Rita Kyaw st115410

MBA CSR & Business Ethnics

Rita Kyaw (st 115410) April 28, 2014

Thematic Area 1- Business Ethnic 2

a) Generally Ethics can be defined as the rules, guidelines, and principles of being right and

wrong conduct. However, Business Ethics is more complex and complicated when

organizations are looking for their benefit like profit. It has a strong influence on the

effectiveness and efficiency of the company. Obviously, many organizations avoid doing

ethically in their Business and use unethical behaviors as a barrier to achieve their goals.

Example

Its good example is Nikie, group B case study, used child labor to achieve more profit by using

lower wages.

The reasons would be their views of the relationships between social responsibility and

organizational goals. Now most of the company gives more focus on corporate social

responsibility and sustainability, even though they focused on solely profit and had ignored the

customers and labors before. Finally, CSR become main corporate strategy in some

organization, eg DHL.

b) Three categories of Moral management are:

Immoral management

Moral Management

Amoral Management

Immoral management: It is simply defined as all decisions, actions, and behavior against the

ethics or rules when managers care only about their organization's profitability and success,

their profit and their egoism. Because of their egoism they see legally and ethically

standards barriers or thesaurus to accomplish what it wants. They mainly focus on

exploitation of opportunities for personal or corporate gain.

Rita Kyaw st115410

Example: The good example would be the case of Wal-Mart, where the owners of the firm

ignored the wellbeing of employees and society and only care to get more interest, more

sale/profit

ii) Amoral Management:

Amoral managers are neither immoral nor moral but they harm environment or society by

doing careless things.These managers lack ethical perception or awareness. Amoral

Management consists of two categories;

a) Intentional Amoral managers: - They do not make decision, action, and behavior

intentionally to harm the business.

b)Unintentional Amoral managers: - In this situation managers are casual or careless about

ethical considerations in business. They forgot the ethical dimension of decision making.

Example: Alcohol, beer, and cigarette industry, they did not expect that their products would

create serious moral issues like alcoholism, drunk driving deaths, cancer, deteriorating

health, and offensive secondary smoke. Besides this, the game industry, they did not

intentionally launched video game, computer game, but it make a lot of children and youth

to waste their time by playing game without studying and case optical problem and spinal

problem.

iii) Moral management:It’s opposite of the immoral management and play in highest

standards of ethical behavior or professional standards of conduct. Moral managers want to

be profitable, within the legal and ethical perceptions with fairness, equity, and justice.

Moral management’s motives, therefore, likely would be termed fair, balanced, or unselfish.

Example: When IBM decided an Open Door policy to provide a mechanism through which

employees might pursue their due process rights, this could be considered moral

management. Similarly, when IBM initiated its Four Principles of Privacy to protect privacy

rights of employees, this was moral management.

C) Institutionalizing the Business Ethics

1. Top Moral Management- it is necessary for all organization to achieve their goal/profit by

ethically. And it would be the top role of the organization since managers and employee

look at their bosses and learn what would be acceptable behavior for them.

Rita Kyaw st115410

1) Implementation of Ethics within Firm: The first stage of managing ethics starts from

integrating the ethical values and principles. These included the writing standard code of

conduct and ethical standards of the firm.

2) Code of Ethics and Communicating the Ethical standards: The code of ethics is detail

outline of ethical principles and once it is developed then it is the responsibility of the top

management to implement and communicate the ethical standards to every employee of

the firm.

3) Managing whistle blowers: After implementing the ethical standards the organizations

uses different patterns to follow whether ethical standards are being followed up by

employees. If anybody violates the ethics organizations would take action against that

employee.

5) Ethical Audits, Risk Assessments and Rewards: In this case Company seeks the

performance of employees and the basis of ethical audit and assessment they give the

reward or punishment to the employees.

Theme Area 2

SD2)

Food Industry

Food is an essential part of our life. Currently food sector is facing sustainable issues and around

the world we are facing many problems due to less availability of food and nutrition’s to the

people.We have to set out the following key principles for a sustainable food chain:

Strategies

a) Food companies must produce high healthy grantee products for consumer.

b) They have to concern biological limits of natural resources (especially soil, water and

biodiversity);

c) Reduce energy consumption, minimizing resource inputs, and using renewable energy

for sustainability.

d) Organization must provide the safe and healthy environment to its employees with the

proper training of maintaining hygiene environment at the place.

Operations:

Rita Kyaw st115410

The usage of water between 20% and50% can be reduced by sing latest technologies in “wet

processing’. Water Management is essential for both this industry reduces the cost and as well it

helps other to use that water for other purposes. Furthermore, reducing the waste, food

transportation, and less usage of energy would help industry to reduce the operational cost.

Outcomes:

1. Living Within Environmental Limits

2. Ensuring a Strong, Healthy and just Society

3. Achieving a Sustainable Economy

2) Agriculture Sector

Agriculture has facing problems due to new technologies, mechanization, increased chemical use,

specialization and government policies that favored maximizing production.

Today we are thinking about sustainable agriculture and garnering support and acceptance within

mainstream agriculture. This will not address many environmental and social concerns, but it also

offers innovative and economically viable opportunities for growers, laborers, consumers,

policymakers and many others in the entire food system.

Strategies and Operations

Water Management: Farmer must try to produce those crops who consume less water as well the

water irrigation system can be used to water the fields.

Energy: Modern agriculture is totlly dependent on non-renewable energy sources, especially

petroleum. The continued use of these energy sources cannot be sustained, yet to shortly abandon

our reliance on them would be economically catastrophic. However, a sudden cutoff in energy

supply would be equally disruptive. In sustainable agricultural systems, there is reduced reliance on

non-renewable energy sources and a substitution of renewable sources or labor to the extent that

is economically feasible.

Air. Many agricultural activities make air pollution by agricultural burning; dust from tillage,

pesticide drift from spraying; and nitrous oxide emissions from the use of nitrogen fertilizer.

Options to improve air quality include incorporating crop residue into the soil, using appropriate

Rita Kyaw st115410

levels of tillage, and planting wind breaks, cover crops or strips of native perennial grasses to

reduce dust.

Soil. Soil erosion continues to be a serious threat to our continued ability to produce adequate

food. Numerous practices have been developed to keep soil in place, which include reducing or

eliminating tillage, managing irrigation to reduce runoff, and keeping the soil covered with plants or

mulch. Enhancement of soil quality is discussed in the next section.

Soil management. A common philosophy among sustainable agriculture practitioners is that a

"healthy" soil is a key component of sustainability; that is, a healthy soil will produce healthy crop

plants that have optimum vigor and are less susceptible to pests. While many crops have key pests

that attack even the healthiest of plants, proper soil, water and nutrient management can help

prevent some pest problems brought on by crop stress or nutrient imbalance. Furthermore, crop

management systems that impair soil quality often result in greater inputs of water, nutrients,

pesticides, and/or energy for tillage to maintain yields

Aviation Industry:

Airlines are “sustainability villains”, who are untaxed and unaffected by any current agreement on

emissions. Current emissions levels are forecast to row in absolute tones and even more so as a

proportion of total emissions. However when talking to airline executives, there is real enthusiasm

to be greener.

Strategies

Fly on routes and at altitudes to achieve minimum emissions.

• Renegotiate en-route fuel reserve regulations.

• Reduce airborne holding.

• Install winglets at the end of wings.

• Redesign hubs/schedules for less congestion—in the air and onthe ground.

• Campaign for expanded/improved airfield capacity to reducecongestion—in the air and on the

ground.

• Plug in to airport power when the plane is landed and parked at gates instead of using

aircraftengines.

• Low drag paint schemes, e.g. chrome, combination or no paint.

• Changing where fuel is purchased.

Rita Kyaw st115410

• Changing purchasing fuel alliances

Operational actions

Single-engine taxiing: less fuel is burned with one engine.

• Shutting down of engines during delays: such as taxi queuingand standing at the jetway.

• Better measurement and reduction of weight: lifting moreweight burns more fuel. Airlines have

always off-loaded sparemeals, etc., but are now more rigorous than ever.

• Redistribution of belly cargo: an unbalanced aircraft needscorrection during flight which burns

more fuel.

• Higher cruising, shorter/steeper approaches: high altitude haslower air resistance so needs less

fuel.

Outcomes: If the above mentioned plans are implemented, the aviation industry may flourish and

produce less emission of CO2. The airlines firms are less profitable and by taking the sustainable

measures this industry can achieve the significant profit.

Sustainable Development -1

a.) A well-known definition of sustainable development was stated by World Commission on

Environment and Development: “Sustainable Development is development which meets

the needs of the present without compromising the ability of future generations to meet

their own needs”.

It can help company and society for both long and short run benefit.

For examples, to sustain the forest, companies should produce some substitute produce like

produce chair and tale that make by steel instead of wood.

b.) Three of the most significant thematic aspects within sustainable development themes are

economic growth, environmental integrity and Social responsiveness.

Firstly, a company must be able to produce goods, maintain manageable levels of government debt

and avoid extreme sectorial imbalances which damage agricultural or industrial production.

Secondly, a company must achieve fairness in distribution of goods and wealth, as well as

opportunity, adequate social services including health and education, gender

Thirdly, a company must take care sustainable resources, avoiding over exploitation of renewable

system/ sink function, and deplete non-renewable only to adequate substitutes – includes

biodiversity, atmospheric stability & eco-systems.

Rita Kyaw st115410

Corporate Social Responsibility

A) Association of CSR and Stakeholder theory:

In CSR organizations become more responsive to environment, social and economic causes

and responsibility to impact the society. Organization starts to consider possible impact of

any activity on stakeholders, understand the main stakeholders and give response to any

problem arises positively. The CSR assimilates interaction with stake holders in similar way

as done in stakeholder theory as process to consider not only economic, environment and

social responsibility but also realizes its responsibility and interaction with stakeholders.

B) What is stakeholder: Anyone who can impact the company’s activities of decision, actions,

policies and practices or can be impacted by the business activities is organization

stakeholder.

Examples:

New chemical industry was establishes near river side and its started production. It started to

spill its wastage in river containing contaminated material and hazardous for nearby

population who use this water for drinking and other purposes. It not only impacted those

who drink water but it also impacted the daily earnings of fishermen as fish started to die in

river and became disappear. It involves number of stakeholders.

It stakeholder will be categorized according to legitimacy, power, urgency and proximity of

their claim. Main direct stakeholder will be regulation authorities as they imposed heavy fine

on industry and asked to reduce pollution and further threatened to ban the business if they

keep doing like this. Other stakeholder will be customers, society, fishermen, environment,

employees and suppliers. Other secondary stakeholder could be media, unions, trade bodies

and other groups.

In the term of Legitimacy all above have claim some of them have narrow like fishermen and

someone has distant claim. In the terms of power regulation authorities, society and

employees are more important. In the terms of urgency fisherman, society, environment

carries more important claim.

Second example: NGO receive project to distribute soft loans from IMF to Small and

medium enterprises for the development of the business. It involves different type of stake

holders. Main potential stakeholder could be the beneficiary, funding agency, different

national and international regulation authorities, economy, NGOs, consultancy firms,

Rita Kyaw st115410

business and society. It can also be categorized in the terms of legitimacy, power and urgency

of claim. All above mentioned are primary stakeholders and secondary stakeholders can be

media, local communities and other projects stakeholders. In the terms of power beneficiary,

funding agency, different national and international regulation authorities and economy are

important. In the terms of urgency beneficiary and funding agency are important and in the

term of legitimacy all these stakeholders have important claim.

It helps the organization to understand and prioritize the main stakeholders and try to

incorporate their demands in their business plan and activities. It will cause the organization

to become more focus on their stake holder requirements. If business ignores them it might

suffer as it has to pay later on penalties or might be suffer with bad image. Ignoring the

stakeholder can cause huge loss like the organization above ignored the fishermen as main

stakeholder and when they file suit it held responsible to pay penalty to them.

After identifying stakeholder organization can formulate its CSR policies and perform actions

in better way. As said above it can assume its responsibility in better way by incorporating

stakeholders in its action. For example industry can understand how it can work to provide

clean water and not to damage the environment and also contribute to the economy of the

country. It makes the CSR more effective and beneficial for all the parties.

C) i) One example is industrial doing its operation in area, which later on become residential,

creates lot of noise through its machinery. Here main stakeholders are people living in nearby

areas and affected with extreme noise. They file the suit against organization to change the

location and later on they won the case to force the industrial unit to shift to other area. It

carries huge loss as they have to pay the fines and going for establishment of new working

conditions also requires substantial investment. Organization should identify in advance its

main stakeholder and should incorporate into their actions their need.

ii) Other example is organization emitting smoke in environment and does not realize its

responsibility to damage the environment and spreading the lung diseases in surrounding

area. Later on they suffered with penalties and damages they have to pay to the community

for the pollution they have caused. Organization should identify in advance its main

stakeholder and should incorporate into their actions their need.

Rita Kyaw st115410