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1 Business Ethics and Corporate Social Responsibility Student Full Name Institutional Affiliation Course Full Title Instructor Full Name Due date

2 Business Ethics and Corporate Social Responsibility Part A: Question 1: Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible? A person or group acting in accordance with their moral beliefs is known as ethical behavior. Situations can be better handled with understanding of ethics because of the relationships between moral and immoral actions. Business ethics is application of general ethical principles to the world of enterprise. For any action to be considered ethical, a company's ethics must be derived from the same place as the rest of society's ethics. People rely on ethical principles to determine whether their actions are correct or incorrect, moral or immoral. According to the case study, Chiquita Brands is a leading maker and distributor of the highest quality healthy foods. The United Defense Forces confronted the firm after investigations, because the firm was found to be a terrorist organization. However the executives at Chiquita then decided to make illicit payments to the forces to save their company's assets and employees from harm. The act can be considered as either immoral or moral depending on the society’s perspective. Generally, it is not easy to establish business ethics and standards because a global business person will mainly understand their own country's values and principes. Ethics in business cannot be developed in a way that accounts for cultural, religious, and societal diversity. However, although there are a few universal moral prescriptions like honesty and trustworthiness, there are significant differences in what nations typically accept to be fair, moral and ethical. Multiple ethical standards exist depending on local cultural observances, different religious beliefs, historical customs and traditions, basic values and beliefs, and behavioral

3 conventions across countries and cultures, rather than a single universal set of ethical standards. Imposing corporate standards based on the customs or laws of one culture over another could be viewed as immoral and impractical. Although the formulation and execution of universal business ethics standards are highly difficult, the corporate social responsibility of a firm to its local community is much more manageable, and operations might be carried out following the local moral norms. People, their communities and the environment are entitled to hold the firm responsible for any activities it does that harm them (Thomas, 2015). For instance, it is right in certain cultures to pay individuals to do business with you, while bribery is regarded as unethical in other cultures. It is a behavior that does not negatively impact people's lives, communities, or even the environment. Murder is also universally condemned as an unethical business practice due to its impact on the lives of individuals and entire communities, it is not. Part A: Question 2: Do corporations have a right and/or a responsibility to influence ethics in the countries in which they operate? Defend your position. Corporations do not have the authority or duty to shape national ethical standards. "Ethical imperialism" is the practice of attempting to influence the ethics of a country, culture, or civilization that is distinct from one's own. Assuming that a company's home culture's ethical standards and procedures are superior to those of other countries or cultures demonstrates ignorance and implies inferiority to the other culture's practices. People, communities, and the environment are all affected by a corporation's activities (Thomas, 2015). A company must therefore consider the potential impact of its operations in a new country on the perception of social responsibility based on ethical standards in their "home base" before deciding to operate in another environment. A company must decide whether or not to operate in a country with

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4 competing norms of ethics by adopting their standards. However, if a company adopts new ethical standards, it risks being viewed as a hypocrite for departing from its initial ethical standards. The firm may also be considered to have failed in its corporate social responsibility at home. Ethical imperialism occurs when a company tries to affect ethics in countries where they operate. Companies believe that their standards and practices are founded on a single list of truths, that they can only be conveyed using a single set of concepts, and demand the same behavior worldwide. When a company tries to sway local ethical standards and behaviors, it implies that the local standards are superior. Finally, if a company's ethical standards and practices are at odds with a potential new country of operation, they may want to forego the business opportunity altogether. Companies should avoid conducting business in ethically questionable regions rather than try to impose or influence changes in local norms or practices based on the assumption that they are better than the local businesses. It would be unethical for any organization to conduct business in an environment they felt did not match its ethical standards before beginning operations. It is the firm's social responsibility to make sure that profits surpass any potential ethical ramifications. Section 1 of Part B: Introduction Founded in 1994, the Wal-Mart Canada Corporation is a subsidiary of parent Wal-Mart Incorporated stores. Wal-Mart stores may be found in almost every major Canadian city, proving the company's clout in the country. With approximately 173 discount stores and above 200 supercentres, Canada has various options for shoppers. Most of the stores have an optical center, picture processing laboratory and a bank, tire and lube centers, a mobile phone store, and a portrait studio. It is cheaper for consumers, but Wal-Mart's impact on small and medium-sized

5 companies in these towns has been enormous. Therefore, the local economy and the citizens' lives have improved. As part of their community outreach efforts, Walmart has implemented programs such as using locally produced products at low-cost measures to offset the detrimental impact of their operations on the communities they serve. Through its "Developed in Canada" initiative, most fresh ingredients and products that makeup food brands are grown or manufactured in Canada. These include a wide variety of Canadian-grown and produced food and drinks. New jobs have been created, suppliers' welfare has been improved, and taxes have been paid at all levels of government by Wal-Mart. Local businesses, local consumers, local farmers, Wal-Mart brand suppliers, and local governments have all benefited from the Wal-Mart’s programs. Another way in which Wal-Mart has a significant impact on the local environment is through customers, employees, and neighbors, from the store's creation to its daily operations. While striving for zero waste, Wal-Mart examines several ways to organic solutions. Organic waste from the grocery sector should be minimized, and electronic garbage should be prevented from ending up in landfills and other waste disposal locations. Plastics, metals, wood, tires, paper, oil, batteries, and polystyrene are all recycled by Wal-Mart. Local governments, garbage management businesses, residents, and environmental organizations are some of the people involved in this project. Section 2 of Part B: The Rational 1. Utilitarian Method: The cost and benefit of a resolution, policy or deed can be evaluated using the utilitarian method. It is considered ethical if a deed does the most benefit or does the least harm. When the net benefits outweigh the net costs, an action is considered ethical. In the business world, an ethical act benefits the maximum number of people, including the company's

6 stakeholders and the public and its shareholders, employees, and the environment. Approaches look at all of the possibilities available and how a decision will affect all of the stakeholders (Cortina, 2017). The Utilitarian technique seeks to maximize the benefits of an action while minimizing its drawbacks. The method has a major drawback or limitation when quantifying some human and social costs. As a result, the rights and privileges of minorities are often overlooked in this process. Customers at Canadian Wal-Mart stores can expect to get low-cost, inexpensive merchandise. It has been argued that this strategy contributes to the low pay offered to employees in comparison with its competitors, which has led to some criticism of the business. The utility strategy emphasizes net benefit, and since low cost benefits a wide range of stakeholders, it is a popular choice (Spence et al., 2019). The company's goal is to strike a balance that equally benefits all of its stakeholders. The primary goal of an organization's CSR is to increase shareholder wealth. Organizations should participate in CSR since the government alone cannot operate the society with tax returns. Strict adherence to the CSR generates greater benefits also to the general public. Local consumers will benefit from Wal-Mart's Supplier's policy, which stipulates that suppliers must adhere to strict quality and employee welfare requirements when manufacturing similar materials and goods. High-quality products and services help customers, while welfare measures benefit other stakeholders, such as suppliers. Training and coaching criteria must be established by the company to ensure that supplier staff obtains the appropriate skills. The training will create long-term gains to suppliers as well. The strategy is based on the preference satisfaction option, which allows Wal-Mart to hire more employees, purchase more products, and expand its supply chain while still working within legal constraints.

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7 Wal-Mart's strategy may have certain drawbacks, but the benefits of maximizing partiality satisfaction outweighs the drawbacks. A utilitarian view considers behaviors such as charitable giving and scholarship programs as commendable because they all contribute to society's overall well-being in the long run. Wal-Mart's business sustainability strategy is an excellent illustration of striking a balance that results in a net benefit to all the stakeholders, environment, and the community. 2. Rights Approach Method: The Rights Approach Method is well-known in Canadian society since it acknowledges that the rights and entitlements of individuals and groups must be balanced to ensure that everyone is treated fairly. The right to life, a fair trial, and the right to personal safety are examples of rights. Conflicting individual and collective rights must be carefully balanced while using this strategy. Truth, safety, and personal space are inalienable human rights that should be considered by any company. These human rights will be preserved when different entities act ethically. Wal-Mart's main business objective is to maximize profit, therefore they employ managers to help them achieve this goal. The managers are only responsible for maximizing profits within the law and have no moral and ethical commitment. The action would be considered unethical and irresponsible because the main goal is to benefit the company and its own environment without considering the local community. 3. Justice Method: Wal-Mart effects suitable policies that guides for its partnerships and association with other stakeholders and addressing safety, information, and justice concerns. As part of their policies, employees have the freedom to join and form unions. To ensure that current and potential employees are treated equally, Wal-Mart provides a wide range of career options and recruitment practices in Canada. Empowering society's most marginalized groups is an important step in advancing the rights of those groups taken by the company. Wal-Mart also

8 provides scholarships and internships as part of their strategy to guarantee that those who are underrepresented in academia and the workforce have equal access to work and academics. The justice method argues for fair distribution of advantages and disadvantages based on some defined rule. When it comes to civilized societies, justice and fairness go hand-in-hand, regardless of whether or not the goals are realistic (Cortina, 2017). As an ethical principle, it states that all humans must be treated equally. For example, firms should compensate their employees based on how hard they work or how much influence they have on the organization. The pay gap between the company’s CEOs and ordinary employees can be considered as justified or simply unfair. However, the company has several benefits to its ordinary employees that can be considered to compensate the big gap. Some of the benefits that Wal-Mart employees receive include stock ownership, discounts, counseling, reimbursements, and corporate discount plans. These employee benefits have been earned through the company’s hard work and continuous improvement efforts. The community and the company's suppliers' charities, green projects, development programs, and sustainable programs are admirable and justified eforts to give back to the community by the company. Wal-Mart's ethical standing was best assessed using the utilitarian method. As a corporate entity, Wal-Mart is subject to various legal and contractual obligations and regulations. There are a variety of communities that the organization serves across the country. As a result, the organization's best interest is served by adapting to the changing operational environment and all stakeholders and operating efficiently. The method of net benefit presents the best alternative for management because of the diversity of expectations and operating stakeholders. The strategy guarantees that all stakeholders will gain. Section 3 of Part B: The Impacts (Family)

9 Low-cost products that allow us to save money are a direct advantage to my family. In my opinion, Wal-Mart's one-stop shopping environment saves us time and reduces our fuel use by allowing us to shop in one location. We have access to a wide range of high-quality products because of their broad network of suppliers and products. The development and execution of community initiatives due to local and provincial tax income, grants, and charitable contributions benefit my family more indirectly. My family also benefits from Wal-Mart's environmental practices, which reduce pollution. Section 4 of Part B: The Impacts (Community) Wal-Mart contributes to the local economy by creating jobs and participating in community events. Local resources are utilized to their maximum potential, tax revenue is generated for government agencies, and the community is served. For its shareholders, partners, and associates, the company's primary goal is to increase its wealth but it also promotes the efficient use of resources and environmentally friendly activities. Many Canadian communities like Wal- Mart's convenience, the variety of products it carries, the vast range of employment possibilities it provides, and the quality and variety of its products. The company’s neighborhoods value its environmental stewardship and commitment to community improvement. Section 5 of Part B: The Impacts (Country) Having a Wal-Mart in Canada has a wide range of implications. Wal-Mart's practices encourage competition and raise the bar for operational and product standards in the sector. When Wal-Mart makes a profit, it helps fund various programs, including infrastructure, social, and economic development projects across the country. Technical expertise linked with Wal-Mart operations helps many suppliers, businesses, and stakeholders. When it comes to corporate social responsibility (CSR), Wal-Mart impacts how businesses think and act to protect our

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10 environment. Wal-Mart's presence in the country favorably impacts trade and economic development. As a result of their business approach, they are promoting products. The country is also shielded against substandard imports and vendors from other countries due to the company's corporate policies and high-quality standards.

11 References Cortina, A. (2017). Corporate Social Responsibility and Business Ethics. Corporate Citizenship, Contractarianism and Ethical Theory , 69–78. https://doi.org/10.4324/9781351161008-5 Spence, L. J., Frynas, J. G., Muthuri, J. N., & Navare, J. (2019). Research Handbook on Small Business Social Responsibility: Global Perspectives . Edward Elgar Publishing. Thomas, R. M. (2015). Business Ethics and Corporate Social Responsibility: Cambridge- Gourlay-trinity lectures . Ethics International Press Ltd.

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