1. Social, environmental & ethical issues in business
ACCOUNTING 3

2. Triple bottom line
Many businesses evaluate their performance not only in terms of profit, but by their social and environmental performance

3. Social Performance

4. Social performance - Ethics
Business ethics – application of moral standards to business behaviour

5. Ethical issues: examples
Obey all laws and regulations:
7 Eleven underpaid wages throughout Australia (2015)
Some workers paid just 0.47c per hour
Estimated $25 - $50 million owed in wages
Workers unaware of their rights and how to complain

6. Ethical issues: examples
Honest communication:
Real estate advertising issue (2016)
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7. Ethical issues: examples
Tell the truth and avoid using misleading or deceptive information
“On the front of its product packaging, a business claimed its batteries lasted as long as those of two other competitors. The claim was supported by tests, but only against some (not all) of the competitors’ batteries. This was explained on the back of the packaging. A court found the message on the front of the packaging had misled consumers, even though there was a clearer message on the back of the packaging”. (

8. Continued…
manufacturer sold socks, which were not pure cotton, labelled as ‘pure cotton’
retailer placed a label on garments showing a sale price and a higher, crossed-out price. However, the garments had never sold for the higher price
business made a series of untrue representations about the therapeutic benefits of negative ion mats it sold
motor repairer told a customer more repair work was needed on their car than was necessary.

9. Ethical issues: examples
Respect for others
Workplace bullying and harassment
(2010)
The matter was eventually settled out of court for $850,000 and McInnes lost his job.

10. Ethical issues: Monsters Inc

11. Social & environmental responsibility
(Coca-Cola) – sustainability

12. Social & environmental responsibility
Pennicott Wilderness Journeys
Raised $300,000 for conservation and Polio eradication circumnavigating Australia in a 5.4m rubber dinghy
Annual sponsorship of a coastal cleanup that removed over 30,000 pieces of rubbish from remote beaches.
Provided $100,000 to remove a feral species from Tasman Island, saving 50,000 seabirds per year.

13. Social & environmental responsibility
Supporting the Community
Local Staff - Local staff are the foundation of the business, this provides employment and training opportunities in regional communities.
Local Purchases - Goods and services are purchased from local suppliers where possible and local cafes, providores and tourist attractions are included as part of the tours. 
Donations & Sponsorships - The company provides donations and sponsorships to a wide range of community groups. In 2014/15 Pennicott Wilderness Journeys supported more than 280 festivals, events, charities, schools, sports clubs and community groups.

14. Social and environmental responsibility
Johnson & Johnson – our purpose is to improve the health and well-being of families everywhere. To fulfil this goal, we must protect the environments in which we work and live. A healthy planet and a healthy community go hand in hand.

15. Ethical scenario 1
A customer is unaware that you have accidently overcharged her. Do you inform the customer and give back the money or keep it yourself?
Explain your answer

16. Ethical scenario 2
An employee is suspected of misusing the business’s internet facilities. However, the employee is the best salesperson in the business, generating thousands of dollars worth of sales each year. How should the employee be dealt with?
Explain your answer.