Ethics in business and pressure groups
Business ethics -
Ideas about what is morally correct or not, applied in a business situation.
- Production, suppliers, workers, customers, competitors, the product, the environment and local communties.
Trade off - is where something is given up in order to gain or achive something else.
- Profit for ethical behaviour
Pressure groups -
Is an organised group that seeks to influence goverment policy or to protect or advance a particular cause or interest. e.g. animal rights or the enviroment
Ways they achive their aimsPublic meetings, distributing leaflets and posters, petitions, boycotting products, lobbying.
Why are ethics important?
- Prevent pressure groups from damaging your business.
- Allow a firm to attract ethically motivated customers.
- Enhance a firms brand.
- Reduce the likelyhood of any cost regulation
Why might ethics not be important?
- It is a budget firm so may not be interest in ethics.
- At times of lo consumer confidece ethics are less important.
- It can increase costs.
- Other factors could casue profits to rise and may be more important.
Supply Chain - The processes that are involved in the route taken by a product from raw materials needed to create it right through to the final customer.
- Trafic congestion through thransport and deliveries.
- Air, noise and water pollution through manufacturing and industry.
- Climate change
- Depletion of resources
Economic factors affecting international trade
BRIC Countries - Who income has changed the most
MINT Countries - Which are going to show the most growth
Factors which affect the growth of a country/impor
Average income - High income countries spend more on imports. Whereas low income countries spend less on imports.
Wages - Developing countries are a source of cheap imports for rich developed countries.
Quality and technology - Businesses in developed countries sell high quality goods to devoloping countries. Whereas businesses in developing countries sell low quality goods to devloped countries.
- Tariffs - Is a tax put on imported goods which makes them more expensive for buyers
- Quota - A limit on the physical number of goods that can be imported over a period of time.
- Where the goverment gives moeny to businesses to reduce the cost of exporting thus making their products more competitive.
Impacts of the goverment and EU on business
Goverment and EU regulations
- Accounting Regulations
- Trade Descption Act
- Health and Safety Laws
- Minimum Wage
- Maternity and Paternity Rights
Avoiding Goverment Regulations
- Moving to another counrty to avoid tax
- Producing products in a country with a lower minimum wage.
- Selling products in countrues ith relaxed health and safety laws.
Goverment regulations can also been know as red tape.