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.

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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:Its 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 managements 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

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organization since managers and employee look at their bosses and learn
what would be acceptable behavior for them.
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 nutritions 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.

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

employees with the proper training of maintaining hygiene environment at
the place.
Operations:
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

environmental
economically

mainstream agriculture.

and

social

viable

concerns,

opportunities

but
for

This
it

will

also

not

offers

growers,

address
innovative

laborers,

many
and

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

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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 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 congestionin the air and onthe ground.

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Campaign for expanded/improved airfield capacity to reducecongestionin

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.
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 CO 2. 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.

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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.
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 companys 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

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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,
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

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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.