Unit 4 - Ethical behaviour

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  • Created on: 14-03-13 14:22
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Friendly, ethical decisions
Cases where business activities emits pollution
Fashion out from animals (extinct animals)
Factories are built
Deforestation (e.g. for packaging)
To make production friendly it could
Present a positive image that could boost its reputation and lead to further sales (e.g.
Add costs to the business - Yes. It takes much more money to make recycled packages.
Result in new business opportunities as consumers search for environmentally friendly products.
Lead to the development of new environmentally friendly production techniques thus reduce
wastage and out costs.
Business ethical decisions
Personal selling
Use of child labour and forced labour
Production in sweatshops (being paid in really low wages) - Nike in South East Asia
Violation of the basic rights of workers - KFC refused to pay the workers; companies want
workers to work overtime without being paid.
Ignoring health, safety and environmental standards - factories in China.
An ethical business has to be concerned about:
Sales agents
Influencing the business
Pressure groups - external stakeholders, which tend to focus on activities and ethical practice of
multinationals or industries with ethical issues

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Direct consumer action - another way in which businesses ethics can be challenged. Consumers may
take action against:
- Businesses they consider to be unethical in some ways (e.g. animal furs)
- Business acting irresponsibly
- Businesses that use business practices they find unacceptable
- Consumer action can also be positive - supporting businesses with a strong ethical strance &
record. A good example for this is Fairtrade.…read more


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