Social Ethics Sample Assignment

1.1. Organization and their Social Ethical Initiative.

Wesfarmers Company is one of the leading retail Companies of Australia. The conglomerate has its presence in the international markets too. Wesfarmers was established in the year 1914. Even though the starting was just a moderate one, due to the quality of the products it has gained a significant level of growth and developed a strong brand image. The Company us also popular for its social ethical initiatives (WesfarmersI, 2019). The main reason behind these initiatives is that it helps with the improvement of the Company’s image. With the help of these initiatives the Company is also able to gain the trust of the individuals. Thus, with the improved image and trust the revenues are generated and the Company is able to achieve the profitability.

1.2. Ethics, Culture and their Organizational Performance.

1.2.1. Evaluation of Organizational Culture.

Main element of organizational culture of Wesfarmers is to deliver the satisfactory returns to their shareholders. The business model of the Company consists of integrity, transparency and accountability. The individuals of the Company strive to achieve organizational excellence through delivering the best of the results. The top management of the Company ensures that that their activities are consistent with the values of the Company. These elements also indicate towards the ethical and responsible behavior of the organization (Wesfarmers, 2019). The culture of the organization has been fostered in a manner that the satisfaction of employees, suppliers, customers and community members may be achieved. Wesfarmers is popular for being a workplace which is famous for diversity of the communities that they serve. The employees are provided with the information which make them understand the value of respecting people. The culture has been fostered so that the employees are able to meet the customers’ expectations.

1.2.2. Relation of Organizational Performance to Social and Ethical Culture.

There is a direct impact of social ethics and organizational culture over the performance of the Company. As per the views of Konstantellou (2016), the organization with the culture of strong ethics achieves the higher degree of employees’ commitment. When in an organization climate of security and strong ethics prevails the employees are more positively motivated to achieve the desired level of results. They start to realize the significance of the core values of organization. The researchers have also found that organizational performance is highly dependent upon the degree of sharing of values among the individuals. The culture of the Company with strong ethical features result in the improved performance of the employees which result in improved organizational performance (Shafiq, 2014). The researchers have also suggested that social ethics and organizational culture help in the development of strategies which are fostered for the long run and are able to sustain (Shahzad, 2012). These are the main elements of competitive advantage for the organizations. In order to support this statement the example of the same Company Wesfarmers may be given. Wesfarmers have the culture of respecting people from employees to community to public in general (Wesfarmers, 2019). This results in achieving the higher customers’ satisfaction; a major source of competitive advantage for the Company.

1.3. Social Ethical Issues.

The two major social ethical issues that the Company Wesfarmers face are as below: Sourcing: One of the major issues is the issue of sourcing. The Company is striving to achieve the desired level of results which are called the ethical sourcing of the products. In order to be sustainable the Company needs to be more extensively engaged in the ethical sourcing products. Ethical sourcing is the manner through which the company ensures that the products which are sourced by the Company are obtained in a sustainable way. In other words the

Company is responsible for ensuring that there are no negative social and environmental impacts in sourcing of the products (Mcavoy, 2016). Thus, the Company Wesfarmers is trying to ensure that the practices which are detrimental to the environment and society are either eliminated or reduced.

Human Rights: The other social ethical issue with reference to Wesfarmers is human rights. This simply means that the Company ensures the rights of the individuals are protected. The employees are provided with the justified level of salaries and they are also protected against any kind of hazards and harms which may occur due to their jobs (Ethicalsystems, 2019). Thus, as an ethical issue of the Company the employees are also protected against any injustice. They are valued and heard adequately.

1.4. Modern Social Ethical Issues.

Despite of the two aforementioned identified issues, there are few modern social ethical issues which have still not been identified. The major of these issues are:

Autonomy of Decision Making: One of the major issues that has not been identified is the autonomy of decision making. The employees are provided with various duties and tasks. However, one of the major contemporary ethical issues is the autonomy of the decision making. Wesfarmers has still not identified and addressed the degree of freedom given to the employees with respect to decision making.

Misleading Advertising: Other modern social ethical issue that is more likely to be prevailed with the MNCs is misleading advertising issue. Often it has been seen that the companies are involved in the advertising and major of the content is exaggeration of qualities. This exaggeration may mislead the customers (Pubicengagement, 2019). However, it is a prime duty of the Company to ensure that the advertising does not result in floating any kind of misinformation to the customers in any form.

Security and Privacy: Security and privacy are the two most significant aspects related to the modern ethical and social issues. The Company has access to the confidential and private data and thus it is a key concern that security and privacy is not breached. Wesfarmers also need to ensure that any sensitive information is not shared inappropriately nor is it is used for any wrong purposes.

1.5. Recommendations.

Thus, in order to resolve the issues which the Company Wesfarmers have identified the following recommendations may be given:

Ethical Sourcing: Ethical sourcing is a comprehensive process which consists of all the actors involved in providing the products to the customers. In order to ensure that the Company Wesfarmers is adopting the practice of ethical sourcing it should adopt the approach of sustainability. The main four major elements of sustainability consist of sourcing system considering quality, economic transparency, social responsibility and environmental leadership (O'Brien, 2018). The Company should ensure that the material is bought at fair prices. It should also ensure that all the steps in the acquisition of the material are ethical in a manner that the quality has not been affected and transparency has been ensured. The Company should also ensure that it fulfills its social responsibility. Social responsibility means that the action of the Company must benefit the whole of the society.

Human Welfare: The Company may also be recommended to involve in the human welfare programmes. This indicates that Wesfarmers must ensure that the employees are provided with the competitive salaries and lucrative offers. Other than that they are also required to be expressed about the equality rights and treatment. The Company must develop an adequate level of policy which comprise of the information about the diversity at workplace. The people with different backgrounds and ethnicity must be given with the same level of chances in every area. This is significant in order to ensure that the Company is protecting the rights of the human. Wesfarmers is also needed to provide its employees with the training and development policy. This must be aimed at enhancing the skills of the employees in an appropriate manner.

2.1. Global Economy and Market.

2.1.1. Today’s Global Economy.

The impact of global economy is direct over the industry. As the economy is expanding globally the retail industry is also expanding by 2.2%. However, it is expected that the economic downturn may bring the Australian retail growth to 1.6%. This growth is expected to pick up to 2.3% till 2020 (Deloitte, 2018). The main reason behind this increased growth is that the average spending of the consumers towards retail industry is also increasing. Household market has strengthened which is the main reason behind the growth of the industry of retail in industry in Australia. This global growth is the main reason that the Company has also gained the growth. Wesfarmers has reaped the benefits of the global economy because the increased spending of the individuals result in increased level of potential customers for the


2.1.2. Impact of Global Economy on Modern Business Practice.

Increased Pressure for Quality Maintenance: A major impact of the global economy on modern business practice is that it has put more pressure on the companies to maintain the quality. The main reason behind this is that the customers of today’s era are more conscious about the quality and they need the high quality products (Dollar, 2016). The Company thus has to maintain a standardized level of quality in order to meet the expectations. This is a significant element which results in the success of the Company.

Increased Diversity: The other significant impact of global economy on the modern business practice is that it has also resulted in increased diversity. Diversity is mainly due to the integration of economy which has impacted the businesses of today. The same is applied to Wesfarmers too. The employers are looking forward to hire the employees from all over the world. This simply implies that in the Company there are more employees with the diverse background. The Company Wesfarmers has to look forward for the development of the organizational policy which is more inclusive.

Technological Adoption: Technical adoption is also a major impact on the Company’s modern business practice. The businesses of today’s era are more likely to be connected with the help of the technology. Other than that the technology has also resulted in the increased level of competitive advantage of the organizations. Thus, the impact of the global economy over the Company’s modern business practice is that it helps in the increased competitive advantage with the help of the technology.

2.2. Modern Business Practices.

The modern economy has resulted in the changes of the processes for the businesses. The Companies have to adopt to these modern practices in order to survive in the contemporary world. The modern business times resulted in the change of the business practices for Wesfarmers too. The two main modern business practices are as below:

Online Delivery: One of the main business practices which is associated with the modern business world is online delivery. As the customers of today’s world are more tech savvy they are looking forward for the ways to be connected to each other. They use the technology so that the easy ways can be adopted. The customers today have less time and they want the things to come to their door. This is giving the companies with the competitive advantage. This helps customers in easing their experiences and saving their time (Lumenlearning, 2019). This modern business practice has been adopted by the Company Wesfarmers too. The Company provides the customers with the products without them having to step out of their door. Workforce Engagement: The other modern business practice is that the Companies have also realized is that the main source of the competitive advantage is that the Company’s productivity must be increased. This increased level of the productivity is due to the productivity of the employees. Thus, the workforce engagement is one of the main factors which is associated with the modern business world. The Company Wesfarmers too also applies the practice of increasing the engagement of the workforce.

2.3. Impact of Global Economy on Modern Business Practice.

International Presence: One of the main impacts of the global economy on the modern business practice is that it has enabled the Company to be presented internationally. The Company has the presence in the international markets too. The main reason behind this is that the global economy has presented the opportunity to the Company to expose itself to the international customers. The Company’s profitability is due to the fact that it is not only active in the national market but the international market as well.

Use of Social Media: Use of the social media is also one of the main factors of the global economy. The Company has its presence over the social media platform too. This is the main factor of the promotion for the modern companies and which is also used by Wesfarmers too. The Company has marked its presence over the social media and is a main form of the promotion. The social media platform helps the Company to connect to the potential customers and thus is one of the main sources of the competitive advantage and increased level revenues.

2.4. Organizational Goals.

The main goals of the Company are as below:

Deliver the Satisfactory Return to the Shareholders: One of the main goals of the Company is to deliver the quality products and services to the customers and gaining the significant level of profits (Wesfarmers, 2019). The goal of the Company is to deliver the satisfactory returns to all of the shareholders.

Value Creation: The other objective of the Company is the creation of value for all of its stakeholders. The Company has adopted the strategy for the satisfaction of the stakeholders so that the value may be created.

2.5. Impact of Global Economy on Organizational Goals.

More Emphasis over Sustainability: One of the main factors of the impact of global economy on the organizational goals is that it has put more pressure to be sustainable. The Company needs to be more sustainable in order to survive in the competitive world. This is the main reason that Wesfarmers has a separate policy of the sustainability put in place.

More Emphasis over Company’s Workforce: The other major factor of the impact of global economy on the goals of the Company is that the workforce is more widely emphasized. The Company Wesfarmers is putting more emphasis over the workforce satisfaction (Borsin, 2018).

2.6. Two Recommendations.

Customers’ Engagement: One of the main recommendations that can be given to the

Company is that it must be more focused towards the engagement of the customers. The Company’s policy must be derived towards the development of dialogue with the customers rather than the monologue. The user generated content is one of the main technologies which may help the Company for the same. The promotional activities of Wesfarmers may be more derived towards gaining the response from the customers so that they are engaged.

Profit Sharing: Other significant modern business practice is sharing the profits with the employees. The employees must be provided with the profits to which they have contributed. Thus will help them being compelled and motivated to achieve more effective and desired level of organizational results.


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