It’s not difficult to see that honesty, integrity and consistent ethical behaviour are set forth in these statements.
After vast amount of research I have identified that WWP Media’s main primary stakeholders are its shareholders, clients and employees as they have direct effect and interaction on business. The environment, community and the society in general are their secondary stakeholders as they have indirect or limited effects on business.
After studying the Stakeholder Mapping theory, I understand that the shareholders within the company have greatest influence with high interest and power. Employees are those who have a high interest in the company but do not have much power within company because they are further down in the hierarchy of decision-making.
Business ethics involves a search for and commitment to meet appropriate standards of moral conduct in business situation. Ethics has direct effect in the running of WPP Media. Behaviours and standards set by the company affects many of their main stakeholders. They need to make sure that the relationship they build with their stakeholders is through honesty, tradition and discipline in order to protect their very good reputation as a multi-national company. As in any global organisations, the shareholders are one of the key stakeholders. In the case of WPP Media, the confidence of the shareholders is so much more important then ever before because of the company’s growth development programme worldwide, which needs the backing of the shareholders. WPP has a well-developed continuous program to address the needs of shareowners, investment institutions and analysts, supplying a regular flow of information about the company, its strategy, performance and competitive position. Their website www.wppinvestor.com has been created specifically for WPP’s shareowners and the worldwide financial community. It provides current and historical financial information including trading statements, news releases and presentations. WPP’s customer service is convinent and quick, so that their shareholders are well informed with updated information and benefit from their investment. This result helps the shareholders to build up their confidence and trust in the company; therefore they will invest more money for a longer term. Eventually it will benefit both the shareholders and the company.
Clear ethical standards and direction foster more favorable and promising work climates. WPP’s employment policies are designed to attract, retain and motivate the most talented individuals. It has been proven that when employees feel motivated and supported they can work more efficient. WPP’s groups of companies invest significantly in communications, training and development programs at parent and operating company levels. Their training spend in 2002 was over £21 million, equivalent to £345 for every employee. The companies encourage an ownership culture through WPP’s stock option and other incentive plan. Employees at WPP Media have seen the best perks in recent years. Long-serving employee’s i.e. over 2 years are given share options in the group. With the company ever growing, with take-overs and parent companies forming, employees will benefit from bonus dividends. Meanwhile the treatment of staff is very essential not only for WPP Media but every other large company. A strong code of conduct within the company is the protection of the staff and so the company will not tolerate any sort of discrimination whether it is race, religion or gender. If the business consistently rewards ethical behaviour and disciplines unethical behaviour, employees learn how central ethical values are to the company. Logically, it is in their own best interests to practice ethical behaviour. Important stakeholders such as the board of directors stress the importance of good business ethics from the company as it allows them to see that they are taking an interest of not only the values of the company but also the needs of everyone affected by them. It also shows that they have good business practice and comply with their code of conduct of being ethical.
Corporate social responsibility is the continuing commitment by business to behave ethically and contributes to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Although the secondary stakeholders such as community, society and environment seem to have lower effect on business, an organisation that sought to act in a responsible way would need to compromise and take into account the secondary effects i.e. the externalities of business practice when undertaking work. These responsibilities are directly linked to the essential functions the organisation performs for society and the influence it has upon the lives of individuals. WPP Media is undertaking many programmes in relation to being socially responsible. In 2002, WPP adopted a Corporate Social Responsibility policy and established a performance baseline comprising a small number of key measures for environmental and social issues. WPP’s director, Howard Paster, is responsible for the implementation of this policy. WPP’s operating companies, together with the parent company, make a substantial contribution to society e.g. donations to charity and community organizations. They contributed more than £12 million worth of time, skills, materials and money to social and community causes in 2001. WPP supports a number of community programmes including the Partnership Against Drugs, a UK-government initiative led by Business in the Community, and has participated in the Prince of Wales' Business Leaders' Forum. WPP is a founder member of the RSA's initiative, Centre for Tomorrow's Company, which advances best competitive - and ethical - business practice. As WWP Media is mainly a service-based company, their impact on the environment is small, but the Group recognises that the pursuit of economic growth and a healthy environment are inextricably linked. WPP, as a parent company to their operating companies, upholds the principle of 'subsidiary' and charges their companies to adhere to best practice. In their worldwide operations they endeavour to adopt good environmental practice in respect of premises, equipment and consumption of resources.
In the last few years they have invested in millions in improving areas such as education, employment and financed government schemes. As part of WPP's strategy of supporting young people through education, they have pledged £60,000 to London's first Arts College for the Media Arts: Charles Edward Brooke, a state secondary school for girls from multi-ethnic backgrounds. This government-backed initiative aims to equip young people with the skills needed to succeed in business and to make learning more relevant to the needs of future employers. Group companies are contributing help, counsel and equipment to the college. To carry on the social responsibility doesn’t mean the company has to give up their profit, WPP’s success has proved that socially responsible firms tend to outperform the market average; it shows the company has long term plan. In addition they will obtain good reputation and stable relationships with their external environment.
In conclusion of this essay, WPP Media is showing signs of being a Company that is dedicated to high standards of ethical practice. Their behaviour has met the public expectation, customer demand, also the employee’s desire. They are taking up projects, policies and standards that please all of their main stakeholders and are still improving every year. Therefore they have obtained not only economic profit but also more importantly, the good reputation, which will benefit their business in long run. Their needs are being met and constantly exercised. It remains to be seen what entails for the company in the future; after all ethical practise should be set as a long-term goal for any organisation and it’s worth the investment.
Bibliography
Business strategy, an Introduction
Authors: David Campbell
George Stonehouse
Bill Houston
Published 2001
Chapter 14 ‘social responsibility and Business ethics’
Business, an integrative approach (3rd Edition)
Authors: Fred L. Fry
Charles R. Stoner
Richard E. Hattwick
Chapter 6 ‘understanding stakeholder expectations and ethical responsibilities’
Annual Editions Business Ethics (01/02)
Author: John E. Richardson
The Business Environment (3rd edition)
Authors: Ian Worthington and Chris Britton
Chapter 15 ‘Corporate responsibility and the environment’
Internet resources
www. Wpp.com
http://www.google.co.uk/help/refinesearch.html
http://www.weblocate.net
Newspaper
Financial Times
