Business Ethics Flashcards
what are ethics?
business activities that are conducted in a morally correct manner according to societal norms
what is an ethical trading policy?
a code of practice for a business, this will include:
- checks to ensure every part of the supply chain are adhering to the policy
- corrective action to make sure that when problems are identified that action is taken
what company are known for having a good ethical trading policy?
LUSH, as they are transparent about where they source their ingredients from etc
what are some ethical issues with businesses today?
- environment, animal rights
- workers in developing countries
- corruption
- new tech advancements
- product availability (accessibility)
- trading issues
what is a code of practice
say how employees should respond in situations with ethical issues. they include environmental responsibility, dealing with customers and suppliers, competing fairly
what is corporate social responsibility?
a business taking responsibility for its effects on the environment
how can you measure how true a company is to its corporate social responsibility?
- how well they treat their staff (benefits etc)
- how well the business perform on human rights issues, does it encourage trade unions?
- communities: does it give to charities?
- does the business get involved in cases that break legislation?
- how do they source their products?
- the environment: how much energy do they use?
what is renumeration?
reward for work in form of pay, wages or salary
why do businesses use renumeration?
- attract suitable employees
- reward and motivate staff
- maximise productivity level
trade offs of being ethical
- raise cost
- could reduce revenue (refusing bribes or selling to developing economies)
benefits of being ethical
- good marketing
- public won’t protest or be against business
- attracts customers as being ethical is on trend
