Ethical Factors Flashcards
Difference between law and ethics
A law is a set of rules/regulations, whereas ethics is guidelines and principles that inform people about how to live/behave in daily life
Ethical issues
A circumstance where a moral conflict occurs in the workplace, e.g;
- taking credit for another persons work
- unethical leadership
- toxic workplace culture
- discrimination/harassment
- Unrealistic and conflicting goals
- questionable use of company tech
Why are some businesses affected more than others by ethical issues
- lack of integrity
- organisational and relationship problems
- conflicts of interest
- misleading advertising
What are ethical trading methods and working practices
When companies take a series of recognised steps to identify problems and improve working conditions, with a focus on continuing improvement over time.
How can a business improve its ethical profile
- create a ethical working practice code
- engage with employees/customers about it
- reinforce the code
- have good role models
- train your employees correctly
- promote ethical behaviour
- reward ethical behaviour
- learn from company mistakes regarding ethics
Advantages of behaving ethically
- higher revenue
- better customer retention
- improved brand/business awareness
- employees will be highly motivated
- new sources of finance (ethical subsidies/investors)
Importance to a business of being seen as ethical
- key tool of marketing
- highly motivated workforce
- good PR
- ## increase in demand from positive consumer support
Conflicts of being ethical and other business objectives
How a business can manage the conflicts between ethical objectives and other objectives
How importance is changing ethical issues for a business and its stakeholders
Disadvantages of behaving ethically
