Business Ethics

What we will learn today

Define and discuss what business ethics
means
Draw a mind map, diagram or list of the
ethical issues faced in business
Answer questions on the ethical decisions
of three companies

What is meant by ethics?

An ethic is a moral principle or set of moral values held by
an individual or a group.

Ethical behaviour is behaviour which is considered to be

right and moral.

Business ethics are the values and principles which

operate in the world of business. They form the moral
framework of the organisation.

Business ethics help firms decide what

actions are right or wrong in certain
circumstances.
E.g. Should a firm relocate to a country
paying lower level of wages?
Should a firm release a life-saving drug
after limited testing?
Should advertising aimed at children be
restrained?

Comparing Working Conditions

Bangladesh
Wage per month:
Wage per week:
Wage per hour:
Hours per week:

12
3
33p
90hrs

The UK
813
203
5.35
38hrs

What ethical issues are faced by

business?

Should firms use child labour?

Is animal testing needed in products and ingredients?

What wages should firms pay to poor countries?

To what extent should firms seek to be environmentally

friendly?

Should firms get involved in certain activities?

e.g making weapons

Who cares about business

ethics?

Customers
Managers/Owners/Shareholders
Pressure Groups/Activists
Workforce
The Community
Trading Partners

Why be ethical?
Create good image and good press
To act within the law
Because the owners want to be
It is one of their unique selling points
To attract customers/employees/investors
To be socially responsible

Two sides to every story

Companies often find it difficult to please all of its
stakeholders, as they have different interests.

Being ethical depends on an individual view of what is

right and wrong. What might be considered
good behaviour to one individual, may
seem bad to another.

Ultimately companies aim to make a profit and

sometimes this can conflict with acting in a responsible way.
Larger, global companies can often find it difficult to regulate
their activities in other countries.

The worst offenders

The Fraser 2006 rating on ethical reputation (1st being regarded
as least ethical), based on interviews with 1,300 adults:
1)McDonald's
2)Nike
3)Shell
4)Adidas
5)Barclays
6)Coca-Cola
7)BP
8)Camelot (National Lottery)
9)American Express

True or False?
Is the following statement true or false?
Ethics has to do with whether my feelings are
right or wrong.
True but we must realise that
sometimes our feelings can
cloud are judgement and make it
difficult to see both sides.

True or False?
Is the following statement true or false?
Ethics has to do with my religious beliefs.
True it can be linked to religious
beliefs, but remember it is much
more than this.

True or False?
Is the following statement true or false?
Being ethical is doing what the law always
requires.
True people and business have
to follow law, but remember that
some laws may be unethical.

True or False?
Is the following statement true or false?
Ethics consists of the standards of behaviour
our society expects.
True but remember that
society is sometimes
unpredictable and cruel.