ethical

Question 1

what are business ethics ?

Answer 1

ethics are the moral principles that shape the way that a business behaves

Question 2

ethical issues facing businesses

Answer 2

environmental, animal rights, treatment of suppliers, treatment of customers, treatment of workers

Question 3

what has become increasingly important for firms and why ?

Answer 3

CSR (corporate social responsibility)

• important considerations as firms seek to become good social citizens

Question 4

when do businesses consider social responsibilities ?

Answer 4

ethical businesses do when devising corporate objectives and strategies

they think about the ‘moral rights and wrongs’ of a particular course of action

Question 5

aims of corporate social responsibility ?

Answer 5

aims to ensure that firms conduct their businesses in a way that is ethical

means taking account of their social, economic and environmental impact and consideration of human rights

Question 6

what may corporate social responsibility involve ?

Answer 6

• working in partnership with local communities
• socially responsible investment
• building relationships with staff and customers
• environmental protection and sustainability

Question 7

benefits of corporate social responsibility ?

Answer 7

improved brand image, marketing advantages, improved staff motivation, attract top candidates for jobs, reduced labour turnover & absenteeism

Question 8

negatives of corporate social responsibility ?

Answer 8

reduced profitability, unhappy shareholders, does a firm act consistently in all countries that they operate in ?, is CSR a genuinely held belief ?

Question 9

what is carroll’s csr pyramid ?

Answer 9

carroll states that firms firstly need to establish a sound financial base from which to act responsibly

he believed that the ultimate goal of any business was to be able to contribute towards society in a positive manner