Business Ethics, Moraland Environmental Issues
At the end of this lesson, students will be able to:
Identify how ethics can affect a businessIdentify and clarify the role of a stakeholder and their importance in (and to) a businessClarify solutions used by business and government to resolve ethical dilemmas
The business philosophy that emphasises that business should behave as good citizensThey should consider the effects of their activities on society as a whole on the stakeholders
Recap Quick Fire:Who and what are stakeholders?Identify 5 stakeholders of a business?
Who are stakeholders?
ShareholdersGenerate profits and pay dividendsCustomersprovide good quality products at reasonable prices.Safety, honesty, decency and truthfulnessEmployeeshealth and safety at work, security, fair paySupplierspay on time, pay fair ratesfor the work done, provide element of security
A business social Responsibilities to stakeholder groups:
Local Communityprovide employment, safe working environment, minimise pollution and negative externalities – provide external benefits?Governmentabide by the law, pay taxes, abide by regulationsManagementtheir aims versus those of the organisation as a wholeEnvironmentlimit pollution, congestion, environmental degradation, development, etc.
The moral guidelines for decision making by organisations.Adopting a moral code – identifying what is ‘right’ and what is ‘wrong’ and act accordinglyHighly subjective natureTension between different stakeholders
Tensions:Profits versus higher wagesExpansion versus developmentProduction versus pollutionSupplier benefits versus consumer prices/lower costsSurvival of the business versus needs of stakeholders
Identify each case examples ethical issue
Self RegulationSubsidiesGovernment/EU regulationLegislationPressure GroupsImprove competition and contestabilityof marketsSocial and Environmental Audits
Which solution could “solve” the ethical issues?
SolutionsSelf RegulationSubsidiesGovernment/EU regulationLegislationPressure GroupsImprove competition and contestabilityof marketsSocial and Environmental Audits
ExamplesProduction of children's toysCoffee industryMusic industryMulti-national operationsMcDonalds – food quality, litterJewellery – diamonds and goldChemical industry
But do they solve the issue?
ObjectivesIdentify stakeholders within groupIdentify of ethical issue within case studyIdentifytensions created between stakeholdersRecommend a possible solution
Quick discussion – extension taskIn many markets firms are becoming fewer andLarger e.g. car manufacturing.In view of this, discuss whether the consumer isreally becoming more powerful?