Business Law and Ethics

Upper management asks you for advice on how to improve the food safety and quality control situation at Delectables. What would you advise? In business, ethics is taken in three important contexts. First, ethics is concerned with not breaking work-related regulations and laws, in which case, would be interpreted as criminal. Second, is to avoid any activities or rather actions that would result into the filing of law suits against a business organization.Advertising We will write a custom case study sample on Business Law and Ethics specifically for you for only $16.05 $11/page Learn More Lastly, ethics requires that employees and the management of business organizations act in a way that promotes the image of the business organization and not otherwise (Fieser). Therefore, lack of business ethics in a business organization or company can result to severe consequences for the company or business organization in question. It is the lack of ethics that is the root cause of the tribulations of Georgia’s Delectable food products manufacturing company. Both the senior management and the casual employees at the company act with complete disregard to the ethical requirements in doing business. What the human resources at Delectables need is ethical appraisal and not laying off as many would suggest. The employees need to be trained on ethical and legal issues of doing business (Fieser). The Kantian theory of ethics would be a good point to begin in order to bring change to the state of affairs at the Delectables food manufacturing company. A new graduate hired by the Delectables Company in Georgia has good prospects to apply his fresh ideas in business ethics to transform, bring change with regard to business approach, and make a difference at the company. To begin carrying out his responsibilities, the newly hired low-level manager will seek to have the answers to several questions. These answers will be instrumental in helping hi m or her to effectively perform his/her responsibilities which include improving the plant’s operations, increasing efficiency and saving costs at Delectables. The new manager will have to determine how he or she will introduce the theory and principles of ethics in business at Delectable. Another important question that must be answered would be how to revolutionize or rather improve the quality control system at Delectables. Improving the quality control system will ensure that their products are safe for consumption with reference to the recent claims of salmonella contamination on Delectables food products.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Another issue would be how to gain competitive advantage against competitors such as Prince’s Fare. Lastly and most importantly, would be to determine what business management approaches to apply in achieving these ma jor objectives. The responsibility of the new manager is surely complex and it would be crucial that he blows the whistle in order to be able to bring system change at Delectables. In justifying his decision to blow the whistle, the normative theories of ethics would be of significant importance. These theories include the Kantian theory of ethics, the Utilitarian theory of ethics and the Contract ethical theory. The problems and challenges facing Delectables stem from unethical and illegal activities and actions of the company’s management and employees. Therefore, these three ethical theories of business ethics together with the underlying principles would provide an insight into what needs to be done at Delectables. Most importantly, the three normative theories of ethics will provide guidelines on what ought to be done in order for the manager to realize his tasks of improving the plant’s operations, increasing efficiency and saving costs at Delectables. It would b e beneficial for the new manager to blow the whistle since by doing so he will be protecting the interest of many. The contaminated food items being distributed by Delectable in addition to the deplorable condition under which the food items are being manufactured pose health thread to the intended consumers. By blowing the whistle therefore, the new manager would be acting in an ethical manner. The Kantian principle of ends, emphasizes that individuals and business organizations such as Delectables need to put into consideration the interests of others in all their actions and decisions. This principle prohibits individuals and business companies from disregarding the interest of others and uses them as a means to achieving their intended financial gains (Normative). The others in this case should also be an end in themselves.Advertising We will write a custom case study sample on Business Law and Ethics specifically for you for only $16.05 $11/page Lear n More Normative ethical theories and principles shape business organizations and individuals to act in an ethical and morally acceptable manner. Normative ethical theories and principles stipulate what individuals and business organizations ought to do. They explain that the actions of individuals and business organization should be moral and ethical (Normative). For instance, employees and the management of business organizations ought to be honest. The principles of the normative ethical theories are important in assessing as well as justifying the decisions, actions and activities of employees and businesses such as those at Delectables. James Fieser in his â€Å"Business Ethics article† posits that business philosophy advocates for morality in business operations by addressing issues that are concerned with what is right and what is wrong with regard to conduct, actions and activities. As such, business philosophies just like the normative theories and principles of bu siness ethics emphasize the importance of morality in keeping a business company and its employees out of trouble. Trouble may arise due to a breach of the regulations and laws formulated to govern business operations and activities. In the case of Delectables, employees and the management acted in an immoral manner by deliberately releasing into the market contaminated food products. The application of the Utilitarian ethical theory business would mean that managers and employees alike act or rather make decisions that result in as much good compared too other available alternatives. With regard to the Delectable case, they have other alternatives in their operations other than the ones they are engaged with. The act of utilitarian encourages decisiveness as one can not serve two masters at the same time. The utilitarian rule is that an act can only be right if it conforms to the laid down rules, laws and regulations (Normative). The harm principle of the utilitarian theory of ethi cs stipulates that the society has a responsibility and is justified coercing individuals and organizations that act in a way that is harmful to the society. The actions of Delectables with reference to the utilitarian principle of harm are harmful to the society. The society in this case is the intended consumers of the contaminated food products both in Georgia and in San Lopez.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Regarding the signing of the quality control form, it would be against the expectations of the ethics in business. Signing the quality control form would mean the manager’s agreement with the rest of the pack to sell harmful food products. The quality control director at Delectable despite poor work environment improvised â€Å"stickers† method to help with quality control at the company. Delectable lacked a proper food safety and quality control system. The improvised system was equally effective as the director was able to identify harmful food products, those that needed further testing and those which were safe. If the new manager signs the quality control form, he would be acknowledging that all the food products manufactured by Delectable were safe for human consumption which was not he case. It would be immoral and unethical to sign the quality control form (Fieser). In order to improve the food safety and quality control at Delectables, the new manager must fir st look into the potential cause of the problem. Poor employee working condition, in addition to the reluctance of the management to institute proper rules on the processes and procedures of food production are the major causes of contamination at the Delectables food company. The world food program emphasizes that food safety deals with the aspects of food products production from production, purchase, transportation, storage, processing, as well as distribution (Normative). Any activity that does not adhere to hygiene standards and the federal laws and regulations that guide the manufacture of food product is likely to jeopardize food safety and quality at any stage during production and distribution. The quality control director at Delectables was realistically effective in his efforts to ensure that the products released into the market for human consumption met the appropriate standards. His efforts were however sabotaged by the Delectables plant supervisor, the foremen and the casual employees who acted without considering the ethical consequences of their actions. The management of Delectable was not interested in following up whatever was going on in the company. The management should have investigated the allegations of contamination to help them with the improvement of the quality control system. What role, if any, should government play in assuring food safety in the food industry in general? Governments and regional authorities are mandated to formulate laws and regulations, as well as standards to guide the manufacture of food items by companies such Delectables. Both the federal government and the Georgian authorities had the responsibility of ensuring that Delectables adhered to laws and regulations governing the manufacture of food items. This would have minimized the chances of food contamination that is a major challenge to the giant food manufacturer. As Fieser posits, enforcing regulations and laws to ensure food security is an important ro le of the government. The authorities should follow all the actors in food manufacturing industries to ensure safety and quality of food products. The US federal government through its agencies and in collaboration with authorities in Georgia, should carry out regular inspections to ensure companies such as Delectable adhere to hygiene standards to prevent any chances of food item contamination during the process of the manufacture. Governments are faced with numerous challenges in dealing with the challenge of food safety and quality. These challenges include lack of public awareness on issues, regulations and laws on food safety and regulation. Lack of updated food products safety and quality laws is another challenge to the governments and its agencies. Inefficient and weak government inspection and supervision on food product manufacturing companies such as Delectables, contributes to the problem of poor quality food products which are not safe for the consumption of the general public (Thompson Ying 13). Regional authorities such as Georgia needs to adopt effective approaches towards dealing with issues affecting food safety and quality especially those that relate to the manufacturing companies such as Delectables. The authorities must demonstrate a greater understanding of the issues that they face and formulate strategies to help them in addressing the challenges. The federal government on its part must build the capacity of its various agencies mandated to ensure the safety and quality of manufactured food products. This would enable the agencies deal effectively with the challenges that hinder their effective operation in dealing with issue that violate the requirements of regulations and laws on food safety and quality (Thompson Ying 13). Despite the numerous challenges that governments face, they can make food manufacturing industries more socially responsible by enforcing more stringent regulations and penalties on companies that violet the requ irements of the regulations. Governments could also offer incentives to food manufacturing companies that demonstrate high standard of ensuring their food products meet safety and quality requirements. However, governments should not let food companies to regulate themselves. This is because some of the food companies may want to save their costs operation and this might jeopardize the quality and safety of their food products (Thompson Ying 13). What role, if any, should government play in assuring food safety in the food industry in general? According to the normative theories of ethics, product dumping due to their low quality is unethical and is not ought to be done. The supervisor in part C was of the opinion that the company dumps its contaminated food products in San Lopez at subsidized prices. What the supervisor should have done in line with the normative theory of ethics is to propose the destruction of the contaminated food products with the red sticker. Selling of these food products to customers is unethical since they are harmful to consumers (Normative). The food products with the yellow stickers also ought not to be damped but taken back for further examination. Kantian principle of ends stipulates that individuals and businesses should act in away that their actions do not use others as means to an end but rather act in away that others are also an end themselves. According to the utilitarian harm principle, this behavior is immoral and the society would be justified in coercing the behavior of such individuals. By dumping the contaminated food products, Delectables would be causing harm to the intended consumers. It is important that the supervisor puts into consideration the interests intended of the customers in San Lopez (Normative). Advise to Delectables The image of a business company is of the greatest importance. Business ethics require employees to act in a way that protects the image of the business company. By offering to sell sub standard food products in San Lopez, Delectables would be harming the image of the company. With regard to the ethics of doing business, this is immoral. With reference to morality in business, both the government officer and the official from the superstore in San Lopez were unjustified to ask for a bribe from Delectables. Both the scenarios are illegal and unethical. It is impossible for a situation to be legal and at the same time unethical. Works Cited Fieser, James. Approaches to Business Ethics. Web. Thompson, Drew, Ying, Hu. Food Safety in China: New Strategies. Web. P. Fellows, B. Axtell, M. Dillon. Quality Assurance for Small-Scale Rural Food Industries. Web. Normative Ethical Principles and Theories: A Brief Overview. Web. This case study on Business Law and Ethics was written and submitted by user Gabriella Becker to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Business Law and Ethics Concept of CSR The main concept of CSR is the relationships of business and the overall society. It is about how companies administer their business process to produce a constructive impact on the general public. There are two aspects of operation to which companies are answerable to; the superiority of administration in terms of individuals and processes, and two, the nature of their impact on their vicinity (Bergmans Cramer, 2003, p. 2).Advertising We will write a custom report sample on Business Law and Ethics specifically for you for only $16.05 $11/page Learn More Stakeholders are increasingly taking an interest in how companies carry out their operations. Most of them look at the poor and superior activities that the company is engaged in. the impact of both their produce is scrutinized in terms of the value it brings to the society. How it natures its employees to further their career and have a personal attachment to their workplace fashions the perceptions of individuals. Analysts use such information to determine the prosperity of the organization and its sustenance levels. CSR involves the continuing behaviour of organizations to conduct their operations in an ethical way, and contribute to financial progress, while improving the worth of life of its personnel and their relatives, and the general society. It is about building competence to promote sustainable living. It integrates cultural differences in the functions and pronouncements of societal issues and equally delivers to the society without any ethnic prejudices. It mostly revolves around operating the business in a publicly responsible way through donating parts of their profits to charity, and by contributing to the development of solid community business. The company thus empowers the society members to create their own wealth in a sustainable manner. This will foster competition, which will overly lead to the creation of more wealth. The process is based on cooperative activities of man in the social order, and as such, it varies depending on the location of the organization (Bergmans Cramer, 2003, p. 4). There will be different values and opinions associated to any given community. Some cultures will deem some actions as socially acceptable and advantageous, while some ethnic behaviour will not. Changes in demographic population may also result in changes on how the corporation gives back to the public. The population may have different priorities and thus will shape the organization’s definition of CSR. The concept may accordingly be distinct as businesses operating in a way that the legal, ethical, commercial expectations that the public has on the company are satisfied in a timely manner. This concept is occasionally hinged on the basis of whether the company does this voluntarily or whether it is coerced (Bergmans Cramer, 2003, p. 2). Companies may integrate societal and ecological concerns in their operations and their i nteractions with the community on a charitable basis, but with a hidden agenda of exploitation. For example, the community may be forced to buy products of an organization because it offers their children scholarships.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The above contributions all narrow down to the point that CSR is about the impact a company has while managing its core principles. Some organizations go beyond managing their own impact to contribute to the implementation of broader neighbourhood aspirations. CSR requires organizations to assume a broader analysis of its errands that not only includes stakeholders, but other constituents as well, counting brokers, workers, clients, regime, green associations and other momentous groups (Bergmans Cramer, 2003, p. 2). CSR is hugely related to business ethics. CSR focuses on the principled, lawful and optional responsibilities of companies while business ethics provides guidelines on the moral conduct of persons and factions in an establishment. Business morals are thus viewed as a division of the broad study of CSR (Barnett, ND). Tesco PLC and CSR Tesco PLC is a leading UK based association which specialises in the food retailing business sector. The company has won rising wide-reaching acknowledgement as one of the most flourishing and highest budding traders in the century (Tesco, 2005). Alongside the recognition, the organization’s corporate social responsibility programs are outstanding in the capacity of its activities, motivation of its objectives and the meticulous nature of monitoring and assessing its initiatives. In Tesco, CSR is not just about avoiding conservationists and other scrutinizing interest groups; rather it focuses its activities in ensuring the satisfaction of its clientele. The company’s executive wants to be assured that other small organizations coexist well in the c ommunity they serve in a reasonable, sincere and accountable manner (MMR, 2007, p. 1). Their activities involve a wide range of issues, including global weather transformations, sustainable use of resources, recycling of products, moral trade, personal healthiness, donations, local sourcing (Tesco, 2005). Their depth of involvement in the above and several other activities are unlimited. Its determination to integrate corporate responsibility in all of its actions is outstanding (MMR, 2007, p. 2). They believe that to achieve thriving future expansion an organization must focus on proficient means of creation with nominal emissions. Tesco encourages and creates awareness to the society on the importance of green consumption. The procurement of new reprocessing equipment and its effort in reducing the quantity of wrapping on its products by 25% confirm their ambition. The company believes that people have to work mutually in communal concerns. Climate change, societal well being acqu iring workers with proper work skills and attitude towards their organization is imperative (Tesco, 2005). The nucleus of trade revolves around how they care for regulars, the populace, each other, and their connections.Advertising We will write a custom report sample on Business Law and Ethics specifically for you for only $16.05 $11/page Learn More These individuals help them define their responsibilities to the communities where their business operates, and creates a tradition and surrounding in which industry strategies bring tangible results. Their philosophy of understanding the value of every little input strengthens their assortment of errands. The CSR of Tesco is to earn the confidence of clients by acting sensibly in the neighbourhoods they serve. The corporation identifies its impact on the populace and thus manoeuvre in a way that feat the benefits they present people. Customers are at the core of everything they do, and by building benevole nce and confidence with them they can earn their continuous faithfulness, which is their chief rationale (Tesco, 2005). The values of the company are reflected in CSR. They discuss how it is indispensable to understand customers, and be vigorous and pioneering for their sake. They ensure that employees have a favourable working environment so that the company can in turn use their strength to convey supreme value for customers. Another value emphasizes on mutual reverence among each other. The company endeavours to sustain themselves through giving more congratulations than disparagement (Tesco, 2005). Knowledge is to be shared, and it is imperative to ask more questions rather than assuming independence of thought. Primarily, it is crucial to take pleasure in work, rejoice accomplishments and become skilled from occurrences. Their CSR strategy is supported by reputable a CSR group which meets on a quarterly basis. Relationship with customers The principal concern is to meet the des ires and expectations of consumers in the 95 stores they serve. The purchaser service staffs are focussed in ensuring the sustenance of a constructive role to customer happiness in Ireland, in order to ensure their continuous loyalty. The company offers value to its customers through providing reasonable prices, merchandise choice, and foodstuff superiority. Customer service and appropriate channels of communication are offered (Tesco, 2005). Its products appeal to a variety of customers through offering wide choices and the development of innovative services and technology which ensure the ease in interaction and purchase. The customer’s expectation of having locally produced foodstuffs is met, subject to aggressive business criteria. They thus have a choice of both domestic and intercontinental products. Staff The organization has employed over 10, 000 people in their warehouses, agencies and circulation centres. It recognizes the expertise and obligation of the staff as th e most vital asset. Drawing and preserving the most efficient staff and making the group gratifying for them define a first-rate employer. There are policies which ensure proper working conditions and endow them with prospects to supplement their profession (MMR, 2007).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The staff is given regular training and offered channels of giving the company feedback on how they perceive their job and their relationship with the executive. They have policies ensuring proper rewarding and providing benefits for proficient employees in a character of partnership. Employees who may have personal commitments are allowed the freedom to fulfil their other obligations. Community Tesco Ireland has a variety of stores in different forms, for example, supermarkets and local stores. The company is a leading employer of the community members and has a reliable society support initiative in order to capitalize on the benefits they present (MMR, 2007). It forms year-long partnership per annum with a neighbourhood based countrywide charity which supports schooling, disabled individuals, and healthcare. This is thus the main focus for fundraising activities in the year. The participating charities have recorded more gains as a result of the increased awareness. Ventures and programmes, which are near their stores are amply supported. Suppliers The group forms sturdy dealings in the supply chain, to ensure growth of both sectors. Tesco understands the importance of contributing to countrywide conferences on matters related to their trade (Tesco, 2005). Whenever possible, the company stocks products from local suppliers of all sizes. Open and transparent associations are maintained in the supply chain. The company is dedicated in honestly cataloguing products so that consumers can make well-versed verdicts when purchasing. There are unvarying and open means of contact which ensure fair and ethical means of effecting production. Environment The company is determined to guard the surroundings by following courses to reduce their impact. Meeting the requirements of the current generation without compromising that of upcoming generations is a main concern (MMR, 2007). This is achieved through conforming with all policies and conventions which relate to the e nvironment. The finest inexpensively available machinery and structures incessantly scrutinize the impact they create. The use of materials and power is minimised while scarce resources are not used in the fabrication. The 3R principle is applied in the organization of merchandise and their wrapping. Environmentally yielding dumping systems for products they use is employed. Still, training packages are given to staff to ensure that they are conversant with environmental issues (Tesco, 2005). The importance of CSR Individuals and business organizations are aware of the importance of CSR. Traditionally, CSR has determined the triumph of several organizations (Botten, 2009, p.17). Through CSR, an organization finds more business opportunities by building the skills of its workforce, improving the community and fostering economic augmentation in the nation state. It empowers a business with the aptitude to anticipate and make pronouncements. Investors usually base their decisions on th e social and environmental performance criteria of organizations. The company is thus viewed from a commerce standpoint rather than as a foundation. Further, the trade shifts from just making monetary proceeds to making sustainable profits (Bergmans Cramer, 2003, p. 2). CSR helps an organization distinguish the different interest groups and stakeholder. It is presently used as a management tool rather than a stylish statement. Their relationship with customers, suppliers and the society is thus easily defined through implementation of such a program. Having a corporate social guiding principle and a responsible attitude towards their stakeholder provides positive results for the organization. Through working with the community, families, and the workforce, the quality of life of every party is improved. When organizations participate in charity activities, the morale of employees is boosted, and their engagement with customers is increased. There are several intangible benefits ass ociated to corporate social responsibility which give the organization the necessary competitive edge. The company’s reputation is one of these benefits which eventually bring in trust, constancy, intelligibility and trustworthiness (Botten, 2009, p.16). When these are developed, the customers are retained: retention of customers means sustainability of the company. Contributions of CSR to corporate strategy (CS) CSR is a necessary component in the corporate strategies of a company. CS is the company’s approach to its general direction in terms of growth and the execution of its various dealings and supply lines (Barth Wolff, 2009). Companies whose returns are going down utilize CSR as a reactive stratagem. This enables them gain poise wherever they function. This is usually after they realise the cost of discharging CSR is cheaper compared to the amounts of profits they are not getting. It is usually seen as an opportunity to build their image. Organizations, which m ay be keen to attracting media interest, employ this strategy in order to get the basic public consideration. Such an image is necessary for business, but it is usually emphasized by analysts that it should be a continuous process in order to ensure prosperity and future success of the business. Other corporate use this strategy in environmental issues, not only to protect the ecology, but to save also on operating costs through the use of efficient methods of production. It also enables them to comply easily to set laws. Relevant authorities who monitor such issues are also less likely to follow up on the activities of institutions with a reputable CSR. Businesses are faced with the challenge of competition in the present world. Identifying social issues which bring about competition are thus part of the agenda of companies (Barth Wolff, 2009). Social concern is thus seen as an opportunity to relate with its consumers in a way that they will retain them and reduce the opposition l evels. Conclusion Critics have argued that taking on ethical and common issues is not cost-effectively feasible (Barth Wolff, 2009). They elucidate that associations ought to revolve around money-making and leave communal tasks to the germane organizations. Assuming such errands places these organizations at a drawback compared to the organizations which do not observe CSR. The corporate world is not well equipped to handle such responsibilities, as there are other organizations whose main objective is showing social responsibility (Bergmans Cramer, 2003, p. 2). However, it is in the interest of such organizations as it has proven to ensure their prosperity and decrease government interference in its activities. List of References Barnett, T. ND, Corporate social responsibility, Encyclopedia for business, 2nd ed. Web. Barth, R. Wolff, F., 2009, corporate social responsibility in Europe: rhetoric and  realities, Edward Elgar publishing, Massachusetts. Bergmans, F. Cramer, J., 2 003, learning about social corporate responsibility: the  Dutch Experience, IOS press, Amsterdam. Botten, N., 2009, enterprise strategy, Butterworth-Heinemann, Massachusetts. MMR, 2007, Lucy Neville-Rolfe: Corporate and Legal Affairs Director, Tesco PLC,  Food industry, BNET. Web. Tesco, 2005, Welcome to our corporate social responsibility review 2005. TESCO. Web. This report on Business Law and Ethics was written and submitted by user Alessandra O. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.