Literature review Rwandan genocide

The Rwandan genocide that happened in 1994 led to the massacre and killings of more than 800,000 people. The killings occurred when the international community was made aware of the country’s political, administrative, and military concerns. Therefore, leadership, ethics, and organizational factors played a role in failing to prevent genocide in Rwanda. More so was the interplay between critical leaders and geopolitical relations.

Leadership involves organizing people, events, and activities to achieve a mission or a goal. Organizational behavior evaluates and analyses the impact and actions of leaders, individuals, and groups. In the Rwandan genocide, different leadership perspectives emerge from various leaders during the period. Transformational leadership involves inspiring positive changes among the followers. Transformational leaders are known to be energetic, passionate, enthusiastic, concerned, and engaged in the process (Robbins, 2004). Lieutenant-General Romeo Dallaire was a transformational leader as he focused on each of the groups in conflict to assess the situation and come up with a solution. His leadership style took into account different considerations, including the administrative, humanitarian, military, and political factors. His deputy, Beardsley, also adopted a transformational leadership style in the peacekeeping mission.

 

Behavioral leadership theory is based on the belief that leaders can learn new actions and achieve new results through teaching and learning. In behavioral leadership, a leader develops a behavior of having a specific response to a particular stimulus. The UN member states and the UN department of political affairs practiced behavioral leadership whereby they handled the situation based on previous peacekeeping missions. The contingency leadership theory focuses on environmental or surrounding factors that determine what leadership is suitable. A leader does not adopt one particular leadership style in all situations, and so adopts a style based on the situation, leadership style, and the followers’ condition. Booh-Booh adopted the contingency leadership style as his leadership was based on the situation and his leadership style would affect the process. In 1993, Rwanda was under the leadership of Juvenal Habyarimana, who had served as a dictator. His leadership perspective was based on the contingency perspective whereby he adopted dictatorship in an environment that was hostile to allow any other form of leadership.

 

Incompetent leadership, all leaders possess certain traits that label them a leader. Some of these traits include integrity, self-confidence, self-drive, integrity, among other characteristics. The UN secretary-general’s special representative, Jacques-Roger Booh-Booh, saw himself as a competent leader as he adopted the diplomatic, political approach, and work ethics. He was not as involved in ensuring the success of the peacekeeping mission as Dallaire was.

The different leadership perspectives that the various leaders adopted clashed in administrative, political, humanitarian, and political factors. Each leader adopted a suitable style for themselves, which made the situation in Rwanda worse. There was also a lack of support for each leader and his style, and this made the peacekeeping mission ineffective and blameworthy in the Rwandan genocide. There was a lot of politicking between the UN member states and also between Habyarimana’s government and the Belgian forces that came as peacekeepers. The interplay between the different leadership styles and the geopolitical relations did not coordinate the situation in Rwanda, and to some extent, it made the situation worse. Therefore, poor organization of the different leadership perspectives failed to put proper structures and security processes to ensure the mission’s success (Long et al, 2009, p.277).

Starbucks case study

Introduction

Starbucks started in 1971 when three partners, Zev Siegel, Jerry Baldwin, and Gordon Bowker, opened up a shop to sell high-quality coffee beans and coffee equipment in Pike place market. Today, millions of customers walk into Starbucks to get their cup of coffee. Even though the coffee offered at Starbucks is overpriced, there are friendly and helpful staff and an upbeat environment at Starbucks that attract customers. People basically walk into Starbucks for its status symbol and what it represents. In 1985, the company expanded its operations to different US cities and Canada. It started internationalizing its operations outside North America in 1995 by entering new foreign markets, including Japan, New Zealand, UK, Spain, China, India, among other countries. Today, Starbucks Corporation of the US makes the most prominent coffee in the world as it specializes in selling coffee that is of high quality derived from Arabic coffee variety. While entering the foreign markets, Starbucks adopted its international strategy to meet each market’s needs and requirements by seeking to respect existing cultures and traditions. This essay discusses the entry modes for the UK and New Zealand, the environment analysis PESTEL of each foreign market associated with entry modes, and the strategic consideration behind entry mode choices.

Environmental analysis of entry mode/PESTEL

 

Starbucks expanded its international markets in the UK and New Zealand in 1998 and through different market entry modes. A foreign market entry mode creates a possibility for entry into the unfamiliar by arranging a company’s resources, products, human skills, and technology to suit that market’s needs. Many factors influence an entry mode, including the target country’s environmental factors that could impact a company. 

Environmental factors are the external factors that international companies cannot control while choosing the mode of entry. The environmental factors that surround international business include the political, legal, cultural, and economic environment. Therefore, the market entry choices by multinational companies are indirectly influenced by these factors, and the companies do not have control over them. 

  1. Political environment

Political environment includes governments, institutions, and the laws that influence a company’s operations at a local or international level. Political climate also consists of the political culture that defines the citizens’ involvement in political processes and the government’s acceptance by the population. Political factors like government regulations, rules, and institutions based on political philosophies can act as market barriers for international businesses. The political environment regulates global companies by requiring them to abide by the laws and regulations (Armagan & Portugal, 2005 p. 93).

  1. Legal environment

The legal environment of a business is the operations and practices under the control and regulation of state, national and international law. Most multinational companies find legal factors as obstacles to internationalization in the foreign market. Legal factors are a market barrier that influences the mode of entry into an international market. The factors played a crucial role in the method of entry choice for Starbucks. 

  1. Cultural environment

Cultural factors include; the cultural distance that is the possible differences that exist between individuals of different countries in the way they think and behave. Cultural aspects will influence the power of work methods transfer from one country to another. Therefore, the cultural differences between different countries might affect market entry into the foreign market. It is common to find firms choosing to enter the foreign markets closer to the home country because of the cultural distance. Starbucks is an American company with a culture that is utterly different from New Zealand and the United Kingdom culture. 

 

  1. Economic environment

 

The economic environment includes; competition, market potential, and nature, among other market factors. The nature of the foreign market, including its growth, size, and nature of competition, can influence an international company’s entry choice mode. Market competition refers to the rate at which competing firms concurrently pursue a company’s entry to a foreign market. When Starbucks ventured into the UK and New Zealand markets, the coffee stores and outlets were successful despite the high market potential and competition identified earlier before the entry (Sarkar & Cavusgil, 1996, p. 829). 

 

Before entering a foreign market, Starbucks conducted comprehensive and rigorous research to get a marketplace’s pulse and potential. Starbucks used three different foreign market entry strategies, including licenses, joint ventures, and wholly owned subsidiaries, that enabled its success in the foreign markets. A wholly owned subsidiary is a market entry mode that means that a firm owns 1000 percent of the foreign market entity. By establishing a wholly owned subsidiary, a company enters the new market through establishing new operations with a new legal entity or acquiring another firm in the foreign market that is well established. A wholly owned subsidiary enables a firm to have tight control over strategic plans and operations and retains its competitive advantages. Wholly owned subsidiaries also allow a firm to enjoy 100 percent of acquired profits. However, wholly-owned subsidiaries bear the entire cost of investment and entire risk in the new market (Chen & Mujtaba, 2007, p. 322). 

 

Licensing involves two parties: a licensor and a licensee, that sign an agreement for mutual benefit. The licensor sells company copyrights, processes, and patent rights to the licensee, who in turn pays a royalty to validate the deal with the licensor. Licensing can help an international firm expand its operations quickly and steadily with decreased expansion costs. Licensing also eases market barriers and enables a foreign licensor to improve the chance of a successful patent. However, licensing does not give an international firm central and tight control of operations (Belin & Pham, 2007, p. 41).

 

Starbucks entered the UK market by acquiring 65 stores of Seattle Coffee Company in exchange for 1.8 million Starbucks stock shares. In New Zealand, Starbucks opened its first store in 1998 in Restaurant Brands New Zealand Ltd, a licensee of Starbucks.

 

  1. Entry mode for the United Kingdom

 

There was a vast cultural distance between the US and the UK when Starbucks decided to venture into the new market. The UK people had opposed the American products and concepts; hence Starbucks needed to choose a strategic entry mode. However, according to Starbucks coffee international, they believed in a global brand that would benefit the UK population. Starbucks used the acquisition method to reduce the cultural distance between the two countries’ coffee concepts. When Starbucks entered the UK in 1998, it acquired the Seattle Coffee Company stores for about £50.8 million. This was followed by a rebranding of purchased Seattle Coffee Company stores into Starbucks Coffee Company Ltd (UK), a wholly owned subsidiary of Starbucks Corporation US, a year later. This allowed time for the British to become aware of the Starbucks coffee concept before rebranding. Being the first European market that Starbucks entered, UK became the springboard for internationalizing business in Europe. The acquisition in the UK by Starbucks has been growing ever since in terms of operations and size. In 1999, Starbucks formed a business alliance with Sainsbury’s and acquired Madisons Coffee in 2001 for £1.4 million. The following year, Starbucks formed an alliance with Borders bookshops which enabled Starbucks to purchase 13 coffee bars from the Coffee Republic at £2 million. 

 

In 2005, Starbucks had at least 30 business franchises in UK supermarkets and, by 2006, ranked position 34 on the “UK Top 50 Best Places to Work” awarded by the Financial Times in partnership with Great Places to Work Institute. As of 2007, Starbucks recorded success in the UK market, boasting of more than 500 opened shops. Starbucks has remained the most familiar coffee shop in the UK, with about 27 percent of the population rating the stores as their favorite. Currently, there are more than 600 branches of Starbucks stores spread across the UK and Ireland. The Euromonitor retail analyst positions Starbucks Coffee Company Ltd (UK) with a 16.7 percent market share index (Starbucks, 2008). 

  1. Entry mode for new Zealand 

 

In 1997, the New Zealand stock exchange authorized Restaurant Brands New Zealand Ltd as the licensee of Starbucks. The restaurant shared the Starbucks vision of bringing the Starbucks experience to New Zealand. As a result, Starbucks opened its first Starbucks retail shop in New Zealand at the Restaurant Brands New Zealand Ltd at Parnell Road, Auckland, a year later. The Restaurant Brands New Zealand Ltd operated the Starbucks stores offering the same quality coffee as the other international Starbucks stores. Restaurant Brands New Zealand Ltd was more than delighted to keep the Starbucks coffee culture essence by offering coffee beverages of various varieties of Arabic coffee beans serving with local pastries and desserts. Starbucks chose to partner with Restaurant Brands New Zealand Ltd as it was advantageous in terms of opportunities. In the 1990s, the competition in the coffee industry in New Zealand was low as the industry was still at an early stage. Starbucks saw this as an opportunity to gain recognition of their brand image by forming a licensing agreement with the restaurant and venture into the un-mature New Zealand coffee market. In 2001, Starbucks, in accord with Restaurant Brands New Zealand Ltd, opened 50 outlets. 

 

Since the licensing agreement with Restaurant Brands New Zealand Ltd, Starbucks has increased its total sales to a high of $27.9 million by 2006. The same-store sales in the Restaurant Brands New Zealand Ltd branches grew by 2.6 percent for the same year, and the store earnings grew by 6.3 percent. Starbucks has become the foremost international coffee brand in the New Zealand local market. Currently, Starbucks is growing continuously and steadily in terms of store expansion and development (Li, 2007, p. 21). 

Strategic analysis of entry mode

Acquisition in the UK

 

When Starbucks developed an interest in the UK market, it recognized the significant cultural differences between the UK and the US. The company looked for the entry mode that would establish a local company that would adapt to the British culture. Market barriers like government regulations, political factors, legal factors, tariff barriers, and other restrictive rules were not distinctive in Britain. The UK market’s market potential was an essential consideration for Starbucks’ internationalization as it identified Europe as an enormous potential for expansion (Starbucks, 2008). 

 

Starbucks chose the wholly owned subsidiary in the UK, allowing it to own 100 percent of the stocks. The environmental factors played a crucial role in selecting this particular entry mode. The critical factor influencing this entry mode is the scarce knowledge that Starbucks had on the business market, legal and political characteristics. There was also a cultural distance between the US-owned company and the UK market population. These created many uncertainties in the new market. The perfect mode of entry choice for Starbucks was, therefore, one that could get rid of these limitations and enable a successful business venture. The Seattle Coffee Company already existed in the UK market, and acquiring the company would allow Starbucks to gain knowledge in the new market. Starbucks was already large with resources and could afford the huge capital needed for the purchase. This was high risk, so Starbucks chose an operating coffee company in the UK operating in an American style. The economic factors like market potential and competition also affected the mode of entry choice for Starbucks. Starbucks decided to acquire Seattle Coffee Company with the benefit of eliminating the competitor and also with the promise of selling coffee in its first European market that was yet to mature (Tihanyi, Griffith & Russell, 2005, p. 218). 

 

Licensing in New Zealand

 

The environmental factors in New Zealand also played a vital role in choosing the mode of entry by Starbucks. First, New Zealand and the US’s cultural distance was not as vast and did not influence the entry mode choice. The New Zealand political and legal factors were favorable for foreign investors. In New Zealand, there were no market barriers like government regulations, tariff barriers, or strict legal requirements that influenced Starbucks ‘ mode of entry. In the early 1990s, New Zealand had a promising market for Starbucks as the coffee industry was just in the initial stages. The market potential was therefore enormous and encouraging, and the competition was comparatively low for Starbucks. Starbucks chose an early entry into the coffee industry and did not need to use a high control mode of entry to achieve market competitiveness (Sarkar & Cavusgil, 1996, p. 839). 

 

Starbucks’ main reason to choose licensing as a perfect entry mode into New Zealand was the environmental factors. The new market’s business environment was unfamiliar to Starbucks, so it lacked knowledge regarding the market. A licensing agreement with Restaurant Brands New Zealand Ltd that was an established firm that was also a franchisee of KFC and Pizza Hut brands paved the way for Starbucks to gather market knowledge from the local partner. The Restaurant Brands New Zealand Ltd was also big enough to commit resources in the agreement. Starbucks needed this commitment as the internationalization process of the 1990s, and its fast growth required the company to use a low-risk mode of entry. The market potential was enormous, and there were minimum market barriers from the political and legal factors in New Zealand. The low competition in the New Zealand market also enabled Starbucks to choose a low-risk entry mode like licensing instead of a high-risk method of entry like acquisition. 

 

Conclusion

Businesses that develop an interest in international markets may face many complications. These businesses have to change their way of thinking and a more complex and constantly changing global market. Starbucks is one such business that developed an interest in international markets and has expanded its operations into many different markets. The strategic obligations that Starbucks has used in its internationalization process have enabled it to succeed as an international market. When a company starts internationalizing its operations, it must choose the most suitable entry mode into that particular market. This can be a joint venture, acquisition, franchise, licensing, exporting, or a wholly-owned business (Belin & Pham, 2007, p. 44).  

Starbucks chose a different mode of entry choices for different foreign markets to adapt to the different needs, specific factors, and requirements for each market. The political, legal, cultural, and economic factors played a key role in Starbucks’ mode of entry choices. Each choice for the mode of entry suited each of the foreign markets. This shows that Starbucks was aware of international business’s nature and wanted to avoid the difficulties encountered during expansion into foreign markets. The company was also aware of the implications of an entry mode choice hence the need to seek the most suitable entry mode for each market. Each of the foreign markets that Starbucks has ventured into has its own culture and practices. Starbucks has therefore adapted international strategies that allow the company to satisfy the needs and requirements of these unique cultures and practices of the foreign markets. This essay analyzes the mode of entry choices for Starbucks in the UK and New Zealand and how these countries evaluate them. It also analyzes how appropriate the modes of entry are. The essay also discusses the strategic considerations by Starbucks for each mode of entry choice. 

 

Identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles

Issues

Ethics and ethical issues are significant in the domestic and global business environment as they indicate what is right and wrong. Businesses that adopt universal ethical standards perform better and enjoy a positive image in the society, a proper way to ensure long term operations. Several ethical issues can arise in both domestic and global business environments including moral principles in domestic contexts, intellectual property, innovation, and employment, among others (Gokmen & Ozturk, 2012). 

The domestic context refers to the unique setting of a host market with features like cultures, education, moral values, and legal instance that are specific to that particular market. While operating in a host country, an international business should consider that ethical values are different in every host market. Saying so, the moral values and culture in the host country determine ethical perceptions that estimate the mindset of clients. However, the moral obligation of a company is to produce products that meet ethical, legal and moral standards in sourcing raw materials, production and selling. 

Another issue that arises in domestic and international business environment is employment. International businesses that carry out operations in host countries are expected to provide employment opportunities to the local people. These businesses should have set standards that will guarantee a living wage for the employees, with acceptable pay levels and working conditions.  

Intellectual property protection is designed to reward investors for inventions that have proven to be useful, novel and non-obvious. Research and development particularly in the pharmaceutical industry is very costly and companies are given a patent to cover these costs. The issue that arises in patenting is whether much good is realized by having patented research or by not. A patent should not be monopolistic (Gokmen & Ozturk, 2012). 

Case study

Nutriset, a French company produces Plumpy’nut® a peanut-based paste that is high in energy and is made up of sugar, skimmed milk powder, vegetable fat, vitamins and minerals. The paste can treat chronic and severe acute malnutrition in children below five years (Rice, 2010). 

The company acknowledges the different domestic contexts of its host countries. UNICEF to treat malnourished children in Africa and Asia, purchases the product. The company has partnerships and franchises in these countries to produce the product. It therefore produces its products locally and with locally grown produce following the set local standards. However, ethical issues have come up regarding production in countries in the developing world whose peanuts are high in aflatoxin that causes sickness among children. The company should source raw materials that are safe and secure for human consumption. 

Local production in host countries has enabled the company to employ local population. In Niger for instance, the company has a factory that employs about 90 local people. The company also works with producers in several countries in Africa, Asia and America who produce 40%of the product. This shows that the company promotes local employment in host countries. 

The company has the formula for Plumpy’nut® patented and its production capacity has been impressive. The patent has enabled the company to do more research and come up with a better formula to re-nourish starving children. However, the issue that arise in patenting is whether much good is realized from the patent than when other companies are allowed to produce the product. Plumpy’nut is also expensive hence unaffordable for those in the developing world. According to FAO, increased production of Plumpy’nut is urgent as malnutrition is rapidly growing. Allowing other companies to produce the product at reduced prices and large volumes will greatly lower mortality rates from malnutrition (Morrison, 2013).

Business Ethics and Corporate Social Responsibility

Business Ethics and Corporate Social Responsibility

Business organizations must make a profit in order to survive. Saying so, they must also balance their desire for profit with the desires and needs of the society in which they operate. Organized societies in the world have established principles and rules for legal and implicit conduct that guide businesses in their quest to make profits while still not harming the society (Crane & Matten, 2010). In business, business ethics and corporate social responsibility concepts are often used interchangeably. However, business ethics has a different meaning from corporate social responsibility in that it is the moral principles and conducts that guide the behavior of businesses while corporate responsibility refers to a business organization’s responsibility to make maximum positive impact and minimize the negative impact in the society. This essay uses the Svennson and Wood business ethics model to assess the ethics of the business practices of Anglo-American and Primark. It also discusses the costs and the benefits to organizations that act ethically. 

The term ethical business behavior represents a combination of three words that are “ethical”, “business” and “behavior”. Ethical comes from the word ethics that means conforming to the set and accepted principles or standards. A business in an organization with an objective to produce or sell goods and/or services in order to make profits. Behavior is the manner in which a person or individual conducts him or herself. Based on these concepts, ethical business behavior involves the moral principles and standards that guide the behavior of a business. Corporate social responsibility is made up of ethical responsibilities among other responsibilities (Griseri & Sepal, 2010). Behaviors and conduct that are not there in the law but a society sets and expects from a business make up ethical responsibilities. Primark defines business ethics as the rules of conducts of business behavior that basically involve doing the right thing. Primark has made it a responsibility to look after the community that is involved in their business including their employees spread across the globe. For Anglo-American, the same principles and rules that guide an individual also guide a business. Acting ethically for the company involves distinguishing between right and wrong (Griseri & Sepal, 2010). 

In order for Anglo-American and Primark companies to be socially and ethically responsible, they have applied ethics in practice. Primark has clear values that shape its relationship with stakeholders. Some of these values and principles include taking care of their employees, being good neighbors to the community and establishing ethical business relationships with partners. The code of conduct for the company is based on International Labor Organization’s (ILO) Code that promotes freedom, security and dignity for its employees. The code of conduct is translated into 26 languages in the company’s website to ensure that the code is effectively communicated to employees working in different countries that the company operates in. Primark also has an ethical trade director who makes sure that the company sources goods ethically. It is also a member of Ethical Trading Initiative (ETI -www.ethicaltrade.org), an organization that improves working conditions for employees worldwide. In addition, Primark works closely with and provides training for their suppliers, factories, as well as its buyers to make them understand ethical issues. For suppliers and factories, the company has a selection process and auditing that enables appropriate working conditions before approval. The company adopts these values and principles in order to adopt good business practice that will sustain the business for a long time (The Times 100). 

Anglo-American company has ‘Good Citizenship’ business principles that set out company values and standards. The company is actively involved in initiatives that ensure acceptable standards and principles are met including Extractive Industries Transparency Initiative (EITI), the United Nations Global Compact (UNGC) and the Global Reporting Initiative (GRI). In addition, it contributes to the voluntary Principles on Security and Human Rights that ensure that the company does not negatively affect the local population while ensuring the security of its operation in volatile countries. These principles guide how security forces that secure a mining facility are trained in human rights, vetted, monitored and controlled. Anglo-American also adopts principles that ensure the protection of human rights among employees and local people in countries they operate. Anglo-American company openly supports and follows the principles in the Universal Declaration of Human Rights (The Times 100). 

The company also has a corporate responsibility that ensures that business operations are carried out taking into account the needs of all stakeholders including government, employees, local communities and customers. Anglo-American has also adopted a Socio-Economic Assessment Toolbox or SEAT process that enables managers measure the impact of their activities on the company and the community at large. In situations whereby relocation is needed for mining activities, Anglo-American company adopts a structured consultation, fair compensation, and restores the livelihood of the people involved (The Times 100). 

When a business operates in an ethical manner, it may incur additional costs in comparison with other businesses that may not do business in that manner. Ensuring highest legal and moral standards brings in additional costs to a business. For instance, Primark bears all the costs selection process and audit of suppliers and factories. It also takes care of the costs used for training of its suppliers and factories on ethical practices. Additional costs also come in employment of the ethical team that includes ethical directors and managers. For Anglo-American company, the costs that come with ethical business behavior include engaging stakeholders, training, vetting and monitoring of security guards that secure mining sites, assessing and measuring the impact of company activities on the community, and development of alternative and better livelihoods for the community (Griseri & Sepal, 2010). 

Ethical business behavior also brings with it numerous benefits to the business and the community at large. Ethical business behavior leads to transparency of a business operation as people are able to see how the business manages its relationships with stakeholders. In Primark, transparency between the company, suppliers and consumers has enabled good business practice. For Anglo-American, the principles have enabled the company work without fatal accidents, increase benefits to the community and avoid legal problems. Full compliance to environmental laws while paying attention to workers’ safety is critical for maintaining ethical standards and avoiding legal problems. Ethical behavior may also earn a company stakeholder loyalty. A business’ reputation in ethical behavior helps to build a positive image for the company. For Anglo-American, high ethical standards have enabled the company to be a more likely partner of choice for communities, governments and other partners. Ethical business behavior also creates a positive working environment for employees. Ethical behavior for a company trickles down to the employees who adopt ethical practices and hence develop positive relationships with one another and the community, and are given more autonomy (Svensson & Wood, 2008). 

In Svensson and Woods model of business ethics, three principle components include expectations, perceptions and evaluations. These components are interconnected through other sub-components.  In perception, the way a business interacts in relation to society expectations provides it consequences. This means that companies should understand society expectations and their impacts on the society as these impacts would determine their success.  Perception involves the business’ relationships with the stakeholders. The relationship between a company and its employees is critical, as employees are the ones that do all the work and enable a business to achieve success. A company should adopt principles that look into the needs of their employees. The adoption of the ILO codes of conduct by Primark is important in promoting employee welfare and ensures protection of their rights (Svensson & Wood, 2008). 

The day to day operations of a company normally depends on each individual contribution and when all levels of employees can connect, then it will be easier to understand what employees need in order to achieve success in the individual roles. According to Svensson & Woods, when employees feel connected to their organization they will enable its success. At Primark, relationship with employees is highly valued as the company keeps track of all its 700,000 employees working in three continents. If the company does not keep a good relationship with its staff by acknowledging their needs and providing the appropriate working conditions, then the company activities will be paralyzed. Primark has therefore made it a responsibility to make sure its partners, including factories and suppliers act responsibly towards their employees. Primark is also a member of Ethical Trading Initiative (ETI -www.ethicaltrade.org) an alliance of companies and trade unions that improve the lives of employees. Employees should have a positive attitude and feelings towards their organizations. If the organization look into their needs and does not discriminate against them, then employees will feel proud to work there (Svensson & Wood, 2008).

 Anglo-American has also adopted initiatives that look into the needs of employees with the aim of establishing good staff relationship. The stakeholder engagement process provides employees with a platform to air out their needs and for the company to respond in order to establish better relationships. Anglo-American company should not compromise their ethical standards in handling employees. Good staff relationship also involves good communication between the company and employees on company goals, objectives, operations and other critical information. This will ensure that the company and employees are moving towards the same goals and objectives and how these will be achieved. Active participation of employees in an organization should be promoted in an organization to enhance positive relationships with workers. Active participation and acknowledging employee contributions builds trust and satisfaction and employees can fulfill organization requirements including those of Primark and Anglo-American companies (Crane & Matten, 2010).  

In conclusion, business behavior has always had and will always have an impact on the environment they operate in. international organizations by stakeholders including employees, environmentalists and governments like the international labor organization (ILO) show that business behavior will always attract public opinion. The role played by public opinion and all stakeholders in shaping ethical and corporate behavior should therefore not be underestimated. Anglo-American and Primark companies have adopted business ethics as a responsibility to the society and stakeholders. This essay on business ethics and social responsibility critically analyzes Anglo-American and Primark companies and their application of business ethics. It uses the Svensson and Wood business ethics model to assess the ethics of the business practices of the companies and discusses the costs and the benefits to organizations that act ethically.