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Business
Ethics
Business
Ethics
What are “ethics”?
Moral guidelines
which govern good
behaviour
Moral guidelines
which govern good
behaviour
Ethics considers what is right and
wrong
What do you consider right or wrong?
Selling arms to countries with unstable poli...
What is “behaving ethically”?
Ethical behaviour
is doing what is
morally right
Ethical behaviour
is doing what is
morally ...
Quotes on business ethics (1)
“Being good
is good
business”
Dame Anita Roddick
(1942-2007)
Quotes on business ethics (2)
“A business that
makes nothing but
money is a poor
kind of business”
Henry Ford
Quotes on business ethics (3)
“The higher
the buildings,
the lower the
morals” Noel Coward
Ethical principles & standards
• Used by individuals to make choices
about how to behave
• Define acceptable conduct in bu...
Is ethics the same as being lawful?
About what
is right and
what is
wrong
About what
is right and
what is
wrong
EthicsEthi...
So a business may be acting lawfully
but, potentially, unethically
You view on the ethics of the above examples
depends on...
Ethical dilemmas (1)
Should businesses
profit from
problem
(addictive)
gambling?
Should businesses
profit from
problem
(ad...
Ethical dilemmas (2)
Should
supermarkets
sell lager
cheaper than
bottled
water?
Should
supermarkets
sell lager
cheaper tha...
Ethical dilemmas (3)
Is ethical
shopping a
luxury we
can’t afford?
Is ethical
shopping a
luxury we
can’t afford?
http://ww...
Ethical dilemmas (4)
Should soft drinks
manufacturers do
more to help
tackle childhood
obesity?
Should soft drinks
manufac...
Bad ethics – firms caught out (1)
Bad ethics – firms caught out (2)
Bad ethics – firms caught out (3)
Bad ethics – firms caught out (4)
Bad ethics – firms caught out (5)
Bad ethics – firms caught out (6)
Two key influences on business ethics
IndividualsIndividuals CultureCulture
Business ethics and CSR
• There is clearly an overlap between CSR
and business ethics
• A socially responsible firm should...
Approaches to business ethics
• The amoral business
– Seeks to win at all costs
– Anything is acceptable
• The legalistic ...
Common areas where ethics are tested
AdvertisingAdvertising
ContractsContracts
Personal SellingPersonal Selling
PricingPri...
Ethics and the supply chain
• A business cannot claim to be ethical firm if it ignores
unethical practices by its supplier...
An example of an unethical supply
chain?
Brands that have been caught outBrands that have been caught out
using child labour or sweatshopsusing child labour or swe...
Ethical codes of practice
• Increasingly popular – particularly
with larger businesses
• Typical cover:
–Corporate social ...
Influence of pressure groups
• Pressure groups – external stakeholders
• Tend to focus on activities & ethical
practice of...
Pressure Group Example (1)
Pressure Group Example (2)
Pressure Group Example (3)
Consumer action
• Another way in which business ethics can be
challenged. Consumers may take action
against:
– Businesses ...
Positive consumer action -
example
Benefits and drawbacks of behaving
ethically
Potential significant costs from being
found to have acted unethically
Multinationals have to be particularly
sensitive to the potential damage
Tax avoidance by multinationals is legal – but is...
Look through more study
resource on the topic of
Business Ethics on the
tutor2u website
Keep up-to-date with business
stories, resources, quizzes and
worksheets for your business
course. Click the logo!
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Business Ethics

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This revision presentation introduces the concept of business ethics. The distinction between ethical and legal behaviour is examined as are the potential benefits and drawbacks of ethical behaviour. Some topical examples of business ethics in action are also provided.

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Transcript of "Business Ethics"

  1. 1. Business Ethics Business Ethics
  2. 2. What are “ethics”? Moral guidelines which govern good behaviour Moral guidelines which govern good behaviour
  3. 3. Ethics considers what is right and wrong What do you consider right or wrong? Selling arms to countries with unstable political environments? Advertising products that are high in saturated fat or sugar? Encouraging consumers to borrow large amounts to fund their spending? Employing private investigators to check the private lives of employees?
  4. 4. What is “behaving ethically”? Ethical behaviour is doing what is morally right Ethical behaviour is doing what is morally right
  5. 5. Quotes on business ethics (1) “Being good is good business” Dame Anita Roddick (1942-2007)
  6. 6. Quotes on business ethics (2) “A business that makes nothing but money is a poor kind of business” Henry Ford
  7. 7. Quotes on business ethics (3) “The higher the buildings, the lower the morals” Noel Coward
  8. 8. Ethical principles & standards • Used by individuals to make choices about how to behave • Define acceptable conduct in business • Should underpin decision making • An ethical decision is one that is both legal and meets the shared ethical standards of the community
  9. 9. Is ethics the same as being lawful? About what is right and what is wrong About what is right and what is wrong EthicsEthics About what is lawful and what is unlawful About what is lawful and what is unlawful LawLaw
  10. 10. So a business may be acting lawfully but, potentially, unethically You view on the ethics of the above examples depends on your moral code You view on the ethics of the above examples depends on your moral code
  11. 11. Ethical dilemmas (1) Should businesses profit from problem (addictive) gambling? Should businesses profit from problem (addictive) gambling?
  12. 12. Ethical dilemmas (2) Should supermarkets sell lager cheaper than bottled water? Should supermarkets sell lager cheaper than bottled water? http://www.timesonline.co.uk/tol/news/uk/health/article5264677.ece
  13. 13. Ethical dilemmas (3) Is ethical shopping a luxury we can’t afford? Is ethical shopping a luxury we can’t afford? http://www.mirror.co.uk/news/top-stories/2008/06/23/primark-child-labour-is-ethical-shopping-a-lux
  14. 14. Ethical dilemmas (4) Should soft drinks manufacturers do more to help tackle childhood obesity? Should soft drinks manufacturers do more to help tackle childhood obesity? http://www.theguardian.com/commentisfree/2014/mar/16/big-food-in-denial-about-harm-of-sugar
  15. 15. Bad ethics – firms caught out (1)
  16. 16. Bad ethics – firms caught out (2)
  17. 17. Bad ethics – firms caught out (3)
  18. 18. Bad ethics – firms caught out (4)
  19. 19. Bad ethics – firms caught out (5)
  20. 20. Bad ethics – firms caught out (6)
  21. 21. Two key influences on business ethics IndividualsIndividuals CultureCulture
  22. 22. Business ethics and CSR • There is clearly an overlap between CSR and business ethics • A socially responsible firm should be an ethical firm • An ethical firm should be socially responsible • However there is a distinction: – CSR is about responsibility to all stakeholders and not just shareholders – Ethics is about morally correct behaviour
  23. 23. Approaches to business ethics • The amoral business – Seeks to win at all costs – Anything is acceptable • The legalistic business – Will obey the law but no more than that • The responsive business – Accepts that being ethical can pay off • The ethical business – Ethical practice is at the core of the business
  24. 24. Common areas where ethics are tested AdvertisingAdvertising ContractsContracts Personal SellingPersonal Selling PricingPricing SuppliersSuppliers
  25. 25. Ethics and the supply chain • A business cannot claim to be ethical firm if it ignores unethical practices by its suppliers – e.g. – Use of child labour and forced labour – Production in sweatshops – Violation of the basic rights of workers – Ignoring health, safety and environmental standards • An ethical business has to be concerned with the behaviour of all businesses that operate in the supply chain – i.e. – Suppliers – Contractors – Distributors – Sales agent
  26. 26. An example of an unethical supply chain?
  27. 27. Brands that have been caught outBrands that have been caught out using child labour or sweatshopsusing child labour or sweatshops
  28. 28. Ethical codes of practice • Increasingly popular – particularly with larger businesses • Typical cover: –Corporate social responsibility –Dealings with customers and supply chain –Environmental policy & actions –Rules for personal and corporate integrity
  29. 29. Influence of pressure groups • Pressure groups – external stakeholders • Tend to focus on activities & ethical practice of multinationals or industries with ethical issues • Combination of direct and indirect action can damage the target business or industry
  30. 30. Pressure Group Example (1)
  31. 31. Pressure Group Example (2)
  32. 32. Pressure Group Example (3)
  33. 33. Consumer action • Another way in which business ethics can be challenged. Consumers may take action against: – Businesses they consider to be unethical in some ways (e.g. animal furs) – Business acting irresponsibly – Businesses who use business practices they find unacceptable • Consumer action can also be positive – supporting businesses with a strong ethical stance & record
  34. 34. Positive consumer action - example
  35. 35. Benefits and drawbacks of behaving ethically
  36. 36. Potential significant costs from being found to have acted unethically
  37. 37. Multinationals have to be particularly sensitive to the potential damage Tax avoidance by multinationals is legal – but is it ethical? Tax avoidance by multinationals is legal – but is it ethical?
  38. 38. Look through more study resource on the topic of Business Ethics on the tutor2u website
  39. 39. Keep up-to-date with business stories, resources, quizzes and worksheets for your business course. Click the logo!

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