Unit 6 chapter 21

Ethical,Social & Environmental Responsibilities in Business

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Business Express 2nd Edition
Business Express 2nd Edition
Ethics in business.. Is it a myth?
Reasons for unethical decision making:
Greed
Fear
Apathy
Bad examples set by senior managers
Lack of regulations,weak penalties
 Greed
In a business world that is becoming
more and more competitive everyday
companies sometimes will focus solely
on maximising their profits. These
companies will focus on their growth
and are far more likely to take part in
unethical activities to ensure they
succeed
But why is this a problem for us? What
do you think?
 Fear
Companies that just care about
themselves and their bottom line
generate work atmospheres that
cause staff to fear their superiors.
This sometimes causes staff to act
unethically and make unethical
decisions
 Apathy
This is common in giant multinational
companies and can become an issue
because of a lack of leadership and
control of the overall company. This
can cause ethical considerations to be
ignored and a anything goes attitude
to be adapted within the company.
 Bad examples set by senior managers
If managers at senior level act poorly
in terms of ethics then this poor
attitude will rub off on middle
managers and the staff that work for
the company.
Think about your own manager in your
job..How does he or she act?
 Lack of Regulation
Some companies and people can be
trusted to not break the law and act
ethically. However not everybody and
every business can be trusted to do
the right thing. This is why we need
regulation to control and stop
unethical practices from happening in
the first place.
Lets talk about apple for a second
The
personal
ethics test
Page 352
(5mins)
Business Express 2nd Edition
How can ethical business behavior be
encouraged?
 A code of ethics
A code of ethics, also called a code of conduct or
ethical code, sets out the company's values,
ethics, objective and responsibilities. A well-
written code of ethics should also give guidance
to employees on how to deal with certain ethical
situations. Every code of ethics is different and
should reflect the company's ethos, values and
business style. Some codes are short, setting out
only general guidelines, and others are large
manuals, encompassing a huge variety of
situation
 Encourage employees to report
unethical behaviour
If staff have concerns about unethical
activities taking place within the
company , they should be encouraged
to report the issues to senior
management without fear of
repercussions
See example page 352
 Senior managers must lead by
example
If a company is serious about ethics
then senior managers must lead by
examples. If managers are engaging
in unethical activities how can staff be
expected to practice ethically.
Managers need to be fair, honest and
trustworthy to others and encourage
all staff to do likewise.
 Clear disciplinary procedures
Companies must ensure that both
their staff and managers understand
that acting unethically will result in
penalties. Buying doing this
companies can ensure that the future
of the company will not be put in
jeopardy as a result of unethical
behaviour
 Staff training...dont assume
people know
It is important for companies to
remember that not every person
knows about ethics. Its is a
companies duty to train staff
about ethics within their
company. Staff will then know
what is expected of them in
terms of ethics.
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
 Employees
Companies need to be
responsible when dealing with
employees.
Discrimination,Bullying,
Harassment
Fair pay and safe working
conditions
Secure and continuous
employment wherever possible
 Social responsibility towards investors
Companies need to provide the
following
Provide open and honest financial
info.
Pay a fair dividend
Keep honest accounts
No excessive salaries or perks to
managers
 Social responsibilities towards
customers
Production of safe reliable goods
Fair prices
Truthful and accurate
advertising.think
Good after sales service
All consumer legislation abeyed
 Social responsibility towards Government
Ensure correct taxes are paid
(e.g)............
Collect all taxes on behalf of the
Government (E.G)
BOTH LOCAL AND eu LAW OBEYED
No use of bribery or
corruption.a;ways a dodgy area
 Social responsibility towards Local
Communities
No pollution to the local environment
Protect people's quality of life
Support local jobs
Support local suppliers
Include the community in your decision
making where possible
Provide sponsorship
 Social responsibility towards society and the
planet
Produce safe durable goods in the most
environmentally safest ways
Do not trade with corrupt Governments
Compete in a fair manner
Business Express 2nd Edition
What is environmentally sustainable
business?
Businesses that over-rely heavily on
raw materials that are created from the
natural environment . These raw
materials cannot be replaced such
as.
Sustainable development
Is economic development that can
continue indefinitely without causing
permanent harm to the environment or
reducing the quality of life for future
generations.. Can you think of any such
activities or businesses that have this
problem?
What are the
important
environmental issues
facing business?
1.Climate Change
Do you think this is a concern for
business?
What and how are businesses
contributing to the issue?
What is happening to earth as a
result of our activities?
 fuels such as oil and gas will be
exhausted in decades.

looking at this statement, do you

think it's true?
What do you think will be the end
result?
Do you think Ireland is doing
enough ?
Business Express 2nd Edition
3. Waste

Landfills/sea
Alternative solutions
Reduce, reuse and recycle
Do you know what happens to your
household waste?
How landfill works
4. Ploution
Waste emissions of chemicals from
factories and vehicles can be polluting
to the environment.
Example page 357
Destruction of natural resources

The pollution of natural habitats,

including forests, bogs, rivers and
coastlines damage the habitats of
thousands of plant and animal species,
driving many to extinction.
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition
Business Express 2nd Edition