Business ethics is considered as the study of policies and practices that are related to the most important factors of the organization. For business organizations, this is most important to follow ethical considerations in policies and operations to maintain a better image in the marketplace. Business ethics study is mainly focused on discrimination, corporate governance, bribery, insider trading, fiduciary responsibilities and corporate social responsibilities (Dierksmeier and Seele, 2018). These factors are mainly considered in business ethics to analyse the practices and policies on ethical criteria. This report is providing a brief of Morgan Sindall Group Public Limited Company. The company was founded in the year 1977 and headquarter of the organization is in London United Kingdom. This report will be providing information related to the ethical considerations that are needed to be considered by the business organization in order to keep their operations ethical and sustainable in the global market. Various ethical considerations that are needed to be considered by the organization from a business and stakeholder perspective will be analysed in the report. Social implications of business ethics also will be considered in the study. The ethical concerns of organizations related to the community in which they are working will be evaluated in the report. This report will provide a brief overview of business ethics for Morgan Sindall Group PLC.
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Ethics in the business operations are considered as practices that are allowing the organization to conduct business operation in appropriate manner. In the traditional business practices, organizations were not concerned about the ethical practices in operations process but in current time this is most important for the business organization to consider some ethical issues that can affect their performance and operations. In construction industry ethical considerations are more crucial and important to follow. So, this is important for the organization to develop ethical practices and policies for operations to improve conditions for people who are connected to the organization. Some of ethical issues that are need to be follow by the business organization are- Harassment & Discrimination, Favouritism in Business, Privacy an Employee Safety & Security. These are main ethical issues for business organization in operations. It is important for the construction sector organization to keep their practices and policies ethical and sustainable. The vision of organization is- "We will be the best and most sustainable business in industry through delivering exceptional customer service".Favouritism is also one of most practiced unethical practice that is performed in business organizations. This is most important for the organization to avoid these practices in order to keep organization free from activities that can affect the work culture of organization. Favouritism is considered as activity that is performed by the senior level management of the company in which unfair preferential treatment to one or more people in organization(Rhodes, 2016). This can affect the team work in organization in organization and it can create negative work environment in company. It also can lead to conflict with in the work palace of company. As per the vision statement of organization all the employees are provided with equal opportunities to maintain proper environment in the work place. Organization is mainly focusing on equality policy to avoid different type of ethical problems with in the operations of organization.
This is one of the most considered ethical issue in business organizations. This is most important for the business organization to keep information of employees, clients and stakeholders private and safe. This is important to avoid various type of issues for the people who are related to the organization.
Employee Safety and Security
This is most important ethical concern of business organization. Safety and security of people in organization is primary concern of company. This is most important for business organization to follow the guidelines that are provided by the government to the organizations to develop safe and secure work place for people. If the work place of organization is not safe then it can affect the operations of company. If safety considerations are not followed by organization like Morgan Sindall PLC then it can put life of people in danger and it also can compromise the working conditions for the employees and labour. In company Health and safety at work etc. 1974 act is effectively covered to provide better safety measures to the labour on the construction site.
There are some values that are considered by Morgan Sindall PLC that is defining the ethical considerations that are used by organization to meet the ethical requirements from different aspects. The values that are considered by the organization are- All the employees are provided with opportunities in order to maintain better work practice in the work place. As per the policy of Morgan Sindall PLC, group and all the employees are encouraged to follow all the legislations that are applicable on the organization(de Bakker, Rasche and Ponte, 2019). All people in organization are treated as per the United Kingdom legislation. In the policy of company various aspects are included in order to keep practices of organization effective and ethical. It is ensured by the organization that all the ethical considerations will be followed in the organization to keep their operations ethical and sustainable.
Impact on Stakeholder
There are different stakeholder an organization have in order to perform business in target market. The impact of ethical practices is crucial for the stakeholder of the organization.
Employees- Employees mostly get benefitted by the practices that are based on ethical considerations. This can help the employees to get better working conditions and it can improve their productivity.
Management- Management of the organization always looking to improve the productivity of the organization. With ethical practice productivity of organization get slightly reduced. This can increase pressure on the organization managers to maintain the productivity of organization in internal operations.
Owner- Main aspect that is considered by the owner is related to the profitability of organization. With ethical practices operations cost of organization is already increased(Islam, 2020). This can force the owner of the organization to force managers and employees of organization to increase the productivity. Increased reputation can help organization to compensate the reduction in the productivity of the organization.
Suppliers- Ethical practices can force the supplier to follow ethical practices for the production of the raw material. This can increase the pressure on suppliers.
Customers- This is highly beneficial for the customer to get services form the organization that is following ethical practices. This can help the customer to get better services from the organization and quality of construction also high. Business operations with ethical considerations are highly beneficial for business organization.
Conflicts Between Stakeholders
Due to ethical considerations some conflicts can occur between different stakeholders. For example, Shareholders of organization are one of main stakeholders of organization. Main objective of the stakeholders is to improve the profitability of organization to improve their own profit. Ethical practices can affect the profitability of the organization and it can develop conflict between the management of the organization and shareholders.
Benefits of Being Ethical
There are different benefits organization to have by following ethical practices in work place and operations. It can help the organization to improve their reputation in market place. This can provide competitive advantage to the organization in target market and these practices also can help the organization to draw new investors. Ethical considerations and practices also can develop better work place culture in the organization. These are main benefits of ethical practice for the business organization.
Cost of Ethical Practices for Organization
In Different ways ethical operations can increase the cost of organization. With ethical practices organization have to consider various factors to being ethical and it can increase the cost of operations. For example, as an ethical practice organization have to pay all the taxes and provide salary to the employees as per their working hours(Dziubaniuk and Nyholm, 2020). This can cost extra money to the organization. This is how ethical business practices can increase the cost of operations.
Implication of Ethical Practices
This is important for the organization to have knowledge regarding impact of ethical practices on the business operations of organization and stakeholders. This is important for the organization to keep business profitable. The impact of ethical practice is mainly positive for the organization but it can affect some aspects of the organization. There are different impact of ethical practices on the business of organization. In different ways ethical practices can help the organization to improve their impact on market place. For example, if the organization is following ethical practices then it will improve their reputation in market place. This also can improve the effectiveness of the organization operations(Alzola, 2017). There are some negative impact of business ethics. To fulfil the requirement of the business ethics this is important for the organization to make some investments. This is important for the organizations to implement some changes in the organizational policies and processes to meet ethical considerations. With business ethics slight reduction in the productivity of the organization can be observed. It also can slow down the organization in the construction process. With no ethical practices, organization can reduce the cost of operations but it can affect the reputation of organization in market place. Reputation of organization also get reduce with lack of ethical consideration in the business organization.
The implication of ethical operations are different on different communities. There are different communities are connected to the organization. Ethical operations have major impact on the communities that are connected to the organization. Implication of ethical operations have impact on different areas of activities of the company. Major activity areas that are connected to the organization are-
Ethics in Finance- This is main area of activity for the business organization. Ethical practices can improve the financial record of the company. This ethical practices also can improve the financial management of the organization. This is how ethical practices are beneficial for organization.
Ethics in Sales in Marketing- Ethical considerations can reduce the complexity for the business organization(Vazquez, 2018). Improved reputation of organization due to ethical practices can help the organization in marketing process.
Operations- This is most affected area of ethical considerations of the business organization. Slightly it can affect the productivity of the operation department but it can help the organization and operation field of company to improve the quality of services that are provided to the clients.
Supply Chain- Ethical considerations are most effective for the supply chain process. These ethical practices can help the organization to develop high level trust with customers and suppliers.
Customer Service- Business Ethics can improve the quality of the services that are delivered to the customers, customers are most benefitted client for the organization.
Ethical Issues in Organization
Main ethical issues for the organization are-
Ethics in Finance
Financial sector is most crucial for the business organization. There are some ethics are need to be followed in the organization that can improve the accounting and finance management process of company. Organizations use to avoid paying taxes by using different loopholes in the finance system. Later this loopholes can cause major fraud in the finance department of the company. Bribery and lobbying also can affect profitability of business organization.
Ethics in HRM
Harassment is considered as illegal behaviour to a person that can cause mental or emotional issue to them. Harassment includes various activities that are negative for the work place culture. For example repeated unwanted contacts without any reasonable purpose. This also includes insulting, threatening, touching or offensive language to a person inappropriately. This type activity can cause various troubles to the work culture of organization. It can reduce the profitability of organization in operations.
Ethics in Production
There are some ethical issues are faced by business organization in operation process. Main ethical issues that are faced by the organization in operations or production process are related to the health and safety of the labour and employees(Trevino and Nelson, 2016). This issue can affect the reputation of organization in target market. This also can affect the motivation of employees in the work place that can reduce their efforts in operations.
Ethics in Intellectual Property
Lack of privacy can affect the safety of people and this information also can be used to harm particular person in company. So this is important to consider information privacy to avoid consequences in the work place. Organization is effectively following data protection act to protect the information of people who are associated to the company from different perspectives. By this process organization is able to protect information of employees.
There are different local, regional and international communities are connected to the construction company. This is important for the organization to consider all these communities that are affected by the practices of company. Mainly corporate social responsibilities are consists of different communities that are need to be considered by the business organization.Here are some communities that are need to consider by the business organization to meet CSR requirement in operations.
Local Residents- This are the most affected due to the construction work. The main issues that are faced by these people are - Noise, vibrations, construction dust, traffic due to construction convoys and danger of falling material or getting injured. These are major impact of construction business to local society.
Organization have to consider various regional communities to keep their operations effective. For example regional government and authorities are need to be considered for the construction projects. In this process organization have to follow all the rules and considerations that are developed by these authorities(Barry, 2016).At these level violation of laws can be considered as ethical issue and it can affect the operation process of organization in target market.
There are some international authorities are need to be considered by the organization to keep their operations responsible. For example United Nations Human Right Council and International labour Organization. These communities are need to be considered by the business organization to keep their operations ethical and sustainable. This communities are developed to protect rights of people on global level.
Role of Government- IN this process main role of the government to implement rules and regulations in operations. Government also regulated the rules and regulation on regional level.
Main ethical concerns that are encountered by the organization are- CSR, Environment, Child Labour, Ecology, Corruption and Fair trade.
CSR- This is most important for the business organization to consider corporate social responsibilities to reduce the impact on various communities that are connected to the organization. This is all about the issues that are caused by organization on local, regional and international organizations.
Environment- This is related to the impact of organization on environment. Pollution and raw material that is used in the organization need to be considered by the organization to keep their operations sustainable.
Child Labour- This is major issue with construction sector organization. This is important for the organization to avoid child labour in place(Cumming, Hou and Lee, 2016). Organizations are not allowed to recruit children as labour in company.
Ecology- Construction organization can affect the eco system majorly. The raw material that is used in organization should be considered by the company in sustainable manner to prevent critical impact on the eco system.
Corruption- Corruption also major issue for the construction company. In this process people from organization use bribe to avoid certain rules that are developed by the government authorities and internal bribing also should be prevented to keep operations ethical.
Fair trade- Fair trades are need to be considered by the organization to keep trades free from error. Issues in trade can affect the operations and reputation of organization in target market.
This report was concluding the importance of ethical considerations in business to improve the performance of organization and provide better environment to the employees in order to improve their operations. Form the report it has been evaluated that ethical practices can help the organization to improve their reputation in market place. Various ethical issues that are need to be considered by the business organization also has been considered in the report to analyse their impact on the performance of organization in target market. The impact of ethical practices has been analysed for different stakeholder of the company. Various benefits of ethical business practices has been analysed in study. The cost of developing ethical practice in organization has been studied in report.The implication of ethical practices also has been evaluated in the study. Implications of the ethical practices has been evaluated in study.The impact of organization practices also has been evaluated for the communities that are targeted by business organization in practice.
The 5 Biggest Ethical Issues Facing Businesses, 2020. [Online]. Available Through.< https://www.floridatechonline.com/blog/business/the-5-biggest-ethical-issues-facing-businesses/ >.
Business Ethics and Stakeholders, 2020. [Online]. Available Through. < https://wheatley.byu.edu/business-ethics-stakeholders/>.
The Role of Social Responsibility in Business Ethics, 2020. [Online]. Available Through.<https://www.universalclass.com/articles/business/the-role-of-social-responsibility-in-business-ethics.htm>.
List of Ethical Issues in Business, 2020. [Online]. Available Through.< https://smallbusiness.chron.com/list-ethical-issues-business-55223.html>.
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