Trident University International
ETH 501 – Business Ethics
Dr. Susan Gun
In the fourth module case we will discuss ethical business behavior. Inside of this case we will examine two different companies in Anglo-American and Primark and how they are applying ethical business behavior. Next we will discuss the cost and benefits, if any is gained by an organization. Lastly we will determine the relationship of external stakeholder relationship and how this relationship helps Anglo-American and Primark have a positive relationship with its stockholders. Ethical business behavior
Ethical business behavior is defined by business dictionary.com as acting in ways consistent with what society and individuals typically think are good values (Business Dictionary.com). Ethical behavior tends to be good for business and involves demonstrating respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights (Business Dictionary.com). This means that others will agree with your value system. It also demonstrates that the businesses must have moral principles that govern them into how they are conducting business. This is evident in some businesses by just looking at their mission statement. I will give the example of Goodwill’s mission statement in which it states “Goodwill works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity (Goodwill Industries International, Inc).” This sounds like the exact thing that Goodwill provides for all of its customers. Applications in business ethics are the following: providing the safest work environment possible for your employees, paying a fair competitive wage for the work that is being completed and making sure that all labor laws are being followed for the respective region. Anglo-American Ethical Practice
Anglo-American is the first company that we are examining. Anglo-American is a UK based mining company. Products that they are known for producing are base metals, ferrous metals, industrial materials, coal and platinum (The Times 100.co.uk, 2013). While the primary goal of any business is to have profits each and every business must understand the impact they have on society. This is evident the cost of being a company that operates ethical can be seen here. Anglo-American verifies with all “Though providing strong returns for our shareholders remains our prime objective, we do not believe that these can or should be achieved at the expense of social, environmental and moral considerations (The Times 100.co.uk, 2013).”
Anglo-American has three initiatives: Extra Industries Transparency Initiative (EITI), The United Nations Global Compact and The Global Reporting Initiative (GRI) (The Times 100.co.uk, 2013). The EITI states that companies publish what they pay for raw materials (The Times 100.co.uk, 2013). United Nations Global Concept consists of core principles covering human rights, labor rights, environmental good practice and anti-corruptions (The Times 100.co.uk, 2013) . While Global Reporting Initiative is used to produce sustainability reports through activities (The Times 100.co.uk, 2013).
The cost to Anglo American is significant in the outreach it conducts. All socially responsible organizations will have to incur some financial cost operating as an ethical business. Not only is it running a very responsible business but the programs are like very costly like in the example of Anglo American HIV/Aids knowledge program. HIV/AIDS is widespread in South Africa. Education is limited to South Americans. Anglo American has the largest workplace employer education, also voluntary testing and treatment program in the world (The Times 100.co.uk, 2013). Research shows that over the five years that it has been studied deaths decreased and absentee rates also decreased by having a healthier...
Cited: Anglo American Corporation. (n.d.). Anglo American - Anglo American completes acquisition of De Beers. Retrieved January 7, 2013, from Anglo American Press Releases: http://www.angloamerican.com/media/releases/2012pr/2012-08-16
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