Background Ethical behaviour shows that an organisation considers the moral dimensions of its activities and how it ought

to be acting. As consumers become more ethically aware, explicitly ethical behaviour has increased. Consumers are now given a choice relating to the products and services that they use and this has given many businesses, such as those that do not use animal testing on cosmetics, the opportunity to grow in niche markets to satisfy consumer demand. Learning Outcomes On completion of this unit you should:
1. 2. 3. 4. Understand the meaning and importance of ethics in the business world Understand the implications of businesses operating ethically Know the social implications of business ethics Understand ethical concerns facing different communities

Introduction This assignment will allow you to know and understand the concept of business ethics and to examine its application to the conduct of individuals in organisations and to the conduct of the organisation as a whole. You will be researching a variety of businesses and the ethics that they employ. You will have the opportunity to investigate and explore the wider impact of ethical concerns about how business practices can have local, national and global implications. Submission dates The final submission date for all work to Pass, Merit, and Distinction criteria is The submission dates for each individual task are as follows: Task 1: Task 2: Task 3: Task 4:
Note: dates may be subject to change and you will be given notice of this via email and verbally. Not submitting Pass criteria by the required date may mean that you are not permitted to progress to merit criteria.

Task 1 Evidence for P1, P2 and M1: P1 describe the ethical issues a business needs to consider in its operational activities P2 explain the implications for the business and stakeholders of a business operating ethically M1 assess how a selected business could improve their operations ethically
Scenario You work for a company of Independent Financial Advisers specialising in ethical investment. You provide a service advising clients who wish to make investments that are environmentally and socially responsible to businesses that you have researched and considered as being a viable investment. Your client needs to be sure that the money they are investing as a stakeholder is going to a business that has a proven record of ethical trading and social responsibility. Therefore, before any decision is made your client has asked you to research one business and provide information via a formal business report on the following points: 1. the ethical issues that the business considers in its operations, 2. the implications (what this means for) the business and its stakeholders 3. Areas that the business needs to address and how it can improve their approach to social and ethical trading. In particular, your client has asked you to: Provide a brief introduction to the business and what their business activities are; An explanation of business ethics; How and why your chosen business is ethical; use examples; Why business ethics is important for the business; What are the benefits to the business in being ethical; What are the costs to the business; Research and explain the strengths and weaknesses to the business under the following headings: - values of the business - any fair-trade and/or sustainability issues - professional ethics - working conditions of employees locally, nationally and globally - implications of ethical trading for the business (consider competitiveness, improved reputation, unique selling point, market positioning, costs, sales, profits) - The business stakeholders - a diagram of the stakeholders - implications of ethical trading for these stakeholders - conflict of interest between the different stakeholders and explain the reasons.

Reasons as to why the business is a sound and ethical investment for them to invest and become a stakeholder.
2

Suggestions and your reasons for how and why the business could and needs to be seen to be behaving more ethically in its operational activities. (identify the important factors that will have a positive impact on operations)
This provides evidence for M1

Task 2 Evidence for P3 and M2: P3 describe the social implications of business ethics facing a selected business in its different areas of activity M2 assess the social implications of business ethics facing a selected business in its different areas of activity
Scenario You are a reporter for a national newspaper and you are running an article showcasing some of the best ethical businesses. You have been asked to investigate ONE ethical business and write a 1000 (approx) word article about the selected business that explains the following things to readers. Introduction to the business; Explain and give examples of why they are considered an ethical business; Describe the social implications facing that business. The social implications include satisfied customers; better local environments; local employment and/or motivated workforce, growing market for fair-trade products, non-genetically modified foods, sustainable production; Explain what the business has done/is doing to ensure that their behaviour is fair and ethical irrespective of the location of operations; Describe the impact that the business practices have on the societies in which it operates - assess the implications of the ethical issues, how they are dealt with and the consequences for different stakeholders.

Note - You will have to clarify with your tutor that the selected business is suitable.

Task 3 Evidence for P4 and M3: P4 - examine the ethical concerns of the communities in which a selected business operates. M3 - explain the ethical concerns of the communities in which a selected business operates and suggest measures that can be taken to improve corporate responsibility. Scenario As a reporter for a national newspaper and you have been asked to write an article from research that you have conducted examining ethical concerns of communities where a business operates. Your article must include the following: An introduction to the business operating in that community; What are the concerns that the local communities have about the business operating there and why? Consider factors such as pollution; environmental concerns; employment; taking business away from local businesses; What role does any pressure group have in raising concerns within the communities, and what are they doing; What role does the Government have (if any) with ethical concerns in the communities; What actions can the business take to improve corporate responsibility within the communities? Give examples.

Note - You will have to clarify with your tutor that the selected business is suitable.

Task 4 Evidence for D1: D1 - evaluate the impact of a selected businesss ethical behaviour on stakeholders and the business.

Go back to the evidence you collected on the selected business you researched for Task 1 and undertake a Cost Benefit Analysis for that business summarising the impact that its ethical behaviour has on the business and its stakeholders. (You may choose to use another business) To complete this task to distinction level you will need to: 1. Using evidence from Task 1 briefly explain who the stakeholders in the business are; 2. List the ethical behaviour evident for the business; 3. Decide whether this impact is positive or negative and explain why (who does it affect and how); 4. What does it cost/benefit the business to behave like this? (eg time, money, training, reputation, sales, competitive edge, unique selling point, employee loyalty, lower costs, increased costs, larger profit margins); 5. Evaluate the impact of this behaviour it is worthwhile to the business? Is it sustainable (can it continue?) What might happen in the future if the business continues to take this type of CSR? You can present your findings in a table if you prefer make sure you change your page to landscape so that the table is large enough for the detail you will need to include. Example: (Un)Ethical Behaviour The stakeholders who are affected How these Costs to Benefits stakeholders business to are affected (D1) business (positive or (D1) negative and why) Long term impact on business and stakeholders (D1)

Evaluation and conclusions are required for D1 and incorporates the work you have completed for P1, P2 and M1 - bring your investigations together with relevant conclusions.