Is Good Ethics Good Business? Flashcards
Why does Adam Smith believe that good ethics is good business?
Because if businesses where un ethical then their business wouldn’t survive. Employees would find work elsewhere and no one would buy their products
What is a problem with Adam Smiths argument about Good Ethics Being Good Business
It doesn’t realise the wide spread impact that the failure of one company has on other companies. Companies which rely on that company will also face big losses
Why is good business/good ethics part of a company’s self regulation? (Adam Smith)
Because businesses are guided by the invisible had and need this in order to keep it alive
Why can good ethics good business be too faced
Because companies just use their ethical policies to promote their brand
M&S ethical scheme
Plan A, because their is no plan B, to protect the rights of their stakeholders and concern for the environment
The Body Shop
Uses ethical marketing to promote their products
Why might good ethics mean bad business?
Because paying taxes/ employees fairly, using fair trade, creating safe working environments can be expensive.
Why are customers hard to please?
Because they get angry when they hear about bad ethical practises in business but then they want to buy cheep goods, which can only become cheap at the expense of the businesses ethics
An example of customers double standards
The collapse of Rana Plaza factory was shocking to them but they continued to buy from primark and matalan because their prices were cheaper than other high street brands.
