Assignment Question: Stakeholder Theory and Business Ethics Framework Background: Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests. Objective: Your task is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. Business Scenario : In early 2022, Shein, the fast-fashioned company, was facing allegations and criticism regarding labor practices in their supply chain. According to what had been reported, shein has been accused of poor labor practices, including the allegation of child labor and forced labor. Shein's spokesperson asserted a commitment to human rights, adherence to local laws, and a strict code of conduct aligned with the International Labour Organization's conventions, with zero tolerance for forced labor. “As a global company, Shein takes visibility across our entire supply chain seriously. We are committed to respecting human rights and adhering to local laws and regulations in each market we operate in,” a Shein spokesperson told CNBC. “Our suppliers must adhere to a strict code of conduct that is aligned to the International Labour Organization’s core conventions. We have zero tolerance for forced labor.” - Shein's spokesperson. However, a journalist's interview with a Shein warehouse worker revealed claims of long hours without breaks, contradicting Shein's assurances. “I have no time to sit and take a rest. I feel exhausted at the end of the day.”- Shein warehouse worker While Shein asserts the presence of a stringent code of conduct prohibiting child labor and guaranteeing fair working conditions, there have been occurrences where their suppliers were discovered to be breaching these established standards. It is imperative for Shein to implement more rigorous measures to enforce their code of conduct and guarantee the absence of unethical practices in their supply chain. QUESTIONS: 1. APPLY ETHICAL RULES : a. Justice Rules : Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly? (need to identify benefit & cost to customers, employees & managers. Need to look at the cost & benefit is equally distributed among stakeholders or not? If there is no equality in terms of benefits & cost among stakeholders then the action is considered to be unethical. If everybody receive an equal amount of benefit and equal number of cost, then the action considered to be ethical). b. Practical Rule : Review the action of the company on practical rule. Do they openly discuss the action to public? (based on company perspectives. So long as if the company are happy to disclose their action. Their happy to tell everybody this is our action i've been transparent were not trying to hide anything , this is our action then that considered to be ethical).
Assignment Question: Stakeholder Theory and
Background:
Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests.
Objective:
Your task is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework.
Business Scenario :
In early 2022, Shein, the fast-fashioned company, was facing allegations and criticism regarding labor practices in their supply chain. According to what had been reported, shein has been accused of poor labor practices, including the allegation of child labor and forced labor. Shein's spokesperson asserted a commitment to human rights, adherence to local laws, and a strict code of conduct aligned with the International Labour Organization's conventions, with zero tolerance for forced labor.
“As a global company, Shein takes visibility across our entire supply chain seriously. We are committed to respecting human rights and adhering to local laws and regulations in each market we operate in,” a Shein spokesperson told CNBC.
“Our suppliers must adhere to a strict code of conduct that is aligned to the International Labour Organization’s core conventions. We have zero tolerance for forced labor.” - Shein's spokesperson.
However, a journalist's interview with a Shein warehouse worker revealed claims of long hours without breaks, contradicting Shein's assurances.
“I have no time to sit and take a rest. I feel exhausted at the end of the day.”- Shein warehouse worker
While Shein asserts the presence of a stringent code of conduct prohibiting child labor and guaranteeing fair working conditions, there have been occurrences where their suppliers were discovered to be breaching these established standards. It is imperative for Shein to implement more rigorous measures to enforce their code of conduct and guarantee the absence of unethical practices in their supply chain.
QUESTIONS:
1. APPLY ETHICAL RULES :
a. Justice Rules : Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly? (need to identify benefit & cost to customers, employees & managers. Need to look at the cost & benefit is equally distributed among stakeholders or not? If there is no equality in terms of benefits & cost among stakeholders then the action is considered to be unethical. If everybody receive an equal amount of benefit and equal number of cost, then the action considered to be ethical).
b. Practical Rule : Review the action of the company on practical rule. Do they openly discuss the action to public? (based on company perspectives. So long as if the company are happy to disclose their action. Their happy to tell everybody this is our action i've been transparent were not trying to hide anything , this is our action then that considered to be ethical).
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