16. Ethics Flashcards
<p>How is Corporate Social Responsibility (CSR) defined ?</p>
<p>a business assessing and taking responsibility for its effects on the environment and its impact on social welfare. It involves the idea that businesses bear a responsibility that stretches beyond their shareholders</p>
<p>How is Ethical Codes of Practice defined?</p>
<p>statements about how employees in a business should behave in particular circumstances where ethical issues arise</p>
<p>How is Ethics defined?</p>
<p>in the context of business ethics, considerations of the moral 'rights and wrongs' of a decision at an often strategic level, in accordance with the law, and a businesses's code of conduct in relationship to Corporate Social Responsibility</p>
<p>How is Living Wage defined?</p>
<p>an hourly rate of pay based on the basic cost of living, set independently of government and updated annually</p>
<p>How is National Minimum Wage defined?</p>
<p>the minimum pay per hour all workers are entitled to by law</p>
<p>How is Remuneration defined?</p>
<p>the reward for work in the form of pay, salary or wages, including allowances and benefits, such as company cars, health insurance, pension, bonuses and non-cash incentives</p>
<p>How is Sanctions or Trade Embargoes defined?</p>
<p>Sanctions are Restrictions imposed on trade or investment with the aim of influencing a policy change in another country
<br></br>- Trade embargoes can be included on sanctions, where commercial shipments are banned in and out of a particular country, or where an embargo is placed on a particular product</p>
<p>What are Ethics?</p>
<p>- Ethics in the context of business ethics considers the moral rights and wrongs of a decision, focusing more on a strategic level rather than decision made by, as an example, individual employees.
<br></br>- All businesses have to make ethical decisions. Some of these will be governed by the law, but many decisions have to be made without the help of the law – should a worker be allowed a paid day off to look after their sick child?
<br></br>- Every business should have a stated code of conduct within which employees operate in respect of ethical business decisions, although employees at different levels might have different opinions, for example:
<br></br>- Some employees may argue about whether it is okay to manufacture violent video games or toy guns.
<br></br>- Some employees may have religious concerns about selling meats or alcohol in restaurants.</p>
<p>What are some Ethics of Strategic Decisions?</p>
<p>- Ethics of strategic decisions
<br></br>Strategic decisions are those that impact how a business operates in the long term. All businesses have to make some sort of ethical decision as part of their corporate strategy and these are usually the responsibility of management.
<br></br>- Over the past 20 years, a number of issues have arisen for large corporations that require strategic decisions based on ethics:
<br></br>- The Environment
<br></br>- Animal Rights
<br></br>- Workers in Developing Countries
<br></br>- Corruption
<br></br>- New Technology
<br></br>- Product Availability
<br></br>- Trading Issues</p>
<p>How does the Environment influence a strategic decisions based on Ethics?</p>
<p>- in countries like the UK or the USA, the law limits the amount of pollution or damage a business can do. However, businesses must decide whether to adopt an even more stringent measure to protect the environment. Should they still recycle if it lowers profits?
<br></br>-Multinational businesses often face lower environmental standards in developing countries. Should they lower their own environmental standards in such locations to take advantage of this?</p>
<p>How does Animal Rights influence strategic decisions based on Ethics?</p>
<p>some companies, like pharmaceutical companies or make up manufacturers might use animals to test products. Some people see this as impractical. Other businesses may play a part in ruining environments. Wildlife conservation groups argue against farming activities that destroy forests or other habitats.</p>
<p>How does Workers in Developing countries influence decisions based on Ethics?</p>
<p>a number of companies have been criticised for exploiting workers in developing countries. Companies manufacture in countries with emerging economies because production costs are much cheaper. However, there is an ethical question about the extent to which low costs should be at the expense of workers.</p>
<p>How does Corruption influence decisions based on Ethics?</p>
<p>in some industries bribes might be used to persuade customers to sign contracts. It has been suggested that this takes place in certain emerging economies. The ethical question is whether it is right to use bribes or even if a business knows that competitors do this.</p>
<p>How does New technology influence decisions based on Ethics?</p>
<p>most new products, such as mobile phones or a new chocolate bar, do not cause ethical issues, but some technological advancements do seem to cause controversy. Examples of this are nuclear power generation and GM crops.</p>
<p>How does Product availability influence decisions based on Ethics?</p>
<p>if a person cannot afford an expensive car or some other luxury goods, most would not see this as an ethical issue. But if someone is HIV positive in South Africa and they cannot afford drugs for treatment because of the price, many would argue it is an ethical issue. The direction of research is also important. Companies may choose to investigate something that only affects a few people in the industrialised world, or they may choose to look into malaria, that kills millions of people each year.</p>
