Business Ethics Summary

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  • 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

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