lecture 5 Flashcards
Declaration on Fundamental Principles and Rights at Work (1998)
established by ILO. it commits member states to respect and promote principles and rights in four categories, whether or not they have ratified the relevant Conventions.
Bangladesh Accord
an independent, legally binding agreement between brands and trade unions to work towards a safe and healthy garment and textile
industry in Bangladesh. it covers factories producing Ready-Made Garments (RMG) and at
the option of signatory companies, home textiles and fabric & knit accessories.
irrelevant factor
according to the ILO, these are race, gender, colour, religion, political opinion, national extraction, or social origin.
consequentialism
focus on consequences (ethical egoism, utilitarianism, greatest happiness for the greatest number).
deontology
focus on duties, rights, and obligations (duty and universal rules to determine right actions, social contract approach).
human nature ethics
focus on human nature (all humans have inherent capacities that constitute the ultimate basis for all ethical claims).
sustainability
development that meets the needs of the present without compromising the ability of future generations to meet their own needs. this definition is criticised for not being specific about whose needs need to be addressed and focuses primarily on environmental sustainability.
business sustainability
the pursuit of a business growth strategy by allocating financial or in-kind resources of the corporation to ESG practices which is basically the process of focusing on the achievement of all five ESGEE (Economic, Governance, Social,
Ethical and Environmental (EGSEE)) dimensions of sustainability performance. it focuses on activities that generate financial economic
sustainability performance and non-financial ESG sustainability performance through maximising corporate governance effectiveness and business opportunities and minimising environmental and social harms, and, above all
securing long-term success in creating shareholder value.”
concept of ‘shared value’
policies and practices that enhance the competitiveness of a company, while simultaneously advancing the economic and social conditions in the communities in which it operates.
institutional theory
views a firm as an institutional form of diverse individuals and groups pursuing common goals. it suggests that the institutional environment, internal corporate governance mechanisms, and corporate culture can be more effective than external measures such as laws and regulations in achieving higher sustainability performance.
stakeholder theory
proposes that a corporation’s performance affects all stakeholders’ well-being; it includes the interests of employees, customers, and the broader community within which a firm operates. on the other hand, reputation risk is not only about maintaining a good business reputation, but also about meeting the various stakeholders’ expectations.
