Professional Documents
Culture Documents
SOLVED Business Ethics, Governance & Risk
SOLVED Business Ethics, Governance & Risk
Q1. “Human rights are based on recognition of the inherent dignity and of the
equal and inalienable rights of all members of the human family is the foundation
of freedom, justice and peace in the world”. Preamble to Universal Declaration of
Human Rights. According to you which are the five most susceptible areas for
potential human rights violations possible in context of employees within an
organization? Elaborate on your answer with the help of a suitable example. (10
Marks)
Solution: Human rights constitute a set of rights and duties necessary for the protection
of human dignity, inherent to all human beings, irrespective of nationality, place of
residence, sex, national or ethnic origin, color, religion, language, or any other status.
Everyone is equally entitled to human rights without discrimination. As such, human
rights are universal, interrelated, interdependent and indivisible and constitute the basis
of the concepts of peace, security and development.
Universal human rights are often expressed and guaranteed by law in the form of
treaties, customary international law, general principles and other sources of
international law. Human rights law lays downright (and sometimes duties) for
individuals, and corresponding obligations- both positive and negative (that is, things to
do and things not to do)–for governments in order to promote and protect the human
rights and fundamental freedoms of individuals or groups. The range of human rights
contained in international law cover almost every aspect of individual and community
life, from civil and political rights, to economic, social, cultural and developmental rights.
Some of these rights may be limited by states on grounds such as public safety, order,
health, morals and the rights and freedoms of others, whilst other rights may not be
limited under any circumstances.
A growing number of companies are becoming aware of the contribution they can make
to advancing human rights within their spheres of influence and the benefits such an
approach can have for their businesses. While human rights continue to be the primary
responsibility of governments, companies can do a lot within the context of their own
business to support and respect the observance of human rights. Being proactive on
human rights can make good business sense, as well as being the right thing to do.
Human rights are one of the most challenging areas of corporate responsibility for
companies to ad-dress; more human rights tools and guidance are needed.
Five most susceptible areas for potential human rights violations possible in
context of employees within an organization
1) Unpaid Compensable Time: When our duties include putting on or taking off a
uniform or personal protective equipment, performing a stock inventory, setting
up and cleaning our work area, or attending a change-of-shift-meeting, we're
entitled to our regular wages for the time we are engaged in those activities.
5) False Reporting: Many employers establish rules that overtime work will not be
permitted or paid without prior authorization. Some choose to "look the other
way" when non-exempt employees work overtime and don't allow those hours to
be reported. These policies don't comply with the FLSA. Employees must report
their overtime hours.
Example
An electronics firm factory was alleged to discriminate in hiring on thebasis of gender,
age, and marital status, violating the right to nondiscrimination. The factory was also
alleged to impact the prohibitionsagainst forced and child labor. Regarding forced labor,
the companyallegedly took workers’identity papers and made their return
contingentupon worker performance. The factory also employed over 200 childrenunder
the age of 16, violating international prohibitions on child labor aswell as local laws on
the minimum age of employment. The latter also raised issues regarding freedom from
torture or cruel, inhuman or degrading treatment and the right to education. The
company was alleged to pay less than a minimum wage after assigning extensive fines
to its workers, withholding pay, and failing to pay overtime. It was also said to impact the
right to a safe work environment by failing to provide safety training or provide safety
equipment, including masks to prevent exposure to toxic fumes. The factory was
furthermore said to violate local and international laws on work hours, with 70-90 work
hours per week as commonplace. Company failures to approve requests to terminate
employment were also cited as impacting the right to work because the employee was
denied the freedom to seek other employment. Moreover, company dormitories were
reported to house 8-12workers in one small room and have no electrical appliances or
ready access to water, impacting the right to adequate housing. Workers were also
separated from family and not permitted leave, impacting the right to family life. The
company provided no pension or work related injury insurance in violation of local law,
additionally impacting the international right to social security and right to health.
Corrupt practices included falsification of documents for inspections and coaching
workers on what to say during inspection interviews.
Q2. “The Geeta precepts or Dharma or spirituality based values and practices of
business leaders have been shown to positively affect their stakeholder
relationships as well as performance.” Select a known industry leader or
entrepreneur who will help you justify this statement – research and read up
about them and describe one incident/episode/decision from their professional
life that showcases or proves the above statement (DO NOT explain or quote
small /personal conversations or incidents of your immediate boss with you.
Select a public figure known to most people). (10 Marks)
Solution: The Geeta precepts or Dharma or spirituality based values and
practices of business leaders have been shown to positively affect their
stakeholder relationships as well as performance.”
Spiritual leadership of the non-profit organization in Korea
The case is introduced and carried out within the context of local communities. The
case study was carried out by the author (Dr. Jae Eon Yu) as he waste member of
action learning teams of business school at a Korean University situated at Daegu in
South Korea. The author was acted as an advisor and facilitator action learning that
takes places within community-based ‘village enterprises’ which operate at Daegu,
South Korea. The independent social enterprise called ‘Ban Yah Communities’ (BYC),
classified as a nonprofit organization, established in October 2010. BYC has three
centers, namely, the centre for educational community, centre for cultural community
and centre for village cooperative society. BYC has about 7 full-time employees and
around 10 voluntary workers who are mainly undergraduate students from various
universities at Daegu. Ms. Y. S. Kim is the Chairman of BYC. She is responsible for the
overall management and operational activities of BYC. There are three senior managers
who are generally involved with policy-making and managerial activities of all centers
within BYC and assist the Chairman. To assist the operational activities each centers
the voluntary workers are temporarily working within BYC.
According to workers within BYC, Ms. Y. S.Kim, who is spiritual leader of BYC for the
over four years, has inner principles that were made her spiritual leader to achieve good
performance over last four years. For instance, BYC, one of leading social communities
enterprise in local areas, it has good reputation for spiritual and ethical leaderships and
was well known for its social responsibility and principles such as the “BYC care for
socially disadvantaged people and disabilities in local communities”. Under the
leadership of MsY. S.
Kim, BYC carried forwards these principles and consolidated its community business
further in theist area of Daegu city, South Korea. The BYC’s Value and Philosophy are a
set of principles that guide and govern the vision, attitude and conduct of BYC and their
employees in all matters relating to community business. First elucidated in 2010, the
Value and Philosophy of BYC lays down the ethical standards that BYC employees
have to observe in their professional lives, and it defines the value system which is
developed from the particularhistory and communitarian values in localcommunities.
The BYC’s Value and Philosophy areas follow.
1) The organizational spiritual system focuses on self and others
2) The organizational spiritual system seeks to alternative life which is possible
through life-time education, cultural development, and self-designed social and
community economy from a eco-systemic perspective
3) The organizational spiritual system seeks to autonomy and participation from
local people in order to solve the problems by themselves
4) The organizational spiritual system seeks to connectivity and relations through
participatory approach
5) The organizational spiritual system seeks tithe development of human potentials
and happiness of community through the development of self and others.
In addition, Ms. Kim seeks to the balancing of the stakeholder’s interests, which
involves taking the long view as leader must see company as a whole and the
importance of the relationship between workers. As spiritual leadership has something
to do with the history and tradition and values of communities and society, Ms. Kim
articulated the missions and visions together as well as the values of the company to
achieve these missions and visions. To do so, process integrity deals with how deeply
the spiritual culture is ingrained in company’s core processes. For instance, Ms. Kim
and her followers were satisfied with what they do even though the profits are lower in
the short-term. In short, it is certain that organizational needs to make a spiritual system
for improve the desirable state of health, safety and sustainable development of the
organization. The key elements of the organizational spirituality system are: need
making to spirituality or a system-based philosophy and values by people, a spiritual
leadership, the maintenance of autonomy and connectivity through participation by
people. The case study indicates that workers gain their spirituality through making
‘different’ relation to self, others, organization, and local communities.
Q3. The problem in Chandrapur of Maharashtra and the surrounding area is that
this area, which is a declared tiger reserve, is now in danger of being taken over
by the mining industry. If the central government awards the licence to the mining
industry, then twenty one coal mines will be setting up shop in this area and
Chandrapur will become a coal city. The forest will turn into a desert and the wild
life will disappear. Somehow we have failed to intelligently sustain and manage
the resources of nature, the primary source of all supply chain.
a. Do you think environmental sustainability is an ethical principle? Elaborate on
any three issues/principles involved in environmental ethics. (5 Marks)
Solution: Environmental Sustainability is a multi-disciplinary, quarterly, peer reviewed
journal focused at maintaining and sustaining the quality of our planet through biological
and eco-friendly methods. It is a state in which the demands placed on the environment
can be met without reducing its capacity to allow all people to live well, now and in the
future.
Evidence is strong that we are exceeding and eroding the earth's carrying capacity, that
there are limits to growth on a finite planet. Effects are interactive, complex,
unpredictable and escalating, as we head for a global average temperature rise of more
than 2 degrees centigrade over pre-industrial levels. Sometimes 'environmental', 'social'
and 'economic' are termed to be the three pillars of sustainability. But this is
problematic as it suggests they are equivalent and can be traded. Environmental
sustainability is the context within which social and economic life happen. Also, social
inequity directly affects environmental viability.
c) What would happen if animals, plants, and other species are destroyed or there
are more and more endangered species? Would we be affected or would we
care?
d) Are our future generations entitled to a clean and green environment? Do they
even have a right?
f) Is it right for us to be responsible for the extinction of certain species only for the
sake of our consumption and greed?
g) Is it our moral right to be clearing rain forests for the sake of human
consumption?
h) In spite of knowing that gasoline run vehicles lead to the destruction of natural
resources, is it right for us to continue manufacturing and using them?
i) Are the guidelines which are drawn to protect the environment and nature any
effective? What is causing their failure?
j) Is there a need to reform the way in which we deal with protection laws and
clauses?
k) What is environmental pollution and pollution of the air, soil and water doing to
the world?
b. How can business embed environment protection/sustainability within overall
business strategy? Elaborate on any five critical ideas/processes/steps. (5 Marks)
Solution: Five critical ideas/processes/steps to embed environment
protection/sustainability within overall business strategy
The concepts of sustainability and corporate social responsibility [CSR] have been
among the most important themes to emerge at the global level in the last decade.
Sustainability and CSR are seen as comparable concepts in this paper, since both take
into consideration environmental, social and economic dimensions and both refer to a
long-term perspective based on meeting the needs of the present with responsibility and
without compromising the ability of future generations to meet their needs. In light of
this, managers have to take into consideration not only increased sales and profits
and/or decreased costs, but also the sustainable development of the business itself and
the surrounding context. A growing number of companies worldwide have engaged in
serious efforts to integrate sustainability into their business practices. However, most
firms have kept the question of sustainability separate from considerations of business
strategy and performance evaluation, areas that are often dominated by purely
economic performance indicators.