ethics enviorment
TRANSCRIPT
-
8/8/2019 Ethics Enviorment
1/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business Ethics, Moral
and Environmental Issues
-
8/8/2019 Ethics Enviorment
2/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
External Influences
-
8/8/2019 Ethics Enviorment
3/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business Ethics
-
8/8/2019 Ethics Enviorment
4/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business Ethics
Rules or standards governingthe conduct of a business
Moral code what is rightand what is wrong?
Highly subjective nature
Tension between differentstakeholders
-
8/8/2019 Ethics Enviorment
5/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Stakeholders
-
8/8/2019 Ethics Enviorment
6/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
StakeholdersResponsibilities to stakeholder groups: Shareholders Generate profits
and pay dividends
Customers provide good quality productsat reasonable prices. Safety, honesty, decencyand truthfulness
Employees health and safety at work,security, fair pay
Suppliers pay on time, pay fair ratesfor the work done, provide element of security
-
8/8/2019 Ethics Enviorment
7/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Stakeholders Local Community provide employment,
safe working environment, minimise pollutionand negative externalities provide external
benefits? Government abide by the law, pay taxes,
abide by regulations
Management their aims versus those
of the organisation as a whole Environment limit pollution, congestion,environmental degradation, development, etc.
-
8/8/2019 Ethics Enviorment
8/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Moral Behaviour
-
8/8/2019 Ethics Enviorment
9/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business EthicsTensions:
Profits versus higher wages
Expansion versus development
Production versus pollution
Supplier benefits versus consumer
prices/lower costs Survival of the business versus
needs of stakeholders
-
8/8/2019 Ethics Enviorment
10/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business EthicsExamples:
Production of children's toys
Coffee industry Baby milk
Music industry
Multi-national operations
McDonalds food quality, litter
Chocolate industry
Jewellery diamonds and gold
Chemical industry
-
8/8/2019 Ethics Enviorment
11/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Business EthicsSolutions:
Taxation
Self Regulation Subsidies
Government/EU regulation
Legislation
Pressure Groups Improve competition and contestabilityof markets
Social and Environmental Audits
-
8/8/2019 Ethics Enviorment
12/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Social and Environmental Audits
-
8/8/2019 Ethics Enviorment
13/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Environment Urban blight excessive development,
inappropriate development,use of greenbelt land
Waste land-fill? re-cycling? burning? Energy use renewable energy,
non-renewable resources Global Warming fact or fiction? Pollution:
Noise Air Land Sea Water
-
8/8/2019 Ethics Enviorment
14/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Externalities Impact on a third party
of a business decision
Those affected not involvedin the decision
Negative externalities negativeeffects of business activity
pollution, urban development, etce.g. out of town shopping centres
impact on city centres
-
8/8/2019 Ethics Enviorment
15/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Externalities Positive Externalities:
Benefits to third parties of business activity
e.g. new infrastructure as a result ofdevelopment, side effects of research anddevelopment, technology (the Internet?),convenience, improved standards of living
Out of town shopping centres greaterease of access, everything in one place,pleasant environment to shop in, etc.
-
8/8/2019 Ethics Enviorment
16/16
http://www.bized.co.uk
Copyright 2007 Biz/ed
Externalities Out of town shopping centres:
Highlights complexity
of the interaction of positiveand negative externalities
Government policies encouragebusiness activity that leads
to positive externalitiesand discourage those that leadto negative externalities