BUSINESS ETHICS

TERM
REPORT

BUSINESS ETHICS
AND
CHERRY INTERNATIONAL

SUBMITTED TO
MIRZA AKHTAR AHSAN

PATHWAY
BBA (HONS)-V

Hamdard Institute of Management Sciences

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Group Members

MUNSARIM AHMED
262073

MOHAMMAD KALEEM
262010

TARIQ HAMEED
262071

JAMEEL AHEMD
262039

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ASHER AIJAZ
271016

Acknowledgeme
nts

First of all I would like to thank all mighty Allah for giving me the

courage and strength to complete this report. Then I would like to

thank my course instructor Sir. MIRZA AKHTAR AHSAN, who gave

me the opportunity to apply what I have learned in the course in a

practical manner. He was the one who helped me in understanding

the course very well. Without his guidance the report would have not

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been possible. I would also like to thanks Mr. Hassan Ameen, the

owner of Cherry International in co-coordinating with us.

Introduction

Cherry International was established in 1978 in Karachi to produce

yarn, all for export to Japan, Europe and United States of America.

Yarn was exported to the Far East. In 1981, Cherry International

began to produce poly cottons and poly viscose for the local market.

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From 1983-1991, it catered to the domestic market only, because of

heavy import duties on fiber. In 1994, synthetic and blended fabrics

were exported.

Cherry International believes that business relationships are built on

the basis of trust and partnership. This is the maxim for their creative

dialogues with clients, business friends and employees. Satisfied

clients are our top priority. It is their objective to develop and apply

new technologies in order that their clients have a competitive edge.

Their client support services and product quality are a result of this

strategy.

Cherry International, provides following services to their valuable

Clients,

• Spinning

• Knitting

• Dyeing & Printing of Woven and Knitted Fabrics

• Designing

• Stitching

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Company’s Code of Ethics

Cherry International believes that honesty, integrity and fairness are

all aspects of business and expects the same from all those with

whom they do business. The ethics of customers/consumers,

vendors/suppliers, employees, government and workplace should not

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be violated. All business transactions on behalf of company must be

reflected accurately and fairly in the accounts of the company, in

accordance with established procedures.

CONSUMER/CUSTOMER ETHICS

Consumer ethics is concerned with consumer satisfaction, this done

through providing them quality products and services. Consumer

should know about the products that they are using, they should be

told about the product safety, the components used in it, information

about usage of these products, the responsibility of business towards

consumer is basically concerning product quality, pricing, labeling

and packaging.

Cherry International recognizes the importance of retaining the trust

and confidence of its customers. This trust must be merited by

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conduct in alignment with Cherry International’s Business Principles

and Code of Ethics.

Product Safety;

Cherry International use high-tech machinery and maintain good

working environment for product safety measures. They workers also

take precautions while working in the factory. They wear proper

clothes, gloves and plastic caps to maintain the safety in

manufacturing of yarn.

Cherry International views this as their moral responsibility of

providing what the customers want for this they emphasize a lot on

product safety. For this purpose a Manager is being appointed to take

care of the workers in factory that they should be dressed properly as

per requirement for safety measures.

Packaging and Labeling;

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Cherry International packs their yarn in a good quality paper so that it

does not get damaged while transportation. On all the bundles of yarn

the company has printed its stamp, the price and the components

used.

Deceptive Technique;

Cherry International does not try to mislead their customers through

fake advertisement as they think and serve customers as their first

priority.

Opinion;

Cherry International is taking a great care of customer safety and

protection. They also avoid doing deceptive technique of advertising

to increase their sales, as they believe in long-term goals and

customer satisfaction.

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WORKPLACE ETHICS

There are always some obligations between business organizations

and its employees working conditions in an organization. Employees

performance do depend on it a lot, organizations have some

obligation and rights towards the working conditions. Workplace is

simply a place where people work like an organization. So there

always some issues in workplace. It includes personnel policies and

procedures (hiring, promotions and wage rates), job discrimination,

sexual harassment and good working conditions provided to the

employees.

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Personnel Policies and Procedures;

• Hiring

The hiring policy that Cherry International follows is of merit. They

normally select the contestant from the company if available like

someone is to be promoted or otherwise they give advertisement

in the newspapers, then they receive application from the

applicants, sort out the applications according to high to lower

grades and experience. The top management then selects the top

10 applicants and they are called for interview and then finally 1 is

selected.

• Promotion Criteria

The promotion criteria practiced in Cherry International is that the

person who most influences the work i.e. the one who is most

responsible and performing well is promoted. Seniority does not

account for promotion in Cherry International.

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• Wage Rate

Wages rates are one of the major factors or important issue in any

workplace, every organization faces the problem of setting wage

rates and salaries. Cherry International is giving right amount of

salary to their employees but it is not 100 % right because every

organization says that they give right amount of wages to their

employees but actually they are not. Cherry International also gives

incentives, bonuses and also awards like best employee of the

month.

• Child Labor

Child labor is practiced in Cherry International they have hired about

20 children for cleaning purposes.

• Job Discrimination;

Job discrimination is also major problem. But in Cherry International

no such activity is performed. Here the jobs are given on merit basis

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rather than on nepotism or gender basis. The hiring criterion is very

tough as discussed above.

• Sexual Harassment;

No such event is reported to management as all the employees work

in a very friendly environment at Cherry International.

• Good Working Conditions;

The employees are provided by good tables, high-tech computers,

cleaned washrooms so now it’s the duty of employees to take good

care of it as Cherry International has completed its responsibility.

Opinion;

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Cherry International has fulfilled all their responsibilities towards their

employees by providing them good working platform. The only

unethical things done is that the hiring of child labor.

EMPLOYEES ETHICS

There are certain obligations of the employees towards the company.

The employees should be loyal; there should be no conflicts of

interest between employees and the company, employees should not

take bribes or any sort of gifts from outside sources, employees

should not abuse their official position. The same is expectation of

Cherry International from its employees.

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Conflicts of interest and Loyalty;

The employees in Cherry International are hard working and loyalty,

which results in their efficiency and company’s goodwill. Employees

must avoid any activity or arrangements that comprise of these things

because if this thing happens than then both employee and company

would suffer. As no such events of whistle blowing is reported.

Bribes or Gifts;

In the view of top level management no such activity is practiced in

Cherry International as good working conditions are provided to

employees which unable such activities to prevail.

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Abuse Of Official Position;

As told before that all employees share a friendly working

environment so there is no such mishap of abuse of official position

and also Cherry International’s employees use their car given by the

company for their personal things.

Opinion;

The attitude of employees towards company’s interest is more than

their own personal interest.

SUPPLIERS/VENDORS ETHICS

The companies also have certain responsibilities and obligations

towards their supplies or vendors. In case of Cherry International the

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company had maintained a friendly relationship with supplier and do

send them greetings cards and invite them in their annual meetings.

The obligation of the firm is to pay their suppliers on time and the

supplier’s responsibility to supply good quality raw material to the

buyer (firm). Mostly suppliers of Cherry International are outside

Pakistan as they import a lot as import taxes have reduced.

LEGAL AND GOVERNMENTAL ETHICS

Legal and governmental ethics concern about the government laws,

policies, rules and regulations which government implement to

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improve law and order situation in country or in any workplace

environment.

Cherry International has some laws implemented by government in

their company like laws concerning employee’s wages and the

organization pay certain amount of salary to employees of this grade

or position. Cherry International also has policies that like

organization should give medical facilities to their employees.

COMMENTS & OPINONS

Cherry International is following ethical codes of standards as

mentioned.

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• They are providing their employees’ high standard working

environment so that employee’s efficiency is improved and their

goals are achieved.

• They are taking good care about customer satisfaction and

health concerns.

• They are also taking good care of their suppliers by maintaining

good relationship with them and paying them on time.

• Work out to provide all relevant information to the customers.

• The only unethical thing practiced is child labor, which they

should abolish as soon as possible.

REFERENCES

• www.alibaba.com (cherry international’s official website)

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• BOOK BY TWO AUTHORS:

Khan Matin A, Mirza Akhtar Ahsan (2001). Research Methods for

Business Organization and Social Institutions. Karachi

• BOOK BY TWO AUTHORS:

L. R. GAY, P. L. DIEHL (1992). Research Methods for Business and

Management. Republic of Singapore

• Behrman, Jack N. (1988). Essays on Ethics in Business and the

Professions. Englewood Cliffs, NJ: Prentice Hall.

• Bowie, Norman E. (1999). Business Ethics, a Kantian Perspective.

Blackwell Publishing.

• George, Richard T. de (1999). Business Ethics. Prentice Hall.

• Hartman, Laura (2004). Perspectives in Business Ethics. Burr Ridge,

IL: McGraw-Hill.

• Harwood, Sterling (1996). Business as Ethical and Business as Usual.

Belmont, CA: The Thomson Corporation.

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CONTENTS

• INTRODUCTION
• COMPANY’S CODE OF ETHICS
• CUSTOMER ETHICS
• WORKPLACE ETHICS
• EMPLOYEES’ ETHICS
• SUPPLIERS/VENDOR’S ETHICS
• LEGAL AND GOVERNMENTAL ETHICS
• COMMENTS AND OPINIONS
• REFERENCES

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