STUDENT ID: Bc200405068

BUSINESS ETHICS
(MGT610)
ASSIGNMENT NO. 01

DUE DATE: APRIL 29, 2024

ANSWER NO:1
These are the four specific actions or strategies that TechEon can implement to ensure
ethical business practices in the new location are as follows:

1. Ethical Sourcing Guidelines: Establishing clear ethical sourcing guidelines is

essential. These guidelines should outline expectations for suppliers and
subcontractors regarding labour standards, safety protocols, and workers’ rights.
Suppliers should be required to adhere to these standards throughout the supply
chain.

2. Robust Monitoring Mechanisms: TechEon should implement robust monitoring

mechanisms to ensure compliance with ethical standards. This includes regular
audits, inspections, and third-party evaluations to assess adherence to labour
laws and identify any deviations or areas for improvement promptly.

3. Investment in Worker Empowerment: Fostering a culture of transparency,

communication, and employee empowerment within the manufacturing plant is
crucial. TechEon should invest in initiatives that empower workers, such as
providing channels for them to voice concerns, access training, and participate in
decision-making processes. By prioritizing the well-being and rights of workers,
TechEon can ensure ethical business practices in Asiana while pursuing its
economic goals.
 4. Conduct thorough due diligence: TechEon should conduct thorough due diligence
on labour practices and human rights conditions in Asiana. This involves
engaging with local stakeholders, conducting on-the-ground investigations, and
evaluating potential risks.

ANSWER NO:2
Prioritizing profit over ethics in its expansion to Asiana could lead to several negative
outcomes for TechEon:

 Decreased Productivity and Quality: Exploited and overworked employees are

likely to be less productive and produce lower-quality products, affecting the
company’s competitiveness and profitability.

 Supply Chain Disruptions: Negative publicity and regulatory scrutiny could disrupt
TechEon’s supply chain, leading to delays, increased costs, and difficulties in
sourcing materials and components.

 Long-Term Sustainability Risks: By prioritizing short-term profits over long-term

ethical considerations, TechEon risks damaging relationships with stakeholders,
hindering future growth opportunities, and facing sustainability challenges.

These negative outcomes not only impact TechEon’s bottom line but also undermine its
long-term viability and social license to operate. By neglecting ethics, the company risks
alienating key stakeholders and damaging its standing in the global market.

ANSWER NO:3
These are the following three key stakeholders who may have a vested interest in the
company’s actions and explanation of how their prospects could impact TechEon’s
ethical considerations and strategic decisions.
 1. Workers in Asiana: They have a direct interest in their working conditions and
rights. If TechEon prioritizes profit over fair treatment, it could lead to labor
unrest, protests, or even legal action, affecting productivity and reputation.

2. Shareholders: They seek financial returns on their investments. If TechEon’s

decision leads to increased profitability, shareholders may support it. However, if
it results in reputational damage or legal issues, they may demand accountability
and ethical business practices.

3. Consumers: They care about corporate social responsibility and may boycott
products if they perceive the company as unethical. Negative consumer
sentiment can harm TechEon’s sales and brand image.

The perspectives and demands of these stakeholders influence TechEon’s ethical

considerations and strategic decisions. Balancing economic gains with ethical
responsibilities is crucial for maintaining stakeholder trust and long-term sustainability.