Ethics

Question 1

Define the term ethics.

Answer 1

Ethics mean having moral principals that govern how a company does business. A moral principal is one that knows right from wrong.

Question 2

Explain shareholder objectives vs ethical corporate objective.

Answer 2

Shareholder objectives:
High profits
High dividends
Growth
Return on their investment
A positive corporate image

Ethical corporate objectives:
Low emissions
Safe waste disposal
Paying fair wage rates to employees in other countries
Sourcing sustainable raw materials

Question 3

Explain MNCs and emissions.

Answer 3

An emission means the production and discharge of something, especially gas or radiation

The climate crisis of the 21st century has been caused largely by just 90 companies, which between them produced nearly two-thirds of the greenhouse gas emissions generated

Question 4

Explain MNCs and waste disposal.

Answer 4

MNCs regularly flout or ignore “weak” environmental laws in India and other developing nations

The owners want to keep costs down, good waste management is expensive and so there is a stakeholder conflict with those that live near these toxic dumps

Question 5

Define the term supply chain.

Answer 5

A supply chain is a system of businesses, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Question 6

What are some supply chain problems?

Answer 6

Having part of a supply chain in a developing nation can be a problem for the MNCs

Many garment factories or labour intensive production processes outsource to slums, refugee camps and unlicensed back street businesses with poor working conditions

This can mean that labour is intentionally or unessentially exploited by the MNCs

Question 7

What is forced labour?

Answer 7

• threats or actual physical harm to the worker
• restriction of movement or confinement to the workplace
• debt bondages
• withholding of wages or excessive wage reductions
• retention of identity documents
• threat of denunciations to the authorities

Question 8

Explain child labour?

Answer 8

Some children are trapped in forms of slavery in armed conflicts, forced labour and debt bondage (to pay off debts incurred by parents and grandparents), drug trafficking and organised begging and in many other forms of labour.

For some work, children receive no payment, only food and a place to sleep

Poverty is the most common reason why children work

Poor households spend the bulk of their income on food and the income provided by working children is often critical to their survival

Question 9

What are some marketing ethical considerations?

Answer 9

Misleading advertising

Inappropriate promotional activities