Business Ethics

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

Three practical reasons… O Customers are more confident O Ethical workplace motivates employees O Prevents legal problems

Stakeholders O Business responsibilities to stakeholder group O Shareholders – generate profits and pay dividends O Customers – provide good quality products at reasonable prices. Safety, honesty, decency, and truthfulness O Employees – health and safety at work, security, fair pay O Suppliers – pay on time, pay fair rates for work done, provide element of security

Stakeholders O Local community – provide employment, safe working environment, minimise polution O Government – abide by the law, pay taxes, abide by regulations O Management – their aims versus those of the organization as a whole O Environment – limit pollution, congestion, environmental degredations, development

Tensions O Profits vs higher wages O Expansion vs development O Production vs pollution O Supplier benefits vs consumer prices/lower costs O Survival of the business vs needs of the stakeholders

Business Ethics O Examples: O Production of children’s toys O Materials used, promotion O Coffee industry O Fair trade O O Music industry O Illegal downloads, file sharing O Jewellry – diamonds and gold O Miner’s working conditions & payment O

Ethics Check Questions O Is it legal? O Is it balanced? O How will it make me feel about myself?

Why manage ethically? o To maintain a good reputation o To keep existing customers o To attract new customers o To avoid lawsuits o To reduce employee turnover o To avoid government intervention o To please customers, employees and society o TO DO THE RIGHT THING!