Ethics, Social, and Environmental Assessment – The LEGO Group 1
Ethics, Social, and Environmental Assessment – The LEGO Group
Melvin M. Johnson
MGT 501 Responsibility, Sustainability and Justice
June 10, 2014
Ethics, Social, and Environmental Assessment – The LEGO Group 2
Ethics, Social Responsibility and Environmental Sustainability
We can all sum up business ethics in our own words, yet the definition essentially comes
down to determining what is right or wrong combined with the ultimate goal of making the right
decision. In business, ethics dictate the consumers, employees, and investors an organization
attracts. A business that does not uphold social responsibility, environmental sustainability, and
ethics may tarnish its ability to profit resulting in a disfigured reputation, inability to recruit
employees, and may be viewed as unsuitable among shareholders.
The LEGO Group (LEGO) has deemed it necessary to incorporate ethics, social
responsibility, and environmental sustainability within its business practices. Impacting society
and human beings as whole with regard to providing children with quality play experiences is an
integral part of LEGO’s four promises. More specifically, the four promises incorporate the
following promises: Play Promise, Partner Promise, Planet Promise, and People Promise. Each
promise addresses ethics, social responsibility and environmental sustainability in its own unique
way and demonstrates how the LEGO Group has ingrained each within its business practices.
Play Promise
The LEGO Group’s Play Promise places emphasis on issues such as consumer safety,
satisfaction, and supplying information to parents. This promise promotes good business ethics
as LEGO has made it a priority to continue to develop safe and high quality standards regarding
its products. When we consider the general consensus definition of ethics, doing what’s right,
securing high customer satisfaction and low complaint ratings are likely to follow.
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Partner Promise
Suppliers are not omitted from the same expectations withheld by LEGO’s employees.
The Code of Conduct is promoted directly in the supply chain so that all suppliers and sub-
contractors are adhering to ethical and responsible behavior. The LEGO Group’s Code of
Conduct requires their suppliers establish their own policies with regard to ensuring the LEGO
Group is able to meet their own Code of Conduct requirements. LEGO’s Partner Promise focuses
on business integrity, product quality, environmental, health, and safety issues.
Planet Promise
LEGO has stated in its environmental policy that all production facilities must be
certified according to ISO 14001. The Planet Promise also seeks to resolve concerns regarding
energy efficiency and waste management. Creating an eco-friendly climate within the LEGO
Group’s business governance is just one of the many steps it takes towards environmental
sustainability.
People Promise
Gender diversity, a healthy work environment, safe work conditions, work-life balance,
and employee motivation and satisfaction are at the core of LEGO’s People Promise. All of these
issues are directly related to solid, essential business ethics and social responsibility. Attaining
high employee satisfaction surveys are achieved by the LEGO Group’s commitment to
improvement.
Ethical, Social, and Environmental Code of Conduct
“The LEGO Group Code of Conduct is based on the Universal Declaration of Human
Rights, the Convention for Civil and Political Rights, the Convention for Economic, Social and
Cultural Rights, the eight Core Conventions of the International Labour Organization (ILOO)
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and where relevant other applicable UN and ILO conventions” (The LEGO Group Code of
Conduct, n.d.). The LEGO Group’s Code of Conduct also addresses Housing, Grievance
Procedures, Freedom of Expression, Employment Terms, Communication, and Legal
Compliance.
LEGO has made continuous efforts to update its Code of Conduct as way of promoting
responsibility of doing business. The Code of Conduct set forth by the LEGO Group is one that
the company itself adheres to as well as its suppliers and their suppliers. Compliance is regulated
by inspection visits the LEGO Group is authorized to make at any given instance.
The Code of Conduct established and implemented by the LEGO Group adheres to
ethical, social, and environmental conduct. Each of the areas mentioned in the Code of Conduct
are in some way tied to an industry standard. For example, the Freedom of Expression section
dictates, “retaliation practices must not be used to prevent employees from expressing
dissatisfaction with their working conditions” (The LEGO Group Code of Conduct, n.d.). This
policy directly echoes the US Equal Employment Opportunity Commission regarding
discrimination by retaliation. (Eeoc.gov, 2014).
Philosophy of Ethics
The LEGO Group’s culture is deeply rooted in a teleological-based philosophy. It would
be hard to dismiss the LEGO Group and their teleological approach considering teleology is a
philosophy based on the “theory of morality that derives duty or moral obligation from what is
good or desirable as an end to be achieved” (Encyclopedia Britannica, 2014). It is not hard to see
that consideration for shareholders, employees, customers, and the environment, is at the root of
everything the LEGO Group does. Within the teleological philosophy the concept of purpose
behind actions come into play. This very same philosophy is noted repeatedly throughout the
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LEGO Group’s website. Take for example the framework of the company’s approach, “We want
to maximize the positive impact we have on human beings and society…as a consequence we
develop products that support these traits” (Vestberg, n.d.b).
Utilitarianism
Regarding businesses decisions, it is almost impossible to mention teleological
philosophy without mentioning utilitarianism. The greatest good for the greatest number of
people is the general consensus of utilitarian philosophy. In essence, utilitarian is an extension of
teleological philosophy and in regards to the approach taken by the LEGO Group it can be
argued that this method is utilized. The LEGO Group carries the mission to “Inspire and develop
the builders of tomorrow” (Vestberg, n.d.b). The company goes on further to state that the
