3.4.4 Business Ethics

Question 1

What are ethics?

Answer 1

Standards of behaviour.

Question 2

What are shareholders interests in ethics?

Answer 2

-Shareholders are interested in the profit performance of the business and any potential dividend payout from it.

-Less concerned with costly ethical issues and may even discourage ethical initiatives on financial grounds.

Question 3

What are stakeholders interests in ethics?

Answer 3

-Stakeholders are interested in the way that suppliers of materials and components to the business are treated
-E.g. Pressure groups taking interest in child labour etc.

Question 4

What is CSR?

Answer 4

Corporate Social Responsibility is a business approach that contributes to sustainable development by delivering economic, social + environmental benefits for all stakeholders.

Question 5

What are some common factors of CSR?

Answer 5

-Reduce climate change
-Reduce negative environmental impact
-Positive regard for human rights in employment
-Ethical trading policies
-Using sustainable resources
-Positive links with community

Question 6

What are the advantages of a CSR approach?

Answer 6

-Happy customers
-Happy staff
-Happy investors
-New products new markets
-Good PR
-Happy community
-Happy suppliers
-Cost reductions

Question 7

What are the disadvantages of a CSR approach?

Answer 7

-Fad (new trend which consumers will move on from)
-Motive (is it just for good PR)
-Cost (is it larger than the benefits)
-Care (do the consumers care)