Social And Ethical Factors Flashcards
Social environment
Way that the public and nature of society affects businesses e.g. lifestyle, ethical views, demographics, ecological factors
Corporate social responsibility (CSR)
Firms decision to accept a duty for its social, environmental, ethical actions
In regards to all opinions of stakeholders not just shareholders
Pursue long term goals that are good for society
Ethical environment
Moral beliefs and attitudes in society that affect a business
Unethical actions by firms - selling harmful products
Could damage health, harmful if poorly made
Unethical actions by firms - selling products that could be used illegally
Encourage illegal activity, legal to sell but illegal to use
Unethical actions by firms - unethical sales methods
Misleading adverts, lying about performance (windowdressing), high pressure selling, phoning people at home, changing the product to encourage repeat purchases
Unethical actions by firms - raising prices excessively
Exploiting customers
Unethical actions by firms - illegal practices
Tax evasion
Unethical actions by firms - mistreating workforce
Threatening redundancy, poor working conditions, making children work in dangerous situations
Unethical actions by firms - pollution
Dumping dangerous waste
Unethical actions by firms - limiting progress
Built in obsolescence so that repeat purchases are made
Application of ethical issues affecting e-commerce
Fakes/counterfeit products, date theft/lack of privacy, bait and switch, privacy and cookies, spam and pop ups
Archie Carroll’s CSR pyramid - the base (1st)
Economic responsibilities - focus on profitability otherwise it wouldn’t survive, not able to fulfil other responsibilities- liquidation may harm workers & shareholders
Archie Carroll’s CSR pyramid - 2nd
Legal responsibilities
Archie Carroll’s CSR pyramid - 3rd
Ethical responsibilities - Doing what is right even if it’s not required by law
