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    Business Ethics

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    Yahya Ali
    Business ethics involves considering right and wrong in decision-making. Firms must decide issues like environmental impact, animal testing, workers' rights, corruption, and drug pricing. While ethics may raise costs, it can also boost brand image. Codes of practice outline responsibilities to stakeholders. Paying fair wages respects ethics but reduces profits. Governments mandate minimum wages to prevent exploitation. Corporate social responsibility gauges employment, human rights, community impact, integrity, and environmentalism.

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    Business Ethics

    Uploaded by

    Yahya Ali
    7 views3 pages
    Business ethics involves considering right and wrong in decision-making. Firms must decide issues like environmental impact, animal testing, workers' rights, corruption, and drug pricing. While ethics may raise costs, it can also boost brand image. Codes of practice outline responsibilities to stakeholders. Paying fair wages respects ethics but reduces profits. Governments mandate minimum wages to prevent exploitation. Corporate social responsibility gauges employment, human rights, community impact, integrity, and environmentalism.

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    Business ethics involves considering right and wrong in decision-making. Firms must decide issues like environmental impact, animal testing, workers' rights, corruption, and drug pricing. While ethics may raise costs, it can also boost brand image. Codes of practice outline responsibilities to stakeholders. Paying fair wages respects ethics but reduces profits. Governments mandate minimum wages to prevent exploitation. Corporate social responsibility gauges employment, human rights, community impact, integrity, and environmentalism.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views3 pages

    Business Ethics

    Uploaded by

    Yahya Ali
    Business ethics involves considering right and wrong in decision-making. Firms must decide issues like environmental impact, animal testing, workers' rights, corruption, and drug pricing. While ethics may raise costs, it can also boost brand image. Codes of practice outline responsibilities to stakeholders. Paying fair wages respects ethics but reduces profits. Governments mandate minimum wages to prevent exploitation. Corporate social responsibility gauges employment, human rights, community impact, integrity, and environmentalism.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    Business Ethics

    Ethics

    These are “right and wrongs” of a decisions. All businesses have to make ethical decisions, and some of
    them are affected by the law.

    For example it is illegal in some countries to treat a person differently due to their gender and skin
    colour.

    Every business has code of conducts within which employees will have to operate.

    Ethics of strategic decisions

    Remember! Strategic decisions affect how a business operates long term whereas tactical decisions
    are short term decisions which a business takes to meet an opportunity or to deal with a threat!

    Here are some of the decisions firms make based on the ethics:

    1. Environment-

    2. Animal rights- Most of the cosmetic manufacturers and drug manufacturers try out their
    products on animals which is unethical. So firms will have to decide whether they want to
    continue this practice, or try out other alternatives in order to try out their product.
    3. Workers in developing countries-

    4. Corruption- This is when bribes are accepted by firms in order to proceed with certain contracts.
    So businesses need to raise an ethical question as to whether they should accept bribes like all
    their competitors or have their own policy.
    5. Product Availability- A lot of people are unable to treat themselves because most of the drugs
    are extremely pricey. This might also raise another ethical issue as to whether pharmaceutical
    firms should focus on treating the ill or simply make money?

    Taybah Azeez
    Business Studies Unit 3
    Trade- offs between profits and ethics

    A firm might have conflict when meeting its objectives and profitability.

    For example if firms don’t exploit their workers then they might have to pay higher wages, this will
    increase their cost and thereby reduce the profit levels.

    Here are few negative impacts of following ethical code of practice to a business:

     It can raise cost, for example finding other ways of animal practicing might be expensive as the
    staff will have to be retrained.
     It can reduce revenues-

    However, adopting ethical stance might have also lead to benefits such as:

     Firms can use their ethical stance as a marketing purpose. This can help to create a
    positive brand image whereas when businesses behave unethically, they attract
    negative publicity which can tarnish their brand.

    Codes of practice

    Ethical Codes of Practice-

    They contain statements about:

     Environmental responsibility
     Dealing with customers and suppliers in a fair and honest manner
     Not engaging in collusion and predatory pricing.

    Pays and rewards

    Remuneration-

    Businesses use pay and rewards for different purposes:

    Taybah Azeez
    Business Studies Unit 3
     To reward and motivate existing staff. The ultimate aim of businesses is to make profit, so they
    should pay their staff enough money to make them work the best of their ability.

    However, most of the firms pay really low wages to keep their cost low and maximize the profit levels.
    To avoid exploitation of workers, the government in many countries have come up with national
    minimum wage scheme. This is when

    Corporate Social Responsibility (CSR)

    Corporate Social Responsibility-

    Here are some of the indicators that show the corporate responsibility of a business:

     Employment indicators- How well does the business treats its staff? This would include benefits
    such as pension, healthcare benefits, union representation, minimum wages and equal
    opportunities.
     Human rights indicator- How well does the company perform on its human right issues
     Do its suppliers use child labour?
     Does the company discriminate on the grounds of gender and color?

     The communities in which business operates-

     Business integrity and ethics- This would involve the ethical practice of the company, for
    example has it been involved in breaking legislations? Also have they been a part of unfair
    competition such as engaging in predatory pricing or collusion.

     The Environment -

    Taybah Azeez
    Business Studies Unit 3

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