Business Ethics. What is Business Ethics? The ethical relationship between businesses and consumers The ethical relationship between businesses and their.

Slides:

Advertisements

Similar presentations

Lecture 10 Environmental Performance Reporting. The financial reporting decision u Involves disclosures about the impact of companies on the surrounding.

Advertisements

BUSINESS ETHICS Copyright 2007 – Biz/ed.

Business Organisation & Environment Stakeholders

People in Business Unit 1.  Explain the differences between commercial and non- commercial businesses  List and explain the stakeholders, with examples.

BUSINESS ETHICS, MORAL AND ENVIRONMENTAL ISSUES. AT THE END OF THIS LESSON, STUDENTS WILL BE ABLE TO:  Identify how ethics can affect a business  Identify.

BUSINESS ETHICS & SOCIAL RESPONSIBILITY. What you know  Write down your definition of  Ethics  Social Responsibility  And….an example of a business.

Unit 1, Chapter 3. Ethics – are the rules that help us tell the difference between right and wrong and encourage us to do the right thing. Ethical Behaviour.

HOW ARE SMALL BUSINESSES INFLUENCED

© IBE....doing business ethically makes for better business…. Business Ethics: the essential components Philippa Foster Back OBE Director Institute of.

Social and other opportunities and constraints. Content Social responsibilities: –Employees –Customers –Other stakeholders Business ethics Technological.

Stakeholder Objectives

Self-presentation. CSR Agenda  Definition of Corporate Social Responsibility  Reason for and against introducing CSR in a company  Components of CSR.

What is productivity? As an integrated concept Output x Satisfaction

STAKEHOLDERS Definition: People who have a key interest in the business.

Types of stakeholder Internal: internal to the firm Internal: internal to the firm –employees –shareholders /owners Connected: connected by a relationship.

1 BUSINESS MANAGEMENT 2.5 What is a Successful Business?

Stakeholders. DO NOW Page 71 Tata Nano Divides Opinion answer all questions at the top of page 72.

Part A – SOCIAL & CULTURAL SUSTAINABILITY AS (3.2): Demonstrate understanding of strategic response to external factors by a business that operates.

Corporate Social Responsibility

Business Ethics. Unethical Business Practices Lying Offering substandard merchandise Unfair treatment of customers or employees Violation of ethical practices.

Business Ethics Environmental Issues. Triple Bottom Line Environment Economics Social Equity People, planet, profits.

1 AN INTRODUCTION TO BUSINESS UNIT 1 PPT 2 2 Businesses Exist... To develop a good idea To develop a good idea To make a profit To make a profit For.

Corporate Social Responsibility (CSR)

Business Management – Higher Business Enterprise Business in Contemporary Society Stakeholders.

Business & Management Topic 1 Stakeholders. Learning Objectives To know what is meant by a stakeholder Be able to differentiate between internal and external.

The relationship between business and ethics

OBJECTIVES OF BUSINESS ORGANIZATIONS. Introduction  The objective of an organization is the end which the organization intends to achieve and which investment.

1.4 Stakeholders. Stakeholders Not to be confused with Shareholders. Shareholders own a share in the company. Stakeholder is anyone with an interest in.

Reporting to Stakeholders. What are Stakeholders? An individual or group with an interest in an organisation An individual or group with an interest in.

Topic 1: Business Organisation and Environment. 1.4 Stakeholders A stakeholder is any person, group or organisation that is directly or indirectly affected.

07/02/2014. Points to consider The Strategic importance of Managing HR Gaining and sustaining a competitive advantage A Framework for managing HR Personality.

Chapter 5 Corporate Social Responsibility (CSR)

Stakeholder of LSOs. Stakeholders Definition Any individual or group that interacts with and has a vested interest in an organisation. KNOW THIS DEFINITION!!!

Aims of Stakeholders Different groups of stakeholders will have different aims in an organisation Shareholders – will be interested in healthy profits.

Starter: What is a mission statement?

Copyright 2007 – Biz/ed External Influences 4 Business Ethics, Moral and Environmental Issues.

Why do Businesses Exist

Social Responsibility and Ethics Unit Two. Marketing Affects Businesses Positive BeliefsNegative Beliefs Helps businesses find customers Helps businesses.

3.5.1 Ethics in business Is it ethical to sell fake goods?

Environmental marketing mix © With increasing consumer awareness of environmental issues, companies are adapting marketing strategies.

Making Ethical Decisions and Managing a Socially Responsible Business

1.1 U NDERSTANDING THE NATURE AND PURPOSE OF BUSINESS AQA Business 1 W HAT IS BUSINESS ? Name 3 businesses in your local area: 1 small 1 medium 1 large.

Business Ethics, Moral and Environmental Issues. At the end of this lesson, your students will be able to: Identify how ethics can affect a business Identify.

1.5.2 The Role of Stakeholder Groups

Business Ethics. O Rules or standards governing the conduct of a business O Moral code – what is ‘right’ and what is ‘wrong’?

A2 Unit 6 External Influences. Objectives To introduce the new module and its contents Students should understand the concept of social responsibility.

The Fashion Operation Business Unit Tutor Dr Neil Towers Fashion Operations Management

Producer decisions - Resources. Resource Decisions 1. Natural Resources – any thing which occurs naturally – E.g. Cocoa Beans, Milk Capital Resources.

External Influences 4 Business Ethics, Moral and Environmental Issues.

INTRODUCTION: The objective of this lesson is to acquaint learners with the roles of the ‘STAKEHOLDERS’ in the business environment. The typical high street.

Business Management - Intermediate 2Business Enterprise © Copyright free to Business Education Network members 2007/2008B104/078 – Bus Enterprise – Business.

F Designed to give you knowledge and application of: Section A: Business organisational structure, governance & management A1. The business organisation.

Meeting the Needs of Stakeholders BTEC Business. What are Stakeholders? O Stakeholders are groups of people who have an interest in a business organisation.

Business ethics. Ethics Ethics are concerned with what is ‘right’ or morally correct. Business ethics are concerned with the conduct, principles and patterns.

STANDARD GRADE BUSINESS MANAGEMENT REVISION Unit 1 - Introduction What organisations have in common – Name; aims; resources; image; rules Goods/services.

Business ethics Use in conjunction with the Primark brief case THE TIMES 100.

Business Ethics. O Principles, values and standards that guide behavior in the world of business O Moral code – what is ‘right’ and what is ‘wrong’? O.

External stakeholders. Stakeholders Stakeholders are groups or individuals with an interest in a business. Stakeholders may affect or be affected by the.

Just what is a stakeholder?  A person or group whom the product will directly or indirectly affect  Stakeholders can be divided into internal and external.

List some examples of ethical businesses and unethical businesses.

Today we are going to learn more about :-

Principles of Management Learning Session # 12 Dr. A. Rashid Kausar.

Business Ethics, Moral and Environmental Issues

Stakeholders BOH4M.

BU6019 Sustainable Entrepreneurship

Chapter 21 Business ethics and social responsibility

The Corporate Social Audit Corporate Sustainability

Presentation transcript:

Business Ethics

What is Business Ethics? The ethical relationship between businesses and consumers The ethical relationship between businesses and their employees The impact of globalisation on the environment and society in general

Main issue: the purpose of business Is it all about making money – unbridled capitalism? Or do businesses have moral responsibilities towards their stakeholders?

Social responsibility The business philosophy that states that businesses have a duty and an obligation to its stakeholders. It emphasises that business should behave as good citizens. They should consider the effects of their activities on society as a whole on the stakeholders.

Stakeholders? Share holders Management Employees Government Suppliers Environment Local Community Customers The Business

Stakeholders Shareholders Generate profits and pay dividendsShareholders Generate profits and pay dividends Customers provide good quality products at reasonable prices. Safety, honesty, decency and truthfulnessCustomers provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness Employees health and safety at work, security, fair payEmployees health and safety at work, security, fair pay Suppliers pay on time, pay fair rates for the work done, provide element of securitySuppliers pay on time, pay fair rates for the work done, provide element of security Local Community provide employment, safe working environment, minimise pollution and negative externalities – provide external benefits?Local Community provide employment, safe working environment, minimise pollution and negative externalities – provide external benefits? Government abide by the law, pay taxes, abide by regulationsGovernment abide by the law, pay taxes, abide by regulations Management their aims versus those of the organisation as a wholeManagement their aims versus those of the organisation as a whole Environment limit pollution, congestion, environmental degradation, development, etc.Environment limit pollution, congestion, environmental degradation, development, etc.

Goldman Sachs THE 10-HOUR TORTURE SESSION OF GOLDMAN SACHS EXECUTIVES BY US SENATORS ON TUESDAY 27 TH APRIL 2010 DISCLOSED A VERY BASIC DISAGREEMENT BETWEEN THE WORLD'S MOST POWERFUL INVESTMENT BANK AND THE WORLD'S MOST POWERFUL LEGISLATURE.

Goldman Sachs GOLDMAN SACHS TRIED TO EXPLAIN, TIME AND AGAIN, THAT MARKET MAKING - IN ITS VIEW - OPERATES OUTSIDE OF ANY ETHICAL OR MORAL UNIVERSE: THE ROLE OF GOLDMAN'S MARKET MAKERS IS TO PROVIDE A PRODUCT TO GROWN-UP INVESTORS, NOT TO ENDORSE THAT PRODUCT IN ANY WAY. IN THAT SENSE GOLDMAN VIEWS ITS MARKET MAKERS AS AMORAL (THOUGH, OF COURSE, NOT IMMORAL).

Relationship between Business and Consumer Originally this simply meant not conning the consumer to buy something he/she didn’t need. Quality, safety, price and good customer service. Open All Hours.

Relationship between Business and Consumer But now the consumer wants to see social responsibility from the businesses it buys from. Eg –Good treatment of employees –Putting back into the community –Environmental concern (think recyclable packaging etc) –Not using sweat shops etc

Relationship between Business and Consumer /newsid_ / stm?b w=bb&mp=wm&news=1&nol_storyid= &bbcws=1 Tesco, Asda & Primark found selling products made in sweat shops. Dec 2006http://news.bbc.co.uk/player/nol/newsid_ /newsid_ / stm?b w=bb&mp=wm&news=1&nol_storyid= &bbcws=1

HW Research companies that use sweat shop workers, or some other unethical practice. What have consumers made of it? Bring in information to next lesson.

Relationship between Business and Consumer

Relationship between Business and Consumer The Body Shop was perhaps the first British company to realise this and become an ethical business. ues-campaigns/index.aspxhttp:// ues-campaigns/index.aspx

Relationship between Business and Consumer and Employee Likewise, the Co-op operative.coop/ethicsinaction/ operative.coop/ethicsinaction/

Relationship between Business and other Stakeholders Nestle are cleaning up their act? asestudies/catalogue/Bus iness%20Ethics/BECG03 2.htmhttp:// asestudies/catalogue/Bus iness%20Ethics/BECG03 2.htm e.com/ e.com/ o.uk/case-study-- business-principles- action---nutritional- labelling phphttp:// o.uk/case-study-- business-principles- action---nutritional- labelling php

Social Responsibility Also BT & ChildLine dies/afe1184_btchildline.html dies/afe1184_btchildline.html DHL online_report_2010.html online_report_2010.html

A New Industrial Revolution? William McDonough (architect) and Prof Dr Michael Braungart (Leuphana University of Lüneburg, Germany) “Cradle to Cradle” Developed tools to design eco-effective products and business systems. A new paradigm of business ethics.

A New Industrial Revolution? While current strategies of eco-efficiency seek to reduce and minimize the unintended negative consequences of processes of production and consumption, the concept of eco-effectiveness is that we need to achieve a fully sustainable system of consumption and production. Based on the successfully interdependent nature of biological systems.

A New Industrial Revolution?

So, when you’ve finished with your iPod you return it to Apple for them to reclaim and reuse. You effectively ‘rent’ consumables, you don’t buy them. It would ensure that companies make things that last, and that what you use is reused properly. mhttp:// m

A New Industrial Revolution? This essentially is the link between business and environmental ethics. Because, in short, good social responsibility includes a concern for the environment’s sustainability.

A New Industrial Revolution? Ray Anderson, Interface ialist.html Journey.aspx son.htm e_business_logic_of_sustainability.html ialist.html Journey.aspx son.htm e_business_logic_of_sustainability.html

Summary Business Ethics reflects the relationship between a business and its stakeholders. Major issues surround the treatment of employees and consumers – ie social responsibility. The other major issue is sustainability.

Task Read p247f of Oliphant re the ethical stances to business ethics. Create a diagram that links up each ethical stance with the areas of consumer, employee and environment.

Task Plan an essay about environmental or business ethics. Suggested format: “___________ is the best approach to _________ ethics” Write the essay for next week.