Edexcel-Ethics 4.4 Flashcards
Business ethics
Principles and norms that govern business behaviour.
Unethical actions can lead to
Damage brand and result in a loss of profitability.
Managers v Workers
Managers may be focused on reducing costs.
Workers want a comfortable environment to work in.
Management v Owners
Owners want to maximise business profits
Management work every day with employees so will sacrifice profit for well being
Company profits v Resource depletion
Owners aim to maximise output to increase profits
Higher output requires rapid usage of natural resources
Pay and working conditions
MNCS may exploit workers by paying them less
MNCS providing poor working conditions in order to cut costs
MNCS using child labour
MNCS may exploit workers by paying them less example
Apple in China
MNCS providing poor working conditions in order to cut costs example
Nike in China
MNCS using child labour example
Starbucks in Guatemala
Waste management
Developed countries have regulations to dispose waste
What do MNCS do with waste management?
LEDCS usually have less regulation so MNCS dispose at a cheaper cost
MNCS disposing to LEDCS at lower costs example
Coca Cola disposing to LEDCS
Emissions
Emissions released from factories or products made by MNCS
Emissions impact the local communities
Supply chain consideration
Supply chain consists of suppliers involved in the manufacturing of a product or service.
Child labour
MNCS have manufacturing facilities where child labour is normal
Child labour issues
Face backlash, which can damage their brand and affect sales.
Child labour example
protests outside the Primark Oxford Street store.
Exploitation of labour
Exploitation of labour can take the form of low wages and poor working conditions.
Who takes action to remove exploitation of labour?
International Labour Organisation
Marketing consideration
When developing their marketing strategy, MNCs must consider the cultural and social differences.
Misleading labelling
Labelling must comply with the regulation of the country
Examples of misleading labelling
False information about Size, Content of the product features
Functionality
Inappropriate promotional activities
Promotional activities should not be offensive or illegal.
Inappropriate promotional activities company example
Nivea
