Ethical Business Behavior Essay

For this paper I forget be discussing contrast Ethics and Corporate Social Responsibility (CSR) using Anglo-Ameri passel and Primark case studies as examples. First, I provide discuss what is meant by estimable backing behavior. Second, I ordain discuss how Anglo-Ameri poop and Primark apply ethical motive into their transaction practices. Third, I volition discuss what the be and benefits are to an organization when they be adopt ethically. Finally, I will choose one component from Svennson & Woods model from A pose of Business Ethics, and discuss how it is relevant for Anglo-American.Ethical Business portEthical credit line behavior refers to an organizations actions and policies that are synergetic with doing the right occasion (Sethi, 2003). Similar to the inherent laws of society that man has established that promote specialized behaviors and actions that are deemed appropriate to build combining and likenessships that last, it is similar in corporations. In order to operate ethically, organizations moldiness also establish a clearly defined set of principles and a culture of ethical compliance that builds conceive and confidence with their employees and their customers (Paine, 1994). Ethical business behavior is a combination of set and prescriptive ethics, which drive an organization. Additionally, ethical business behavior is expected by society as a whole. Svennson & Woods write, Society does have expectations of business and of its business leaders (Svennson & Woods, 2008). Anglo-American and Primark are two companies that provide great strategies for practicing fast ethical business behaviors. Although both companies are in different industries, the basics of their message of ethical compliance are similar in nature.Anglo AmericanAnglo American, an international mining caller-out operates throughout the knowledge domain. fit to the attach to, It has extensive trading operations in Africa, where 76% of its employees live . It is also a major employer in atomic number 63 and employs nearly 7,000 people in the UK (Anglo American, 2008). This companyis a major international producer and has an important role in this world economy. With the type of work this company does, and with the countries it operates in it is important for them to conduct their operations in an ethical manner.Anglo American applies bodied social certificate of indebtedness through building communities in which they operate. According to the companys ethical didactics, a great-term business such as ours will completely thrive if it also takes into news report the needs of other stakeholders such as g overnments, employees, suppliers, communities and customers. (Anglo American, 2008)They also are cogitate on the safety of their employees. Operating in Africa can be monstrous at best and it is the responsibility of Anglo American to get wind its employees are works in a safe environment. The company has contri anded to th e Voluntary Principles on security measures and Human Rights, which sets out principles and practices for ensuring that a companys need to ensure the security of its employees and operations in volatile countries does not adversely electrical shock upon the local population (Anglo American, 2008). Last, exactly not least, Anglo American is also consecrated to the environmental issues, combating corruption and promoting revenue transparency.PrimarkFor Primark thither business is to produce graphic symbol clothing items world(a)ly. The company is a plane section of the Associated British Foods (ABF), a modify international food, ingredients and retail group. Primark has almost 200 stores across Ireland, the UK, Spain, Netherlands, Germany, Belgium and Portugal (www.times100.uk.co/Primark). In relation to business ethics, Primark takes a strong position on their belief in their responsibility to be socially responsible and to practice strong ethical business decisions. As a produ cer of clothing with a global set out chain, Primark interacts with many 3rd party vendors from all across the world. The company has embraced the challenges of ensuring that all of its clothing supply sources come from an ethically driven manufacturing company (www.times100.uk.co/Primark). The company publicly stresses its ethical position in the following statement on its website, As an international brand with a global supply chain we have aresponsibility to act ethically. We embrace this responsibility as an opportunity to be a great force for skilful. Primark is commit to providing the best possible value for our customers, but not at the outlay of the people who make our products (www.times100.uk.co/Primark).In addition, Primark takes many steps to ensure that ethical behavior occurs across its vast organization. As a global manufacturing company, Primark has over 600 major suppliers in over 16 countries, employing over 700,000 employees. Primark stresses the importance of humane rights and appropriate employment conditions in all of their supplier locations as part of doing business with them. Primark also has an Ethical Trade Director whose job it is to deal out all global supplier operations and ensure ethical conditions outlive in accordance to Primark standards. The Ethical Trade Director manages other ethics managers who are stationed across the globe to monitor all operations activities.Also, Primark is associated with universe a member of the Ethical Trading Initiative which is a global network of companies, non government organizations, labor unions, and other organizations that focus on better the lives of their workers across the globe (www.times100.uk.co/Primark). Primark bases its founding ethical principles on the International advertise Organizations (ILO) Code, which is an agency in the United Nations that combines representatives from governments, employers, and workers to help physical body the policies and programs for wh ich they operate. Primark has also established its own corporate code of conduct that has been translated into 26 languages and is pulmonary tuberculosisd at all locations to stress the importance of human rights, e eccentric, and ethical behavior in the workforce (www.times100.uk.co/Primark).Costs and Benefits To Operating Ethically any company has costs and benefits associated with doing business. Operating ethically also has its cost and benefits. First, when transaction with costs associated with doing business ethically, its important to note that competition must remain fair in order for social responsibility to develop. Friedman (1962, p. 133) contended that, there is one and only one social responsibility of business to use its resources and engage in activities designed to increase its cyberspace so long as it stays within therules of the game, which is to say, engages in open and free competition, without phantasy or fraud.Benefits of doing ethical business not only b enefits the organization, but the customers, communities, and shareholders. In addition to these benefits, a strong ethical program promotes a strong public send off, which is very important in todays business climate. Murray and Vogel (1997) determined that when consumers were aware of the fact that an enterprise had make a great deal of effort to fulfill its social responsibilities, they were much to a greater extent willing to purchase this enterprises products. Mohr and Webb (2005) asserted that an enterprises responsible behaviors had positive effects on consumers evaluation of this enterprise and their purchase intention and that an enterprises lower level of ethics would importantly reduce this purchasing intention.Another benefit of doing ethical business is that not only it helps the business achieve its objectives of profits and reputation, but also helps manage other departments in the business. A business following ethics will have ethical programs that would identify values and would make sure that organizational behavior is in adherence to those values. This will be very efficacious for different other programs within the business such as quality management, strategic planning and diversity management (McNamara). Quality management places high up importance on certain operating values for example trust among employees, reliability, measurement and feedback (McNamara). If a business has set ethical values the put to work of quality management will be much reliable and the business will be able to offer better quality to the consumers enhancing its image and increasing its profitability. Moreover ethics management techniques may be useable for managing strategic values such as expanding market share (McNamara) and will make strategic decisions with utmost care while considering the broader effects. So ethics in business has a broader effect and is not limited to reputation, profits and growth.International Business with IntegritySvennson & Woods international business with faithfulness model from A Model of Business Ethics applies well to Anglo American due to the nature of mining operations in foreign nations and the environmental issues associated. It is expected that multi nationals corporations act ethically, not only because it is the right thing to do, but also it is within their power to do so. Svennson & Woods (2008) write, Citizens of first world societies expect their corporations to display integrity in their international business dealings. According to Anglo American, one of their goals is to mine in ways that minimize environmental impacts is more expensive than extracting resources regardless of impact (Anglo American, 2008). The Pebble Project in Alaska is a good example of the way that Anglo American takes account of the environment. There was some touch on that the mine could damage fish stocks and wildlife. Therefore, Anglo American consulted widely and through a structured process with local peop le, politicians, businesses and especially indigenous people. Anglo American has made it clear that it will only seek to proceed with the project if it can be done without damage to the local fisheries (Anglo American, 2008).The environment is a major concern for people and governments around the world. Corporations have immense amount of insistence to produce goods to meet demand, but at the same time they have to be conscience about the environment. Countries around the world have laws presidency environmental protection and there are several agencies to protect it. cultureTo conclude, ethical business behavior is a combination of values and normative ethics, which drive an organization. Corporate social responsibility is important not only because it is the right thing to do, it also affects the stakeholders. Anglo American and Primark are examples of how major corporations can meet shareholder expectations, while conducting operations in an ethical manner. The costs and benefi ts associated with doing business ethically are important to take into consideration when reviewing ethics policies however it is better to look at the long term benefits versus the curtly term costs.ReferencesAnglo American. (2008). Business ethics and corporate social responsibility. Retrieved from http//www.thetimes100.co.uk/new-downloads-pop.php?getFile=cHJpbWFyay9wcmltYXJrXzE1X2Z1bGwucGRmFriedman, M. (1962). Capitalism and freedom. (p. 133). Chicago, Il University of Chicago Press. Retrieved November 30, 2011 from http//www.hh.se/download/18.70cf2e49129168da0158000103376/2007+Model-of-Business-Ethics.pdfMcNamara, C. (n.d.). Complete guide to ethics management An ethics toolkit for managers. Retrieved from http//managementhelp.org/businessethics/ethics-guide.htm Primark. (2011). Providing consumers with ethically sourced garments. Retrieved from http//www.thetimes100.co.uk/new-downloads-pop.php?getFile=YW5nbG9fYW1lcmljYW4vYW5nbG9fYW1lcmljYW5fMTNfZnVsbC5wZGYSvensson, S., & Woof, S. (2008). A model of business ethics. diary of Business Ethics, (77), 303-322 inside 10.1007/s10551-007-9351-2. Retrieved November 30, 2011 from http//www.hh.se/download/18.70cf2e49129168da0158000103376/2007%2BModel-of-Business-Ethics.pdf Sethi, S. P. 2003, _Globalization and the Good Corporation A Need for Proactive Co-existence_, Journal of Business Ethics 43, 21-31. Paine, L. S. 1994, Managing for Organizational Integrity_, Harvard Business Review March/April, 106-117. Murray, K. B., & Vogel, C. M. (1997). using a hierarchy of effects approach to gauge the effectiveness of CSR to generate goodwill towards the firm Financial versus non-financial impacts. Journal of Business Research, 38(2), 141160.Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121147.