Business Ethics
Business Ethics
Business Ethics
Introduction: Business Ethics refers to a practice that helps organizations and its
employees to determine what is right, wrong and appropriate in the workplace.
Business Ethics is governed by laws, and these principles ensure that the company
and individuals refrain from engaging in illegal activity such as insider trading,
discrimination and bribery.
Products:
1. Under the Lancome Brand, the 50ml jars of facial care products are developed with
a re-filling system that reduces the environmental footprint and also proves to be a
premium experience for consumers. The refillable jar and two refills lead to a packaging
weight reduction of 58%, as compared to the use of three conventional facial products.
2. L’Oreal has launched an entirely sustainable brand Seed Phytonutrients with core
objectives of seed diversity, supporting organic farming and promoting natural beauty.
The brand caters to organic hair and body care products. The external shell is 100%
paper-based, recyclable and compostable. The packaging is water-resistant due to a
blend of unique minerals with the paper fibres. The entire bottle can be re-cycled as well
as up-cycled! Each bottle comes with a packet of seeds, to encouraging consumers to
start their own gardens. The seeds can be traditionally planted, or the cardboard shell of
the bottle can be used to start an indoor garden.
L’Oreal looks at climate change as part of their risk management due to the following
reasons:
1. Raw materials: L’Oreal relies on natural materials like palm oil, which are threatened
by deforestation caused by environmentally destructive farming techniques and rising
global temperatures. So, it has adopted zero deforestation policy to ensure that none of
their raw materials and ingredients are risked being produced due to deforestation.
100% of the Palm Oil, palm oil derivatives sourced from the pulp of palm’s fruit, and
palm kernel oil derivatives extracted from the kernel comply with the Roundtable on
Sustainable Palm Oil standards.
2. Benefits for Investors: L’Oréal uses the deforestation risk evaluation tool devised by
NGO Global Forest Watch. Furthermore, the soya oil derivatives used by the
company are sourced from zones posing no risk of deforestation. This not only helps
them to achieve zero deforestation, but also procure their main ingredients without
variability in raw material pricing.
3. Change in consumer demand: In 2017, the company has implemented a tool
known as the Sustainable Product Optimization Tool across all brands. SPOT
allows the company to simulate diverse design options (ingredients, packaging,
sourcing, etc.) in order to assess their impact on the environment and society, and
identify potential opportunities for improvement and cost reduction. It also helps
them to quantify the impact reduction across every aspect of the product, leading
to cost-effective product design and more proportion of renewable ingredients
sourced sustainably instead of petroleum-based materials.
Everyday consumers are becoming more health conscious about the products
they use, and investors are rapidly demanding a shift to product formulations away
from petroleum-based materials, which makes it extremely important for L’Oreal to
make the SPOT product assessments accessible to consumers, which not only
encourages them to make choices of sustainable products with natural
ingredients, but also to build a broader consumer base. With environmental
conscious habits passed on to consumers through awareness on environmental
issues, price sensitivity would rarely be an issue. Although a beauty product
company is responsible for little emissions, a strategy for sustainable development
not only helps them reduce the risk of losing loyal customers, but also gain
competitive advantage.
Introduction: The General Data Protection Regulation would define the principles to
ensure lawful handling of personal information. Handling includes the organization,
collection, storage, structuring, usage, consulting, combination, communication,
restriction, destruction or erasure of any kind of personal data.
Purpose limitation
Fairness, lawfulness and transparency
Minimization of data
Limitation of storage
Accuracy
So, one must ensure identification of the least amount of personal data one needs to
fulfil the purpose. One must not hold that much information, and that is the first of
three principles about the standards pertaining to data, along with accuracy and
limitations pertaining to the storage.
The accountability principle implies that one must be able to ensure that he or she
can demonstrate that they have appropriate processes to make sure that they only
collect and hold the personal data required.
Also, it is important to bear in mind that the UK GDPR mentions that the individuals
have the right to complete any incomplete data that is inadequate for the purpose,
under the rectification rights. They also have the right to get the company to delete
any data that may not really be important for the purpose, under the right to erasure.
The UK GDPR doesn’t define these terms. Clearly, though, this would depend on the
specified purpose to collect and make use of the personal data. It can also differ
from one individual to another.
So, in order to assess whether one is holding the right amount of personal data, one
must be clear about why one requires it.
One may have to consider this separately for every individual, or for every group of
individuals sharing important characteristics. One must, in particular, consider any
specific factors that an individual would bring to the attention, for instance, as part of
an objection, request for any kind of rectification of data that is incomplete, or
requesting erasure of data that is unnecessary.
One must regularly review the processing in order to check that the personal data
that is being hold is still important as well as adequate for the purpose, and also
delete anything that one no longer requires.
When could we be processing too much of personal data?
One must not have more personal data than one requires in order to achieve the
purpose. Nor must the data involve irrelevant details.
If one has to process particular information regarding certain individuals only, one
must collect it for those individuals, the information tends to be excessive as well as
irrelevant with respect to the other people.
Confidentiality refers to the essence of being trusted. As per the GDPR Principles,
controllers as well as the processors must make sure that there is enough
appropriate security of personal data, and this involves implementation of
appropriate technical and measures pertaining to organizational.
When data subjects share their personal data, there is enough expectation of
security that only the necessary people would have access to that information. They
trust that companies would be able to do this. Failing to do so would increase the
consumer distrust. In addition, regulators are likely to penalize you for this also.
So, prevention of a data breach must be at the top of each company’s to-do-list.
When deciding what measures are appropriate to make sure security of data, one
would have to conduct an assessment of risk for that information. One must review
the personal data held by a company and how the company makes the use of it in
order to assess how valuable, sensitive or confidential it is.
Introduction:
Stakeholders are often the members of an organization they have a stake in, or they
may not have any official affiliation. These stakeholders often have direct or an
indirect influence on the activities or projects of an organization. Their support is
needed for success of business and project.
Human beings invented products causing pollution, but they will have to also solve
the challenges caused by it. There are three parties bearing this responsibility.
Governments that often make and enforce rules, companies producing or using
plastic and customers. Every party has its own responsibilities.
However, instead of tackling the pollution together, people often point fingers at one
another. Companies often place the responsibility on the consumers, who are
supposed to act in a responsible manner and leave nothing in the environment.
Governments, in turn, are reluctant to come up with new regulations, let alone
enforce them.
WHO IS RESPONSIBLE?
Humans invented plastic, but humans will have to also solve the problems caused by
it. Who is responsible for the plastic pollution? There are three parties that bear this
responsibility. Governments that can make and enforce rules, companies that
produce or use plastics, and consumers. Each party has its own responsibility. But
instead of tackling the plastic soup together, people tend to point fingers at one
another. Companies tend to place the responsibility on consumers, who are
supposed to behave responsibly and leave nothing in the environment.
Governments, in turn, are reluctant to come up with new regulations, let alone
enforce them. And consumers like to point to the government and the companies,
while they can already do a lot themselves.
Irrespective of how well-educated customers are and how many garbage bins they
place in public places, there are always going to be some polluters, vehicles and
other products and chemicals causing pollution.
So, most of this pollution can be avoided by making the producers responsible for
the wastage phase of their products.
In other words, they would remain the owners of the plastic they sold, and must also
accept it back after the use.
Zero waste is first about the prevention of waste in order to reduce and reuse as
much as possible before purchasing new, then about recycling and composting.
3b.
However, what that is nice, the company can also have an ethical decision to reduce
waste and pollution so that one can sell their products while making the world a
much better place.
If a company is producing products and services that have been sold to the people of
the planet, they may and they obviously have a moral as well as an ethical
responsibility to also protect the earth, ensure that the consumers are safe and thank
them for enabling the business to succeed. The fact is that pollution from waste as
well as manufacturing refers to a global issue, and it is worse than one may think.
As per the reports, around 70% of the pollution around the world gets produced by
only 100 companies, and the company doesn’t want to be on the list.
While customers are glad that the products exist and likely understand that some
waste can be a side impact.
The first step that the company must take is to research as well as ensure that one is
following all the state regulations and guidelines when it comes to pollution,
management of waste as well as energy efficiency.
Once the individual has reached that point, then one can look at additional moves to
make their planet a better place.
Examination of each aspect of the production of the product and service, and also
ensuring determination of how one can become more eco-friendly with every
process steps.
Eliminate Waste: One of the most important components of being eco-friendly is to
ensure elimination of unnecessary waste. The company can start this with packaging
materials that they use to send out the products. Many companies create useless
waste by the usage of oversized boxes, unnecessary paper and a lot of plastic
Conclusion:
While the companies are out in the nature, the management may give a little
presentation on the beauty of the outside world and why it is so important that all of
us can work together to ensure elimination of waste and also focus on sustainability.
It would be a great message and each of them would know that they are a part of the
solution.
As one can see, the ethical obligation of the company is to be more eco-friendly and
also operate more on sustainability is also a good way to improve the culture of the
workplace and also engage the employees. It is important to consider these tips and
the company can improve in every possible manner.