Business Ethics Management

Question 1

What is business ethics management?

Answer 1

It is the direct attempt to formally or informally manage ethical issues or problems through specific policies, practices and programs

Question 2

What are the components of business ethics management?

Answer 2

McRreeesa

Mission and value statements
Code of ethics
Reporting/ Advice channels
Risk analysis and managment
Ethic managers
Ethic consultants
Ethics education and training
Stakeholder consultation
Auditing, accounting and reporting

Question 3

What are the stakeholders of business ethics management?

Answer 3

Shareholders
Employees
Consumers
Suppliers/Competitors
Civil Society Organizations
Government

Question 4

What is corporate governance?

Answer 4

The process by which shareholders seek to ensure that their corporation is running according to their intentions.

It includes: goal definition, supervision, control and sanctioning

Shareholders and managers are the main actors.

It shows a company’s direction and business integrity

Question 5

What are the ethical issues concerning corporate governance?

Answer 5

Executive accountability and control
Executive remuneration

Question 6

How do shareholders become players in the global arena?

Answer 6

1. Buying shares of international companies (direct involvement)
2. Buying shares of domestic companies that operates globally (involved because company has major sales abroad)
3. Multinational corporations (become indirect players in global capital markets)
4. Investing in funds that direct money to global capital markets (sovereign wealth funds)

Question 7

What are the ethical issues with shareholders?

Answer 7

Governance and control
National security and protectionism
Unfair competition with developing countries
Space for illegal transactions

Question 8

What are ethical issues concerning employees?

Answer 8

Employee rights:
Right to freedom from discrimination (equal opportunities, reverse discrimination)
Right to privacy
Sexual harassment, racial)
Right to due process (promotions, firing)
Working conditions
Work life balance
Fair wages

Employee duties:
Comply labour contract
Comply to laws (bribery)
Respect employer property (fraud, theft, embezzlement)

Question 9

What are consumer rights?

Answer 9

Inalienable entitlements to fair treatments when entering into exchange with sellers

Question 10

What are ethical issues pertaining consumers?

Answer 10

Marketing:

Ethical issues in marketing management

Ethical issues in marketing strategy

Ethical issues in marketing research

Question 11

What are the rights of suppliers in terms of business ethics?

Answer 11

They are mutually dependent on corporations
Can gain from success of corporations and vice versa
Have rights (contract, fair deal, fair treatment and loyalty)

Question 12

What are the ethical issues pertaining suppliers?

Answer 12

Misuse of power (unfair terms, conditions for one party, resource dependency theory)

Question of loyalty

Preferential treatment (procedural justice)

Conflict of interest

Distinguishing personal inducements

Ethics in negotiation

Question 13

What is the role of competitors?

Answer 13

Create an environment of healthy competition
legal rights should be respected

Question 14

What are ethical issues pertaining competitors?

Answer 14

1. Overly aggressive competition:
   - Intelligence gathering/ industrial espionage
   - Dirty tricks (morally dubious practices)
   - Anti competitive behaviour
2. Insufficient competition

Question 15

Name some dirty tricks?

Answer 15

Negative advertising
Stealing customers
Predatory pricing
Sabotage

Question 16

What are Civil Society Organizations?

Answer 16

Umbrella term for different organizations who act as civil society actors
Civil society organizations include:
- Pressure groups
- NGOs
- Charities
- Religous groups

They are neither business not government institutions

Involved in promotion of societal interests, causes and goals

Examples: red cross, wwf, green peace, friends of the earth, amnesty international

Question 17

What are the two sectors of CSOs

Answer 17

Sectional groups (trade unions/ professional associations, student bodies)
Promotional groups (environmental groups, pro-life groups)

Question 18

What are ethical issues pertaining CSOs

Answer 18

Recognizing stakes
CSO tactics
CSO accountability

Question 19

Define government?

Answer 19

Variety of institutions or actors at different levels sharing a common power to issue laws

Question 20

What are laws?

Answer 20

Codification into explicit rules of social consensus what what a society believes is right and wrong

Question 21

What are the two roles of government as a stakeholder?

Answer 21

• Representative of citizens interest
• Actor with own interest

Question 22

What are ethical issues pertaining governments?

Answer 22

Legitimacy
Accountability
Modes of influence (direct: lobbying, party financing, corruption, privatization of government functions)