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901 Downloads1 I Published: 07 Nov ,2019
Ethics refers to the branch of philosophy that consists of defending, recommended and systematizing concept of right as well as wrong conduct. In business ethics plays an essential role by guiding them to perform right conduct which are ethically right and provide benefit to its stakeholders. This report is based on Deliveroo, a London based company which take order from its customers online and deliver them with food from the restaurant which they prefer. Main purpose of this report is to identify the ethical issue which company is facing due to denied legal rights of its rider by specifying them as self-employed contractors (Aloisi, 2015).
This report is divided into two part where section one contain an elaboration about ethical issues along with their dimensions and role of business within society. It also describe about different stakeholder of company and impact of issue over them along with examples of impact of good or bad ethical practice over an organisation and recommendations for ethical issues. In addition to this it also elaborates about the ethical theories and their implication over ethical issues of organisation. In section two it contains a description about SAS institution which is a software based company that perform its operations ethically. This part also includes characteristics of ethical leader which support them in managing business with high standard. It further describe about the practices that make an organisation unethical along with practices that make SAS to create organisational value at marketplace.
(A) Description of issues and recommendations to overcome them
Deliveroo Couriers is a one of the most successful online food delivery organisation which take up food from restaurant and deliver it to customer's place. In this, people place order related to food items over the website of this company which is then taken up from the restaurant and transfer it to asked place (Fumagalli and et. al., 2018). But recently employees of Deliveroo has claimed that their rights are denied by the company and they are not treated ethically in term of their working condition (Deliveroo couriers win six-figure payout in employment rights case, 2019). This case has been filed with the help of Independent Worker Union of Great Britain against company for gaining their rights as a worker.
Ethical issues, their dimensions and related ethical questions:-
The case filed by riders of Dileveroo because company is involve in some unethical practices which is harming up the rights of employees. Following are the ethical issues that are involve in Dileveroo case:
Number of factors and ethical questions involved in issue:-
There are number of factors which leads to unethical practice performed by the Deliveroo company which leads to denying of worker's right during their work. Following are the factors behind these ethical issues:
Role of business in society:-
Main role of a business within society is to offer product or services that help in fulfilling the need and demand of customer (Goss, 2015). But apart from this a company is also responsible for performing such actions that contribute toward improving the living standard of people and promote welfare of society. For this an organisation must involve in CSR activities that work toward providing benefit to both internal as well as external stakeholder of company. A company is consider as ethically responsible only when they work toward solving the issues faced by society either by providing fund to needy people or by perform certain actions toward the improvement of condition. On the other side, an organisation is also consider ethically right when they treat its employees fairly by formulating several policies as well as managerial practices in their favour.
Key stakeholders and how they get affected:-
Stakeholder refers to the group of person who own up a share of interest within the company and being affected by objectives, policies and decisions taken by organisation (Bendell, 2017). Stakeholders are of two type i.e. primary ad secondary.
Primary stakeholders:- These are the one who get directly benefited or being affected by the activities performed by other company and their dissatisfaction may lead to heavier loss. Following are the primary stakeholder of Deliveroo and ways in which they get affected by the current issue of company:
Secondary stakeholders:- It refers to the group of stakeholder who do not get engaged in direct economic exchange within business but get affected by the actions taken by a company (Davies, 2016). Following are the secondary stakeholder of Dilveroo and manner in which they get affected by the case of company:
Community:- It includes number of groups which work toward the welfare of society by forming up certain standards or norms. Deliveroo is performing these unethical practices toward the payment of employees which can also encourage other business to perform such practices in order to maintain their profit ratio. This may affect the community groups as their norms will be breached by other business which leads to increase in exploitation of employees and these group will not be able to maintain their goal of providing justice to workers within society.
Media:- These unethical practices of Deliveroo may also affect media as there are number of channel which company uses in order to promote its brand as well as services at market place. So after getting informed by this issue public may loose there trust among the media company which promote Deliveroo. Hence it affect their business, market image as well as profitability of media business.
Examples of impact of right/wrong ethical choice over business
Ethical practices plays an essential role over the growth or success of a company but in order to achieve that it is very essential for a business to make right choice of ethical practices. As the wrong selection of ethics may lead to failure of business or sometimes result in heavier loss to company (Revelli, 2017). Following are the example of positive or negative choice of ethical practice as well as its impact over business:
After performing a research over issues faced by Deliveroo company it has been determined that company must try to involve in ethical practices in order to improve its image in marketplace. These recommendations are explained below:
B) Application of ethical theory and reflection
There are two ethical theories i.e. utilitarian and deontology which guide up people about ways in which a person can choose best action when there is an ethical dilemma related to right or wrong. Both the theories are different in term of their selection of ethical actions which can be better understood using following description:
Utilitarian ethical theory:- As per the view point of Brunon-Ernst, A. (2015) ethical theory which differentiate among right or wrong practice by focusing over the outcome of particular action. According to this theory a action must be perform which benefit larger number of people. In current case of Deliveroo the denying of employee right in term of hour pay and unpaid holiday, employees are getting affected by these practices. But on the other side company is able to recruit more employees by saving cost and this larger workforce providing quick services which benefit customers as well as channel partners like restaurant, food outlets etc. In addition to this investors are also getting benefited in term of gaining high return over investment as company is earning more benefit. So, as according to this ethical theory majority of stakeholders like customer, investors and channel partners will be benefited by these practices and only employees will get affected. Hence, according to this theory majority of people get benefited with this action.
Deontology:- According to Dougherty, T. (2013), theory focuses over a rule that distinguish between right or wrong which work over universal moral law which state that don't lie, don't teach and don't steal. This theory suggest that people must follow this rule and perform their duty which doesn't consider its outcome. In present case of Deliveroo company was required to focus over formulating effective managerial practices for providing its employees favourable working environment which encourage them to work harder toward the accomplishment of organisational goal. Because it is the duty of company that it must provide its employees a better environment to work their riders are performing their duty and working toward the accomplishment of organisational goal. So, as according to this theory Deliveroo fails in implementing these practices as it doesn't consider the universal rule of Don't lie and Don't cheat .
Hence company is ethically wrong in its practices and it must work over improving its policies toward the welfare or benefit of employees.
From the study or implication of these two theories over the case of Deliveroo, I have assumed that both the theories are totally different in term of their principles. As utilitarian theory focuses over weighing the cost as well as benefit from the outcome of particular situation in order to determine the action to be perform which is ethically right. In this theory only that action is consider right which benefited the large number of people and as per this theory the Deliveroo company is right in term of its behaviour toward the employees. But as according to me this Deliveroo company is ethically wrong because it is not paying off properly over the work of its employees even though it benefit other stakeholder.
Apart from this Deontology theory is just opposite of utilitarian theory as according to this people must follow three universal rule i.e. don't lie, don't steal, don't cheat and perform their duty. This theory emphases over the fact that a person must not compromise over its professional code of ethics. According to this theory Deliveroo is wrong in term of its behaviour as well as practices it have toward its employees, because they must get payment for what they work within the organisation.
From the above two theories I believe that deontology ethical theory is best as it suggest Deliveroo to perform ethical actions for its employees that are contributing toward the accomplishment of their goals. In addition to I also suggest that as per this theory company must focuses toward considering all the legal standards in term of employee salary, benefit and payment compensation as it is their duty which is fixed by government. By considering all these employee benefit standards or law Deliveroo will be able to maintain its business with high standard which also leads to organisational goodwill and success at marketplace.
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What make an ethical leader that manage business to high ethical standard
Ethical leadership refers to the set of actions performed by a person by considering ethical beliefs or values and also respect from the dignity of its follower. These practices of ethical leader benefit both organisation as well as employees (Fehr, Yam and Dang, 2015)). Following are the characteristics of an ethical leader:
I currently working as a manager in SAS institute which is a software company and also operates its operations ethically. Being a manger I follow several ethical standards in order to manage business with high ethical standards. I remain fair to all my employees and provide justice to them whenever they are having any sort of issue while they are working. In addition to this I also ensure that employees will get equally opportunities must not be discriminated on the basis of their rationality, gender or age by their colleagues. Apart from this I always present respect toward my employees as it is my personal ethics which doesn't allow me to misbehave or disrespect others at workplace.
Conditions that make an organisation unethical
There are some practices which sometimes either intentionally or unintentionally performed by a company that make it unethical (Davies, 2016). These practices must be avoided as it may affect its brand image at marketplace that may also leads to business loss. Following are the practice that make a company unethical:
These all are the managerial practices which make an organisation unethical and also bring dissatisfaction among employees that have an huge impact over the goodwill of company at marketplace (Freeman, 2016). To achieve high standard practices and success at marketplace, it is very essential for an organisation to work ethically that help in creating value in front of its stakeholder (Ethical Corporate Policies, 2019). SAS institute follows ethical practices and values it create ethically is explained below:
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From the above given report it can be summarised that ethical practices plays an essential role within the growth and success of nay business as these practices affect the image of company in front of stakeholders. In order to perform its operations ethically a business must determine impact of ethical issues over stakeholders so that proper action can be taken in order to improve its practices. A company can also follow ethical theories in order to determine what is ethically right or wrong. But in order to perform operations effective a manager must be posses ethical characteristics such as justice, honesty and respect for others. These practices help them in achieving high standard practices and creating organisational value.
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