UNIT: Business Ethics

LESSON: Ethical Business Practices

AGENDA Label Investigation Activity10 min Label Investigation Activity10 min Ethics Defined 5 min Ethics Defined 5 min CASE - Where do you stand?15 min CASE - Where do you stand?15 min Who is Responsible? 5 min Who is Responsible? 5 min Creating Change 20 min Creating Change 20 min So - what is Being Done?15 min So - what is Being Done?15 min Journal Reflection 5 min Journal Reflection 5 min

Maximizing Profit How can Canadian (North American) clothes manufacturers save $$/maximize profits by relocating this product to developing countries? BY: Reducing the cost of labour By: sub- contracting work to local factories By: Avoiding Government legislation By:

What does the term ethics really mean? Ethics Defined: Ethics refers to standards of conduct, standards that indicate how one should behave based on moral duties and virtues, which themselves are derived from principles of right and wrong. Or in other words Ethics refers to the way we treat others, and the way they treat us, based on morals or on what is defined as right or wrong. “Ethics is not about being better than someone else; it’s about being the best we can be.” 2

Business Ethics Business Ethics are concerned with the behaviour of businesses in the treatment of employees, society, stockholders and consumers. Business Ethics are concerned with the behaviour of businesses in the treatment of employees, society, stockholders and consumers. Businesses have values (either written or unwritten) that represent principles for the appropriate actions of their members (employees). Businesses have values (either written or unwritten) that represent principles for the appropriate actions of their members (employees). Organizations may choose to express these principles in a formal code of ethics. Organizations may choose to express these principles in a formal code of ethics.

Code of Ethics The Code of Ethics for Registered Nurses gives guidance for decision-making concerning ethical matters, serves as a means for self-evaluation and reflection regarding ethical nursing practice and provides a basis for peer-review initiatives. The Code of Ethics for Registered Nurses gives guidance for decision-making concerning ethical matters, serves as a means for self-evaluation and reflection regarding ethical nursing practice and provides a basis for peer-review initiatives.Code of Ethics for Registered NursesCode of Ethics for Registered Nurses

A Typical Running Shoe

Ethical Business Practices Workers wages in developing countries often equate to only 4% of the price paid for a pair of sneakers. For clothing it could be even less – as low as 0.5%. Workers wages in developing countries often equate to only 4% of the price paid for a pair of sneakers. For clothing it could be even less – as low as 0.5%. The thing is that workers being paid more doesn’t mean that you as a consumer would have to pay more. Workers in Thailand calculated that to double their pay, it would cost (per pair of sneakers) the equivalent of a pair of laces. The thing is that workers being paid more doesn’t mean that you as a consumer would have to pay more. Workers in Thailand calculated that to double their pay, it would cost (per pair of sneakers) the equivalent of a pair of laces.

Ethical Business Practices SWEATSHOP: SWEATSHOP: Place of employment having unacceptable working conditions. Sweatshops are commonly characterized by low pay, poor working conditions, safety violations, and generally inhumane treatment of employees.

Ethical Business Practices YouTube - Something to Hide YouTube - Something to Hide YouTube - Something to Hide YouTube - Something to Hide Behind the Labels : Garment Workers on U.S. Saipan - Google Video

Ethical Business Practices

WHO IS RESPONSIBLE? Factory owners Factory owners Government – both of the developing country and of the home country (i.e. Canada or US) Government – both of the developing country and of the home country (i.e. Canada or US) Factory Workers Factory Workers The Multi-National Company itself (i.e. Nike, GAP) The Multi-National Company itself (i.e. Nike, GAP) YOU AND ME – THE CONSUMERS!! YOU AND ME – THE CONSUMERS!!

What Can Be Done? Your group represents the “stakeholder” you have selected (i.e. factory worker, Multi- National Company). In that role – answer the following 3 questions: Your group represents the “stakeholder” you have selected (i.e. factory worker, Multi- National Company). In that role – answer the following 3 questions: 1. Do you have any responsibility to change things? 2. What could you actually do? 3. If you feel there is little you can do, who do you believe has the power to bring about change? You will present your ideas to the class as a group.

What is Being Done? In Canada - Government laws, regulations and organizations (Ontario Ministry of Labour, Occupational Health and Safety Act, Workplace Safety and Insurance Board) In Canada - Government laws, regulations and organizations (Ontario Ministry of Labour, Occupational Health and Safety Act, Workplace Safety and Insurance Board) International Labour Organization (part of The United Nations) International Labour Organization (part of The United Nations) Creation of Union, Trade and Other Organizations (Conference Board of Canada, Canadian Labour Congress, Union of Needletrades, Industrial and Textile Employees (UNITE), National Labour Committee) Creation of Union, Trade and Other Organizations (Conference Board of Canada, Canadian Labour Congress, Union of Needletrades, Industrial and Textile Employees (UNITE), National Labour Committee) Anti-Sweatshop movement and activist groups (Students Against Sweatshops, Labour Behind the Label) Anti-Sweatshop movement and activist groups (Students Against Sweatshops, Labour Behind the Label) Ethical Consumerism Ethical Consumerism Behind the Label - You Can Make a Difference Behind the Label - You Can Make a Difference Gap Inc. - Social Responsibility Gap Inc. - Social Responsibility

What Can You Do? GET INVOLVED! Learn about the products you buy! Write a letter and ask specific questions that require specific answers, such as: How do you investigate possible violations by your contractors or subcontractors? How do you investigate possible violations by your contractors or subcontractors? What specific actions are you taking to improve the situation? What specific actions are you taking to improve the situation? What is your company’s position on “full public disclosure” of factory locations? (Full public disclosure would require companies to disclose the name and address of all factories where their products are made.) What is your company’s position on “full public disclosure” of factory locations? (Full public disclosure would require companies to disclose the name and address of all factories where their products are made.) And remember that companies don’t want to upset consumers!

WEBSITES TO EXPLORE ttp:// ttp:// ttp:// ttp:// ge/Itemid,1/ ge/Itemid,1/ ge/Itemid,1/ ge/Itemid,1/

Sweatshops a final look… YouTube - Sweatshop Labour - Consumed YouTube - Sweatshop Labour - Consumed YouTube - Sweatshop Labour - Consumed YouTube - Sweatshop Labour - Consumed

Business Ethics An Ethical Dilemma arises when two or more “right” courses of action conflict, or a choice between two or more options must be made (i.e. short term vs. long term benefits. An Ethical Dilemma arises when two or more “right” courses of action conflict, or a choice between two or more options must be made (i.e. short term vs. long term benefits.

Business Ethics in Foreign Countries Ethical imperialism is the belief that certain absolute truths apply everywhere. A company may believe that their understanding of what is “good” should be recognized universally. Ethical imperialism is the belief that certain absolute truths apply everywhere. A company may believe that their understanding of what is “good” should be recognized universally. Cultural relativism is the belief that behaviour should be governed by what will bring about the greatest good for the greatest number of people. Cultural relativism is the belief that behaviour should be governed by what will bring about the greatest good for the greatest number of people.