This document discusses business ethics. It defines ethics as moral principles or values held by individuals or groups. Business ethics are the values and principles that govern business operations. The document discusses ethical issues businesses face, such as using child labor, animal testing, paying low wages, environmental friendliness, and weapons involvement. It also discusses who cares about business ethics, such as customers, managers, pressure groups, employees, communities, and trading partners. The document notes that being ethical can create goodwill but sometimes conflicts with profitability, and larger global companies may struggle to regulate foreign operations. It provides examples of ethical dilemmas businesses face in relocating, drug testing, and advertising to children.

1. Business Ethics

2. What we will learn today
• Define and discuss what business ethics
means
• Draw a mind map, diagram or list of the
ethical issues faced in business
• Answer questions on the ethical decisions
of three companies

3. What is meant by ethics?
An ethic is a moral principle or set of moral values held by
an individual or a group.
Ethical behaviour is behaviour which is considered to be
right and moral.
Business ethics are the values and principles which
operate in the world of business. They form the moral
framework of the organisation.

4. Business ethics help firms decide what
actions are right or wrong in certain
circumstances.
E.g. Should a firm relocate to a country
paying lower level of wages?
Should a firm release a life-saving drug
after limited testing?
Should advertising aimed at children be
restrained?

5. Comparing Working Conditions
Bangladesh The UK
Wage per month: £12 £813
Wage per week: £3 £203
Wage per hour: 33p £5.35
Hours per week: 90hrs 38hrs

6. What ethical issues are faced by
business?
• Should firms use child labour?
• Is animal testing needed in products and ingredients?
• What wages should firms pay to poor countries?
• To what extent should firms seek to be environmentally
friendly?
• Should firms get involved in certain activities?
e.g making weapons

8. Who cares about business
ethics?
• Customers
• Managers/Owners/Shareholders
• Pressure Groups/Activists
• Workforce
• The Community
• Trading Partners

9. Why be ethical?
•Create good image and good press
•To act within the law
•Because the owners want to be
•It is one of their unique selling points
•To attract customers/employees/investors
•To be socially responsible

10. Two sides to every story
• Companies often find it difficult to please all of its
stakeholders, as they have different interests.
• Being ethical depends on an individual view of what is
right and wrong. What might be considered
good behaviour to one individual, may
seem bad to another.
• Ultimately companies aim to make a profit and
sometimes this can conflict with acting in a responsible way.
• Larger, global companies can often find it difficult to regulate
their activities in other countries.

11. The worst offenders
The Fraser 2006 rating on ethical reputation (1st being regarded
as least ethical), based on interviews with 1,300 adults:
1)McDonald's
2)Nike
3)Shell
4)Adidas
5)Barclays
6)Coca-Cola
7)BP
8)Camelot (National Lottery)
9)American Express

12. True or False?
Is the following statement true or false?
“Ethics has to do with whether my feelings are
right or wrong.”
True – but we must realise that
sometimes our feelings can
cloud are judgement and make it
difficult to see both sides.

13. True or False?
Is the following statement true or false?
“Ethics has to do with my religious beliefs.”
True – it can be linked to religious
beliefs, but remember it is much
more than this.

14. True or False?
Is the following statement true or false?
“Being ethical is doing what the law always
requires.”
True – people and business have
to follow law, but remember that
some laws may be unethical.

15. True or False?
Is the following statement true or false?
“Ethics consists of the standards of behaviour
our society expects.”
True – but remember that
society is sometimes
unpredictable and cruel.