Business Ethics and the Environment

A2 Business Studies

Aims and Objectives

Aim: Understand how businesses operate and are affected by the environment

E-D
C-B A-A*

Define social responsibility

Examine different firms being socially and responsible and irresponsible Analyse the effects of pressure groups on businesses

Starter

What are the three most important ethical considerations a business should make when operating?

Ethical Business Quotes

Anita Roddick

Being good is good business

A business that makes nothing but money is a poor kind of business The higher the buildings the lower the morals

Henry Ford
Noel Coward

Ethics & Behaving Ethically

Moral guidelines which govern good behaviour Ethical behaviour is doing what is morally right An ethical decision is one that is both legal and meets standards of the community Should underpin decision making

Environmental Issues Facing Businesses

In groups decide on environmental issues which are facing businesses.

Food Miles

Carbon Footprint

Non-Sustainable Resources

Global Warming

CSR (Corporate Social Responsibility)

Many large businesses carry out an environmental audit in order to assess their own environmental performance. This allows businesses to set targets and measure performance against them. Known as CSR which is often reported in annual report or in an environmental report. Looks impressive to stakeholders if the firm is considering the environment.

M&S
Five key areas where they believe they can make the business more sustainable and kinder to the environment. Become carbon neutral Send no waste to landfill Extend sustainable sourcing Help improve the lives of people in the supply chain Help customers and employees live a healthier lifestyle

Nike & CSR

http://www.youtube.com/watch?v=3qq19Bkq VXc http://www.youtube.com/watch?v=wEKFJWdJ 5jg

Arsenal one of the most successful teams in England will soon start wearing new shirts manufactured using recovered bottles. Up-to-the-minute technology is said to have been used in the shirts development, with recycled polyester sourced from as many as eight plastic water bottles per item of clothing. These bottles were found at landfill sites in Japan and Taiwan, prior to being melted-down and converted into fabric.

Nike & The Environment

Nike & The Environment

Explain 2 benefits to the environment of Nike recycling plastic bottles, and using them to make football kits:
1)

2)

Nike & The Environment

Explain 2 benefits to Nike of recycling plastic bottles, and using them to make football kits:

1)

2)

Nestl requires an ingredient for its chocolate bars called palm-oil. This ingredient is largely only found in rainforests, which is the home of many exotic animals, including the orangutan. Many miles of rainforest have been destroyed so that Nestl can meet consumers demands for chocolate. This has led to the destruction of the environment in these areas, and the deaths of many species of animals. In 2010, the environmental group, GreenPeace hit back http://www.youtube.com/watch?v=X_7 qrj1Fr-I

Nestle

Nestle & The Environment

Explain 2 drawbacks to Nestl of not acting in an environmentally responsible way
1)

2)

Pressure Groups Consumer Action

Consumers may take action against:
Businesses they consider to be unethical in some ways (e.g. animal furs) Business acting irresponsibly Businesses who use business practices they find unacceptable

Consumer action can also be positive supporting businesses with a strong ethical stance

Pressure Groups Consumer Action

http://www.youtube.com/watch?v=s8kwVU5pu jg How should businesses deal with negative press from pressure groups? Submit or deflect the attention?

Starbucks CSR
http://www.youtube.com/watch?v=Nly_OdvO RQY Socially responsible or socially irresponsible?

Plenary

What are the three most important ethical considerations a business should make when operating?