Business Ethics Learning outcome: Understand the meaning and importance of ethics in the business world P1

Starter What do you understand from these pictures? How does these actions affect us?

Ethical Issues Corporate Governance Corporate Social Responsibility Environment Sustainability Human Rights Corruption Fair Trade Compliance Business Practices Working Conditions Individual Ethical Responsibility Ethical Issues

Corporate Governance  The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).

Corporate Social Responsibility

 Corporate social responsibility, often abbreviated "CSR," is a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social wellbeing.

Environment  Environmental ethics defines the relation between human beings and the environment and how ethics plays a role.  Businesses and individuals have a responsibility towards the environment.

Environment PollutionDeforestation Global warming Climate change Extinction

Sustainability Environment Societal Benefit Economic Activity

Sustainability  Definition: “Meeting the present needs without compromising the ability of the future to meet their needs.”

Human Rights  Freedom of speech  Freedom from discrimination  Right to life, liberty and personal security  Freedom from slavery and freedom of movement  Right to recognition and equality before the law  Right to property ownership  Freedom of opinion and expression  Right to work and to choose one's employer  Right to equal pay for equal work and fair remuneration  Right to rest and leisure  Right to basic living standards sufficient to ensure health and well-being

Corruption  Definition: Corruption allocates resources and opportunities in ways that are unfair and inefficient.  Corruption includes:  Bribery: “The act or crime giving or accepting a bribe.”  Collusion: “Secret agreement or cooperation especially for an illegal or deceitful purpose.”  Conflict of Interest: “A conflict between the private interests and the official responsibilities of a person in a position of trust.”  Cronyism: “The unfair practice by a powerful person (such as a politician) of giving jobs and other favors to friends.”

Fair Trade  Means an equitable and fair partnership between traders and producers.  Most traders are in the developed world, while many producers are in the developing, or underdeveloped world.  There are 2 issues for fair trade:  The price paid to the small farmers for their produce.  The wage paid to workers in factories and on plantations.

Legal & Regulatory Compliance  Each type of business is governed and monitored by a set of rules by a regulatory body.  Examples of regulatory bodies:  CBB (Central Bank of Bahrain)  TRA (Telecommunication Regulatory Authority)  NAHRA (National Health Regulatory Authority)

Business Practices  The most fundamental or essential ethical issues that businesses must face are integrity and trust.  Diversity  Decision Making  Compliance & Governance  Employee Behavior  Supplier/Customer Relations

Working Conditions  Health & Safety  One area of ethical consideration for employers is how to balance expense control with the health and safety interests of employees  Technology  Company leaders have to balance the privacy and freedom of workers while also maintaining standards that require that company technology use is for legitimate business purposes  Transparency  Fair Working Conditions  Fair pay and benefits

Individual Ethical Responsibility  Ethical responsibility means following a moral path.  Individuals have an ethical responsibility to friends and family, and businesses are obligated to promote ethics in the workplace.  Medical personnel, such as nurses, also follow moral responsibilities.

Activity  Google is the biggest Internet company in the world. Google has many offices across the world. Google employees come from different backgrounds, race, religion and languages.  Explain to Google 3 ethical issues that may happen to them.  For each ethical issue provide an example.  Visit and take the Ethical Issues quizwww.quizlet.com