awareness of health related factors that provide counselling and suggestion for living a healthier live. They have launched the program of ‘smoking cessation day’ with the objective of educating the people about the adverse effect of tobacco and prevent them from smoking (Maplecroft, 2004). Royal Mail has developed the CSR program for saving the environment through the reduction in consumption of energy. Even this is applied in their own organisation. They have been able to save a 2.4% reduction in the energy consumption from their own premises (Maplecroft, 2004). Royal Mail’s social responsibility is formed on the basis of three elements. These are education program in schools, donation to charities and employee volunteering program. Currently the organisation supports the employee volunteering program by providing small financial contribution that is nearly £500 for minimum of ten volunteers forming a group. But they commit to enlarge and develop the employee volunteering program at a national level program of business-led employee volunteering program (Maplecroft, 2004). Royal Mail has diverse work group. It employs various ethnic representative of the country. Even they focus on the women employment by encouraging them to work with Royal Mail (Maplecroft, 2004). Royal Mail also focuses upon the disability through their Disability Action Centre that is responsible for raising the awareness of disabilities issues and provides information and advice to employees. There is also the disability helpline by Royal Mail to provide assistance to them. The Royal Mail Group has received the European best CSR Program award at the ‘Strategic Risk European Risk Management Awards 2004’ (Maplecroft, 2004). Private Sector Tesco plc’s CSR (IBSCDC, 2006). Tesco’s CSR efforts are towards its daily activities of operations that focus upon recycling, application of using organic products, saving water and energy, community initiative and charity. Tesco’s CSR strategy is towards earning its consumers confidence and trust through responsible acting and working in the direction of minimising the negative impacts. The approach of Tesco’s CSR is through their integrated business approach where social performance and environment is managed along with financial performance (IBSCDC, 2006). Tesco attempts in reducing the CO2 emission. They encourage staffs to focus on green travel plan. They have focused on green energy global diesel with their own petrol stations. Nearly they hold 25% of green energy. They use solar power and suitable wind management systems in all of its stores to reduce the CO2 emission (Corporate Watch, n.d.). Barclays Plc developed and adopted the ‘Equator Principles’ to supervise environmental and social concerns. The organisation has continued HIV/ AIDS support programme for the employees and their families in Africa (BARCLAYS, 2003). Barclays Plc has funded in different projects of CSR. The National Autistic Society project is funded for the charity’s Autism helpline for providing information on asperger and autism syndrome. The funding was approximately £1 million (BARCLAYS, 2003). Barclays New Futures scheme operates with ‘Community Service Volunteers’ that encourages citizenship in schools all over the UK. There are hundreds of schools and thousands of students taking part in the program. The organisation has provided more than £1 million per annum for the 8th successive years of the scheme (BARCLAYS, 2003). AJ & RJ Limited in association with Yellow Culture has focused upon the healthy consumption habits especially in the products they deal. The CSR of the company is to create a healthy environment of health consumptions of cheese that are superior in quality. They generate awareness through educating the consumers to live a healthy life. Conclusion In public or private sector, for the success of business establishment and performance, the business usually require the implementation of an appropriate management structure and culture together with effective methods of managing the behaviour and attitude of the business workforce. Along with these, the business needs to focus upon the effective application of business ethical code of practice and contribute towards the corporate social responsibility. Generally, it is the government initiative and differential beneficial plan that encourage the private sectors to contribute towards the society and practice the business ethical code. And for public sectors, they are regulated by laws and acts initiated by the government. References Boeree, C. G., 2006. Personality Theories. Abraham Maslow. [Online] Available at: http://webspace.ship.edu/cgboer/maslow.html [Accessed January 01, 2011]. BARCLAYS, 2003. Corporate Social Responsibility Report 2003. Report. 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