4.4.2 Ethics Flashcards
How are owners in a stakeholder conflict?
Owners want high profits so there are good dividends for their shareholders.
How are customers in a stakeholder conflict?
Customers want low prices, high quality, availability + ethical products.
How are managers in a stakeholder conflict?
Managers want promotion prospects + bonuses on high profits.
How are employees in a stakeholder conflict?
Employees want job security + good working conditions.
How are the government in a stakeholder conflict?
The government wants tax payments + lawful, ethical businesses
How are suppliers in a stakeholder conflict?
Suppliers want to charge high prices for their goods + to keep costs of production low.
Shareholder vs ethical (objectives)
-High profits
High dividends
-Growth
-return on investment
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-Low emissions
-Safe waste disposal
-Paying fair wage rates to employees in other countries
-Sourcing sustainable raw materials.
MNCs and emissions
-An emission means the production + discharge of something.
-Climate crisis of the 21st century has been caused largely by just 90 companies, which between them produced nearly 2/3 of the greenhouse gas emissions generated.
MNCs and waste disposal
-MNCs regularly flout or ignore ‘weak’ environmental laws in India and other developing nations.
-The owners want to keep costs down, good waste management is expensive + so there is a stakeholder conflict with those that live near these toxic dumps.
What is a supply chain?
A system of businesses, people, activities, information, and resources involved in moving a product/service from supplier to customer.
What are the problems with supply chains?
-Many garment factories or labour intensive production processes outsource to slums, refugee camps and unlicensed back street businesses with poor working conditions.
-Forced/child labour
