4.4.2 Ethics

Question 1

What are business ethics?

1

Answer 1

• Concerns morality of business decision making

Question 2

Which conflict is intensified when MN begins operating in less economically developed country?
1

Answer 2

• Operating in morally acceptable way and boosting profit

Question 3

How may a retailer cutting their payments to suppliers down cause an ethical problem?
1

Answer 3

• Once agreed price = unethical to bully small supplier into getting less

Question 4

How may global businesses be influenced by shareholders?

1

Answer 4

• Objective of maximising profit = ^dividend payments

Question 5

Examples of working conditions that are unconditionally unacceptable?
2

Answer 5

• Danger (machinery and fire risk) - chem air pollution

- Forced to work long hours (threat of dismissal)

Question 6

Working condition that could be seen as ethically acceptable?
1

Answer 6

• Cramped/hot, prof margins too low for ^space and air con

Question 7

Pros of considering emissions produced when developing products?
2

Answer 7

• Regulated in all developed countries (reassurance)

- Consumer attracted by products w low emissions

Question 8

How may ethical issues arise from emissions (environmental concerns)?
2

Answer 8

• Manufac pay independent tester (tester alter results to secure LT customer)
• Company find emissions problem w product = Fail to comm info externally

Question 9

How may ethical issues arise from waste disposal?

3

Answer 9

• Old products containing poisonous elements
• Developed countries = expensive disposal
• Less developed countries = cheap solution (weak/no regulations)

Question 10

What is the main ethical issue within the supply chain, yet how may it be acceptable?
2

Answer 10

• Exploitation of workers and child labour

- Is it only job to them, can’t feed family otherwise?

Question 11

Examples of ethical issues arisen from misleading product labelling?
3

Answer 11

• Implications of msgs about vague benefits of product

- Inferences of ingredients and methods of production

Question 12

Examples of unethical promo activities?

2

Answer 12

• Encourage to buy more than they need, food waste

- Buy1 get 1free on sugary drinks = poor health

Question 13

List one ethical issue relating to pay rates that affects multinationals?
2

Answer 13

• Need to take into account diff costs of living in countries (view local pay)
• May be paying ^value money to local workers

Question 14

List the operations of multinationals that raise ethical issues?
5

Answer 14

• Stakeholder conflicts
• Pay and working conditions
• Environmental impacts
• Supply chains
• Marketing methods