Tussles Between the Management and the Deliveroo Couriers - Paper Example

Introduction

This report seeks to solve the tussles between the management and the Deliveroo couriers. It is evident that this company has long observed the comfort of its workers by providing a conducive working environment. When solving this issue, the management should consider it an ethical question. One of the reasons which render this issue an ethical question is that it infringes on the workers' human rights (Ferrell, Fraedrich, & Ferrell, 2008). For example, the workers are entitled to salaries which are above the minimum wage as required by the law. From the claims launched by the couriers, the organization has offered salaries which are below the stipulated minimum wages. In this case, the organization should term this issue as an ethical question since it touches on the rights of the employees. Another reason for terming this issue as an ethical question is that it is centered on fundamental issues such as trust and integrity (Ying, 2005). It should be noted that business entities must conduct their business activities in a manner which treats the worker fairly. In this scenario, breaching on these fundamental aspects leads to lack of trust between the organization and the workers as they view it as a profit-making scheme with less concern for the employees' welfare. Also, this issue shows a poor decision-making process which has led to unfair and unjust conclusions such as denying the workers offs during public holidays (Yves & Marc, 2011). Such an action terms this issue ethical questions as it represents decision-making issues which are part of ethics in business.

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Role of Business in the Society

From this issue, the company should factor the role of the business in the society such as the provision of meaningful employment (McManners, 2014). The utilization of the services of riders to deliver products is one of the ways this organization has provided employment opportunities to the people in the society where this business entity operates. However, provision of wages which are below the minimum wages' waters down the positive attributes of Deliveroo as the employment opportunities provided are not worthy. Another way in which organizations play a role in the society is the provision of ethical practices which support conducive workplaces (Mandal, 2010). Such activities include the adherence to the laws such as offering wages and offering breaks during holidays which are above the minimum wages. Such provisions ensure the employees work in conducive environments which respect their rights. In this case, Deliveroo should reconsider its role in the society by offering enticing packages. Also, Deliveroo should strive to maintain good relations with its employees as they shape how the members of the society view it (Bubna-Litic, 2009). Better relations with the society erode the thought that the business entity of only governed by capitalism ideas of utilizing the available resources and making a profit at the expense of the employees and society at large. Therefore, the organization should minimize tussles with its employees which may create a negative image to the public ruining its reputation.

Key Stakeholders and How They are Affected

The employees are one of the key stakeholders affected by the issue of self- employment in this organization (Matuleviciene, & Stravinskiene, 2015). Although consumers are supposed to adhere to the workplace regulations and policies, these policies should aid the employees to achieve financial freedom by being in a position to settle bills. Since the employees offer their services, the organization should compensate them with realistic remuneration schemes. These employees have also been affected by strict schedules which rob their quality time to attend to other issues apart from workplace-related errands. In most cases, employees use holidays to refresh and spend time with their families. Denying them such a chance has led to lives which revolve around employment increasing the chances for burnouts and occupational stress.

Deliveroo owners are a part of the internal stakeholders who ensure the operations in the organizations are running smoothly and are only in charge of employee remuneration scheme, (Niels,2009). the owners have not been spared by the self -employment issue as the exposure of the organization's infringement of employee rights has created a bad reputation for their business venture. In this scenario, poor payment has exposed the failure of the organization to adhere to stipulated rules such as the minimum wage act. The society will only view this organization has an organization governed by greedy owners who mistreat workers for their gain. Such negative attributes can lead to loss of market leading to minimal profits and closure.

Labor unions have feed affected by the Deliveroo saga by failing to protect the riders from payments below the minimum wage. in their descriptions, trade unions term themselves as bodies which ensure workers get substantial payments and operate in conducive workplaces. However, the Deliveroo riders have been receiving minimal payments while labor unions exist. Such instances can create a notion that labor unions have lost their bargaining power and are not effective in protecting workers from crafty employees.

Ethical Choices

Gauging from the experience of other companies, better ethical choices have led to the success of the business entities. One of such companies is the Nokia company with struggled with employee dissatisfaction (Nawaz, 2013). The company received an Ethisphere award for being the most ethical company in 2018 as it garnered a lot of points in the ethics and compliance program category. Nokia company achieved a success in 2017 after launching its smartphones, one year before it was termed as one of the ethical companies. From this scenario, it is evident that companies which adhere to ethics are bound to achieve a higher success. Thus, Deliveroo should first ensure the employees operate in favorable environments to boost their morale.

Deliveroo company can also learn from Volkswagen, a company which suffered a lot of loses due to failure to comply with ethics. In 2015, it was discovered that the Volkswagen company fitted cars with software which enabled the cars to pass tests carried out to establish their emission rates (Valentini, & Kruckerberg, 2018). After the revelations, the company admitted to using the fraud tests to eleven million cars, an action which cost the company more than eighty- seven US million dollars. Such a case shows how failure to follow ethic can lead to detrimental effects to a business entity. Deliveroo should strive to avoid being caught up in ethics-related issues as they can take many years to create consumer confidence in their products.

Recommendations

From the legal battles involving the Deliveroo carriers and the company's management, the company should increase the wages of the riders. The salary department should ensure all the salaries are above the standard minimum wages to encourage the riders in carrying out their delivery schemes. Employees show a lot of commitment to employment which offers high salaries and is motivated when carrying out any business-related activity. This motivation results in higher profits and minimizes legal battles concerning payments that taint the positive reputation of the business.

Apart from the normal salary, the company should introduce bonuses to award workers who make more deliveries per day. Increasing salaries by high amounts for each employee can be challenging when the company only gains average profits. However, bonuses are ways of providing additional incomes which when summed with the monthly remuneration will surpass the minimum wages. Besides, the additional payment schemes motivate the workers to put extra efforts by delivering more products to the consumers translating to higher profits.

Deliveroo company should also come up with a flexible working calendar which awards the workers free days in holidays. Fixed working schedules lead to burnouts as workers are given less time to relax. Awarding free days during holidays which grant the workers enough time to revise their goals, gauge their successes gained from working in the company and device alternative operation methods which will boost their sales, increasing the company's earnings.

References

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