Ethical Legal & Environmental Factors Flashcards
Define ethics
Moral principles that govern a persons behaviour or the conducting of an activity
Define business ethics
Study of proper business policies and practices regarding potentially controversial issues, such as bribery, discrimination etc
Give examples of ethical issues
- discrimination in the workplace
- unsafe working conditions
- accounting practises
What are ethical codes of practise
Documents which set out how a firm believes its employees should respond to situations which challenge their integrity. Focus will vary according to organisation. All codes likely to contain:
•personal integrity
•corporate integrity
•social responsibility
What are the sources of ethical codes
- business owner
- organisational mission statement
- society/culture = based on current beliefs
Why may women receive less pay on average than men
Because in some countries women aren’t seen as equal to men
Why has the gender pay gap narrowed over the past 10 years
More people becoming aware of exploitation
Rise in feminism
What is a share holders responsibility to a firm
Generate significant return to owners
What is a banks responsibility to a firm
Provide payments for money borrowed on time
What is the governments responsibility to a firm
Meet necessary legal standards
What is the customers responsibility to a firm
To provide payment for goods/services without delay
WhT is the suppliers responsibility to a firm
Provide goods/services that meet target groups needed
What is the local communities responsibility to a firm
Provide jobs, training and opportunities for locals whilst maintaining a healthy environment
What is competitors responsibility to firms
To take competitive action that does not lead to unfair practise or trade
What is pressure groups responsibility to a firm
Maintain ethical practises to avoid exploitation of workers consumers and the environment
