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Explain the implications for the business and stakeholders of a business operating ethically.

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Introduction

´╗┐Introduction For this task I have been asked to write the implications for a certain business and the stake holders of a business which is operating ethically. The business I have chosen to relate to is H&M. Understand the implications of businesses operating ethically Every business has a variety of stakeholders for instance H&M will have a number of stakeholders such as store managers, staff, customers and consumers each group will have interests in how the business is run on daily basis. Business owners are the key stakeholders they want and expect good financial performance from their investments in H&M, store managers know that their first priority is to deliver good financial results to keep the H&M owners pleased, their superiors will keep track off progress. Shareholders Shareholders are people who are involved in a business such as customers, consumers, suppliers and staffs all these are people are shareholders as they are involved in the business, an H&M shopper is a stakeholder as they are consuming products from Employees Citizen?s benefit from H&M activity during they provide labour force for business leaders to create wealth. When H&M hires employees they will need to follow certain laws that help workers from being exploited and made to work long hours, then be made redundant when they were no longer needed. H&M would have to provide satisfactory working conditions and that all workers will be kept safe from danger, they must also follow minimum wage. ...read more.

Middle

The drawback for H&M is that they have to bear in mind what consumers will think of their product and will it benefit them. Influence of stakeholders and pressure groups Corporate social responsibility is a response to external stakeholder?s pressure. It is also a response to pressure group campaigns and recognition that public disapproval could lead to commercial disaster. Businesses In pursuit of their primary goals cause damage to the planet. Environmental issues are on the focus in pressure groups which are a voluntary organisation that exists to create that will be listened to by decision makers everywhere. This includes business leaders and politicians. Therefore H&M will have conduct pressure groups to keep on top of environmental issues and the influence of their stakeholders. The benefits of this are they can deal with environmental issues effectively and impress stakeholders. The drawbacks of this are it can get out of hand and become a big concern for the business which they may have to close the business down. H&Ms stakeholders are: Shareholders- H&Ms stakeholders are shareholders because they hold the value of H&M. if H&M are doing well their value will rise. Shareholders will benefit from this as the business is prospering. The drawbacks of this are if H&M do not do well their value of their business will drop. Customers- Customers are stakeholders because they use the service H&M provides. ...read more.

Conclusion

H&M respect Human rights in all their operations, H&M also are committed to respecting human rights in their operations, their supply chain and in the communities where they operate. H&M seek to avoid any negative human rights impact and H&M use their influence to promote the fulfilment of human rights. Article 23 of UN Declaration of Human Rights * Everyone has the right to work, to free choice of employment, to just and favourable conditions of work, and to protect against unemployment. This is a right for all employees at H&M. H&M neither cannot forces any one to work with them. For example if an employee wants to work for H&M, they will have to consider them and see if they are fit for the business or if an employee wants to leave the business they could do so H&M have no right to stop them from leaving the business. * Everyone without any discrimination has the right to equal pay for equal work. It is H&Ms duty to pay all if they are doing the same type of job. For example if there were two employees who were working as a sales person they both should get paid equally no discrimination should take place. * Everyone who works has the right to just and favourable pay ensuring for themselves and their families an existence worthy of human dignity and other means of social protection. H&Ms employees have the right to ensure for themselves and their families that they are getting a good pay and they are relieving social protection. http://about.hm.com/content/dam/hm/about/documents/en/Corporate%20Governance/Annual%20General%20Meetings/2012/Managing%20Director%20Karl-Johan%20Perssons%20presentation%20at%20the%20AGM%202012_en.pdf ...read more.

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