1. 4.4.2 Ethics Theme 4 Global business What is meant by the terms:
CSR
Stakeholder?
To what extent do you think MNCs behave in an ethical manner?
4.4.2 Ethics

2. 4.4.2 Ethics In this topic you will learn about Stakeholder conflicts
Pay and working conditions
Environmental considerations:
emissions
waste disposal
Supply chain considerations:
exploitation of labour
child labour
Marketing considerations:
misleading product labelling
inappropriate promotional activities

3. Profitability v. society!
Ethics
Stakeholder conflict
Profit motive (shareholder concept) v. wider motives of other stakeholders (stakeholder concept)
In pairs discuss the following questions:
Do consumers benefit from greater choice or are they exploited?
Do MNCs reduce the impact on the environment by producing closer to markets or worsen it due to food miles?
Do employees benefit from greater training and working conditions or are they exploited by powerful businesses?
Are global industries too powerful?
Do MNCs uphold standards regardless of the country in which they operate in order to preserve the brand?
Profitability v. society!

4. Ethics Pay and working conditions How ethical are Primark?
Opportunity for MNCs to exploit local workers with low pay and poor working conditions
Introduce western standards
Create jobs
How ethical are Primark?
Plan an argument for and an argument against before reaching a conclusion
Should an MNC pay the average for the host country or a salary more in line with the domestic country?

5. Ethics Environmental considerations Emissions and waste disposal
UK legislation is strict e.g. all publically listed companies have to report their greenhouse gas emissions and abide by laws on how waste is disposed – but is this true in all countries?
Global impact of industrialisation
Growth of e-waste
VW emissions scandal.

6. Ethics Supply chain considerations: Exploitation of labour
The International Labour Organisation (ILO) promotes fair and decent work for workers across society
Pay, choice and working conditions – to achieve social justice
Responsibility of MNCs throughout the whole supply chain
Child labour
Exploitation of children who have no power
Low wages
Unacceptable conditions
No education
Kidnapping from families
Slavery
ILO mission and objectives.
History of child labour. If it is no longer acceptable in our country should it be acceptable anywhere?
The ILO’s campaign to end child labour.

7. Ethics Marketing considerations: Misleading product labelling
In the UK this is governed by the Trade Descriptions Act – but not applicable in other countries
UK legislation includes labelling such as size/quantity, price, ingredients, endorsements, how, where and when made, health claims
Stricter in certain industries e.g. food and pharmaceuticals
Often pursued by pressure groups and consumer organisations such as watchdogs
Inappropriate promotional activities
Promoting directly to children
Cultural difference e.g. the culture of gift giving in China
Promoting a life style that goes against cultural or religious difference
Its not just MNCs – do you know what your food labels really mean?
Business etiquette or corruption?

8. 4.4.2 Ethics In this topic you have learnt about Stakeholder conflicts
Pay and working conditions
Environmental considerations:
emissions
waste disposal
Supply chain considerations:
exploitation of labour
child labour
Marketing considerations:
misleading product labelling
inappropriate promotional activities