1431283

LEC A1
SEM D3

Ethics Assignment

Every business must follow ethical standards in order to be responsible to their

employees, the environment, and society. These standards are essential in maintaining a positive
relationship with the general public as they provide an accurate representation of a company.
Companies must be aware of human rights violations and the responsible responses to possible
environmental, social, political, or internal issues and problems. They would be able to address
these issues if they follow the stakeholders theory. Under this theory, the purpose of a business
is to create as much value as possible for stakeholders by keeping the interest of customers,
suppliers, employees, communities, and shareholders aligned with each other. The company must
keep the interests of the stakeholders alive in the long run. An important aspect of the
stakeholder theory is to create as much value as possible for shareholders, and we plan to achieve
this by ensuring that our employees are respected and that we are responsible and held
accountable for our actions on our environmental impact.
We must consider the attitude that we want to develop in our employees. We must ensure
that the morale of our workers is high and that our corporate leaders are behaving in a way that
does not make the employees feel conflicted about the decisions made by those who have more
authority. Employees may be subjected to conforming to what has been decided by the corporate
leaders. It is easier to act in the same way as everyone else and accept the decisions that have
already been made by those who have more power since a primary concern of employees is not
being perceived as a team player. This is a major problem in all companies: if the decisions made
by those with higher authority do not agree with the beliefs of the employees, internal conflicts
will arise. Employees, as stakeholders, will not be able to gain value from the company. To
mitigate this issue, we will hold meetings every month to discuss the decisions made by the
corporate leaders. As well, we will implement a system that will allow for employees to voice
their concerns as it is important for our management team to address the thoughts of our
employees. With these methods, our employees will be able to voice their opinions, both publicly
and privately, and will lead to better relationships between the company and the employees.
A major aspect of stakeholders theory is creating value for the members of the public. A
concern that arises from ethically running a business is the companys responsibility to properly
respond to any environmental, social, political, and internal issues that arise. One main problem
that arises since we are a manufacturing company is the potential for a harmful effect on the

environment. The amount of waste produced can be seen as a threat to stakeholders within the
company as environmental degradation is an issue that is carefully examined by the public.
Because of this, we will follow the corporate social responsibility theory to help support our
positioning with stakeholders theory. The corporate social responsibility theory states that
corporations have broader obligations to the social problems that they may create and focuses on
their responsibility to the government as well as society. Our manufacturing company will follow
strict guidelines to ensure that our effect on the environment is as minimal as possible. Our
responsibility to the environment is an issue that we will take seriously, as the long term
implications of failing to address these issues will be detrimental to stakeholders. We will use
environmentally-conscious methods of producing our goods, such as using scrubbers in our
smokestacks in our manufacturing facility. Our company will send accurate accounts of the
amount of waste produced to the environmental board. We will not attempt to adjust the amount
of waste that we produce as it will mislead stakeholders. Although our impression on
stakeholders may not be as positive, the importance of being responsible and honest about the
effect that our company has on the environment will be in line with stakeholders theory in the
sense that we will not provide false information about our company.
Under stakeholders theory, the purpose of a business is to create as much value as
possible for stakeholders by keeping the interest of customers, suppliers, employees,
communities, and shareholders aligned with each other. With our manufacturing company, we
will strive to give our stakeholders as much value as we can with the resources that we have. Our
employees, who are key stakeholders in our company, must be treated with respect and be
honoured as reasonable and rational people with opinions that may conflict with the ideas of
corporate leaders. We also need to stay truthful and responsible about the environmental impacts
of our company as the long-term implications of failing to address these issues. We will strive to
meet our stakeholders expectations of our company.