Ethical Dimensions Of Deliveroo's Practices: An Analysis

You are required to write a brief report for senior managers at the case of your choosing. This report is written from the perspective of a middle manager tasked to outline the ethical dimensions of the issues from the case. You will need to explore a number of factors including - Why should this be explored as an ethical question? How might the company want to think about the role of business in society? You will also need to outline who the key stakeholders are and in what way they are affected. You should include research into examples of how ethical choices impact on other companies (e.g where is there research that shows good choices benefit companies and bad choices have a negative impact?). Finally you should conclude with some recommendations for what the company should do

This part of your assessment should be written as a report, but should be referenced in the normal academic way using Harvard citations and referencing.

For this part you should again use your chosen case study – but this time choose TWO ethical theories and demonstrate that you can apply these to the case to show how your chosen theories lead you to a view on the ethics of the case.

Your choices for cases are:

Deliveroo: The case of the gig economy

Nike: The case of creative advertising

NHS gifts and hospitality: The case of conflicts of interest.

ASOS: The case of supply chain ignorance

VW: The case of consumer deception

Each of these is on moodle and is linked to an article related to the story.

This section requires you to discuss what makes an ethical leader and how you would, as an ethical manager, manage your business and/or others to a high ethical standard.

You will need to think about personal ethics, about the conditions that bring about unethical organisations and practices, about organisational values and methods of compliance.

Managing practices for employing couriers as an ethical question for Deliveroo

In the current scenario, the management of business decision is a most difficult task because any wrong decision leads many complications for the business by affecting the productivity and profitability of the business (Weiss, 2014). In this regard, by following the ethical standard in the organization practices, the management of the organization ensures the enhancement in the brand image (Demirtas and Akdogan, 2015). In this context, the present report is based on the analysis of unethical practices adopted by of Deliveroo; the British delivery firm which delivers the food products of British restaurants among general public.(Butler, 2018). Apart from this, the report consists the deeper analysis of unethical practices in the terms of management, impact on the competitive edge, society and the stakeholders of the firm. In this series, the unethical practices of Deliveroo are also analyzed with the help of utilitarianismandKant theories of ethics.

According to several studies,it is the responsibility of the business to be lawful for the employees' wages and ensures that all employees of the organization is paid fair wages (Trevino and Nelson, 2016; Klein, 2010; Hart, 2010).In this regard, Deliveroo; the British food delivery firm also faces the criticism for inappropriate wage distribution in the different level of employees andother rights of employees such as paid holidays of the delivery boys(Taylor, 2017). In this regard, the delivery boys of Deliveroo claim for their employment rightsand demand for theproper wages (Butler, 2018). In this context,Cavico, Muffler and Mujtaba(2012) asserted that employeediscrimination is negatively affects the reputation of the business in the market. Owing to this, poor awareness of Deliveroo for the delivery boys’rights who deliver the meal to customers in the high traffic street in minimum time degrades its market reputationbecause of those riders are dissatisfied from the wages distribution policies of Deliveroo where as they are the key factor of Deliveroo’s success (Washtell, 2017). On the other hand, the low focus on employee dismissal policies increases the amount of compensation money (Leigh Day, 2017). Despite paying the claimed money,Deliveroo continuously faces criticisms such as the representative of Deliveroo's riders mentioned that Deliveroo knew about the employee harassment and loses the employee tribunal (Butler, 2018). However, the employees are the valuable assets of an organization, the success or failures are greatly depending upon the thoughts of the employees (Lindner and Wald, 2011). Therefore, the poor focus on the employees’ rights discloses the unethical behaviour of Delivroo in the public and creates the cause the increased financial expenditure from the claim’s settlement money.  

In the present scenario, it is crucial for a business to elevate the market reputation by contributing to societal activities (Brik, Rettab and Mellahi, 2011;Saeidi et al. 2015). In this regard, the business has the responsibility to serve the benefits to the society by involving in the corporate social responsibility (CSR)(Saeidi et al. 2015). In this manner, the management of Deliveroo, by focusing on the CSR can emerge the positive image in the society and stakeholders. The key stakeholder of Deliveroo are employees, delivery boy, the general public, competitors and customers which affected by the unethical behaviour of the firm.The delivery boys of the company are dissatisfied from the unconcern of the company for their rights (Butler, 2018).However, if the company does not treat its employee fairly then it is considered as the unethical practices which consequently affects its reputation.These types of practices also degrade the company’s profitability because of the poorlysatisfied employees do not work with their full efficiency. Apart from this, it also forces employees for taking such action like striking whichcreates the barrier in the firm’s productivity and in turncausefinancial losses (Lima Crisóstomo, de Souza Freire and Cortes de Vasconcellos, 2011).Therefore, for enhancing the productivity of the organization the focus the employment right is most necessary through allocating the satisfactory wages to the employees of the organization.

Role of business in Society and effect on the stakeholders

The policies of the gig economy prevent Deliveroo to give their riders sick pay; thus, it finds another method for enhancing the riders' safety when they deliver the food items. For this purpose, it appoints 50 new staff for riders' safety and uses the cameras on the riders' helmet for getting evidence of victim and useful for police investigation (Nye, 2017).At this juncture, Collier and Esteban(2007, p.19) asserted that the CSR policies of the organization influence the employees' attitude and behaviour for the firm by enhancing the integration in the business process and enhances their commitment towards the firm.It shows that by promoting the riders’ safety Deliveroo gain the trust of their riders and motivates them for improving their performance.

According to Kain, and Sharma (2014) by incorporating business ethics management in various business strategiescompanies can sustain for long run. In building the reputation, growth and financial stability of any firm, ethical culture plays important role. As companies are primarily business organization which runs for the benefits of shareholder. Further companies have to act ethical towards society where they do business. Along with this, they also have responsibility towards their customer, suppliers and employees.Thecorporations which are grounded on ethical foundation recognize these responsibilities and make a serious effort to fulfil them and in so doing making use of their business ethics drive as a source of competitive advantage(Ferrell, and Fraedrich, 2015). 

In recent time after facing the criticism about the working condition of their riders, Deliveroo implemented various ethical decision related to their workers which majorly influence competitive edge of the business. In this regard Deliveroo provides flexible working hours with well-paid wages i.e 10£ per hour to its employees which is above from minimum national wages. Along with this, they also provide incentive on receiving regular feedback about drivers and reward them accordingly. Rapid on boarding is other way out according to which employees can on board whenever they want to work or can leave. They also facilitate riders to be part of company culture by inviting them in company’s activities and social activities which makes feel them to be part of the company. These ethical changes made by Deliveroo advocates to rebuilt their brand image and attract the rider more towards to company as compared to their competitors viz Ubereats, Foodpanda etc. (Anna Tims, 2017).

As per the above discussion, the unlawful behaviour of the Deliveroo negatively affects its profitability and productivity. In this regard, it is suggested to the management of Deliveroo that they should properly discuss the employment rules and regulation when they appoint a delivery boy. For this purpose, they can clearly mention the employment rules for self-employment in the contract documents and as well as in the recruitment process. It will increase the employees’ awareness for the firm's regulations and will help Deliveroo to minimize the employee’s frustration for the employment rights. Therefore, by enhancing the communication for the facilities which provided by the organization for the employees at the beginning of the relationship with the employees, Deliveroo can ensure the employees’ compliance for the organizational behaviour.

Ethical decision and competitive edge

For enhancing employees’ satisfaction onthe employment policies, Deliveroo should be focus on the organizational laws and forced the management to update the employment rules according to the legal standards. It will also help Deliveroo in the case of the employment tribunal and increase the winning chances of Deliveroo.Moreover, it will also prevent the financial losses of giving compensation money to the losing employee tribunals. On the other hand, Deliveroo should focus on the employees’ dismissal policies because in the compensation money the dismissal took a major part. Therefore, Deliveroo should build new strategies which can be implemented in the organizational practices and enhance the employees' satisfaction.   

Ethical theories play an important role in the development of ethical decision making of the business (Blakely, 2015). Ethical theories are helpful to business to take the right decision at the right time by concerning the key stakeholders of the business (Broad, 2014). The Utilitarianismis one of the popular ethical theories whichconcentrates in reducing the negative consequences of the decision and enhances the goodwill of the business (Blakely, 2015).Apart from this, utilitarianism theory relies on the breakup of some the moral rules for increasing the positive impact of the business decision (Hayry, 2013). The major focus through this theory is laid on the overall good of sufferers who are involved in the organizations. It also suggests to avoid the existential risks and increase the well-being of human elements through which involved parties can be satisfied.However,in the case of Deliveroo, the management did not ensure the consequences for the negligence of delivery boys which the unrevealed the poor image of Deliveroo in the stakeholders and negatively influenced them.But, through giving compensation money to the affected delivery persons and includes them into the social activities conducted by Deliveroo shown its ethical behaviour.. It reveals that the after following the unethical practices in the organization, the Deliveroo faces dissatisfaction from the one the key stakeholders which foster organization to follow ethical behaviour.

The utilitarianism theory consists of two form including act utilitarianism and rule utilitarianism. The acts utilitarianism is based on the consequences of particular action whereas the rule utilitarianism is based on the consequences of the kind of the actions and obeys the laws (Mill, 2016). In the case of Deliveroo, the leader of the organization does not follow the legal rule for the employment right if the Deliveroo could focus on the employment right in the organizational practices then it would have prevented this type of crisis. In this regard, Anderson and Handelsman (2013) stated that a proactive approach is helpful for taking the ethical business decision because it analyzes the consequences of the decision in advance. Owing to this, if the Deliveroo could have been analyzed the impact of their unethical practices in advance then it would have converted the harmful impact into the beneficial impacts.

The utilitarianism has some loopholes in the ethical aspect because this theory reveals that the experience of management is helpful for taking an effective ethical decision in the business but sometimes prediction can go wrong and turn a decision to unethical decision (Kant, 2009). Thus, the rule utilitarianism is more suitable for taking an ethical decision in a lawful manner. Apart from this, variation in the condition like changing government laws lead the changes in the actual decision taken by the organizational management (Choi, 2017). It reverts the consequences of the management decision. In the same manner, Deliveroo does not establish the balance between the rules of gig economy and the UK’ employment rules in the business practices which resulted in the weaker sideof Deliveroo in the case of employee tribunal (Leigh Day, 2017). It reveals that low awareness of management in the legal obligations harm the organization in many ways.

In decision making process of business various ethical theories are used as per the demand of the situation. To understand the decision making in case of Deliveroo multiple theories can be used but Kant ethical theory is most suitable because it is duty-based theory. In this context, Kant stated that there is a single, self-evident fundamental principle of duties that also known as categorical imperative. He further focused on treating people well and considering their rights so as to improve their working conditions and offering them fair treatment (Kant, 2009). This indicates that people should be treated as the important asset of the business rather considering them as the instrument of working. This proves to be effective in boosting their morale and increasing their focus towards the work.

In the case study ofDeliveroo, firmcould have been applied theethics-based theory in decision making of employment. According to that approach, Deliveroocould have treated their employees as part of the company rather than labelling them as self-contractor. To achieve that, Deliveroo could have been invite all the employee in firm’s social events andmaking them as a part of the company culture irrespective of their designation. Furthermore, theory argues that a person is good or bad depending on the motivation of their actions and not on the goodness of the consequences of those actions (Anderson and Handelsman, 2013). Similarly, company also need to focus on the its own obligations towards the employees and provide them fair wages in the proportion of efforts they are putting for the success of the business. In revert of the company action in their favour riders would have also followed the company regulation and did not claim for the unethical behaviour of the company.

Furthermore, theory suggested that one can have moral worth only if one is motivated by morality (Demirtas and Akdogan, 2015). In this context Deliveroo also emphasizes on the riders’ safety and regulations. In this context, company being ethical towards the workers,uses cameras in helmets and upgraded their app to ensure that riders are safe. They alsoappointed more new staffs to focus on rider safety which shows the ethical behaviour of Deliveroo. However Noys, (2010) argued that Kant theory could not advocates in all ethical decision because it is permissible to do lie when doing so will save a life which means if the wrong decision which is being made for benefit for other is would be right .In this scenario as discussed above decision made by Deliveroo related to riders wages, and other facility was beneficial for company because it was cutting operational cost of the company but it could not justify the unethical behaviour towards riders of the Deliveroo.

According to the several studies, ethical behaviour is crucial for an organization because it affects the reputation of the company in the market as well as among the stakeholders (Blakely, 2015). On the contrary, if an organization follows the unethical practices like uses of children for the business operation or their clients use the child labours for increasing the profitability of the business. It affects the sustainability of the business (Taggart, 2011; Demirtas and Akdogan, 2015). In this regard, as an ethical manager, I would ensure that all the clients of the business do not use the child labours in the business contract and tie-ups with only those clients who follow the ethical standards.Further, the decisions taken from the leaders affect the whole social system and organization (Dolgoff, Harrington and Loewenberg, 2012). For this purpose, by promoting the involvement of social communities in the business, I would ensure ethical behaviour of the organization because every community has a different perspective on ethical behaviour. These perspectives are helpful for taking effective decisions which are less harmful to the societies.

In the present scenario, the competition in the businesses is increasing to a great extent where companies are moving fast in the race of success and management of these businesses are focus on earning high profitability as soon as possible (Love, Roper and Bryson, 2011).  This tendency of companies for the success forced the management to bring unethical practices like poor wages distribution in the organization and save the financial expenditure of the organization (Brown and Mitchell, 2010). In the same manner, UK' delivery companies like Uber and Deliveroo executes this type of unethical practices in the organization and shown the unethical behaviour globally (Butler, 2018). In that case, as an ethical manager, I would ensure tofollow the ethical practices by equal distribution of wages among employees. Not only this but I would also ensure that their efforts are rewarded for their increasing satisfaction. Apart from this, I would maintain the transparency in the business policies by providing the printed material of the policies to each of the employees in the organization. This will also boost morale of employees and brand image of the business can be increased.

In the contemporary era, many of leaders promote only those employees in the organization who are the favourite of the leader. This type of leader's behaviour brings the unethical leadership in the organization (Mainiero and Jones, 2013). Apart from this, it also decreases the productivity of the organization because of favouritism promotes the low skilled employees which negatively affects theskilled employees of the organization and enhances the dissatisfaction among the employees (Bello, 2012). Furthermore, it degrades the moralities of the employees which further stunning the growth of the businessby using unethical behaviour and increase the employees' turnover (Taggart, 2011). However, in this situation, I would understand this concern for organization as well as other workers through increasing professionalism. Not only this, but I would make it sure that employees working in my company feel satisfied and motivated without the feeling of bias at workplace because being ethical leader it is my responsibility to be role model for my employees who in turn promote the brand image.

The management of all the aspect of international businesses like clients, customers and employees are the most difficult task. The loophole in themanagement of supply chain creates the cause for offering poor quality products in the consumers (Weiss, 2014). For example, the horse meat scandal of Tesco revealsthe unethical behaviour of firm towards the customer because the Tesco offer beef patties on the store but the patties contained the horse meat. It was most disappointing for Tesco’s customers (Lawrence, 2013; Fletcher, 2013).In such kind of situation which bring the unethical practices in the company, I would ensure to select the material every day on the basis of set criteria. Also, the selected suppliers would be ethical who ensure to meet the quality standards set by the business. For this purpose, in would appoint the employees who check the quality of raw material on the basis of standard measure of quality when the consignment from the suppliers will unloaded in the warehouses. Apart from this, I would also enhance the communication with customers and apologize for the lack of management along with taking the strong action against the supplier who does not provide the quality products. It will reveal the ethical behaviour of the company in the potential customers.

Conclusion

On the basis of the above report, it has been concluded the focus on the employment rights in the business practices is most necessary to save the organization from the harmful impact of employment rights’ negligence. In this regard, this low focus negatively affects the competitive edge and the mindset of the stakeholders. Apart from this, according to the theoretical analysis of Deliveroo’s practices, it can be concluded that the ethical theories are helpful for preventing the unethical behaviour of the firm by applying several techniques. Therefore, the consideration of the organizational practices is imperative for the emerging the brand reputation.

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