Business Ethics

Question 1

What is CSR?

Answer 1

Corporate Social Responsibility

• duty to society
• idea that business has a responsibility to do good in society eg. Charity events (for reputation of the enivironnent?)
  
  • eg. Costa foundation - schools are build off coffee bean plantations
  • eg. Primark
• makes big businesses more ethical
• products are ethical, sourcing is ethical, environmental, business is running in a way that is socially acceptable eg. Starbucks reusable/ recyclable cups

Question 2

What are the problems with fair trade?

Answer 2

• non fair trade coffee = £1. Fair trade coffee = £2 but only a small portion of that extra money goes to the farmer
• only one of the ingredients in product needs to be fair trade for them to call it fair trade
• promise a price that if everyone joins the company can’t be met
  
  • disrupts supply and demand - more people grow bananas because they want money and no one is growing oranges or pears etc.

Question 3

What is whistle blowing?

Answer 3

• Simeon identifies an unethical/ unsafe practice of a business eg the care home abusing the elderly
• can go to the police or a journalist - some may feel they don’t want to stay in their profession but are protected by law
• alerting people to something that shouldn’t be happening eg. Sports direct,animal rights activists
  
  • Barclays CEO got sent a letter from a whistle blower then named and shamed them - against the law - turns out the claim was true
• anyone can be a whistle blower

Question 4

What is globalisation?

Answer 4

• we can now trade and create products globally not locally

- made the world smaller and the trade bigger

Question 5

What are the positives of globalisation?

Answer 5

• increases cultural diversity
• increases opportunity for work
• lots of things we use are sourced from around the world
• wider range of products
• consumer choice improved
• led to industrialisation of certain countries
• allows businesses to source cheaper products

Question 6

What are the weaknesses of globalisation?

Answer 6

• small local businesses can be impacted
  
  • local shops can’t compete with big companies
• effects English unemployment rate
• effects the environment - impact is huge
• live exports
• exploitation of humans - eg. India + China, low wages,no lunch break - Fox con company (getting charged for toilet breaks, lunch, bed etc. Exploitation of people in difficult situations)