1. Chapter 21 Business ethics and social responsibility
06/05/2019
Chapter 21 Business ethics and social responsibility
This is the Title Slide
© Edco 2012    It’s the Business
R. DELANEY

2. Ethics Ethics is about moral rules. It involves listening to one’s
06/05/2019
Ethics
Ethics is about moral rules.
It involves listening to one’s
conscience and distinguishing
between right and wrong.
Profitability should not be the
sole criterion for making
business decisions.
This is the Title and Content Slide
© Edco 2012    It’s the Business
R. DELANEY

3. Ethics and social responsibility
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Ethics and social responsibility
Ethics and social responsibility are closely linked and are based on a belief that business has a responsibility to treat all of its stakeholders in a manner that is morally just and morally fair.
© Edco 2012    It’s the Business
R. DELANEY

4. Unethical business practices
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Unethical business practices
Bribery and corruption
Child labour
Unsafe products
Product testing
Pollution/illegal dumping
Overcharging
This is a 2 Content Slide
© Edco 2012    It’s the Business
R. DELANEY

5. Why would a business act unethically?
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Why would a business act unethically?
Greed
Profit
Fear
Lack of regulation
Lack of leadership
© Edco 2012    It’s the Business
R. DELANEY

6. Social responsibilities of businesses
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Social responsibilities of businesses
Responsibilities to employees
Responsibilities to customers
Safe and secure employment
Pay fair wages
Obey legislation
Respect human rights and dignity
Provide good quality produce
Charge a fair price
This is a comparison slide
© Edco 2012    It’s the Business
R. DELANEY

7. Social responsibilities of businesses
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Social responsibilities of businesses
Responsibilities to suppliers
Responsibilities to investors
Provide fair return to investors
To be transparent and honest in all matters.
To pay them on time.
Not to engage in unfair trading practices.
To honour all contracts that have been entered into.
© Edco 2012    It’s the Business
R. DELANEY

8. Social responsibilities of businesses
06/05/2019
Social responsibilities of businesses
Responsibilities to government
Responsibilites to local community
To pay taxes due.
To collect and submit taxes as required by law.
To obey relevant legislation.
To consult and inform on relevant issues.
To avoid all types of polluton.
To provide employment.
© Edco 2012    It’s the Business
R. DELANEY

9. Characteristics of environmentally responsible businesses
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Characteristics of environmentally responsible businesses
Conduct environmental audits
Minimise pollution
Promote recycling
Develop a green culture
Use sustainable raw materials
© Edco 2012    It’s the Business
R. DELANEY

10. Business and the environment
06/05/2019
Business and the environment
The following are the key environmental issues facing businesses in the 21st Century
Pollution
Ozone depletion
Waste disposal
Natural resources
Habitat
Agriculture issues
© Edco 2012    It’s the Business
R. DELANEY

11. Costs for a business of being social and environmentally responsible
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Costs for a business of being social and environmentally responsible
Capital costs (equipment)
Materials
Recycling
Disposal
Improved employees pay and conditions
Constant monitoring of environmental impact will involve greater costs
© Edco 2012    It’s the Business
R. DELANEY

12. Benefits of social and environmental responsibility for a business
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Benefits of social and environmental responsibility for a business
More efficient production
Recycling and effective waste management may reduce materials costs
Improve employees’ morale and increase productivity
Socially responsible firms may attract greater customer loyalty
It can be a marketing tool
Less likely to face green taxes
© Edco 2012    It’s the Business
R. DELANEY

13. Private costs vs social costs
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Private costs vs social costs
Private costs
Social costs
These are costs to a specific business of its industrial activity
E.g. Staff wages or raw materials costs
These are the costs to society of industrial activity
E.g. Pollution and congestion
© Edco 2012    It’s the Business
R. DELANEY