Ethics at Innocent Drinks - Research Paper Example

Innocent Drinks was founded in 1998 in London, United Kingdom. The company manufactures juice, smoothies, and veg pots. As part of its vision, the company seeks to use natural and healthy ingredients in a range of products and promote the core values of healthful eating and sustainability. Its product range has expanded into other healthy eating areas, including fruit juices, veg pots, and squeezy fruit tubes for children (Innocent Drinks 2015). The core values of the company have also grown to accommodate its expansion.

Not only does Innocent now encourage healthy eating and lifestyle, but they also utilize the popularity and leverage of their brand to support sustainable projects in the undeveloped world. This forms part of its ethical practice. Theoretically, ethics is related to what is “good” or “right.” Some scholars of ethics have, as a tradition, considered companies as being essentially moral actors, assuming that moral reasons for their codes of ethics are bound to be effective, while failing to question how they are implemented (Gilman 2005).

Such a perspective, however, is challenged by the reality on the ground where organizations are involved in unethical practices. Indeed, during the last decade, unethical behavior has been an issue of concern at Innocent Drinks with respect to how the company engages in unethical practices as well as those who the practices negatively impact. The company has been faced with varied controversial issues. Among them include health claims and product recalls. For instance, the company has often promoted its smoothies as a healthy option.

Still, a 250-millimeter bottle of the company’s smoothie has been found to contain 34.3 grams of sugar and 171 calories, which is scientifically proven to be an unhealthy diet option, as the level of calories and sugar can lead to obesity and diabetes (Dowell 2008). Additionally, in October 2007, the Advertising Standards Authority warned the company for exaggerating the health benefits of its "superfoods" smoothies, as the company’s claims were not supported by medical science (Choueke 2007). 

In another environmental report of 2008, the company was accused of having false claims as it stated that the product were transported strictly by rail or boat in order to minimise greenhouse gas emissions yet they were in actual fact transported over hundreds of miles across the United Kingdom by road. Hence, there is a reason to question the standards of ethical behaviour at Innocent Foods, which also forms the background of this report. 2.0 Hypothesis, Aim & Objectives 2.1 Hypothesis The research hypothesis is that “since individual employees have different understanding of the business ethics, ethics at Innocent Drinks depends on individual employee’s own perceptions and situations.

Hence, it is unlikely for the company to act ethically.” 2.2 Aim of the study The report seeks to investigate the level of business ethics at Innocent Foods. 2.3 Objectives To establish the understanding of business ethics at Innocent Drinks To determine whether Innocent Drinks reconciles business and ethics To examine how ethical dilemma is handled at Innocent Drinks To determine whether decision-making is determined by self-interest at Innocent Drinks 3.0 Literature Review 3.1 Ethics Ethical issues in the business environment, according to Gilman (2005), are among the most challenging issues that confront the corporate community in the modern-day business environment.

As showed in a study by Dietz and Gillespe (2010), the development of codes of ethics has increasingly become popular among today’s businesses. In fact, it appears acceptable that companies should act morally in their day-to-day operations. As Idris (2011) states, the role of ethics in the business environment has become crucial as the economy becomes more globalised, competitive, and the technology more complex. What this shows is that business and the society has become more interlinked. In Chandler’s (2009) view, the relationship between morality and business is that business, like other social activities, assumes a background of morality.

Morality is crucial in both the business environment and the society. 3.2 What Is Business Ethics? A review of literature shows existence of ambiguity regarding the meaning of business ethics. According to Lewis (1985, cited in Hiironen 2004), the term business ethics has more than 300 varied definition. The Oxford Dictionary of Economics defined business ethics as “the study of what standards businesses should observe in their dealings over and above the compliance with the letter of law.

” This definition assumes that merely obedience to the law is not sufficient order for one to behave ethical. According to Chryssides and Kaler (1993, cited in Hiironen 2004) business ethics consists of a group of principles that prescribe a behaviour code, which in turn explains what should be regarded as “good and right or bad and wrong.” The definition assumes that there is no real consensus on ethical principles in the present pluralistic age where values keep shifting and social ethics keeping eroding, hence a need for a more dynamic definition of business ethics.

From this, it could be reasoned that definition of business depends significantly on how the subject of business ethics is approached. 3.3 Approaches to Business Ethics A review of past literature shows that business ethics has three key approaches: (a) the prescriptive approach, (b) the relativist/ descriptive approach and (c) and an approach of moral pluralism (Hiironen 2004). 3.3.1 Prescriptive Approach This approach, as Hiironen (2004) explains, is rooted in the concept that universally acceptable standards are probable in business ethics.

Put differently, there is an eternal moral principle that can be accessed cognitively by each one conducting a business, their social and cultural background notwithstanding. Accordingly, people’s the behaviours can be judged based on how they conform to these standards. 3.3.2 Relativistic/ Descriptive Approach This approach relies on the concept that the manners in which individuals tend to reason in regards to ethical issues, and therefore individually create ethical principles that can be applied to human behaviour.