Ethics Flashcards
business ethics
set of moral rules and standards that provide guidelines for right and truthful behaviour in business situations with its various stakeholders such as employees, customers, suppliers and the community in which it operates
concerned with right and wrong, fairness, honesty and respect in a business context, regardless of the impact on profits
how does a business act unethical
bribery and corruption child labour unsafe products product testing pollution overcharging
why does a business act unethical
competition
company culture
profit/greed
lack of regulation
encouraging ethical business behaviour
ethical audit
senior management set an example for employees
whistleblowing
code of ethics
social responsibility
business has a duty to treat all those it comes into contact with honesty and fairness
has an obligation to do good and make a positive contribution
corporate social responsibility ensures businesses take into account the impact of their decisions on stakeholders
social responsibility to: investors
provide honest and transparent financial info
does not pay excessive salaries and bonuses to senior management
reward investors with a reasonable return when business is profitable
social responsibility to: employees
pay a fair wage based on work performed
provide healthy and safe working conditions
make it clear that bullying and discrimination will not be tolerated
social responsibility to: consumers
provide high quality goods at reasonable price
manufactures products that are safe
deals with complaints quickly and fairly
social responsibility to: suppliers
pay a fair price for goods received
pay in full and on time
avoid using suppliers that pollute the environment or exploit workers
social responsibility to: government
pay taxes in full and on time
comply with irish law
use grants from gov agencies as intended
social responsibility to: local community
invest money in the local community
source raw materials and other supplies from local community
employ local people
environmental responsibility
responsibility to conduct their business activities without damaging the environment
ie they should not damage the air, sea, land
should make themselves aware of the main environmental issues and take steps to minimise their harmful effects on environment
environmental responsibilities of a business
climate change
waste management
pollution
sustainable development
characteristics of an environmentally conscious company
sensitive to environment honest about environmental issues open to new ideas environmental audits sustainable raw materials
costs of meeting ethical, social and environmental responsibilities
higher production costs
staff training
different ethical standards- may lose out on opportunities, sales and profits, competitors with lower standards may increase sales/market share
