4.4.2. Ethics

Question 1

Stakeholder conflicts

Answer 1

-Stakeholder is individual or group that has an interest or can be affected by business. Different stakeholders have different levels of power.
~Management Vs Workers:Management may be
more focused on output irrespective of reducing
costs rather than safety of workers.

~Management Vs Owners: Owners want to
maximise profits and bay disregard mental
wellbeing of employees.

~Company profits Vs Resource depletion: owners     (shareholders) aim to maximise output by     generating increasing levels of profit. Higher    output= more rapid usage of natural resources.     Environmental damage etc.

Question 2

Pay and working conditions

Answer 2

-Each country has different employment regulations so MNCs need to decide if they’ll comply with regulations if they base their location there.
-MNC may demonstrate unethical behaviour by exploiting workers by siting lower. Unethical working conditions to lower costs. Child labour

Question 3

Environmental considerations

Answer 3

-Governments encouraging businesses to improve environmental impact of their business activity.
Issues like:
Waste management-Regulations on disposal
Emissions

Question 4

Supply chain considerations

Answer 4

-MNCs taking action to reduce unethical labour practices as part of their CSR (integrate social and environmental concerns within business operations)
~child labour: damages brand and affect sales
~exploration labour:must take action to not exploit

Question 5

Marketing considerations

Answer 5

-Misleading labelling: labelling must comply with regulations if country. No misinformation on side, features, functionality, content of product.

-Inappropriate promotional activities: can’t be offensive or illegal