An Introduction.  Business Ethics:  The critical, structured examination of how people & institutions should behave in the world of commerce.  In particular,

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Presentation transcript:

An Introduction

 Business Ethics:  The critical, structured examination of how people & institutions should behave in the world of commerce.  In particular, it involves examining appropriate constraints on the pursuit of self-interest, or profits, when the actions of individuals or firms affects others.

A business cannot claim to be an ethical firm if it ignores unethical practices by its suppliers  Use of child labour and forced labour  Production in sweatshops  Violation of the basic rights of workers  Ignoring health, safety and environmental standards

An ethical business has to be concerned with the behaviour of all businesses that operate in the supply chain  Suppliers  Contractors  Distributors  Sales agents

 Businesses and industries increasingly find themselves facing external pressure to improve their ethical track record.  An interesting feature of the rise of consumer activism online has been increased scrutiny of business activities.

 Tend to focus on activities & ethical practice of multinationals or industries with ethical issues (a problem)  Combine direct and indirect action and can damage the target business or industry

Consumers may take action against:  Businesses they consider to be unethical in some ways (e.g. animal furs)  Business acting irresponsibly Consumer action can also be positive – supporting businesses with a strong ethical stance & record.  A good example of this is Fair trade.

Fair Trade: The Story

 Use your purchasing power to directly influence companies' supply chain policies  You can create lasting change by learning about the products you purchase and making developing informed consumption habits  Join in the fight against child labor, forced labor, and worker rights violations by becoming a truly conscious consumer

 This is of growing interest amongst consumers  Companies are marketing their products to appeal to this sector  Tom’s Shoes, Just Us Coffee, Starbucks, Canadian diamonds  Something to consider in marketing your product!