Business Ethics

Created by: Rebecca Hood
Created on: 16-05-13 14:35


	Business Ethics
	Advantages It would help to ensure that laws within society are not broken, minimising costs associated with breaking the law, as the vast majority of laws are based on morals and ethics Customers and other stakeholders may judge AS Plc not just in terms of compliance with an ethical code, nut also over it's choice of suppliers. If customers or employees or potential lenders/investors learn that AS Plc or it's suppliers are behaving in an unethical manner, AS Plc may suffer loss of custom : may struggle to secure the customers and/or staff required to maintain sales and profits. Choosing only ethical suppliers may help to attract and retain customers. This may enable AS Plc to have higher prices and maximise sales and profits. Choosing only ethical suppliers may help AS Plc secure finance from ethical investors, which could make it easier for AS plc to raise the money it needs to fund the new factory.	Disadvantages It might increase the cost of AS Plc's supplies (choosing an ethical supplier) Therefore lower profits and make AS Plc less competitive in terms of price - unethical producers may not have such strict health and safety regulations or pay works fairly so have lower costs and prices compared to ethical producers
	Evaluation In conclusion, I think that AS Plc should only use ethical producers because there are clearly many more advantages for using ethical producers compared to disadvantages and it is morally wrong to act unethically or be seen to support a business who works unethically. In conclusion, I don't think that AS Plc should use ethical suppliers because it would result in the costs of its supplies to increase and customers are price sensitive. If AS Plc are forced to be less flexible over price then this could threaten AS Plc's survival due to the competitive market it is in.

Business Ethics

Advantages

It would help to ensure that laws within society are not broken, minimising costs associated with breaking the law, as the vast majority of laws are based on morals and ethics
Customers and other stakeholders may judge AS Plc not just in terms of compliance with an ethical code, nut also over it's choice of suppliers.
If customers or employees or potential lenders/investors learn that AS Plc or it's suppliers are behaving in an unethical manner, AS Plc may suffer loss of custom : may struggle to secure the customers and/or staff required to maintain sales and profits.
Choosing only ethical suppliers may help to attract and retain customers.
This may enable AS Plc to have higher prices and maximise sales and profits.
Choosing only ethical suppliers may help AS Plc secure finance from ethical investors, which could make it easier for AS plc to raise the money it needs to fund the new factory.

Disadvantages

It might increase the cost of AS Plc's supplies (choosing an ethical supplier)
Therefore lower profits and make AS Plc less competitive in terms of price - unethical producers may not have such strict health and safety regulations or pay works fairly so have lower costs and prices compared to ethical producers

Evaluation

In conclusion, I think that AS Plc should only use ethical producers because there are clearly many more advantages for using ethical producers compared to disadvantages and it is morally wrong to act unethically or be seen to support a business who works unethically.
In conclusion, I don't think that AS Plc should use ethical suppliers because it would result in the costs of its supplies to increase and customers are price sensitive. If AS Plc are forced to be less flexible over price then this could threaten AS Plc's survival due to the competitive market it is in.

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Business Ethics

Business Ethics

Advantages

Disadvantages

Evaluation

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