Business ethics

Question 1

What is corporate social responsibility?

Answer 1

A business has responsibility towards the community and environment

Question 2

What are stakeholders?

Answer 2

All the people and groups associated with a business such as employees, customers, the local community, the country as a whole and governments.

Question 3

What are shareholders/stockholders?

Answer 3

Those who own the company and will make a profit if the company makes a profit.

Question 4

In what ways are businesses responsible to employees?

Answer 4

Provide statutory pay, including sick pay, holiday pay, maternity leave, safe working conditions, not to discriminate based on race or gender when employing. There must be contracts of employment outlining hours of work.

Question 5

What legislation protects employees?

Answer 5

2010 Discrimination Act
Public interest disclosure act of 1998 - means that employees can speak out publicly about unethical practice in a company and keep their job.

Question 6

In what ways are businesses responsible to Customers?

Answer 6

Advertise responsibly, label responsibly, to charge fair prices, to supply customer demand

Question 7

In what ways are businesses responsible to the local community?

Answer 7

Provide food banks (Tesco), to provide jobs for local people. Regarding advertising to customers there are laws covering codes of practice.

Question 8

In what ways are businesses responsible to the country as a whole?

Answer 8

Take responsibility towards the environment, dump waste responsibly, provide jobs rather than move business abroad and take jobs from local people - The waste disposal Act 2011.

Question 9

In what ways are businesses responsible to Governments?

Answer 9

To obey Government laws on whistleblowing, pay, environmental laws.

Question 10

What is the issue with the tobacco industry in Indonesia?

Answer 10

Many young people smoke and many people die of lung cancer. The tobacco companies advertise near schools where young people hang out. Marlboro used to promote in Indonesia.

Question 11

What role does the British American Tobacco industry play in Indonesia?

Answer 11

They are a big industry in Indonesia. Their suppliers use young children in the tobacco fields to pick the leaves which is highly dangerous and toxic work.

Question 12

What haven’t the Indonesian government done?

Answer 12

Have not signed the UN framework to stop big tobacco industries because they acquire a lot of revenue from the tobacco industry and it provides many jobs.

Question 13

What does Philip Morris say about workers in Mexico?

Answer 13

Workers in Mexico - legal age, protective kit (gloves), paid good wage for the hours

Question 14

How was Amazon an example of bad practice?

Answer 14

Workers worked a 55 hour week, targets for productivity were too harsh, a lot of work for relatively low pay.

Question 15

What are the benefits of ethical advertising?

Answer 15

Change attitudes, practices and opinions of children to be more positive
Consumer Protection from Unfair Trading Regulations - cannot mislead or harass consumers.

Question 16

Give an example of bad advertising?

Answer 16

Nivea skincare brand - “white is purity” deodorant advert was deemed discriminatory and racially insensitive.
Co-op - “outrageous sexism” for and advert for chocolate Easter eggs that encouraged parents to “treat your daughter for doing the washing up”

Question 17

Give some examples of good practice.

Answer 17

Google - transparency - employees want to be a part of something where there are no hidden agendas - makes them feel valued
Walmart’s founder Sam Walton said, “the way management treats associates is exactly how the associates will treat the customers”.

Question 18

Give some arguments for treating employees well?

Answer 18

Basic rights should be upheld and protection of livelihood and health
Well rested workers are able to be more efficient and accurate - breaks, sick pay, holiday pay
They are people - they deserve not to be exploited and deserve respect

Question 19

Give some arguments against treating employees well.

Answer 19

Often costlier and more time consuming
Your employees chose to work for you and are free to quite whenever they want

Question 20

What is whistleblowing?

Answer 20

That an employee discloses wrongdoing to the employer or the public.

Question 21

What are some arguments for whistleblowing?

Answer 21

Should tell the truth, should try to bring about change to poor working conditions, poor treatment as unethical not to do so, protected by law, could bring about more overall happiness. Mill - truth telling is a virtue and should follow the Golden rule.

Question 22

What are some arguments against whistleblowing?

Answer 22

Individuals may have personal gripe against company, should show loyalty to company, harms shareholder investments, stops profit making, used for personal attention seeking.

Question 23

What is globalisation?

Answer 23

that around the world economies, industries, markets, cultures and policymaking is integrated.

Question 24

Arguments supporting globalisation?

Answer 24

Companies have larger market and make more profit, goods made faster and cheaper so more profit, consumers benefit from competitive prices, countries can share ideas and technology, cheaper raw materials overseas, benefits workers. Bentham - make more profit - net happiness.

Question 25

Give some arguments against globalisation.

Answer 25

Workers in MEDC lose jobs, no laws governing health and safety, employee hours, environment, leaves some countries too dependent on others, brain drain - leaves no tried professionals in some countries, lack of product diversity. Rule Utilitarianism - universal rules.

Question 26

What are the benefits of capitalism?

Answer 26

Flourish as business make profit and this gives happiness to stakeholders, business leaders and shareholders. Brings happiness as entrepreneurial business leaders make profit and this trickles down to community - overall net happiness. Allow creative enterprise, greed means profit.

Question 27

What was Mill’s approach to capitalism?

Answer 27

Accepts it as long as businesses act with virtues.

Question 28

What are the issues with capitalism?

Answer 28

Not flourish in sense of not developing virtuous behaviour - poor treatment of employees - bargaining tools (Marx), unethical advertising to make profit. Think about people’s true preferences (Singer)

Question 29

What issues did Nike face?

Answer 29

In the 1990s stories arose from the Nike factories about child labour, low wages, physical abuse from factory overseers. Nike issued a Code of Conduct in 2002, which fixed most of these issues.

Question 30

What issues are there with cobalt mining?

Answer 30

Dangerous and dirty conditions - child labour used - Huayou, who sourced cobalt from the mines, didn’t apoligise for using child labour. But did promise to become more socially responsible and implement improvements.

Question 31

What issues are there with the textile factories in Indonesia?

Answer 31

Line the banks of Cittarnum river and empty their waste into the rivers, leading to dreadful pollution.

Question 32

What is the triple bottom line?

Answer 32

This is when companies make themselves accountable for their social responsibility by recording what they have done.

Question 33

Give some examples of whistleblowers.

Answer 33

Edward Snowden - ex CIA employee who leaked documents about global surveillance, he is now living in Russia after having been granted Asylum
Julian Assange - the founder of WikiLeaks which as been responsible for over 1.2m information leaks since 2006, he is currently in prison.