4.2 The role of business in relation to Ethical Practice in a global business Flashcards
What ethical practices do businesses need to consider?
Define ethical Practice
the principles, values, and standards that guide business’ behaviour and decision-making.
The role of business in relation to ethical practice in a global business, including:
- minimum standards of labour by the International Labour Organisation (ILO), including the use of child labour
- corporate social responsibility
- environmental sustainability
how can ethical practises be measured
It can be assessed through how a business complies with legislation and upholds other relevant societal values.
corporate social responsibility(CSR)
the ** commitment by businesses to conduct themselves ethically and responsibly.**
CSR Refers to what?
Actions and decisons Taken by businesses which has positive effects on the society around them.
examples of Actions and decisons made by Businesses in CSR
1.Environmental decisions such as
* reducing carbon emissions
* implementing sustainable practises
2.Social actions such as
* supporting local communities
* promoting diversity & inclusion
* contributing to economic development
CSR is about businesses going beyond profit-making to contribute to the well-being of society and the environment
A company looking to engage with CSR will look beyond the demands of shareholder and be ……?
motivated by the needs of the broader range of stakeholders such as employees, customers, the environment and people in the local community.
A company may sacrifice time and money to comply with CSR for the long term goal of sustained growth.What doe this do?
This reflects the concept of valuing long term progression over short term profit.
IMAGE ON CSR
How Do Businesses implement CSR?
- Creating a safe and healthy workplace
- Encouraging work/life balance
- Maintaining high standards of ethical business practice
- Take responsibility for business operations
- controlling carbon footprint
How do Business benefit from CSR?
- Improved financials (Revenue, Profit, Expenses)
*** Improved public image and market share **
- Increased sales and customer loyalty (especially socially minded consumers)
- Improved relations with government (preferential treatment, minimised penalties in recognition of ‘good behaviour’)
- Increased investment (especially socially minded investors)
how to build CSR
Invest in charities (and promote investment)
Build positive relationship with the local community
Invest in staff wellbeing and progression
Source materials and services from ethical providers
Reduce waste and emissions
Comply with relevant legislation
Fund initiatives that improve employee lives
Support initiatives that improve employee lives
What do companies committed to CSR Build?
positive reputation and public image that can help them **increase brand awareness and customer loyalty. **
role of CSR
allows business to conduct themselves ethical and manage their impact on the quality of life of of employees and the local community and society when making business decisions.
minimum standards
International Labour Laws implement a standard for workers who may be exploited by business owners. E.g. setting standards for pay and working conditions