329713
Description
Mind Map by charcrawford, updated more than 1 year ago
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Created by charcrawford
about 11 years ago
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43. Business Ethics
- Moral principles that should underpin
decision making. Decisions made on ethical
grounds may reject most profitable solutions
in favour of one of greater benefit to society
as well as the firm.
- What are business
ethics?
- Code of behaviour considered
morally correct. Shaped by:
behaviour of parents, religion,
peers, society (live and work).
- Important ethical
considerations:
- Dealing
honestly and
fairly with
customers
- Protecting the envrionment
(sustainable raw materials)
- Testing
products
on animals
- Dealing
honestly and
fairly with
customers
- Two major influences
shape moral behaviour of
businesses:
- Individuals who have their
own moral codes, values
and beliefs
- Cultures shape corporate
ethical standards
- Individuals who have their
own moral codes, values
and beliefs
- Code of behaviour considered
morally correct. Shaped by:
behaviour of parents, religion,
peers, society (live and work).
- The developing
ethical environment
- Cadbury and Nestle convert to
Fairtrade.
- Sustainability. Supply products in such
a way as to not compromise the lives of
future generations.
- Reducing carbon
footprint.
- e.g 'Eurostar goes
carbon neutral'
- Cadbury and Nestle convert to
Fairtrade.
- Business ethics
and business
objectives
- 'Why do businesses exist?' make maximum profit? Most
people would consider it to be unethical to make staff
redundant if to add bonuses.
- 'Why do businesses exist?' make maximum profit? Most
people would consider it to be unethical to make staff
redundant if to add bonuses.
- Ethical codes of
practice
- 'meaningfully
contribute to local,
national communities in
which we trade'
- As a response to consumer
expectations and competitive
pressures.
- Intended to
improve
behaviour and
image
- Companies publicise
them - important
element of marketing
strategy.
- Public relations
exercise?
- 'meaningfully
contribute to local,
national communities in
which we trade'
- Pressure groups and
ethics
- 'Greenpeace' -
environment
- 'Action on Smoking and Health' -
opposes tobacco
- 'Compassion in World Farming' - end
factory farming
- 'Greenpeace' -
environment
- The ethical balance
sheet
- Advantages
- Marketing
- Consumerism (more
well-informed) so can think
carefully before spending
money
- Ethical behavior = USP (Body
Shop)
- 'Caring image' =
increase sales
- Consumerism (more
well-informed) so can think
carefully before spending
money
- Public
relations
- Enhance image..
increase sales and
profits
- Co-op not lend to company in 'arms
trade', strong supporter of Fairtrade.
- Enhance image..
increase sales and
profits
- Pos effects on
workforce
- Recruit staff: better
qualified, motivated, large
numbers apply.
- Innocent Drinks low
labour turnver
- Recruit staff: better
qualified, motivated, large
numbers apply.
- Marketing
- Disadvantages
- Reduced
profitability
- Face higher
costs
- Turn down
investments
- Cant expolit cheap
labour
- Face higher
costs
- Reduced
profitability
- Advantages
- Ethical Behaviour:
future
developments
- Ethics will be of increasing
importance
- The adoption of ethical
practices
- 80% businesses in UK have
implemented ethical code of
practices.
- 80% businesses in UK have
implemented ethical code of
practices.
- The commercial success of
high-profile 'ethical' companies
- Toyota - commitment to
sustainable methods of
production
- Co-op £117m operating proit 2010, shows
ethical principles can be highly attractive to
customers.
- Toyota - commitment to
sustainable methods of
production
- Ethics will be of increasing
importance
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