Business Ethics General Instructions:

Code: 663A

The Student should submit this assignment in the handwritten form (not in the typed format) The Student should submit this assignment within the time specified by the exam dept The student should only use the Rule sheet papers for answering the questions. The student should attach this assignment paper with the answered papers. Failure to comply with the above Four instructions would lead to re ection of assignment. Specific Instructions: There are four !uestions in this assignment. The student should answer all the four questions. "ar#s allotted $%% &ach !uestion carries equal mar#s ('( mar#s) unless specified explicitly. Question No 1: Read the case carefully and answer the questions: )magine a football field covered in garbage. )t*s a foot deep+ so when you wal# around in it , slogging through office paper+ food pulp+ old -ic pens , it reaches up past your an#les. .ow imagine that someone has cleaned that field. The waste is the same depth+ but now it only reaches from the first to the seventh yard line+ and /01 of the field is pristine and green again. That*s a ma or cleanup. 2nd that*s what Fet3er 4ineyards+ in 5opland+ 6alifornia (6alif)+ has accomplished with its own waste since $//$. Fet3er has done it during a time when sales more than doubled. .ot being one to rest on its laurels+ the Fet3er winery aims to go further , to 3ero waste by the year '%%/. 78e are already recogni3ed as a 3ero waste company by the state of 6alifornia+9 said :atric# 5ealy+ environmental coordinator at Fet3er. 8hat they do with all that non,waste is instructive. They recycle everything from cardboard to antifree3e; compost organic waste and turn it into fertili3er; and wor# to #eep materials out of the waste stream , by restoring oa# barrels rather than discarding them+ for example. There*s almost no aspect of the winery that escapes this #ind of detailed environmental scrutiny. Ta#e the administration building+ for example. This$%+%%%,square,foot facility+ completed in $//<+ is one of the world*s first large,scale examples of rammed,earth (underground) construction. )t was built almost entirely with recycled wood. 6arpets are natural fiber. =ights

are on motion sensors+ so they go off as you leave the room. 5eat comes from waste heat off chillers used in wine ma#ing. 2nd instead of air conditioning+ the building uses night,air cooling. 76omputeri3ed and motori3ed windows open at night to admit cool air+9 5ealy explained. &ven landscaping is environmentally conscious. )t*s 73eroscape+ 7he said+ because the drought, resistant plants ta#e little water. 2nd then+ of course+ there*s the photovoltaic array on the roof+ which got up and running in >une. 7)t*s the largest photovoltaic display in northern 6alifornia not owned by a utility company+9 5ealy said. )t supplies three,quarters of the building*s energy needs. 2ll other power used by the winery is from renewable sources+ than#s to a unique utility contract signed in "ay. "ost telling+ perhaps+ is the vineyard*s approach to grape growing itself? an organic approach that relies on natural pest control and soil management. Techniques include the use of 7cover crops9 grown between the vines+ li#e crimson clover and purple vetch+ which attract beneficial insects. 7They #eep the bad guys in chec#+ so to spea#+9 said :resident :aul @olan. 2nother technique is 7canopy management+9 in which the leaf and cane canopy is opened to bring in sunlight+ to reduce the chance of mold and rot+ and eliminate the need for fungicides. The process 7brings us closer to the vine+9 @olan said. 78e don*t have the quic# fixes of chemicals+ so we*re in the vineyards more. 8e find that our farmers are better farmers as a result.9 2nd the grapes simply taste better. That*s where the financial payoff lies. There*s some demand for specially labeled 7organic9 wine+ which Fet3er meets with an organic label+ -onterra. -utit doesn*t label most of its wine organic. Arganic growing 7is part of who we are+9 @olan said. 7)t*s not something the consumer is aware of.92bout '%1 to 0%1 of grapes used now are organic+ but Fet3er plans to reach $%%1 by '%$%. Toward that end+ it formed 76lub -onterra9 to help share ideas on sustainable farming among its outside farmers+ who provide more than /%1 of the grapes. @oes all of this environmental focus cost moreB Ces and no. Arganic methods are a little more expensive to begin with+ but not in the long run. The solar array really won*t pay for itself+ but it was built with the help of grants. Renewable power is slightly more expensive+ but Fet3er is offsetting that by pursuing efficiencies in usage. 2nd recycling is decidedly less expensive than land filling. )t all does ma#e economic sense. 7-ut it*s not li#e we*re using it as a competitive edge+9 @olan said. )t simply fits with how the company does business. Fet3er*s vision statement is to enhance the quality of life. 8hat*s remar#able is that Fet3er ta#es this holistic approach as a publicly held company. This D$<% million firm is owned by the D' billion -rown,Forman 6orp.+ based in =ouisville+ Eentuc#y (Ey). 7They*ve been great about it+9 @olan said. Fet3er runs its own show+ as long as the profit is there. 2nd as @olan says+ Fet3er is 7very profitable.9 Aver the last six years+ profits and revenues have grown at a $(1 annual compounded rate.

)t*s a model worth showcasing for a new century , a thoughtful and deep commitment to the environment+ combined with financial excellence. 2s @olan said+ 7it helps other people see it can be done.9 "arian+ a top graduate from =oyola in 5umanities+ has applied to Spin 6olors =td. for a management position. The 6&A was questioned by other panel members after the interview regarding the necessity to hire "arian+ as she is a blac# woman with unpleasant personality. -ut because of her good academics the 6&A wants to appoint her. )n this regard+ discuss the principle of ethical selection. The role of the management involves in balancing the multiple claims of different sta#eholders. Enight Restaurants gives preferential treatment to some of its sta#eholder groups over the other. Therefore the tas# of the management to #eep the relationships among the sta#eholders is not balanced. 8hen these relationships become imbalanced+ the survival of Enight Restaurants is in eopardy. @iscuss why it is important for Enight Restaurants* to maintain good relation with external sta#eholders. Answer the following questions: a) Define environmental ethics and explain the various approaches et!er "ineyards used concerning the moral responsi#ility of environment$ 2ns?, The field of environmental ethics concerns human beings ethical relationship with the natural
environment. While numerous philosophers have written on this topic throughout history, environmental ethics only developed into a specific philosophical discipline in the 1970s. This emergence was no doubt due to the increasing awareness in the 19 0s of the effects that technology, industry, economic e!pansion and population growth were having on the environment.

#)

et!er is recogni!ed as a !ero waste company #y the state of %alifornia$ Analy!e the initiatives adopted #y et!er to #ecome the !ero waste company

2ns?, Fet3er winery aims to go further , to 3ero waste by the year '%%/. 78e are already recogni3ed as a 3ero waste company by the state of 6alifornia+9 said :atric# 5ealy+ environmental coordinator at Fet3er. 8hat they do with all that non,waste is instructive. They recycle everything from cardboard to antifree3e; compost organic waste and turn it into fertili3er; and wor# to #eep materials out of the waste stream , by restoring oa# barrels rather than discarding them+ for example.

&uestion 'o(:

a) )xplain the ethical issues involved in managing finance with an o#*ective of maximi!ing shareholders wealth rather than shareholders interests$ 2ns?, Shareholder wealth maximization is the underlying purpose of all corporate activity.
Shareholder wealth maximization (or simply, "maximization") is a comprehensive, long term financial goal reflecting investor confidence, measured specifically in the face value of a corporation's stock.

Sta#eholders and &thical )ssues A Human Resources Approach The importance of ethics in the corporate decision ma#ing process becomes clearer upon consideration of the sheer number of sta#eholders involved. 6orporations+ most of them offering stoc# in the capital mar#ets+ constitute ninety percent of total business revenues (-loc# F 5irt+ '%%'). This means that the entire 2merican socioeconomic system is affected by the corporate decision ma#ing process. Sta#eholders with an interest in these issues include the 6&A and top management+ middle and lower managers+ public shareholders+ and the employees charged with producing for the firm. -ecause employees are such a large segment of the corporate population+ and are directly+ often adversely+ affected by managersG decisions+ the question of corporate ethics is specifically a human resources (5R) issue. From what has been suggested here+ there are no easy institutional or legal fixes to the problem of unethical behavior in the pursuit of maximi3ation. &thics is about hard choices+ and the decision to forgo a measure of wealth in order to pursue a right course of action may prove anything but easy for a corporate manager. .evertheless+ there seem to be some means available for smoothing the transition to an ethically oriented approach. First of these would be the recognition of human resources as the most valuable asset available to the business. Too often economics reduces wor#ers to Hlabor units+H i.e.+ impersonal Hfactors of production.H

#) +hat are the implications of unethical practices on human resource management, 2ns?, The RBA and ABA eligible member organisations were grouped as follows for analysis of the data:
the goods-producing sector, which includes manufacturing and construction representing a 27. ! response" the ser#ice producing sector, which includes transport, storage and communications, finance and business ser#ices and community, social and personal ser#ices, representing a $ .$! response" and the sales orientated sector which includes retail businesses, the motor trade, repair ser#ices, wholesale trade, commercial agents and allied ser#ices, representing a 2 .%! response. &Readers should note that two cases are missing &representing $.$! to ma'e up ())! of the responses*. They did not answer the +uestion so they could not be classified in terms of business categories.

,umber

of

employees

wor'ing

in

organisations

The groupings compiled for analysis purposes comply with the general ,ew -ealand and .ur#ey organisations employment profile &,ew -ealand statistics, 2))%" /alsh 0 Raffills, 2))7*. .mall includes organisations with fewer than () employees and represents a 1(! response. 2edium includes organisations with (( to %) employees and represents a 2$! response. 3arge includes organisations with %( and more employees and represents a $1.1! response. &Readers should note that one case is missing &representing (.4! to ma'e up ())! of the responses.* 5t could not be classified in terms of the number of employers. 6osition held in organisations

2anagers completing the sur#ey are as follows: 7hief 89ecuti#e :fficers and ;irectors were $ .$!. A total of ( .7! were in general manager and senior manager positions and 2$! were in manager and super#isor positions. :nly $.$! completed the other category, the ma<ority of which designated their position as owner.

Q3-Suggest the basic steps to introduce ethics as a part of HR ractice in start ! up "enture or re-enforce the sa#e in a current organi$ation%

ns!" #he first Step of a company has to take in laying out a code of ethics is deciding what
values are important to it and what lines it won't cross. $hen %arianne &ennings is consulting with companies implementing a code of ethics, she pro'es a company's leadership to discover their 'oundaries. #he professor at rizona State (niversity's 'usiness school and author ofThe Seven Signs of Ethical Collapse, asks her clients, "$hat are the things you would never do at this company to get a client, to keep a client, to make sure you met your num'ers for the )uarter*' &ust thinking through that sets the framework for the code." +larifying these details can 'e especially helpful as the company grows. " s they grow, they're going to 'e hiring more people that are pro'a'ly dissimilar to their value structure and ,puttingthose rules and those procedures in place will help your company grow in the way you want it to grow," says &ohn .raedrich, a professor of 'usiness ethics at Southern /llinois (niversity. 0aving 01 educate incoming 2mployees a'out the code of ethics and the company's culture is especially important in the age of increasingly rapid 3o' turnover. +onnor says that sometimes employees "are hired and fired at such a pace that people don't know what the corporate culture is."

Q&-'ue to the rise in the i(( fated instances of cri#e at )or* the safet+ of e#p(o+ees especia((+ fe#a(es at )or*p(ace has beco#e a heated issue a#ong organi$ations toda+ % ,rite do)n )hat organi$ations are doing to fight this #enace-

2ns?, Factors to take into account include:

women and men are concentrated in certain jobs, and therefore face hazards particular to those jobs women and men are physically different, including in regard to reproduction women and men have different responsibilities in the home. Working women may have two jobs, at work and in the home. It is therefore important to recognise these differences and take a 'gender sensitive' approach to health and safety at work. !"#$%& has produced some publications specifically on women. We also 'mainstream' gender into other reports, including reports on noise, ($)s and young workers. #ther reports and web features cover occupational groups which have a predominantly female workforce such as cleaners, healthcare workers and the education sector. *he resources in +ractical $olutions are intended to help users take a gender"sensitive approach to identifying and preventing risks, contribute to the debate about how a gender sensitive approach can best be taken and also contribute to the sharing of research information on gender and occupational safety.