Topic C02: Business Ethics and Social Responsibilities Student Worksheet p.

BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Activity 1: Pre-study – Selling short-dated food

You are required to –

(1) browse the article titled “Re-available: We believe in the value of short-dated food” on the given
website (https://www.dbs.com/livemore/hk-en/inspirations/greenprice-dbsf2020grantee.html) (or
refer to the Appendix) and publication in food safety issued by the Centre for Food Safety
(https://www.cfs.gov.hk/english/multimedia/multimedia_pub/multimedia_pub_fsf_101_02.html) to
grasp a general idea on the selling of short-dated food in Hong Kong in terms of the following –
(i) What is short-dated food? Is it the same as expired food?
(ii) What is consumers’ general perception of freshness, date of best before use and expiration date?
(iii) Is it illegal to sell short-dated food in Hong Kong?
(iv) What is/are the business model/practices of the supermarket being interviewed?
(v) If you were the business owner, would the business model/practices of the supermarket
correspond with your self-values such as responsibility or honesty?

(2) complete Student Worksheet p.2-3 and/or give your source of reference if applicable;

(3) share your study in the following lesson.

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BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Activity 1: Pre-study – Selling short-dated food

Areas of study Details

(i) What is short-dated
food? Does it mean
expired food?

(ii) What is consumers’

general perception of
freshness, date of best
before use and
expiration date?

(iii) Is it illegal to sell

short-dated food in
Hong Kong?

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Topic C02: Business Ethics and Social Responsibilities Student Worksheet p. 3

Areas of study Details

(iv) What is/are the business
model/practices of the
supermarket being
interviewed?

(v) If you were the business

owner, would the
business
model/practices of the
supermarket correspond
with your self-values
such as responsibility or
honesty?

Your source of reference

(if applicable)

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Topic C02: Business Ethics and Social Responsibilities Student Worksheet p. 4

BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Activity 2: What Does Social Responsibility Mean to

a Customer/Consumer?

You are now in the role of a customer/consumer and are required to complete the following
questionnaire by putting a tick “✓” in the appropriate boxes.

(1) Choose the TOP FIVE features you think a socially responsible company should possess.
(a) Concerned about environment  (b) Honest 
(c) Cares about/supports to the  (d) Promotes fair treatment in the 
community workplace
(e) Cares about societal concerns  (f) Cares about customers 
(g) Cares about employees  (h) Provides benefits to its 
(i) Performs acts of charity  employees (health care, MPF,
(j) Pay fair/equal wages  etc.)
(k) Think beyond profit 

(2) What do you believe are the motives for companies to undertake social responsibilities? Choose
THREE out of the following six motives.
(a) Enhance company reputation  (b) Genuine desire to help others 
(c) Attract new talent  (d) To acquire new customers 
(e) Rally employees around a cause  (f) Fix a damaged reputation 

(3) What are you likely to do if you believe a company is socially responsible? Choose FIVE out of
the following seventeen items.
(a) Spend more on its products or  (b) Believe the company is doing its 
services even if I could get them part to be environmentally
for less elsewhere friendly
(c) Post positive news stories about it  (d) See the company as an influencer 
on your social media accounts in an industry/ service sector
(e) Recommend the company to  (f) Trust positive news about or 
friends/family from the company
(g) Follow it on social media  (h) Buy its products or services 
(i) Be more forgiving if the company  (j) Consider working for the 
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makes a mistake company

(k) See the company as a partner of  (l) Look up the company online or 
people in the community on an app
(m) Buy the company’s stock, either  (n) Keep an eye out for new 
directly or indirectly through bank/ products or services the
investment institution company provides
(o) Post positive comments on the  (p) See the company as the leading 
company’s website, review company in its industry
websites, retail websites or social
(q) No action taken 
media

(4) What are you likely to do if you believe a company is NOT socially responsible? Choose FIVE out
of the following fifteen items.
(a) Buy the same product or service  (b) Believe the company is not doing 
somewhere else, even if it’s more its part to be environmentally
expensive friendly
(c) See the company as an adversary  (d) Do not see the company as the 
of people in the community leading company in its industry
(e) Advise friends/family to avoid the  (f) Do not trust positive news about 
company or from the company
(g) Post negative comments on the  (h) Avoid buying the company’s 
company’s website, review stock, either directly or indirectly
websites, retail websites or social through bank/ investment
media institution
(i) Be less forgiving if the company  (j) Do not consider working for the 
makes a mistake company, even if it pays well
(k) Participate in a boycott  (l) Join a protest of the company 
(m) Write a letter/email to the media  (n) Do not buy its products or 
or ethic/consumer watchdog (e.g. services
Consumer council) (o) No action taken 

[Remarks: Adapted from the reporting qualitative data in National Survey on Corporate Social Responsibility conducted by
American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York in 2016
(https://www.aflac.com/docs/about-aflac/csr-survey-assets/2016-csr-survey-deck.pdf) (accessed in June 2022)]

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BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Activity 3: Matching Game

Match the four different approaches to social responsibilities.

Moderate commitment to social

(A) Obstructionist ⚫ ⚫ responsibility; going beyond
minimum levels when asked

Minimal commitment to social

(B) Defensive ⚫ ⚫ responsibility; compiling with
minimum legal requirements

Strong commitment to social

(C) Accommodative ⚫ ⚫ responsibility; actively seeking
opportunities to contribute

Disregard for social

(D) Proactive ⚫ ⚫ responsibility; do as little as
possible

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BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Activity 4: Home Assignment – Case Study “Big-Eagle”

Read the following case carefully and complete the questions on p.9-10.

Big-Eagle is a leading global foodservice retailer with more than

30,000 restaurants serving 52 million people in more than 100
countries each day. In Hong Kong, there are over 200 Big-Eagle
restaurants hiring more than 10,000 employees. However,
Big-Eagle is also one of the most criticised companies in the world.
The widespread criticism constitutes a huge threat to its
business around the world. Big-Eagle has then taken actions in response to the criticism
received from their key stakeholders.

Criticism on Big-Eagle Big-Eagle’s responses to the criticism

A. Treating its employees unfairly

with long work hours at unjust
wages.
According to surveys done by a trade
union in Hong Kong, the average hourly The hourly wage of employees in
wage for Big-Eagle’s employees early Big-Eagle’s Hong Kong restaurants
this year was just slightly over HK$35 was increased from HK$35 to
(the minimum wage is $37.5/hour in HK$37.5 in September this year.
2022). Although in September,
Big-Eagle’s hourly wage was raised from
HK$35 to about HK$37-40, it was still
among the lowest paid job categories. In
other less developed countries, the
conditions are worse.

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Criticism on Big-Eagle Big-Eagle’s responses to the criticism

Big-Eagle has removed those huge

size meals from its menu and added
B. Selling unhealthy food
some healthy items, such as green
At Big-Eagle, most meals served to
salad, to its menu.
customers are oily, high-calorie,
unhealthy junk foods that could cause
Big-Eagle also decided to reduce the
obesity and other health problems if
trans-fat content of its cooking oil.
consumed regularly.
Also, Big-Eagle donated money to
charitable organisations to show
their interest in taking care of the
C. Un-environmental friendly
community.
Big-Eagle is well known for
over-packaging. Large quantities of
wrapping paper, plastic straws,
tableware, and poly-foam containers, Big-Eagle takes certain actions to
which are neither degradable nor address the environmental
recyclable, are used by Big-Eagle. This protection issue. To name a few,
is detrimental to the environment, Big-Eagle started:
which in turn is hazardous to human ⚫ using thinner wrapping paper,
health. recyclable tableware and
containers in September this
year.
D. Purchase from Unethical ⚫ launching campaigns, such as
Suppliers “No Straw Day” and “Waste
It has been reported that Big-Eagle Recycle Programme”, to
procures some of the toys, which go promote environmental
with its meals, from “unethical protection.
suppliers”. Those suppliers have been
the targets of attacks on policies,
including workers’ pay in developing
Big-Eagle has set up a set of Code of
countries (such as Vietnam). Moreover,
Conduct for Suppliers. Suppliers of
in some places, the working conditions of
Big-Eagle have to comply to the Code
these suppliers are bad or unsafe.
of Conduct denoting Big-Eagle’s
expectations of procedure & staff
management.

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Questions – Big-Eagle

1. Which approach do you think Big-Eagle has adopted to social responsibilities?

2. (a) Do you think that Big-Eagle is an ethical and socially responsible corporation ?

(b) If ‘yes’, why do you think so? If ‘no’, what do you suggest Big-Eagle do in order
to improve the situation?

3. Do you think the government should regulate business ethics and social
responsibilities? Why or why not?

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4 In your view, what are the rationales/motives behind Big-Eagle’s actions?

5 Do you think ethical and socially responsible business practices are always in
conflicts with profitability? Justify your answer.

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BAFS Compulsory Part - Business Environment

Topic C02: Business Ethics and Social Responsibilities

Lesson 2 – How Business Ethics and Social Responsibilities Affect Business Decisions

Activity 5: Case Studies on Ethical Decision Making

in Business

FOUR authentic cases on ethical decision making in business are adopted in the case studies
available on the website of the Hong Kong Ethics Development Centre
(https://hkbedc.icac.hk/en/resources/case_studies (accessed in April 2022)). The cases are set
according to scenarios in different industries/professions in Hong Kong.

You are required to –

• form a group of 4-5;

• read the case assigned, discuss and complete the discussion questions of relative cases (either
Case 1 on p.12-13, Case 2 on p.14-15, Case 3 on p. 16-17 or Case 4 on p.18-19) from the
employee’s perspective at workplace;
• take the following factors into consideration when identifying viable alternatives in an ethical
dilemma and choosing the best course of actions –
(1) Any violation to his/her professional, industry specific, or company code of conduct?
(2) Is it against the law, e.g. Trade Description Ordinance, Prevention of Bribery Ordinance*?
(3) Does it correspond with his/her self-values such as responsibility or honesty?
(4) Can he/she disclose his/her decision to others openly and honestly without misgivings?
• select a group presentative to introduce the case briefly and present the answers in class.

*Examples of employee’s act which may violate the Prevention of Bribery Ordinance (POBO) –
Any employee
➢ without lawful authority (conduct constituting an offence is justified or excused by or
under a law) or reasonable excuse, to offer advantage(s) (e.g. money) to a civil servant for
his/her assistance in leaking restricted information
➢ without the approval of his/her company, to accept advantage(s) (e.g. money or gifts) from
a supplier, for recommending the supplier to his/her company
➢ to use false documents / receipts / account records with an intention to deceive his/her
employer
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Case (1): Failure to disclose relevant information (Sales and marketing)

Link: https://hkbedc.icac.hk/en/resources/case_studies/203?select1=16&method=1&keys=&select2=26

Fagin was a sole agent for a sports bag imported from a foreign country. The bags appealed to
teenagers and came in various striking colours. They were renowned for its high quality and being
colour-fast. One day, Fagin received a complaint from a customer that the colour of the bag ran off
shortly after the purchase. Fagin quickly made a refund and hushed up the matter. To avoid
further financial loss, he was planning to get rid of all the stocks by a massive sale on the bags
before the related news broke out. Meanwhile, he also wondered if he should disclose the defect
to the distributors in Hong Kong. He thought it would be fine during massive sale as long as he did
not lie about the flaw but simply avoid mentioning it.

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Discussion Questions:

(1) Was Fagin facing an ethical dilemma?

(2) Would his failure to disclose the information regarding the product defects be as bad as making
false claims about the products?

(3) Should he call back all the defected products from the market in order to maintain a good
business reputation?

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Case (2): Stealing information (Misuse of information)

Link: https://hkbedc.icac.hk/en/resources/case_studies/223?select1=6&method=1&keys=&select2=26

Jackson and Jonathon were mates in university. They both joined in the same architecture firm as
junior architects after graduation. Though they were close friends with similar background, they
also competed with each other on almost everything.

Lately, the company had an internal competition for making a proposal for a redevelopment project
of the company’s warehouse in the suburbs. The proposal needed to consider various factors such
as the increasing of labour cost, the shortage of land, the unpredictable economic trend, etc. Both
Jackson and Jonathon participated in the competition and worked very hard to draw up a winning
proposal. Competition between the two friends was fierce. Through personal connection, Jackson
got some useful restricted information on the future development of the nearby lots from the Lands
Office for his proposal. He casually saved the restricted information to his computer. One day,
Jonathon went to Jackson’s desk asking Jackson out for lunch. Jackson was not around, leaving his
draft proposal displayed on the computer screen. Jonathon took the chance to scan through
Jackson’s draft proposal and discovered the restricted information.

Desperate to win the competition and to beat Jackson, Jonathon was in a crossroad. He could easily
beat Jackson if he stole Jackson’s ideas and the restricted information to improve his own proposal.

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Discussion Questions:

(1) Was Jonathan facing an ethical dilemma?

(2) Explain how both Jackson and Johnathan violated to their professional, industry specific, or
company code of conduct?

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Case (3): Padded expense accounts (Professional conduct)

Link: https://hkbedc.icac.hk/en/resources/case_studies/216?select1=1&method=1&keys=&select2=26

Leonard was an accounting manager of a listed company. After returning from a regional meeting,
company’s department heads filed their expense vouchers. Nothing was out of the ordinary
except that one new department head, Cain, submitted a voucher for $6,000 less than the
others. Someone in the accounting department thought that this was strange as everyone used
the same transportation and stayed at the same hotel. But Leonard who had worked in the
company for long enough knew that padding travel expenses was not uncommon. Some of the
vice-presidents even joked about it as being an additional fringe benefit. However, the company
policy clearly stated that such cases were strictly prohibited and that violators would face demotion
or termination. It’s Leonard’s job to decide how to enforce the policy.

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Discussion Questions:

(1) Was Leonard facing an ethical dilemma?

(2) Explain the action that Leonard should take as a professional accountant?

(3) Should he issue reminders to all staff to reiterate the company policy?

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Case (4): Profit-splitting (Procurement)

Link: https://hkbedc.icac.hk/en/resources/case_studies/220?select1=17&method=1&keys=&select2=26

Daphne, a purchasing officer in a watch manufacturing company, was responsible for

recommending spare parts suppliers. One day, a supplier, Simon, invited her for a lunch and made
a business suggestion. If Daphne recommended her company continuing to use Simon’s company
as a supplier, Simon would mark up the quotation price by 4% from the next purchase order and
they could equally split the profit by having 2% each.

Daphne was scandalized when hearing the suggestion. Although Simon’s suggested mark-up price
was still by far the lowest among the lot, the quality of his products was not as good as the others
and only just met the company’s required standard. On a second thought, she needed an extra
income at the moment because she had just made the down-payment for her new flat. After all,
her company would still get a good bargain price.

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Discussion Questions:

(1) Was Daphne facing an ethical dilemma?

(2) Would Daphne commit an offence if she accepted Simon’s suggestion?

(3) What factors does she need to consider when making a decision?

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Topic C02: Business Ethics and Social Responsibilities Appendix

Activity 1: Pre-study – Selling short-dated food (article to read)

Re-available: We believe in the value of

short-dated food
https://www.dbs.com/livemore/hk-en/inspirations/greenprice-dbsf2020grantee.html

During every major clean-up at home, there is highly perishable and is therefore likely after a
usually food that has passed the "best before” short period to constitute an immediate danger
date and ends up in the trash. However, to to human health. Although the food carrying a
Hong Kong social enterprise supermarket "best before” date is still acceptable for
GreenPrice, such "clean-up" that results in consumption after the specified date, many
wasting food can be avoided. In fact, food on brands would choose to destroy them. From a
their shelves is exactly the food that we think business perspective, it is to safeguard the
should be discarded because it has passed the brand’s reputation, but it also creates a lot of
"best before” date. waste.

Reducing waste and promoting sustainable Over 3,600 tonnes of food waste is created
lifestyle is the mission of GreenPrice — Hong daily in Hong Kong, of which more than 70%
Kong’s first social enterprise supermarket that comes from households. Most of the food
is environmentally friendly and affordable. It discarded is based on a misunderstanding of
specialises in selling food that is close to or past the “best before” dates. Three determined
the "best before” date, helps eliminate food young people then established GreenPrice
waste and allows public to buy it at a supermarket, hoping to educate people the
discounted price. Many people might want to concept of best before dates. The team was
know how this supermarket, which aims to formed when they were still in university, and
"save food", can ensure food safety and make with HK$100,000 initial capital that they won in
consumer feel at ease? an environmental protection competition.

How to collect and screen? On a shoestring budget and to minimise

operational risks including store location
According to the Centre for Food Safety, "best selection, warehousing, supplies of goods and
before" date relates to food quality. If the food transportation, they first tested the water at
is stored properly, it can reasonably be weekend markets. "At the beginning, many
expected to retain its specific properties up to people were uncomfortable with the idea of
and including the specified date. On the buying short-dated food. A parent even told her
contrary, "use by" date relates to food safety. child not to do that and it was not right to
From microbiological point of view, the food is consume ‘expired’ food," recalled Terence Hon,

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Topic C02: Business Ethics and Social Responsibilities

who is in charge of the retail business of have a business model in order to sustain." As a
GreenPrice. He then seized the opportunity and business student, she understands the
made a cup of tea with an “expired” tea bag importance of creating both social value and
and invited the parent to try the quality. profits as well as operating stably as a social
enterprise.
The response of that parent reflected the
buying concerns of consumer. When people Inspired by their visits to grocery stores
find goods that are about to expire in specialising in selling expired food during a trip
supermarket, most people would put them to Germany and the UK, GreenPrice brought
down right away as they have doubts about the the concept back to Hong Kong. However, to
quality of short-dated goods. With that as an make it practical in Hong Kong, they have
insight, Terence has set “quality” as a key developed their own business model. By using
screening requirement for sourcing short-dated the sales records, they measure the popularity
goods. of the items in each store and determine the
appropriate quantity of the supplies.
In terms of supply, GreenPrice, with five stores
opened, deals with wholesalers directly as most Being the winner of "DBS Foundation Social
supermarkets would return products that Enterprise Grant 2020", GreenPrice says, "We
expire soon and food that has passed the best would like to thank DBS Foundation for
before date. "We try the food before buying supporting GreenPrice to establish a digital
and carry out sample inspections afterwards. supply chain system that allows us to be more
When the food arrives at our stores, our accurate when doing all kinds of calculations in
shopkeepers will arrange QC (Quality Control) our operation. Moreover, the grant helps us to
to ensure the quality of the product," explains expand our fleet of stores. Physical stores not
Terence. only help attract more customers, through
providing tastings, we can offer customers
Different roles in the team first-hand experience on the quality of
short-dated food. This enables us to continue
When a business needs to take both social passing on the spirit of ‘Towards Zero Food
responsibility and profitability into account, Waste’."
multiple perspectives are needed to take into
consideration. “In our discussion, some are in The meaning of "purchase"
charge of the financial side of the business,
while some focus on how to save more food,” When it comes to pricing, Allison says, "For
says Allison Chan, who is in charge of food, the price is usually set at half price, but it
purchasing. "The emergence of social also depends on the situation. If the goods are
enterprises is to tackle social problems, but going to be off the shelves very soon, the price
they cannot rely solely on subsidies. We must would be set lower. The most important thing is

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to save the food." Recently, GreenPrice has GreenPrice not only believes in the value of
started selling skincare products. Allison adds, short-dated goods, but also believes the
“Due to the pandemic, in addition to food, education behind the "purchasing" process.
suppliers have also accumulated a certain "Although the goods can be cleared through
amount of skincare products.” Going forward, donation, the recipients may not really cherish
GreenPrice’s goal remains to offer more them. Many people still don’t understand the
varieties of supplies to provide customers with concept of short-dated goods. But we hope
more choices and save more goods. that in the future, through more and different
types of education and dialogues, more
It is very meaningful to turn goods that were consumers will understand our concept.
meant to be sent to landfills into a business.

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