VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
Vodafone Group is the world's leading mobile telecommunications company, based on revenue, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. It currently has operations in 31 countries and partner networks in a further 40 countries. Based on subscribers, it is the world's second largest mobile phone operator behind China Mobile and over Telefonica; with over 427 million subscribers in 31 markets across 5 continents as of 2009.The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. It has a market value of about £71.2 billion in November 2009. This Case looks at how the Vodafone Group and its subsidiary value ethics. It examines how ethics supports the company's growth and how Vodafone's ethics drive the company's actions in dynamic market. Let’s first define the subject of business ethics. Business ethics is the study of business situations, activities, and decision where issues of right and wrong are addressed.
Vodafone’s Business Principles and Code of Ethics:
Vodafone's success is underlined by their commitment to ethical conduct in the way they do business and interact with key stakeholders. The company’s Business principles define how the business is conducted and the relationships with key stakeholders. Some of the ethical issues covered under Vodafone’s Business principles include: • • • • • • • • Bribery and corruption Conflicts of interest Data protection Environment Health and safety Human rights Political contributions and lobbying Transparency
This makes sure that all employees are aware of their obligation to report any suspected incidents of dishonesty. Vodafone had taken efficient measures to deal with violations of business principles. Its gives more emphasis on to adhere to a high standard of business ethics and not to seek competitive advantage through unlawful or unethical business practices.
. However. Employees as well as suppliers and contractors are allowed to report at any time regarding any potential violations of the Business Principles. The company have developed a ‘Vodafone Code of Conduct’ to provide clear guidance for employees on how to behave accordingly to Business principles and engage in an ethical manner with colleagues. This may damage financial performance in the short term but still it believes that ethics guide decisions. illegal activity or breaches of Vodafone's Business principles or policies.VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
Though the business principles were well constructed. For this. rules and regulations. business partners and other stakeholders. To cite an example is that when Vodafone first included moderators into young people's chat rooms to create a safe environment for chat. the company believed that this was the right thing to do. By discussing options managers are more likely to achieve agreement and goals that are agreed are more likely to be met. Vodafone takes a strategic approach to its ethics and business decisions. Individual market Chief Executives are made responsible for ensuring the application of business principles in their companies. Vodafone have also developed ‘Duty to Report Policy’ to ensure all Vodafone employees including contracted staff and suppliers act with honesty. This involves managers considering the impact of important decisions in the long-term. The company expects its each officer to act with integrity. the number of users dropped significantly and this led to reduced revenues for the company. it is necessary to create awareness and implementing it across the various groups to ensure that they are effectively applied. integrity & fairness. rules and regulations.
Ethical Decision Making:
Vodafone believes that ethical companies concern themselves with the long term and do the right thing. customers. including being honest and sincere while still maintaining the confidentiality of company information and to observe fully applicable governmental laws. It is the company's policy to comply with all applicable governmental laws. financial malpractice.
While working on the Code of Practice.VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
Here let’s see Vodafone’s approach to some of its key stakeholders. They could also check that the restrictions were effective. They also favour companies that operate in a responsible manner. in July 2004 Vodafone UK launched a joint Code of Practice for selfregulation. Vodafone has carried out extensive research which confirms what the company believed. Vodafone lays emphasis on its customers by marketing products and services responsibly. This prevents access to18 rated content for children and young people. Vodafone was the first company to introduce a network bar that effectively blocks access to all forms of content that has been rated as 18. and protecting customers. It was that operating ethically generates clear benefits. When developing this Code of Practice for content. It could interpret the requirement to block access as having either an
. was introduced in 2004. which is self-regulatory. It is automatic and the bar is lifted only if customers can demonstrate they are 18 or over. The charities could see the sort of content available. Vodafone gave phones to researchers working for children's charities. Together with other UK mobile phone operators. however. communicating openly and honestly. Vodafone had the opportunity to consider what its ethical stand should be. Operators must also offer parents the opportunity to apply a filter to Internet access services. This bar. called Content Control. that they believed restricting access to adult content on mobile phones was very important. The advent of 3G technology and video content is related to young customers and society's concern about adult material reaching under 18s. Vodafone UK's research has revealed that parents do not know the types of content available via mobile phones and a survey of all adults showed. The results showed that customers are loyal to companies they trust. The Code requires operators to stop under 18s from accessing commercial content classified as being unsuitable for them. The company’s emphasis on its customers particularly among young customers can be seen through its effective and ethical approach towards them. Towards customer: Vodafone always tries to be an ethical company to its customers.
Its goal is to recruit and retain the most talented. adversely affecting what customers think. through its work with the children's charities determined that an opt in policy was the more appropriate and responsible position to take in the UK. They assess new and existing suppliers for compliance with their Code of Ethical Purchasing. Vodafone's commitment to
. Towards suppliers: Vodafone's Code of Ethical Purchasing aims to ensure that its suppliers share its values and uphold standards on human rights. and offering attractive incentives and development opportunities. It covers human rights issues and labour standards.everyone could access the material and request to have the bar applied to 18 rated content. A business that did not care about ethics would simply seek to maximise revenues regardless of how its products affected society. Towards pressure groups and governments: Vodafone’s actions are also influenced by other stakeholders including pressure groups and government regulators. Its Group employment policies are consistent with the UN Universal Declaration of Human Rights and the International Labour Organization's Core Conventions. They are using site assessments of high-risk new and existing suppliers to identify potential areas of non-compliance with their Code of Ethical Purchasing.g. Their Code of Ethical Purchasing sets out the standards that they expect their suppliers to meet. payment and working hours. everyone would be barred from accessing over 18 material and would have to make a conscious choice to receive this content or • opt out policy . It also covers environmental management and bribery. motivated people by providing a good working environment. including child and forced labour. Vodafone believes that it is unlikely that such a business would continue to grow because. treating people with respect. Towards employees: Vodafone is committed to protecting and enhancing the human rights of its employees. Vodafone.VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
• opt in policy .e. health and safety.i. regulators would punish their actions (e. freedom of association. disciplinary practices. discrimination. imposing fines and revoking operating licences) and pressure groups would highlight unethical actions.
This includes the need to protect young people from inappropriate contact. They have also introduced an anti-bribery online training course. Employees are encouraged to report any potential violations of
. gambling and erotic material. They had set up “Anti-corruption Compliance Guidelines’ to help ensure that employees and other related to company comply with all applicable anti-corruption laws and regulations.g. energy reduction activities.
Last but not the least. Vodafone believes that ethics guide companies in reacting to changes in the environment. regulations and standards in the countries where they operate. Vodafone always believes in and follows transparency with their shareholders. However. An example is that company’s ethical approach to the society under 18 due to the advent of 3G mobile phone technology.
Business Ethics and Changing Environment:
Vodafone's ethical approach drives its response to changes in the environment. including violent games. pressure groups. Vodafone recognises that it brings additional responsibility. including improper offers or payments to or from employees. recycling mobile phones.
Corruption and Governance:
Vodafone’s Business Principles set a policy of zero tolerance on bribery and corruption. Naturally. Vodafone keeps on monitoring and actively reduces the impact of the business on the environment e. Vodafone ensures that their staffs are empowered and ethical to make them take better decisions when reacting to changes.VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
human rights is embodied in its business principles. reducing waste. The company is keen that there should be no form of bribery. 3G will help the companies to increase their sales revenues. customers and other interested parties may have about the company's impacts. Vodafone's employees implement company strategies in a fast changing competitive environment to make effective tactical decisions with their consistent and shared set of values. The company always listens to any concerns local communities. It is that respect and comply with all human rights legislation. Vodafone always encourages whistle-blowing in an appropriate way that the company had set.
Ethics are fundamental to the company's development and companies should remain true to their ethical values like the one. The line was made available 24 hours a day. Vodafone is a leading player in mobile telecommunication sector and has grown quickly. like the industry itself. The company also encourages suppliers and contractors to raise their concerns either by contacting Vodafone’s Group Corporate Security department directly. Vodafone is committed to completing a timely investigation.
Vodafone always believes that it has a responsibility to society.VODAFONE AND ITS BUSINESS ETHICS ANALYSIS
the Business Principles to their line manager or local human resources manager in the first instance. Such a growth presents challenges and the company's approach to ethics guides its continued growth. Vodafone Group. Alternatively. follow-up and resolution of all issues reported. The company follows the procedure that all local markets must report incidences of fraud monthly. they can raise concerns anonymously to the company’s Group Audit Director or to Group Human Resources Director via an online whistle-blowing system. or via a third party confidential telephone hotline service.
. customers may question the company's beliefs. If they do not.