4.4.2 - Ethics

Question 1

What are business ethics?

Answer 1

Business ethics refers to the principles and norms that govern business behaviour

Question 2

What is CSR?

Answer 2

Corporate social responsibility
- CSR is a way of recognising that a company has a variety of stakeholders, each of whom have different objectives.

Question 3

Conflicts between management and workers?

Answer 3

Management may be more focused on output or reducing costs than on worker safety or creating a positive working environment

Question 4

Pay & Working Conditions

Answer 4

Opportunity for MNCs to exploit local workers with low pay and poor working conditions
- Some also exploit child labour

Question 5

Waste Management - Environmental issue

Answer 5

Many developed countries have regulations about how businesses should dispose of their waste
- Less economically developed countries have lesser regulations so MNCs can dispose cheaper

Question 6

Emissions - Environmental issue

Answer 6

Emissions are often released from factories or from products made by MNCs
- Negative impacts on local community/health issues

Question 7

Issues with child labour in supply chain

Answer 7

MNCs using child labour in their supply chain face backlash, which can damage their brand and affect sales

Question 8

Issues with exploitation of labour in supply chain

Answer 8

Exploitation of labour can take the form of low wages and poor working conditions
- MNCs are under increasing pressure from governments, customers to ensure no exploitation

Question 9

2 Marketing Considerations for MNCs

Answer 9

Misleading labelling
- Labelling must comply with the regulation of the country

Inappropriate promotional activity
- Promotional activities should not be offensive or illegal