Assessment Briefthe Taskyour Assessment Will Take The Form Of A 1500 W ✓ Solved
Assessment Brief The Task Your assessment will take the form of a 1500 word submission consisting of three parts in total. You will be expected to show that you understand the importance of individual and organisational ethical thinking and practice and that you can apply ethical decision making. You will also need to show that you can think critically about the role of business in society. Further, you will need to show that you have understand the way in which theory can underpin how ethical issues are viewed, but also that you understand that theory offers a guide but not necessarily the answer to practice. The assessment also requires you to show that you have reflected on what makes an ethical leader and manager and what that means in the context of organisational culture.
Your assessment into two parts with part 1 being further split into two. Read the requirements below and attempt all three parts. You will submit all three parts together in the same submission. You should look at the following cases of businesses that have attracted attention due to some aspect of practice – each will be outlined in a separate case brief on Moodle. You should choose BOOHOO.
Part . You are required to write a brief report for senior managers at the case of your choosing. This report is written from the perspective of a middle manager tasked to outline the ethical nature of the case. You will need to explore a number of factors including - Why should this be explored as an ethical question? How might the company want to think about the role of business in society?
You will also need to outline who the key stakeholders are and in what way they are affected. You should include research into examples of how ethical choices impact on other companies (e.g where is there research that shows good choices benefit companies and bad choices have a negative impact?). Finally you should conclude with some recommendations for what the company should do This part of your assessment should be written as a report, but should be referenced in the normal academic way using Harvard citations and referencing. 1. For this part you should again use your chosen case study – but this time choose TWO ethical theories and demonstrate that you can apply these to the case to show how your chosen theories lead you to a view on the ethics of the case.
You should choose theories we have explored in class, but if you have chosen to research a different ethical tradition, for example Islamic ethics, you may use that; it would be useful if you confirm with your tutor if you wish to use an idea not fully covered in class. Your choices for cases are: 1. Boohoo: Sweating the pandemic Part 2 Part 2 is NOT related to the case study. This section requires you to discuss what makes an ethical leader and how you would, as an ethical manager, manage your business and/or others to a high ethical standard. You will need to think about personal ethics, about the conditions that bring about unethical organisations and practices, about organisational values and methods of compliance.
This part can be written in a more reflective style. Assessment Case Choice 1 Boohoo: Sweating in the pandemic Background Clothing companies outsourcing production in order to cut costs is nothing new. Looking for the leanest production is good business practice. The fashion industry however is always under something of a spotlight because of the prevalence of production by low paid workers. It is something the industry and many companies have recognised needs addressing.
The Boohoo group has recently had negative press reporting when a report exposed low paid workers toiling in very poor conditions. Again, maybe nothing new, other companies have been exposed for not paying enough attention to their supply chains. This time there were two other factors that propelled the report to the front pages of newspapers. First, the factories were not in Turkey or Bangladesh, but in Leicester. Second, the exposure of poor practices was, in part at least, the result of trying to establish why Leicester was suffering a resurgence of Covi-19 infections.
The report suggested that workers had been ‘forced’ to work when guidelines were telling companies not to have workers on premises, and hat the proximity of people in poor workplaces was an obvious conduit to infections. The reports below give you’re the story, they outline Boohoo’s initial response, plus. Also given is a link to a very up to date report on an independent review by Alison Levitt QC, and a link to a Guardian podcast. By way of contextualising this a link is given to a more wide ranging article from the Wall Street Journal called ‘The High Price of Fast Fashion’ – it is the kind of thing you probably covered in citizenship classes at school. Maybe time to dust of that knowledge and thinking again and, this time, think about how a company that places ethics and responsibility high in its guiding values would want to approach this subject.
There are plenty of other reports online, these are just to give you a start. BBC News (2020) “Leicester lockdown: Boohoo 'putting workers at risk of coronavirus'†Available at Bland, A and Makortoff, K. (2020) ‘Boohoo knew of Leicester factory failings, says report’ The Guardian 25 September 2020 available at The Guardian podcast The Leicester garment factories exposed by Covid-19 available at Thomas, D. (2019) ‘The High Cost of Fast Fashion’ The Wall Street Journal available at Part 1 a) Approx. 600 words b) Approx. 500 words Part 2 Approx. 400 words
Paper for above instructions
Part 1: Ethical Nature of the Boohoo Case
Introduction
The Boohoo Group, a prominent fast-fashion retailer, has garnered scrutiny due to reports highlighting unethical work practices in its supply chain. A detailed report raised alarms about low wages and poor working conditions faced by employees in Leicester's garment factories during the COVID-19 pandemic (Bland & Makortoff, 2020). This report is targeted at senior management to underscore the ethical implications of these practices.
Why Is This An Ethical Question?
The ethical issues surrounding Boohoo predominantly stem from the exploitation of vulnerable workers, including low wages, unsafe working conditions, and forced labor allegations. Ethically, businesses must grapple with the potential harm caused by their operations. The United Nations Guiding Principles on Business and Human Rights (UNGPs) describe a corporate responsibility to respect human rights throughout operations (United Nations, 2011). Ignoring these responsibilities may lead to public outrage, potential legal liabilities, and lasting reputational damage.
The definition of ‘good business’ has evolved to embrace social responsibility and ethical considerations beyond profit maximization. As such, Boohoo's practices challenge the very fabric of ethical business models. A study by Stoll et al. (2019) supports the notion that unethical practices not only harm workers but also lead to customer backlash, impacting a company's bottom line.
Role of Business in Society
Boohoo must adopt a broader, societal perspective on its role within the community. Businesses today are expected to contribute positively to societal or environmental well-being (Lindgreen & Swaen, 2010). Adopting ethical practices can create value not just for shareholders but for all stakeholders, including employees, customers, suppliers, and the communities in which businesses operate. By prioritizing ethical labor practices, Boohoo can reconstruct its brand as a leader in responsible fashion.
Key Stakeholders and Their Impact
1. Workers: The direct victims of Boohoo's practices, facing exploitation and poor working conditions.
2. Consumers: Increasingly value ethical sourcing and may boycott brands deemed irresponsible.
3. Shareholders: Potentially face financial losses due to negative publicity stemming from ethical failures.
4. Local Communities: Poor labor practices can lead to societal unrest and contribute to broader economic challenges in the regions where Boohoo operates.
Research has indicated that companies emphasizing ethical conduct often see increased loyalty among their customer bases. For instance, surveys indicate that nearly 66% of millennials consider a company's social responsibility efforts before making a purchase (Cone Communications, 2017). Such metrics underscore the imperative for Boohoo to realign its business strategies toward ethical compliance.
Impact of Ethical Choices on Other Companies
Past incidents in other corporations have illustrated how ethical lapses can lead to substantial negative impacts. For example, the scandal involving Volkswagen's emissions cheating resulted in billions of dollars in fines, plummeting stock prices, and a tarnished reputation (Hotten, 2015). By contrast, Starbucks’ commitment to ethical sourcing through Fair Trade led to increased customer loyalty and sales growth (Harrison, 2015). These cases reveal that making ethical choices not only uplifts the brand image but also fortifies financial performance.
Recommendations
1. Supply Chain Transparency: Boohoo should implement comprehensive audits of its supply chain to ensure compliance with ethical labor standards.
2. Enhanced Worker Protections: Establishing collective bargaining agreements and sustainable wages to uplift worker conditions.
3. Corporate Social Responsibility (CSR) Initiatives: Initiating and promoting CSR programs that emphasize community welfare, aligning the brand with social responsibility.
4. Training and Development: Investing in employee training to foster an ethical culture within the organization.
5. Stakeholder Engagement: Regularly engage with stakeholders to demonstrate commitment to ethical practices and to gather feedback for continuous improvement.
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Part 1b: Application of Ethical Theories to Boohoo
Introduction
In analyzing Boohoo's ethical dilemmas, two key ethical theories can be applied: Utilitarianism and Deontology.
Utilitarianism
Utilitarianism, championed by philosophers such as Jeremy Bentham, posits that the rightness or wrongness of actions is determined by their consequences, specifically focusing on maximizing overall happiness (Mill, 1863). In the Boohoo case, the immediate outcome of cheap labor in a pandemic context resulted in adverse working conditions that severely diminished worker welfare.
Applying a utilitarian lens, Boohoo’s practices appear directly unethical. While the company benefitted financially, such benefits must be measured against the extensive suffering imposed on workers. A utilitarian approach would argue that shifting to ethical labor practices would result in greater net happiness for all stakeholders. Implementing fair wages and safe working conditions could enhance morale and productivity, yielding better overall outcomes for both the employees and the company’s reputation.
Deontology
Conversely, Immanuel Kant’s deontological ethics asserts that actions must adhere to predefined moral duties regardless of outcomes (Kant, 1785). Under this ethical framework, Boohoo has a moral obligation to treat its workers with dignity and respect. The company’s neglect of its duty to provide a safe work environment and fair compensation constitutes a breach of ethical standards.
Deontological theory emphasizes that ethical behavior is driven by adherence to moral rules. Boohoo's obligations extend beyond profit-making; they include ensuring that every individual in their supply chain is treated justly. Neglecting such responsibilities undermines their ethical integrity.
Conclusion
Through the lens of both utilitarianism and deontology, Boohoo's past practices reveal significant ethical shortcomings. Businesses must shift from prioritizing profits to integrating ethical considerations into their core missions.
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Part 2: Ethical Leadership and Management
Introduction
The overarching characteristics of an ethical leader encompass integrity, transparency, and accountability. As an ethical manager, my objective would be to embed these values into the organizational culture, establishing a framework that supports ethical behavior.
Characteristics of Ethical Leaders
Ethical leaders foster an environment where ethical practices thrive. They are role models, demonstrating commitment to ethical standards, advocating for these values, and making necessary sacrifices to uphold them (Brown & Treviño, 2006). Ethical leaders must also prioritize communication, ensuring that their teams understand the ethical standards and values expected from them.
Managing to High Ethical Standards
To create ethical organizational practices, the following strategies should be implemented:
1. Developing Organizational Values: Establishing clear core values that emphasize ethical behavior and social responsibility.
2. Education and Training: Regular training programs designed to educate employees on ethical dilemmas and how to navigate them.
3. Open Communication Channels: Implementing systems that allow for feedback and reporting unethical behavior without fear of reprisal.
4. Accountability Mechanisms: Enforcing consequences for unethical behavior while rewarding adherence to ethical standards.
Reflection
Personal values play a crucial role in influencing organizational culture. Upholding personal ethics contributes significantly to fostering an ethical corporate environment. Understanding the societal conditions that propagate unethical behaviors – often driven by profit maximization, competitive pressure, and poor leadership – allows for preventative measures to be put in place.
Conclusion
An ethical manager champions ethical principles and prioritizes integrity in decision-making. Beyond compliance, this requires ongoing commitment and reflection. The Boohoo case is a reminder that ethical leadership is not merely a theory but a vital precondition for sustainable business success.
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References
1. Bland, A., & Makortoff, K. (2020). Boohoo knew of Leicester factory failings, says report. The Guardian.
2. Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595-616.
3. Cone Communications. (2017). 2017 Cone Communications CSR Study.
4. Harrison, A. (2015). How Starbucks changed the coffee industry by going ethical. HuffPost.
5. Hotten, R. (2015). Volkswagen: The scandal explained. BBC News.
6. Kant, I. (1785). Groundwork for the Metaphysics of Morals.
7. Lindgreen, A., & Swaen, V. (2010). Corporate social responsibility. International Journal of Management Reviews, 12(1), 1-7.
8. Mill, J. S. (1863). Utilitarianism.
9. Stoll, J. et al. (2019). Corporate Social Responsibility: A tool for sustainable corporate success. Journal of Business Ethics.
10. United Nations (2011). Guiding Principles on Business and Human Rights.
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This report outlines Boohoo's ethical concerns and situates them within relevant ethical theories while also prescribing actionable recommendations for ethical leadership in the managerial sphere.