Emerging Technologies and Ethical Issues †MyAssignmenthelp.com

Question: Discuss about the Emerging Technologies and Ethical Issues. Answer: Introduction Business ethics can be defined as the way a company does its business in terms of its policies and practices related to potentially controversial business dealings such as discrimination, corporate tax, and insider trading and corporate social responsibility. (Shaw, 2017). This paper attempts to discuss business ethics in relation Inter IKEA Systems, a company based in UK and deals with a wide range of domestic products such as furniture as well as food industry. This paper will provide future research with background information relating to business ethics. Objectives To examine the nature of business ethical issues at Inter IKEA Systems company. To make recommendations about IKEA in order to be more ethical company in future. The most significant ethical issues that the company IKEA has faced recently and how it addressed them. Ethical issue in business can be said to be principles and values that defines organizations decision making process with regards how it runs its business. This is a one of the key determinants in building trust between an organization and its stakeholders. In the recent past IKEA has faced a number of ethical issues in business and from the information gathered from the reports the company addressed these issues adequately and satisfactorily. In the year 2014, there was a plan for inter IKEA group to acquire IKEA range, supply and production activities from INGKA group, before the company actualized this transaction, Inter IKEA Systems Holding B.V signed a letter of intent to signal commencement of the acquisition process. (Gini and Marcoux, 2009) This gave an opportunity to all interested parties or stakeholders to voice any concerns that they may be having regarding the acquisition before it is actualized. This is an ethical issue and the company did well in the manner in which in handled it. Without giving stakeholders a right to be heard and ample time to interrogate the process before finalization, the company would have infringed on the ethical rights of the stakeholders and thus the acquisition could have been taken as suspicious because of the manner in which it was done in secrecy and without proper notification to the company stakeholders. IKEA therefore re-affirmed its fidelity to high level of ethical standard s that raises confidence stakeholders would have on the company. (Tittle, 2013) In the year 2016 when the acquisition was finalized the company announced it through a press a release detailing all the information necessary to brief its stakeholders including the public who had no investment in the company. By so doing the company closed the matter it had opened through signing of the letter of intent. Inter IKEA Systems, as the company came to be known after the acquisition gave the new structure of the company and went ahead to mention how the new structure will help meet the overall objective of the company. In the press release the company goes ahead to disclose how it arrived at its profits. For example the company says in its report that its franchise division was able to realize an increase of 14% in profits mainly due to positive foreign currency movement in Euro. (Torekull and Kamprad, 2008)Many of the companies would like to attribute its profits down to the company making and not through unsustainable methods or avenues such as positive currency moveme nts. The reason behind this is that not many companies would want to risk the confidence investors have in them by highlighting areas of weakness especially if it contributed to profits of the company. (Emerging Technologies and Ethical Issues in Engineering, 2008) In conclusion, Inter IKEA Systems ethical standards have been beyond reproach going by the press release it does from time to time. The company is keen in sharing all the information relevant that it could have easily chosen not to make it available to the public and the will still be within the legal requirements guiding companies in UK regarding sharing of pertinent information to the stakeholders and general public. How the companys vision, mission and code practice influence its actions with examples. Inter IKEA Systems vision is to create a better everyday life for the many people, while its mission is to offer a wide range of well-designed, functional home furnishing products at prices so low that many people as possible will be able to afford them. IKEA way abbreviated as IWAY, is the Inter IKEA Systems code of practice. The policy tenets are based on international conventions and declarations with regard to purchasing products, materials and services by the company. The policy also covers working conditions, prevention of child labor and zero tolerance to corruption. Contractors to the company are responsible for communicating the same to its employees and sub-contractors. (Torekull and Kamprad, 2008) The company the company increases its range of products by introducing about 2,500 new products every year in line with its vision of creating better everyday life and in a way that is affordable to many. The products are designed by its in-house designers or contracted professionals that come up with designs that help to better life of many people. The company also has a sustainable growth plan that ensures that the company earns its money first before spending; put differently the company ensures it gets profits before re-investing part of it for its growth. This shows that Inter IKEA Systems Company doesnt rely on credits to expand its products. When a company relies on credits to expand or come up with new products and stores the cost of credit is usually transferred to the end user who will bear the cost of production and credit as well the manufacturing companys profit. Thus in Inter IKEA Systems and according to the information available, its products are affordable to many pe ople as possible in line with its mission as the company. (Feich, 2016) The fact that the company ensures that all her contractors and subcontractors take the responsibility of communicating Inter IKEA Systems Companys code of practice to all her employees shows the great length the company goes to ensure that all her process adhere to the set standards and regulations without the possibility of any of her partners in business denying knowledge of existence of such code of practice. Further to this, the company has zero tolerance to corruption has one the tenets in its code of practice (Shaw, 2017). The act of corruption is usually aided when company dealings and transactions are done in secrecy or in conditions that make scrutiny or close follow up by all the necessary stakeholders minimum or zero. Inter IKEA Systems ensures that relevant stakeholders are aware of the companys major transactions such as acquisitions or franchising so that the same process does not breed corruption in the manner in which they are carried or executed. It does this by occa sionally releasing to press pertinent information regarding a transaction that the company is about to execute in line to zero tolerance to corruption policy as contained in the companys code of practice. (Stenebo, 2010) It is therefore clear that the company follows through its promises with actions that go hand in hand with its vision, mission and code of practice. Inter IKEA Company ids keen to meet all its standards as set by them in order to continue its sustainable growth path, making everydays life better and in a way that is affordable to as many people as possible in UK and all its markets where they have presence. (Thomas, 2011). IKEAs CSR actions from the perspective of Carrolls Four Part Model of CSR Carrolls CSR pyramid postulates that a companys CSR obligations/activities should be carried out in four parts beginning with Economic as the most important activity followed by legal, Ethical and philanthropic activities as the least import one. The pyramid is a pictorial representation of the theory, where the size of its steps depicts the importance of the activities as matched with corresponding steps. On the economic front, Inter IKEA Systems Company is a profitable company that posts impressive financial results as shown by the company press releases year on year. For example in the financial year 2016, the company made Euro 1.7 billion sales turnover on its restaurants and other food outlets alone and cumulatively resulting to Euro 35.1 billion for the entire business of the company. The same year the company made profits of Euro 4.2 billion after tax. This is an impressive result which fits the standards as set by Carrolls CSR theory. Strong financial position is the only way for the company to survive and remain in business for long term. On the legal activities, IKEA Company complies with all the regulations in its area of operation. For example, the company ensures that it pays all the taxes such as tax as shown by the financial report of the year 2016 where the company paid Euro 1.9 billion in taxes. (Welford, 2010) The company also pays great attention to its labor regulations which child labor is prohibited by the company and this is also expected of its suppliers who signs code of practice with IKEA before they can partner business, thus the company obeys laws guiding its business as stated in Carrolls four part CSR theory. On ethical perspective, the company has taken it upon itself to work towards attaining 50% balance gender for its managerial positions and the entire workforce. For example as at the year 2016, 48% of all the managerial positions were held by the female employees. (IKEA, 2016)More this, the company had more than half of its co-workers being females by the same year 2016. This therefore shows that the company minds about its ethical obligations which are self imposed and are not anchored in the law. The company is also philanthropic going by the information contained in its 2016 FY report. In Texas United States, Inter IKEA partnered with Open Arms organization to sell a un ique line of Texas-themed textile products created by refugee women. This is a non-profit venture by IKEA that shows how philanthropic the company is by using its business connections and resources to sell items for a disadvantaged group at no profit. (IKEA, 2016) Thus the company gives back to the society by promoting the disadvantage groups in line with what is contained in the Carrolls four parts CSR theory. Some of the parts of CSR according Carrolls theory are not mandatory responsibilities any company can choose not to do it but its important for the public relation. The some ethical and the philanthropic parts are not mandatory parts that any company must follow. They fall within the discretion of the company in question to implement them fully, in part or not at all. The company can choose not ensure that there is 50% gender parity in its employment and managerial positions. It can also decide that it has no budget for any philanthropic activities and it will still be well within the law and regulations guiding its operation. (IKEA, 2016) IKEAS key stakeholders and relationship attributes Stakeholders are persons or entities in business that supports the business activities of a company in one way or another. It could be in buying its products, supplying raw materials, advancing credit for business or investing in the company for expansion in exchange of certain percentage of equity and regulatory authorities that regulate the business on behalf of the larger public. One of the IKEA key stakeholders is the client or the customer who purchase IKEA products available in the market. This stakeholder is the reason why the company is able to remain afloat in business and continue on the part of growth. Inter IKEA Systems treat its customers ethically. The company has a program in place for its customers where they can join to become one family (Boylan, 2014). Under this particular program every member is welcomed and not for the selected few or exclusive clubs where different status is given to different groups of clients depending on the depth of their pocket or simply financial muscle. This is fair treatment to all customers because IKEA can simply say for any customer to enjoy privileges of certain membership then they need to be buying certain expensive products or spending a certain minimum figure every month in purchasing their products. But this is not the case with the company has everyone is given the equal power, legitimacy and urgency/prior ity in choosing what he or she wants. IKEA Company ensures that all her customers and the general public being stakeholders are updated regularly on the company dealing such as when there is a planned acquisition. The company is under no obligation to notify clients and the general public of the impeding acquisition as it did when it signed the letter of intent of acquisition in 2014 and releasing the same to the public and latter announcing the actual finalization of the transaction. (IKEA, 2016) Another key stakeholder of the company is her employees. The company treats them fairly as shown by the commitment of the company to have 50% gender parity among its workforce. This is simply an ethical issue that it is only fair to have affirmative actions to help the less privileged sector of her workforce to feel part and parcel of the company and appreciated. This means that any female employee has the same power, legitimacy and urgency or priority to climb up the leadership ladder at IKEA as men employees a phenomenon which many companies across the world have not achieved or actualized much as its being said and mentioned in meeting and captured projection reports. Inter IKEA Systems company suppliers and sub-suppliers are also important stakeholders in its business venture. The company ensures that it pays supplies in time and also informs them all the regulations that will govern their engagement before commencement of the same. For any business to remain afloat in the market there must be timely payments to its products and/or services. By paying suppliers in time IKEA facilitates smooth running of these entities and promoting their growth and development. The company goes further to ensure that all the employees of the suppliers doing business for the company are treated well by its respective companies. This is not a legal requirement, it is upon the authorities to ensure all the companies treat their employees well but IKEA takes it upon itself to ensure that this is adhered to so that everyone working for IKEA feels good. It does this by visiting these companies every year and conducting audits to ensure that the code of practice shared are fully adhered to by all the business partners. (Tittle, 2013) Recommendations to IKEA to be more ethical in future Ethics is one of the fundamental aspects in a company that informs the all the stakeholders on the nature of the company they are dealing with or about to start relationship with. IKEA is one of the most ethical companies in the world but this paper will attempt to provide further recommendations through which the company can raise its ethical standards in future. IKEA should consider setting a side a pool of credit facilities for its suppliers so that in the event that they experience any cash flow problems they can have a fall back plan through IKEA on the basis of its long standing relationship. This gesture will be more helpful to those venture started by young people such as IKEA itself. Promoting the young companies to grow strong wings to be able to fly own their own is one way that will help IKEA to be even more ethical in future. (Toward sustainable agricultural systems in the 21st century, 2010) The company can also consider reaching out to other parts of the world where cotton is grown to see if farmers from these other regions can benefit from its sustainable approach in the way Cotton is grown. At the moment IKEA is working with Cotton farmers in Pakistan, China, Turkey and India to grow cotton in a more sustainable way by reducing the use of chemical fertilizers in favor of more natural alternatives like use of organic fertilizers. The farmers who benefit from this program can use costs saved to expand their farming activities for more and better returns. IKEA can therefore replicate this program in other parts of the world where cotton is grown such as Africa and some parts of Asia where there is immense potential for this crop to be grown in a more sustainable way and helping IKEA have more products whose raw materials originate from environmentally friendly practices and sustainable farming. (Dahama, 2010) The company can also consider contracting a different research and development company that will test its products before being released to the market. Although IKEA has an elaborate in-house plan that tests their products and confirm their safety to its users, this can be further compounded by using a different company that uses different ways to test products from those of IKEA. The end result of this is reduced recall of products from market once they have been released. Product recalls negatively affects the confidence the market have on the new products that have not been used for long to confirm there suitability while being used or consumed. The separate research company will therefore go along way in ensuring the many new products IKEA releases to the market meet minimum standards and have lower chance of being recalled back to the factory. (Hasan, 2007) Conclusion In conclusion business ethics is an important aspect in any business environment as it largely defines the kind of relationship an organization forges with its stakeholders such as consumers and suppliers. Proper Business ethics also enables the companies enjoy goodwill from stakeholders from of buying their products and/or services to extending other kind of assistance such as credit advancement to fund company expansion. References Arrigo, E. (2011). Corporate Responsibility and Hypercompetition. The Ikea Case. Symphonya. Emerging Issues in Management, (3), pp.2-7. Boylan, M. (2014). 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