4.2: Role of Global Businesses in relation to Ethics

Question 1

Explain the role of the International Labour Organisation’s (ILO) minimum standards of labour, including the use of child labour

Answer 1

( how ) - the International Labour Organisation (ILO) is a United Nations’ agency dealing with labour issues, particularly international labour standards and decent work for all workers. The ILO understands that children may have to work and businesses need to ensure strict standards and prevent the exploitation of children.
( why ) - Businesses need to be aware of the ILO’s Minimum Age Convention which states that 13 to 15-year-olds should only engage in light work around their schooling; 15 years is the minimum age for work; 18 years is the minimum age for any hazardous work.

Question 2

Explain the role of corporate social responsibility in a global business context

Answer 2

( how ) - Corporate Social Responsibility (CSR) is a business concept wherein firms recognise that apart from economic concerns, they have a responsibility for their impact on social, ethical and environmental concerns. For instance, a business could sponsor an event, donate to a particular charity, raise
awareness of a particular social issue, etc.
( why ) - CSR can build a positive public image which can increase sales, brand awareness, and customer loyalty. It also acts as a deterrent for certain unethical practises.

Question 3

Explain the role of environmental sustainability in a global business context

Answer 3

( how ) - Environmental sustainability refers to firms making business decisions that minimise their impact on their environment. Examples of this could be utilising technologies that are environmentally friendly such as solar panels, wind turbines, or reducing the impact of resources and waste consumption on the environment.
( why ) - A business being environmentally sustainable can lead to improved public image, customer loyalty and staff morale. It can also be a form of cost reduction especially improving long term sustainability, as resources get used more efficiently to reduce waste.