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Ethics
in Arabics is ilm al-akhlaq (science of morality). Morality which means a
nature, or an innate dispossition or temperament. Islam encourage people to
acquire wealth and live a prosperous life.
The holy qur'an says:
b.
Ethical practice towards suppliers
“O
you people: eat of what is on the earth, lawful and good, and do not follow the
footsteps of the evil one" (Al-Qur'an, 2: 168).
"Eat
and drink of the sustenance provided by Allah and do not evil nor mischef on
the earth (2:60)
Many
business practitioners and academics agree that there is at least some moral
content in many business decisions (Abela, 2001). Many ethicists assert there's
always a right thing to do based on moral principle. Another definition, ethics
are the principles and values an individual uses to govern his activities
and decisions in an Organization.
Ethics
is a branch of philosophy that deals with respect to right or good and wrong or
bad actions and many philosopher consider ethics to be the "science
of conduct".
Value
which guide how we ouhgt to behave are considered moral values, eq value such
as respect, honesty, fairness, responsibility, etc. Statements around how
these values are applied are sometimes called moral or ethical principles.
Carol
(1981), while recognizing that social responsibility issue do have ethical
dimensions, distinguishes social responsibility and business ethics on the
basic that the fomer is primary an organizational and corporate concern, while
the latter is the concern of the individual manager or business decision maker.
The debate still continues as to wether corporations, because they are
artificial creations, can be said to have social responsibilities at all or
wether the term is only apllicable to individuals within the organization.
Being
a responsible business means aiming for the highest standards of ethical
business practice with everyone you deal with, including employees, customers,
and suppliers. This means:
- Treating all employees fairly and with dignity and respect.
- Ensuring that your services and facilities, wherever possible, are accessible to all.
- Ensuring that all areas of your business operate healthy and safe environment for employees, visitors and contractors.
- Considering ethical and environmental obligations in all activities, such as sourcing supplies locally if possible.
- Not purchasing from any organization whose products are produced through the exploitation of child labour, paying an unfair wage in poor working conditions or any other violation of the workers / human rights.
- Being honest and transparent in your communication with customers.
a.
Ethical practice towards consumers
The
aim of good and ethical business is to serve the consumers. The business persons
need consumer education as much as consumers to become successful in their
business.
Good
ethics dictates that a salesperson should help customers find the most suitable
products for their needs, not necessarily the one that results in the greatest
revenue or highest profit margin for the company. Customers appreaciate it when
sales associates take the time to find out their spesific needs – to treat them
as individuals. Precisely meeting customers needs translates into higher
customer satisfaction.
The
retailers should charge fair price for the products offered to them. The consumers
have the right to get correct and precise knowledge about the products sold to
them in respect of warranty, guaranty, price, usage, ingredients etc. Ethics is
essential for the long run of the business. Ethical business is essential in
today’s competitive and dynamic environment.
Business
have moral duties to consumers, for example: the responsibilities of business
to consumers, products safety & advertising.
The
responsibilities of business to consumers;
· Businesses
must give us what we pay for. Whenever we trade, we are exchanging goods and
services within an implicit or explicit contract. One person is obligated to
give one thing in exchange for another. People should not be deceived about
what they are buying.
·
Businesses
must not harm anyone, including consumers. Product safety might be the most
important concern of consumers considering that it’s often a matter of life and
death, but it’s not the only concern of consumers.
Product
safety;
Ensure
consumers are informed and educated in the proper and safe use of the products
and services for optimum utility and satisfaction. Companies have a duty to
provide consumers with whatever it is they pay for and products are assumed to
be safe for ordinary use.
Advertising; Advertising
and product labeling are both very important because it is the potential
customer’s primary source of information. it is morally preferable for
companies to be honest and reject manipulative practices whenever it’s unclear
how much harm it could cause. It’s better to be safe than sorry when we are
dealing with the well being of people.
Ahir
Gopaldas (Fordham University) identified three common emotions driving ethical
behavior—contempt, concern, and celebration. Contempt happens when
ethical consumers feel anger and disgust toward the corporations and
governments they consider responsible for environmental pollution and labor
exploitation. Concern stems from a concern for the victims of rampant
consumerism, including workers, animals, ecosystems, and future generations. Celebration
occurs when ethical consumers experience joy from making responsible choices
and hope from thinking about the collective impact of their individual choices.
Within the company there are numerous stakeholders
with different interests, but there are also stakeholders outside the company,
including suppliers (Murphy & Poist, 2002; Verkeck, De Leede & Nijhof,
2001).
In term of management practices, the findings have
important implications to supply chain management. While obvious that codes of
ethics alone created through the day to day exercises of the organizations, the
literature is sparce and non – specific about the means of enforcement of such
codes. The emergence of candid relationships as playing an important role is
key in this regard. Supply chain manager should note that adopting a leadership
role in terms of enacting the ethical values espoused by the organization is
crusial and that this is readily achieved through open relationships with
suppliers. The relationship marketing initiatives used by suppliers represents
an ideal setting for customers to manage the ethical perceptions of the
organization, and ultimately its reputation.
Some ways you can adopt responsible supply chain
practices and improve the way you deal with suppliers:
Consider using local suppliers as much as possible – this helps to support your local community.- Cut out the middle man and seek to develop long term, direct relationships, whenever possible.
- Plan ahead and give suppliers clear and achievable timescales.
- Make sure you are not purchasing from any organization whose products are produced through the exploitation of child labour, paying an unfair wage in poor working conditions or any other violation of the worker’s rights or human rights.
- Build confidence by maintaining high standards on essensials such as paying suppliers on time and delivering goods on time. Consider signing up to the prompt Payment Code to demonstrate your commitment.
- Comply with your customer’s and supplier’s auditing requirements and other formal request.
- Use due diligent to assess who you are dealing with.
c.
Ethical practices towards employees
Ethical
practices must also be followed towards the employees. The retail industry
employs large volume of retail staff. Therefore proper policies and procedures
must be framed for the employees regarding recruitment, selection, training,
promotion, welfare etc.
The
example of ethical issue, many fashionable clothes are manufactured by poorly
paid people in developing countries. This practice, known as sweatshop labor,
has come under major scrutiny and has been condemned by a wide range of
critics. Particularly concerning is the employment of young children.
Example
of Ethical Behaviour of Primax Case Study" (growing brand that
provides consumers with value-for-money fashion items)
"Operating
in an ethical way may incur additional costs to a business. rather than seeing
these activities as costs, Primark believes that they enable the business to
operate in a sustainable and well-managed way. Through its remediation
programme, Primark's team of ethical managers work with factories to help them
find ways of putting issues right and developing sustainable practices". A
key principle of Primark”s business practice is to make sure that it provides
its consumers with value-for-money garments, whilst maintaining ethical
manufacturing standards. By making its Ethical Trade processes transparent,
Primark aims to demonstrate its commitment to responsible manufacturing. This
helps to assure its customers that the goods they are purchasing are not only
fashionable and good value-for-money, but also that they are ethically produced
by workers who are fairly treated.
Every
employee will work in safe and clean conditions. They will receive fair and
adequate compensation. They will have ample opportunities to develop their
skills. They must feel free to make suggestions, criticize or complain.
According
to the islamic teachings it is the religious and moral responsibility of the
employer to take care of the overall welfare and betterment of his employees.
Fair wages, good working conditions, suitable work and excellent brotherly
treatment should be provided to the workers.
The
last Prophet of Allah (sws) has explained this principle in the following
words:
“Those
are your brothers (workers under you) who are around you, Allah has placed them
under you. So, if anyone of you has someone under him, he should feed him out
of what he himself eats, clothes him like what he himself puts on, and let him
not put so much burden on him that he is not able to bear (and if that (be the
case), then lend your help to him)” (Bukhari, No: 2359)
The
Prophet (sws) also said:
“I
will be foe to three persons on the last day: one of them being the one who,
when he employs a person (that has accomplished his duty, does not give him his
due” (Bukhari, No: 2109)
The
Prophet (sws) is also reported to have said:
“The
wages of the labourers must be paid to him before the sweat dries upon his body”
(Ibn Majah, No: 2434)
Good
business practice involves being sustainable over the long term. A business is
sustainable when it is able to make profits for shareholders, offer good
employment opportunities for its staff, pay taxes to the governments of
countries in which it operates, and at the same time give consumers what they
want (e.g. products that represent good value for money at affordable prices).
A business that makes a profit is able to make an important contribution to
society and to look after all of its stakeholders.
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