ethics enviorment

8/8/2019 Ethics Enviorment

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http://www.bized.co.uk

Copyright 2007 Biz/ed

Business Ethics, Moral

and Environmental Issues


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External Influences


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Business Ethics


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Business Ethics

Rules or standards governingthe conduct of a business

Moral code what is rightand what is wrong?

Highly subjective nature

Tension between differentstakeholders


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Stakeholders


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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


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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.


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Moral Behaviour


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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


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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


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Business EthicsSolutions:

Taxation

Self Regulation Subsidies

Government/EU regulation

Legislation

Pressure Groups Improve competition and contestabilityof markets

Social and Environmental Audits


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Social and Environmental Audits


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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


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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


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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.


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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

ethics enviorment

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