A RESPONSIBLE MANAGEMENT REPORT

The method or those business practices known as "responsible management" aim to balance the interests of all stakeholders for both the present and future generations' success (Ennals, 2014). Ethics and corporate social responsibility are central to it. An ethical expert consultant from the Greenleaf consultancy firm wrote this report. Persimmon PLC, a construction company, is receiving advice from the report on ethical and responsible management matters at the company. Diversity is a concept to debate at Persimmon PLC. Exploration of this topic is based on the company’s current position, in which the number of female workers in the company is small compared to male workers. The ethical issue the report advices the firm is gender inequality and gender diversity. Persimmon PL, however, admits state that they comply with the UK Corporate Governance Code and they always consider diversity (PERSIMMON PLC, n.d.). But this is the company executive and not on the general staff. The company does not cover in depth how their diversity principles relate to business objectives and their contribution to society.

Two theories relating to gender equality that the report covers are virtue of ethics and utilitarian (Kantian theory). Based on these arguments, the ethics specialist from Greenleaf consultancy gives recommendations to Persimmon PLC on how to be an ethically responsible construction company.

The report covers concepts revolving around organizations such as Corporate Social Responsibility (CSR) - a business or firm or organization’s initiatives to evaluate and take responsibility of its activities effect to the environment and the surrounding community. A corporate should bear a responsibility to society (Academy of management, 2016).

Responsible Management and Corporate Social Responsibilities

The topic of Corporate Social Responsibility is broad and has varied definitions. Aspects about (CSR) are scattered, and they differ one from another within the upcoming phenomenon in industries and academic literature. However, CSR takes three primary dimensions: economic, social and environmental). As a company operates within a given setting, it must always evaluate its decisions and activities, and the impact they have on the social system. CSR is a firm’s ability to show commitment in taking responsibility for its actions and improving the community (Wan-Jan, 2006).

Corporate Social Responsibility has many theories and approaches attached to it, besides having a range of definitions (Garriga & Mele, 2004). CSR can be termed as a subject that houses many terms and topics. “Overlapping with some, and being synonymous with other, conceptions of business-society relations”(Matter & Crane 2005).

Carroll (1991) states that in early years, corporates thought that their responsibility was only to the shareholders and their only objective was improve significantly and have high financial returns to their shareholders (Carroll, 1991). Soon, this direction of thought manifested its errors. Businesses had to work within the boundaries of policies set by the governments. Other groups and organizations advocated for CSR in institutions and their obligation to take care of the environment. This new changes forced corporates to change their strategies and learn how to balance between attain the optimum financial performance and legal and ethical responsibilities.

For Bowen, (1953), who first came with the CSR concept, businesses form a significant part of society because they provide services and products to the community (Bowen, 1953). His definition implies that companies play a fundamental role in determining the way people in the society live. Therefore, for a balance to exist between businesses and community, CSR is necessary. The decisions made and policies implemented by companies should be desirable and connected with society’s objectives and values.

The relationship between society and businesses is further explained by Porter and Kramer (2006), who state that the value of CSR in intimately connected with values an organization share with the societies where they exist. Businesses are based within given communities which need the services and products they provide, and therefore, mutual relationships should be established (Porter & Kramer, 2006).

Permission PLC should realize that CSR if embraced, puts the company at a sustainable competitive advantage. Many organizations do not benefit from their activities and efforts to have positive social and environmental outcomes because they fail to implement CSR activities as an advantageous aspect of their strategies (Collins & Rukstad, 2008). Corporate Social Responsibility if considered as part of organizational strategy benefits both the society and the business (Grayson & Hodges, 2004).

If a company does not have CSR as part of their obligations, society cannot be tolerant of it. Many scholars agree that the subject of CSR should not be viewed as a charitable deed or a cost constraint activity. Instead it should be considered as an opportunity to become innovative and competitive (Asongu, 2007). Businesses like Perssimon PLC, therefore, have a wide range of reasons why they should pay close attention to CSR agenda and their responsibility to society. (Cite Sprinkle and Maines (2010)

Friedman (n.d), argues contrary to most scholars on the topic of CSR. For him, optimal financial performance should be the primary objective of businesses. Social and environmental issues should be dealt with by the government (Friedmann, n.d.). Friedmann further argues that CSR directly or indirect influences costs in an organization and puts firms in a negative financial position besides dividing it from its primary objective. However, there are immense benefits of CSR and Persimmon PLC should fully develop and implement the subject.

Ethics Theory

Introduction to Ethics

Ethics is a concept in the field of philosophy whose primary objective is to understand and determine judgment on human actions, whether they are right or wrong. Ethical judgments are made based on nature of the principles of reason or experience. Ethics is a moral philosophy which involves analysis, defense, and recommendation of concepts of right and wrong behavior.

A study conducted by Pearl and Hughes (Perlman & Hughes, 2008) made an indication that ethics cannot perfect the lives of people but can mitigate or prevent the amount of harm that can be caused if in case there were no ethics (Perlman & Hughes, 2008). A fundamental approach is therefore required in business ethics to improve the lives of the stakeholders. Policy evaluation can also be done with the help of ethics. The effects of the morality of economic behavior of companies and their workers can also be explored through the aid of principles.

Ethics act as a preventing measure of individuals from harming others when they have an opportunity to do so (Perlman & Hughes, 2008). Standards in morals are set to deal with actions we think might bring severe injury or benefit human beings. Moral judgments are there to condemn activities by people that could make life unbearable for people. Morality can only limit such actions. The appropriate test for business ethics is by improving the conditions of stakeholders in the naturally occurring ‘human jungle’ (Ethisphere, 2010).

The two ethical theories relating to gender inequality within Persimmon PLC are Virtue of Ethics and Kantian theory.

Virtue of Ethics

Virtue ethics is a theory which was developed by a Greek philosopher, Aristotle. The philosopher believed every person desires happiness. The theory of virtue of ethics focuses on character development. It is about those attributes a person should obtain to become what they should be, as opposed to actions (Sakellariouv, 2015). In other words, this is a broad concept which emphasizes on character and virtue development in philosophy, rather than those activities or actions a person does to result in good consequences.

Aristotle described a virtuous person as an individual with ideal character traits. These traits come from natural internal behavior, and they need to be nurtured to become stable (Kucukuysal & Beyhan, 2011).

Persimmon PLC can promote gender equality through the application of this theory. The female gender workforce will benefit most from the concept. From ancient times, society has always considered women as a lesser gender and discriminated them from doing some duties. The construction industry, of which Persimmon PLC is a part, is mostly dominated by the male sex. Virtue ethics, in a broader sense, is a gendered ethical theory which will eliminate or at least improve female workforce in the organization. Through this concept, women can develop a character and an attitude to help them become motivated and work freely in the company.

Kantian Theory

The Kantian Theory, also known as the Kantian Deontologism, is a position based theory developed by Immanuel Kant. For Kant, some types of actions such as stealing, committing murder, and lying was entirely not allowed even in a case where it was intended to bring happiness. The theory suggests that a person should consider the impact an action will have on others, and their opinion before acting. Also, a person should look at the goals and objectives of specific activities and their influence on others rather than one’s purposes. According to Kant, the consequences of a person’s actions are not depended on how right or wrong they are, instead will the fulfillment of duty by the actions (Sullivan, 1989; Bowie, 2000)

Gender ethics is a prevalent issue at Persimmon PLC. Gender issues have led to women denied a chance to work in the construction industry in general. Based on the Kantian Theory, this is unethical. The company should consider giving women an equal opportunity and employing more into the organization. Promoting gender equality is the right thing to do because society upholds the virtue. Persimmon PLC can also offer competitive remunerations and hire people, both male and female, on merits of acceptable behavior in society and thus follow the Kantian Theory. Implementing and applying the theory will help the company, contribute to a community where gender stereotypes are overcome, just like the at the shoe company Clark.

Ethics Theory and Responsible Management at Persimmon PLC

Ethics theory involves a process or the study of principles and virtues that give direction in expected behavior in the business world. The primary goal of businesses is to make a profit. While striving to obtain more significant and optimum financial performances, companies must put effort to balance between profit-making desires and the needs of the community. Persimmon PLC can use the ethical theories available to portray responsibility in their management. Ethical theories will help the organization think through and make responsible management decisions which will benefit all the stakeholders, particularly women in the company.

The ethical issue at Persimmon PLC is gender inequality. The number of female workers in the company is small compared to that of men. Using the moral theories discussed, the management and executive of the company can make decisions about gender inequality. The theories help the company to understand principles inherent in ethics. The philosophical approaches involve a systematic framework to address the gender inequality issues at hand (Stamarski & Son Hing, 2015)

Exploring Gender Inequality at Persimmon PLC

Gender Inequality

The male gender has dominated the construction industry since time. The growth of gender segregation in the sector has been upwards, and it appears not to get any better unless the issue is addressed.

At Persimmon PLC, men dominate most of the technical, operational roles. Women, on the other hand, are put in junior support roles, secretariat and marketing and advertising. There is also a high tendency of women leaving the company more than their male colleagues. The organization is also dominated by the male gender because the informal recruitment processes favor it. The rigid work practices at the organization, plus long hours and lack of flexible parental leaves for women make the career stymied. As such, the number of women in the organization is less than that of men.

Importance of Gender Quality

The issue gender inequality at Persimmon PLC should be addressed because of its benefits to the organization. Other than increasing the number of women in the company, gender equality at the workplace creates an open and friendly atmosphere which help solve any gender discrimination issues. From all around the world, several examples of companies exist who have benefitted immensely for embracing gender equality. Some of the benefits of gender equality which make it an essential subject at the workplace include improved working environment, good communication among the staff, increased number of women in the organizations, fewer maternity-related discrimination, high productivity and reduced salary gaps.

Companies in Practice

Various companies have adopted the gender equality virtue amidst multiple challenges. For example, reports show that the percentage of the number of women in FTSE companies was increasing by the year 2016. One problem that was met though was a decrease in percentage was experienced in the subsequent year. However, efforts are being made to increase the number of women by the year 2020 (Crafield University, 2016). The challenge of lack of gender inequality and lack of women in some companies has been as a result of the strategies laid down to include women in the workplace. However, FTSE companies and other companies, in general, are changing their appointment procedures to promote gender equality and ensure more women are in different positions in companies.

Stakeholders Affected by Gender Inequality

Effects of gender inequality at the workplace are experienced, directly or indirectly, by all the stakeholders of an organization. The workmates and colleagues are affected first hand when there is gender discrimination. Motivation fades if all the employees are not treated equally and fairly; this includes even in the recruitment process. The executive also gets affected if women are not treated fairly. For example, the number of women leaving the workplace may increase, and it can result in losing even reliable and competent employees. An organization should act responsibly to the society – Corporate Social Responsibility. The community observes the activities and operations of organizations. Society's attitude is easily affected by a group which does not promote gender equality.

Benefits of a Better-balanced Workforce

Having a gender-balanced workforce can be very beneficial to an organization. The first and most important benefit is having a decrease in turnover. When the employee turnover is high, the working morale is increased, and a changed mindset is initiated which results in long-term staffing benefits. There is also improved reputation for the organization. A well-presented organization to the employees, audience, customers, and investors undoubtedly succeeds admirably. Other benefits of gender equality and ethical considerations include improved performance, widened talents pools, and diversity management.

Persimmon PLC can learn from Mcdonald’s diversity and inclusion strategies. The company provides inclusive work environment, training, and support for all its workers for which women are included. For the organization, diversity and inclusion are a foundational element of their culture, and it helps in many aspects of the corporate. Among the specific company initiatives to promote gender equality is the Global Women’s Leadership (GWLN). The effort highlights the contributions of women to McDonald’s worldwide and promotes a culture where women are given most opportunities to become successful and grow (McDonald's, n.d.).

Recommendations

Having looked at the issues at Persimmon PLC Construction Company, it is evident that some areas concerned with Ethics and Corporate social Responsibility need to be addressed and improved. The number of women in the construction industry is small compared to that of men. The organization under consideration, in particular, has gender inequality issues in which more of the employees were men. This state has significant effects as far as ethical issues in an organization are concerned. The performance and operations of the company can also be significantly affected by the gender issues. It is, therefore, recommendable for the organization to take actions and choices which will have positive results in the ethical dimension of the company.

Persimmon PLc should consider ethical theories to ensure the company runs its operations ethically. The management and the executive should apply all possible means to promote equality and diversity in the workplace. It is also recommendable for the company employer and employee staff to base their decisions on accepted principles and standards within the business world.

Gender inequality issues at the organization affect all the stakeholders, directly and indirectly. First-hand effects are felt by the management and the society. When there is no gender balance in the organization, conflicts arise, employee morale crops in, and turnover decreases. Administration finds it hard leading such a team. The society also observes the actions of the organization and makes conclusions, and in this case negative ones.

In consideration of all the factors surrounding Persimmon PLC, the best course of action is development and implementation of principles and standards that adhere to business ethics and corporate social responsibility. The management should provide an atmosphere which discourages gender discrimination and gives women more opportunities. In this way, gender inequality issues will decrease and the number of women in the organization increased. Other strategies to motivate women into the construction industry such as scholarships for female engineers should be put in place. The company can also embrace activities and days for women, such as done by Mcdonald's, to encourage women to grow and succeed in all areas. Lastly, a code of conduct for employees which should be adhered by everybody should be formulated to promote diversity.

Conclusion

In summary, this report is from an ethics specialist from Greenfield Consultancy and advice Persimmon PLC on ethical issues the company is facing. Persimmon PLC is a company in the field of construction, an area primarily dominated by the male gender. The firm faces gender inequality issues, in that the number of female workers in the company is minimal. The specialist, therefore, analyzes the problems and advises what is to be done to make the company ethically responsible.

In the report, it was noted that Corporate Social Responsibility is the effort an organization makes to give back to society and act in a manner that will have a positive impact to the community where it is based. Ethics is moral philosophy in which actions are judged to be right or wrong. Responsible management in organizations is only achieved through adherence to CSR and ethical theories.

Gender inequality is an ethical issue at Persimmon PLC and takes many dimensions. It also has effects on the company’s stakeholders. The report gives a guideline and recommendations to the management which will help them in solving the problem. Gender equality and diversity can be achieved at Persimmon PLC through CSR and implementation of ethical principles and standards.



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