Unethical Behavior
Description
Boohoo is one example of unethical behavior. In 2021, Boohoo was accused of poor working conditions for its suppliers and drivers, at the expense of whom the company maintained low product prices (Butler, 2021). Despite the company’s program aimed to improve factory workers’ conditions, there were no significant changes from the beginning of 2020. At the same time, its key managers shared a bonus of 150 million pounds that was not justified by the company’s needs.
The behavior observed here is evident. The attempt to achieve higher profits with lower costs influenced the company’s decisions, along with the alliance of corrupt managers who aimed to secure their own share. The root cause is greed and the inability to address ethical issues arising in the factories they work with.
Another unethical decision, creating an unnecessary program of improvement, was also justified by addressing criticism and maintaining shareholders’ interests. In this sense, unethical actions taken by the company are made at the highest level of administration, while lower-ranking workers are unable to influence these decisions.
Analysis
To assess this behavior, Shaw’s (2016) four-step approach can be implemented. First, it is essential to evaluate factual claims. In the case of Boohoo, there is a need to provide qualitative data that accurately reflects the company’s working conditions. Secondly, opponents of the claim can challenge moral standards. In this sense, it is possible to discuss the moral justification for having proper working conditions for all company workers. Since the moral standard can be criticized, the third step is to defend it. Here, it can be argued that responsibility for proper working conditions lies with whom. Lastly, there is a place for modifying the moral standard to argue that it is the company’s responsibility to provide proper pay and working conditions for its workers.
Ethical Behavior
Description
One example of ethical behavior is Airbnb’s decision to refund all guests during the COVID-19 outbreak. Regardless of hosts’ cancellation policies, Airbnb began issuing refunds to all guests at the beginning of 2020 (Sapra, 2020). The decision to prioritize the health and safety of its guests, despite incurring significant financial losses, can be considered an essential example of ethical behavior.
The root cause of the decision would be to prevent dramatic consequences and loss of image due to numerous cancellations worldwide. To prevent long-term financial losses, the company implemented an “extenuating circumstances” policy for both guests and hosts. The decision was made by the company’s CEO, Brian Chesky, and was well received by shareholders (Sapra, 2020). Additionally, the result was a rise in Airbnb’s revenue in the following years.
Analysis
Considering the four steps, it is essential to evaluate the factual claims. In this case, since it is ethical, the fact is that the company provided the best service to all customers and also repaid some of the cancellation fees to hosts. Furthermore, the company’s behavior would not challenge the moral standard, as it adheres to these norms. The defensive argument of prioritizing customer health relies on economic necessities, suggesting that it is more important to present a better image of the company. Lastly, there would be no need to modify behavior.
References
Butler S. (2021). Boohoo was accused of failing to improve working conditions in its supply chain. The Guardian
Sapra B. (2020). Airbnb is letting guests around the world cancel their reservations for a full refund and no cancellation fees as the coronavirus pandemic continues to disrupt travel plans. Business Insider.
Shaw W. (2016). Business Ethics: A Textbook with Cases. Cengage Learning.