Business Ethics Summary
- Created by: Chloe
- Created on: 30-03-15 20:44
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- Business Ethics
- Anita Roddick: "being good is good business"
- Ethics: About what is right or wrong morally
- Law: About what is lawful and unlawful
- An ethical decision maker is one that is both legal and meets the ethical standards of the community.
- Types of businesses:
- Amoral: seeks profit at all costs. Anything is seen as acceptable
- Legalistic: Will obey the law, but no further.
- Responsive: Accepts that being ethical can have benefits
- Ethical: Ethical practice is at the core of the business.
- Suppliers - A business cannot claim to be ethical if it allows unethical practices by its suppliers.
- e.g. child labour, sweatshops, violation of Human Rights or ignoring H&S Standards.
- Ethical Codes of Practice
- Typically covers issues such as corporate responsibility, dealings with suppliers and customers, environmental policy and personal & corporate integrity
- Consumers can take action if they believe that the company has breached their policy.
- There are strengths and weaknesses to being an ethical business:
- Strengths: Improved brand & business awareness, better employee motivation, new sources of finance and higher revenues.
- Weaknesses: Higher costs (from sourcing fair trade), a danger of building up false expectations and high overheads (training for new ethical policy).
- Examples:
- Primark factory in Dhaka collapses
- The 'News of the World' paper phone hacking scandal
- Google, Amazon and Starbucks avoid paying their taxes
- Anita Roddick: "being good is good business"
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