Business Ethics Essay Outline

Likewise, Pfizer is a Pharmaceutical firm that have recently been question on their ethical behavior and standards. The organization was unsuccessful on their takeover bid on British company Estranged, due to their recent scandals on animal testing, testing drugs on children and bribery Issues to resolve their Illegal castles (paying 60 million to settle their charges). Each businesses should take Into consideration their ethical standards and corporate social responsibility (CARS) .
Therefore, It Is Inevitable to malting sustainability In order to achieve good public Image and reputation within their stakeholders. This report will examine the ethical behavior including the Corporate Social Responsibility of Pfizer, MASS and Shell stakeholders needs and wants (Pfizer, 2007). The company uses science as a mechanism to create ways of establishing standards on their safety, quality and values which results in ways of expanding and producing medicines.
The vision of the company is to prevent the wellbeing of its stakeholders and prevent illness through consistent research of bringing up treatment and cures. Historically, the firm existed more than 150 years cooperating with government, healthcare worker and coal communities to support and develop and acquire inexpensive and dependable healthcare throughout the globe (Pfizer, 2007). According to the company website, Pfizer main objective is to “strive to set the standard for quality, safety and value in the discovery, development and manufacture of medicines” (Pfizer, 2007).

The company Mission Statement is therefore to become a market leader in terms of their patients, customers, colleagues, investors, business partners, and the communities where they operate. In other words, it is the firms objective to strive, achieve and sustain its leading place as the world’s premier research-based pharmaceutical company. According to Business Organization and Environment study, ethics is known as the moral Judgments about right and wrong that can affect a firms decision making policy (Business organization and environment, 2014).
Behaving in an ethical manner brings significant benefits towards any com[any which includes Pfizer. For example, they may: Increases the attraction of the firm’s products due to added value, thereby boosting sales and profits. Good reputation towards its main stakeholders, I. E. Good public image with their customers. Employees are likely to stay with the business, reduce labor turnover and therefore increasing productivity. Attracting new employees to work for the business, thereby reducing recruitment cost and facilitating to recruit most talented employees.
Avoiding legal institutions charges and huge fines such as Greenback, politicians and environmental groups. Improves external Audit Reporting; hence, attracting investors which keeps the firms share price high, thereby protecting the business from takeover. In a mission objective Pfizer indicated that the company is dedicate to humanity’s quest for anger, healthier, happier lives through innovation in pharmaceutical, consumer, and animal health products (Pfizer, 2007). Yet, reports showed that the firm were not in absolute achieving their mission objective.
To achieve these mission objective set by the company, Pfizer should maintain its ethical standards which includes values of Integrity, Leadership, Innovation, Performance, Teamwork, Customer Focus, Respect for People and Community and meeting the needs and wants of its stakeholders. Stakeholders are those who can affect or is affected by an organizations, business strategy or project. Some theorist suggest that stakeholders have the power to impact an organization or a project in some way. ‘People or small groups with the power to respond to, negotiate with, and change the strategic future of the organization’ (Eden and Ackermann 1998: 117).
They can be internal stakeholders such as employees, managers and shareholders (interested individuals working within the company) or external stakeholders such as government, suppliers, customers, local community, media, pressure groups, banks and association or third party (interested individuals/ group that do not own or work within the company). Likewise Pharmaceutical researchers, Pfizer have internal and external stakeholders. One of the key internal Director/owners of Pfizer. In contrast the key external stakeholder are Environmental Health Intelligence Analyst, Pressure groups and customers (e. . Boots Pharmacy). Pfizer Internal and External stakeholders and their interest Internal Stakeholders External Stakeholders Director/owners:- interested in the profitability and success of the company Research Scientist:- interested in promotion and higher salary, rewarded by Innovating medicine to cure developing diseases Pfizer Managers:- Interested in regressing the long term strategic direction of company success. Trustees (Internal Auditors):- Interested on the meeting the legal obligation and regulation including the ethical rights of the company.
Board committee members:- Interested on the profitability and future progress of the company Shareholders:- interested in the profitability and the performance of share price Local Authority/council (government):- Interested on the profitability of the company to measure the taxable profit. Governments also review whether companies follow the legal framework or else Pfizer will have the consequence of Penalty fees. Environmental Health Intelligence Analyst:- Interested on the companies level of greenhouse gas and environment impact. Customer (Buyers/Supplying Pharmacy, e. G.
Boots Pharmacy):- interested on the quality of the product with the right price. Suppliers:- interested on the credit level of the company and liquidity ratio (gearing ratio) Quality assessors:- Interested in indemnify the impact of the products including the negative side effects Pressure group/Special interest groups:- Interested on the ethical aspect of the nature products e. G. Trade unions Wider public health workforce such as WHO World Health Organizations):- Interested on the public beneficial aspects in designing the best cure and legal framework that Pfizer should follow and abide.
Media:- interested in the scandals and corporate social responsibility of the company. behavior encourages firms to abide the social and environmental responsibility from the corporate sector legislation. Consumers sense of feeling is to naturally assist businesses that behave in an ethical manner. Thus, this can boost the firms public image particularly at a time when the crisis has damaged consumer confidence and the levels of trust in business. Furthermore, Pfizer can promote their product/service as an environmental friendly product in which it has the potential to attract consumers.
Hence, in terms of public image CARS promotes an added value towards the product unique selling point CARS requires engagement with internal and external stakeholders so it enables enterprises to anticipate better and take advantage of fast-changing expectations in society as well as operating conditions. This means it can also act as a driver for the development of new markets and create real opportunities for growth. Furthermore, through CARS; enterprises can significantly contribute to the European Union’s treaty objectives of sustainable development and a highly competitive social market economy.
CARS underpins the objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth, including the 75% employment target. Responsible business conduct is especially important when private sector operators provide public services. Consequently, the implication of business ethics is an essential part towards Pfizer success. In other words, the firms key performance could significantly be affected without adapting planned ethical business. However, behaving in an ethical manner requires a sufficient Corporate Social Responsibility in which the company would object to the associated costs.
In other words, Pfizer would have to consider the costs for environmental programs, employees training scheme an environmental internal auditors fees including efficient waste management programs. In addition, businesses encounter time consuming particularly firms that carry research and development such as Pfizer. Furthermore, Pfizer may consider CARS as a possible negative perception in terms of shareholders interest. Traditionally, firms had a primary focus of maximizing hardheaded value. Thus Pfizer may require to balance the financial expectations of company owners (I. E. Warehouses) with the social and environmental requirements of other stakeholder groups. Several shareholders may be satisfied to invest in companies that operate with high integrity while other shareholders may not approve of high risks and expenses operating under CARS guidelines. A strategic approach to business ethical consideration and CARS is becoming increasingly important to a company’s competitiveness. By implementing an adequate ethical practice, the pharmaceutical firm can benefit in terms of risk management, cost paving, access to capital, customer relationships, human resource management, and innovation capacity.
Due to Ethical Pressure groups such as Greenback and Animal Rights it is imperatively necessary to practice and behave in an ethical manner. Moreover, the digital age facilitated the use of media for stakeholders. Hence, stakeholders are aware of the firms movements. Therefore, ethical pressure groups which includes the media have a significant power towards the business success in terms of fulfilling the mission objectives. Likewise many pharmaceutical companies, animal testing, testing drugs on children and Pfizer takeover as a consequence delay drug development occur according to Star chief executive (Schuman, D. 2014). M, Marks and Spencer Retailer Moral agent is a theory that identifies firms such as Marks and Spence’s as “capable of acting with reference to right and wrong” (Defenestration, 2014). All firms act as moral agent; hence, that can be held responsible for behavior or decisions. When M&S is deemed as moral agent, it does not necessarily mean that they are successfully making moral decisions, it means that they are in a category that enables them to be blamed for their decision making strategies. In other words, if someone is unable to be blamed, then they do not have rights.
Therefore, being a moral agent means that they can be held responsible for their decisions and behaviors, whether they are good or bad. Marks & Spencer (M&S) is one of the Auk’s leading retailers of clothing, foods, homeward and financial services, serving 10 million customers a week in over 300 1-J stores. The Company also trades in 30 countries worldwide, and has a Group turnover in excess poof billion. M vision is to be the standard against which all others are measured’. Although this does not mention CARS directly, it implies that M&S want to provide a CARS standard that others find it difficult to match.
This is reflected in their strong commitment to CARS, there is no need for a definition of terms as they refer to CARS principles by the name of ‘Corporate Social Responsibility. The front page of the CARS Websites has a prominent graphic that states: ‘Everything we do is influenced by the notion of good corporate behavior – we work hard to meet our social, environmental and ethical responsibilities. ‘ (M. , 2012). M have obligation on Moral Agent towards their takeovers and individuals interested or affected by their decision making.
M provided a CARS (Corporate Social responsibility) report that recognizes itself as being more ethically responsible. These characteristics identifies M as a unique moral agent towards their stakeholders. However, M CARS report and website is above average in terms of the amount of categories it covers, the quality of information available and the objectives associated with each category is limited. Hence, It has been subjective issue towards M as an ethical stance. In other words, there is no lid prove since there is limited audit report on M in terms of behaving ‘Ethically.
Ethical companies fully embrace the Carroll pyramid, and their corporate governance and ethical stance permeate the whole organization, this is clearly shown in the vision statement, the website and the CARS report groups states the:- Governance Framework, Code of Ethics, Memorandum and Articles, Share Price Reports, Results & Presentations Press Releases Shareholder Information Financial Calendar Debt Investors ADDERS Reference:- (M&S. , 2014) Empowerment involves giving the power for employees to make strategic decisions.
Usually empowerment is suited with large organization (multinational companies) such as M&S in which it supplies an environment that fosters future growth. Likewise the cooperate Ltd. Sharing power is one of the key strategies M&S adapt by focusing on the long-term benefits of improving the function of all the various aspects of the firm. Employee involvement is a philosophy practiced by M&S that gives their employees stake in decisions that directly affect their Jobs, while employee empowerment is a corporate structure that allows non-managerial employees to make autonomous decisions.
Each one is a distinct practice and is usually mutually exclusive to one another, though the benefits can be similar. The main benefits of employee involvement and empowerment are enhanced morale, more productivity, healthier coworker relationships and creative thinking. M&S adapts Job enlargement, training, access to information, improved morale, increased productivity, team cohesion, innovation, contractual responsibilities, equal opportunities etc.
The empowerment improves Morale which involves employees in decisions and policy changes that directly affect their Job, while empowering employees to be more autonomous, greatly improves morale at large. When employees are treated as an asset and their input is given consideration, confidence increases among every team member, where M&S could identify significant gains in different facets such as productivity and loyalty. Employee involvement and empowerment translates directly into increased productivity fostering a stronger work ethic.
Many discussions of business empowerment revolve around identifying ways to encourage employees to become more autonomous. M&S might, for example, empower employees to make more decisions themselves, as opposed to obtaining permission first from previous, with a goal of developing independent thinkers and self-starters who can rise through the ranks to become qualified managers. Although employee empowerment is largely designed to give each employee autonomy, it likewise fosters better relationships between employees and with their managers, because employees that are given more independence tend to form better working relationships.
Each sees the other as mutually benefiting from their working relationship. In addition, more self-governance in the workplace lessens dependence on managers and supervisors and redirects that reliance laterally to co-workers. Employee empowerment helps to cultivate innovation. Employees that have a stake in the company growth and sustainability will offer more ideas and problem-solving solutions when obstacles arise. Moreover, as the employee meets particular challenges or finds improvements in policies, procedures or products, it will foster growth and more critical and imaginative thinking.
Employees may see a particular issue differently than a manager and be able to think of a creative solution, which may not be considered in a closed circle of managerial staff. Shell Global Pl. The Royal Dutch Shell is one of the biggest multinational petroleum companies, with its basis of origin in Dutch and Britain. It was considered as one of the world’s largest corporation by the Fortune in 2009. From its inception in 1907 till date, it has been able to emerge as a successful petroleum country reigning in the British markets. Engage their business across borders, maintaining their core principles and values across all subsidiaries, in all countries. The company has been proactive in outlining a competitive strategy, increasing the product profile and entering newer markets at the right time. Shell PL had been successful in maintaining its corporate image and its profitability for many decades. The proactive measures that were taken by the management gave Shell a strategic position in the global market.
However, a recent scandal of over-statement of oil reserves was a shock for all. When the company’s first admitted its conspiracy which was confirmed by a subsequent report that was presented to the world, it startled everybody. The company’s stock Jolted and completely hampered the corporate image of the company. It was alleged that the top directors of the company had been lying to the stakeholders. Such a negative act would release negative sentiment towards the public. The governors were lying to the public, developing a lack of trust in the stakeholders.
The goodwill that was generated over the years, maintained by the business and ethical performance of the company, was brought down the drain with the development of this news. The head of exploration had also admitted that the as much as 2. 3 billion barrels of oil had been over-stated and may not be with the company anymore. This was a serious threat to the company’s sustainability as it also brought down the reserves of he company, increasing the overall risk of the company. Such a mall-practice also revealed a lack of accountability in the management of the company.
A massive cut in oil reserves after reviewing the actual amount of oil reserves present in the company led to dropped ratings of the company. Standard and Poor’s dropped the rating of the company from triple A to AAA plus. The chairman of the supervisory board at that time, Dad Jacobs, said they believed that the structure of the company had provided them with great opportunities in the past. However, with the recent events unfolding t would be appropriate to look into the matter and review the management structure in such a way that accountability increases. Shell employees share a set of core values – honesty, integrity and respect for people. We also firmly believe in the fundamental importance of trust, openness, teamwork and professionalism, and pride in what we do” (Royal Dutch Shell Pl. , 2005). When it comes to performance, the company has been striving to achieve brilliance in their products and functions, so that they remain the winner. Their excellent business performance is rooted in history and till today they have been able to maintain a standard.
Although some hiccup in their way to excellence have hampered the growth, they have emerged as winners in the long run. As their consumer became user-friendly, they moved towards strategies to implement more environmental friendly operations throughout their company. All this while, they have been proactively foreseeing the trends in consumer wants and the needs of the economy and acting accordingly (SHELL GLOBAL, 2014). The company has been able to maintain its corporate image after the downfall of 2003. The multinational corporation has employed sound marketing techniques to increase profitability efficiency.
They have not forgotten the environment in their further improvements in their systems as and when necessary, they would be able to sustain their position in the market. Their proactive approach towards business and marketing will lead them into the future as victorious. Therefore, shell would require to employee an internal audit to proactively avoid scandals, thus improving their ethical standards. Invariably, it is necessary to prepare ‘true and fair’ view of the financial statements in order to avoid miss-relationship between shareholders and owners.
As a consequence, the firm should invest huge asset towards improving the ethical standards while maintain a good relationship with their employees. Shell respects the human rights of their employees and provides them with good and safe working conditions, and competitive terms and conditions of employment. To promote the development and best use of the talents of their employees; shell should improve their ethical code of conduct while create an inclusive work environment where every employee has an equal opportunity to develop his or her skills and talents.
In addition the firm should encourage the involvement of employees in the planning and direction of their work by empowering and delegating decision making. This would also require investment on training costs, internal auditor, ERP (Enterprise Resources Planning) and monitoring costs. Shell Code of Ethics states that they avoid conflicts of interest between their private financial activities and their part in the conduct of company business.
Where such assurances are not possible, a discussion of the reasons why and a description of specific incidents must be noted. Follow-up reports that document actions taken are also required. Shell offers a good model, but ultimately third party review and certification of company procedures for rigor and effectiveness are essential for code credibility. Such efforts are already underway in the monitoring of fair labor standards. Commercial success depends on the full commitment on improving these ethical code of Shell. Therefore, the company should refurbish its Business principles and ethical code, including a dedication to sustainable development.
This requires energy without damaging the environment and threatening natural systems. In addition the company should maintain its integrity towards its shareholders by avoiding over-stating or under-stating profits. Nonetheless, their commitment to the cause of green marketing has won them laurels in the form of investor and consumer inference. Such a strategy should be adopted as all over the world, there is increased awareness relating to the cause of environment. Already, the oil companies are questioned for hampering the natural resources of the world. Dedication to green marketing would help the company negate these allegations to a certain extent.