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
why are International Labour Laws Important?
- They reduce exploitation in labour
- Ensure fair treatment and increased prosperity for everyone around the world
How do we implement International Labour Laws?
Through the use of the International Labour Organisation (ILO) that has been setting standards for employment to ensure economic growth is accompanied by social justice, prosperity
They play an important role in defining minimum work standards around the world to reduce exploitation, while encouraging international trade and cooperation
Which organisation doe the International Labour organisation fall under?
The ILO is a United Nations agency dealing with issues like interenational Labour standards.it brings 186 member states representatives to aim to set minimum standard in the world of work.
International Labour(ILO) Organisation Standards
ILO Standards” are either conventionsor recommendations
Convetions in the ILO
Legally binding international treaties ,signed by the ILO’S member nations(188 in existence)
C182 - Worst Forms of Child Labour Convention, 1999
recommendations in The ILO
**
non-binding guidelines which provide detailed suggestions on how conventions could be applied.
199 in existence
**
Minimum Standards of Labour:
There are four aspects of labour standards that are considered to be fundamental to social justice and prosperity:
1.Elimination of Discrimination towards employment and occupation
2.abolishment of child labour
3.abolishement of all forms of forced /compusory labour
4.Freedom of association and the effective recognition of the right to collective bargaining
The worst Forms oof Child Labour Convention requires member nations to do what?
eliminate the worst forms of child (under 18) labour (akin to child slavery), including;
* sale & trafficking of children
* forced or compulsory labour
* debt bondage **(Child forced to work to repay a family debt)
after being freed from unethical work ILO members are required to do what?
to ensure that free basic education and vocational training is widely available to child workers.
This is an attempt to offer children an opportunity to break the cycle of poverty and define prosperous futures for themselves
Define Environmental sustainability
Businesses Making decisions that aim to maintain an ecological balance and conserve natural resources for the future.
why are companies motivated by protecting the enviroment & society?
It creates Goodwill for their brands amongst customers
what makes environmentally sustainability business practices important ?
the fact that business decisions and activities are increasing and impacting other countries .
why are Green initiatives effective?
they save money by reducing packaging materials ,minimising transportation emmission and using energy efficient lighting $machinery.
how can the use of Green initiatives help businesses ?
They decrease business expenses **
increase public image(which can lead to increased revenue,market share ,brand loyalty** )
an example of environmentally sustainability business practice is……?
responsibly sourced inputs/supplies
