Ethical Business

Objectives Understand what is meant by ethical business Be aware of issues surrounding ethical business practices

Ethics What words do you think of when you hear the word ethical? E.G. –Ethics is a major branch of philosophy, encompassing right conduct and good life –conforming to accepted standards of social or professional behavior

Do you think about ethics when you are shopping?

Ethical or not? Do you think the following companies are ethical or not?

Click on the logos below to go to the company’s website. Have a quick look at their values/ethics. What are the main themes/ideas of their ethics?

Being ethical mainly comes under 3 categories:

Examples of ethical behaviour include: Not using child labour Not testing on animals Respecting the human rights of workers Ensuring working hours are not excessive Keeping pollution to a minimum

How ethical are you? DO you only buy brand names when you go shopping –E.g. Nike trainers Apple Ipod Would stop buying products from a shop if it was found to be unethical

Unethical Companies Have a look at the following images/facts & figures and discuss what each shows…

Sweatshops Sweatshops are the most common example of businesses acting unethically Workers, usually women and children, have to work in hot and stuffy conditions and are exposed to extreme exploitation Human Rights are not recognised and are not practised

Sweatshops Sweatshops are present in almost every poor country, usually in the 3 rd world The poorer the country the more exploitable its people are There are also sweatshops in developed countries using illegal immigrants as labour

The Issues Use of child labour Paying under the minimum wage No payment for forced overtime Unsafe and unhygienic working conditions Sexual harassment Verbal abuse Illegal firings No forming of trade unions Physical abuse

Women and Sweatshops 90% of all sweatshop workers are women Not given maternity leave Forced to have abortions or use birth control Sexual harassment is common

How does it happen? Some Governments are aware, but do not stop them, or just tolerate them because of the economic potential Large Businesses almost always use contract manufacturing firms to produced their goods Corporate greed because of globalisation Workers are unaware of their rights

Disney - Thailand Employs children to make Disney toys Fire adult workers for cheaper child workers who are less likely to complain or protest

Nike - Vietnam 90% of workers are women aged Widespread sexual harassment and abuse 11 hour days, 6 days a week Inhuman pace Threatened by abuse and physical punishment No medical facilities Illegal overtime, working with hazardous materials Paid $1.60 A DAY

Hands up if you would like a KFC right now?

What about now? Extract taken from PETA website (People for the Ethical Treatment of Animals)

Why be ethical? Why do you think some companies focus on being ethical –Social Pressure –Political Pressure –Conscience

Why be unethical? Based on some of the facts & figures/images you have seen why do you think some companies are unethical? –COST! –Ignorance –Because they can

Primark Primark is one of the companies that has recently been caught out for using sweatshops to produce it products.

Have you ever bought: –Nike trainers –Primark clothing –Disney cuddly toy –Ipod –Gap clothing –KFC food How ethical are you?

Will you think more about where you buy your clothes/shoes/food etc from now?

Task 1 Period 4 – produce a poster on Business ethics, what are ethics, what ethical behaviour do businesses need to take into consideration (see slide 8), give examples of companies that are ethical and unethical give examples of what they have done. Period 5 – produce an information sheet on Cadbury’s business ethics (research online and the Year 9 business area on the VLE).