Business EthicsBusiness Ethics

Business EthicsBusiness Ethics Body Shop ( Anita Roddick) and Co- Operative Bank Body Shop ( Anita Roddick) and Co- Operative Bank

have led the way and brought business ethics and have led the way and brought business ethics and social responsibility into the public eye.social responsibility into the public eye.

Campaigned key issues: human and animal rights, Campaigned key issues: human and animal rights, fair trade and environmental impact.fair trade and environmental impact.

Businesses are increasingly putting marketing Businesses are increasingly putting marketing behind key social issues = help make positive social behind key social issues = help make positive social differences.differences.

Problems - business inevitably run by profit which Problems - business inevitably run by profit which affects people working for the company.affects people working for the company.

Businesses caught doing unethical acts are Businesses caught doing unethical acts are publicised in the presspublicised in the press

Pressure groups that oppose activities of certain Pressure groups that oppose activities of certain businesses are better organised, better financed and businesses are better organised, better financed and so are better to attack the business e.g. SHACso are better to attack the business e.g. SHAC

Business and ConsumerBusiness and Consumer Consumers now expect businesses to be socially Consumers now expect businesses to be socially

responsibleresponsible Consumer rights – quality, safety, price and Consumer rights – quality, safety, price and

customer servicecustomer service Consumers are crucial to change in business and Consumers are crucial to change in business and

how they are runhow they are run Consumer expect businesses to be ethical Consumer expect businesses to be ethical

responsible e.g. treatment of employees, the responsible e.g. treatment of employees, the community and the environment, working community and the environment, working conditions etc. conditions etc.

For example Nike and Gap over child labour. Nike For example Nike and Gap over child labour. Nike now monitor its factories following the Panorama now monitor its factories following the Panorama programme.programme.

Employers and EmployeesEmployers and Employees Balance of interests: employer wants to plan for Balance of interests: employer wants to plan for

future, make profits and keep employees future, make profits and keep employees motivated. The employee wants best conditions motivated. The employee wants best conditions and living standards. and living standards.

If employee is unhappy = high turnover, poor If employee is unhappy = high turnover, poor time keeping, absenteeism all result in less profit.time keeping, absenteeism all result in less profit.

This relationship is often strainedThis relationship is often strained Internet allows for rapid sharing of information Internet allows for rapid sharing of information

plus attitudes of websites which discusses plus attitudes of websites which discusses businesses.businesses.

Whistle blowers is the term given to someone Whistle blowers is the term given to someone who risks their livelihood to tell the truth about who risks their livelihood to tell the truth about companies and make businesses accountable of companies and make businesses accountable of their actions.their actions.

Business and the environmentBusiness and the environment Environmental responsibility key business Environmental responsibility key business

strategy: helps environment/ wins the trust of strategy: helps environment/ wins the trust of communities/ respect of governments in communities/ respect of governments in countries in which it operates – easier to become countries in which it operates – easier to become global.global.

All businesses impact on environment: emit All businesses impact on environment: emit pollution, produce waste and use resources. pollution, produce waste and use resources.

Prestigious award given each year ‘Business Prestigious award given each year ‘Business Commitment’ to which in 2007 the Co-Operative Commitment’ to which in 2007 the Co-Operative received for its contributions to global climate received for its contributions to global climate changechange

Some of its efforts: reduction by 86% of its CO2 Some of its efforts: reduction by 86% of its CO2 emissions, use 98% green electricityemissions, use 98% green electricity

Businesses now have to have an environmental Businesses now have to have an environmental policy – much do to the consumer pressurepolicy – much do to the consumer pressure

Business and GlobalisationBusiness and GlobalisationProcess of globalisation is speeding up:Process of globalisation is speeding up: Technologies changing – communications even fasterTechnologies changing – communications even faster Transport cheaper and fasterTransport cheaper and faster Removal of capital exchange controls – money can be moved Removal of capital exchange controls – money can be moved

easiereasier Free trade – barriers to trade removed Free trade – barriers to trade removed Consumer tastes have changed – willing to try foreign foodsConsumer tastes have changed – willing to try foreign foodsBusinesses are now freer to choose where they operate fromBusinesses are now freer to choose where they operate from Move to communities where labour is cheaperMove to communities where labour is cheaper Manufacturing e.g. has moved to Indonesia or phone lines to Manufacturing e.g. has moved to Indonesia or phone lines to

IndiaIndia

This means however the the poorest people have just 1.4% This means however the the poorest people have just 1.4% of global incomeof global income

E.g. Disaster at Bhopal in India – the chemical companies E.g. Disaster at Bhopal in India – the chemical companies involved continued to deny responsibility – some survivors involved continued to deny responsibility – some survivors still await compensation. Environment is still polluted by still await compensation. Environment is still polluted by toxinstoxins

Amnesty Internationals campaigns for global human rights Amnesty Internationals campaigns for global human rights actsacts

Essay QuestionEssay Question

Kant ethics is the best approach to Kant ethics is the best approach to the issues surrounding business.the issues surrounding business.

Utilitarianism is the best approach to Utilitarianism is the best approach to environment issues.environment issues.