Management in Context
Contact: ghufran77@hotmail.com
But it is so fascinating to
see fruits and vegetable from all corners of the world
under one roof.
More notably the shoppers, there are customers from
vast ethnic backgrounds, Black, White, Asian and
Chinese all un-dividing, buying different kinds of food
from one place. But the store layout divides the food
into different sections, big signs hanging on ceiling;
guide the customers to different sections. In chilled
section I see a young sales assistant piling the empty
cardboard in a cage, probably for the recycling purpose.
By further navigating through the aisles I see,
promotional point of sales saying “Half Price”, “Buy One
Get One Free”, attract customers to buy and save. It is
not just point of sales that induce customers to buy
products, also there are leaflets in every aisle hanging
with shelves to invite customers to join as members and
earn shares in company.
I notice the prices are comparatively higher than other
supermarkets. Pillars all around the shop with beautiful
and colourful posters, draw attention towards Co-
operative’s Corporate Social Responsibility policy.
Poster are everywhere around the store saying, “we
were first to provide fair trade products”, “we are
helping to reduce poverty in Africa”, “our stores use
renewable energy”, “We are saving the environment”,
etc. In order to further explore the
co-operative I requested
the manager to spare some time to tell me more about
it. He took me to the warehouse, where I had the chance
to see, how things looked behind the scene.
I asked what being ethical means. “Being ethical means
doing business by following best practice values and
principles” he replied. “We were the first to introduce
fair trade products this dates back to more than 100
years.
Co-op is member’s owned, we don’t have any share
holders, just members. Our profits are distributed to the
customers, who are its members, and rest goes to
business and we also help to reduce poverty in Africa,
we are building wells there”.
He adds, “Our fair trade policy provides the producers in
poor countries a fair reward for their work”.
Why do you follow this “Ethical” policy I asked? He
replied “well, that is why we (co-op) were made. Our aim
is to create a better society. We serve the community”.
He explained all in good details and happily, I also got
the chance to speak to some of his other colleagues. So
far so good. But whenI pointed out that plastics were not
being put in recyling bins, he said, “recycling facilities
are there but people (at co-op) are too lazy to send
them”. I said bye to the manager and thought, the
coffee in my house had nearly finished, so why not buy
some. But sooner I saw the massive queues of
customers, I changed my mind. There were at least 10
customers in each of the three queues. With a deep
sigh, I put the jar back into shelf.
So, what do ethics mean in literature and what is it to
be ethical for a business.
It is frequently said;
teach our children the difference between right and
wrong. Those of suspicious turn of mind will ask exactly
whose conceptions of right and wrong are to be planted
in the minds of the young. Even Plato in his dialogues,
‘Meno and Protagoras’ faced the difficulty of saying
what virtue is.
There are three different forms of ethics: descriptive,
normative, and philosophical. Descriptive ethics refers to
the general beliefs, values, attitudes and standards that,
as a matter of fact, guide behaviour. (Benn, 1998)
The word ethics was derived from the Greek word
ethos, meaning “custom”. Thus descriptive ethics
examines the typical beliefs or values that determine
what is customarily done.
Normative ethics prescribe what we should believe or
value. The difference between descriptive and normative
ethics, therefore, is the difference between what is and
what ought to be. Philosophical ethics is to think
about the legitimacy of the standards and norms
themselves, to seek a rational justification for our ethical
principles. In this sense “ethics” refer to a branch of
philosophy that systematically examines more abstract
questions about how humans ought to live. (Desjardins
and McCall, 2000)
expense of others.
Many businesses do harm the society, environment and
they do manipulate even their own employees.
(Behrman, 1988).
But the question is, are these corporations accountable
in some way for the consequences for their actions. If
yes, then to whom? Are they only accountable to their
shareholder, or all stakeholders, or to the whole society.
Should there be any accountability at all in the first
place.
Many theorists contend
that a business has moral duties that extend well
beyond serving the interests of its owners or
stockholders, and that these duties consist of more than
simply obeying the law. (Davis and Blomstrom, 1975).
customers. So did
the store manager, he tried his best to convince me that
co-operative indeed is an ethical business.
But it is hard to justify 24hour licesnce to serve alcohol
as to be equally ethical, while being in the middle of
populated area. Can someone still call himself ethical
while his neighbors cant sleep peacefully at night
because of him.
But I should not neglect the positive side of having a 24
hours store in one’s neighbourhood. Only those can
understand its benefits, who ever had ear pain in middle
of night.
Charging the customer a higher price for goods, using
the monoply power in the area can not be called ethical
either.
Having a business mission “creating a better society”
may inspire those companies, who openly neglect the
social and environmental issues. Co-op does full range
of fair trade products. Fair trade products gaurantee the
producer their fair part.
It is fact that these huge national and multinational
companies make their profits in millions and even in
billions, but the poor farmers in developing countries
who produce raw materials, still struggle to feed their
families.
The thing that I liked the most that I could see the foods
from all over the world here. We all love curries, don’t
we? Then it makes me think, does the food travel from
other continents not contribute to pollution? Many of
the fruits and vegetable could be grown locally with little
efforts.
The posters advertising ethics were being effectively
used for marketing.
References:
Behrman, Jack N. (1988). Essays on Ethics in Business and the Professions.
Englewood Cliffs, NJ: Prentice Hall
Carroll, A.; A. Buchholtz (2006). Business and Society: Ethics and Stakeholder
Management, 6th ed. Mason, OH: Thomson/South-Western.
Crane, Matten (2004). Business Ethics, New York; oxford university press.
Knight, Frank (1980). The Ethics of Competition and Other Essays, University of
Chicago Press