Business ethics and social responsibility

Business ethics and CSR should be taken into account to maintain reputation of a business.

Main areas in which retailers have undertaken CSR activities are:

Community initiatives environmental protection Ethical sourcing

Consumerism

Activities of consumers and other consumer organizations aimed at protecting rights of the consumers.

Countervailing activities against maxim of caveat emptor.

Eg. ‘which’ magazine in UK http://www.saigon.com/nike :homepage of

‘boycott nike’ campaign

Ethical and green consumers

Consumer whose purchase is influenced by ethical believes such as animal welfare, etc

Eg. Body shop Green consumers are in line with

environmental movements

Environmentalism

Protection of the environment resulting from:

-Production

-Distribution

-Marketing activities Retailers responses to environmental concern:

1. Related to product: eg. Safeway

2. Related to retail operations

Cont….

Retailer’s environmental initiatives:

3 R s Reusing Recycling Reducing

Ways:

Recycle paper, plastic, aluminum, ink cartridges. Reuse packing materials and cardboard boxes. Use double-sided printing when possible. Reduce paper transactions by going digital for bill

payment, vendor ordering, invoices, online banking, e-mail and faxing directly from your computer.

Keep up with regular maintenance of all mechanical equipment.

Cont….

Eliminate disposable cups, plates and utensils in the break room. Replace with permanent dishware.

Switch to rechargeable batteries. Large office supply stores even have collection centers for recycling dead rechargeable batteries.

Use eco-friendly cleaning products that are biodegradable and non-toxic.

Purchase energy-efficient PCs, printers, and other equipment with the Energy Star label.

Donate or recycle old computers and equipment.

Ethical sourcing

Ensuring that products sold by retailers do not exploit workers in other countries.

Two strands:

1.ETI

2.fair trade

Cont…

ETI Tripartite alliance Main provisions are:

-Employment is freely chosen

-Safe working conditions

-No child labor

-No discrimination

-No extra working hours

Cont…

Fair trade Paying producers fair price to cover their basic

needs and provide margin for investment. Also paid with advance payment when requested. In return producers need to ensure that there

activities are sustainable Many org. carry fair trademark- coffee, tea, honey,

mango, sugar

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