Business Ethics

• business ethics

  the rights or wrongs of making a strategic decision that are beyond legal requirements and in accordance with a businesses corporate responsibility principles
• what is the trade off between profit and ethics?

  • the business will face higher costs which will reduce profits, unless higher prices are charged to compensate for the higher costs
  • but they will attract long term loyalty from employees and customers, helping to gain a competitive advantage
• what are the three ethical concerns in regards of pay and rewards?

  • gender pay gap (10%)
  • minimum wage
  • executive bonuses
• corporate social responsibility

  involves conducting businness activity in an ethical way and balancing the interests of shareholders with those of the wider community
• what are the 4 parts of CSR?

  • sustainable sourcing of raw materials and components
  • responsible marketing
  • protecting the environment
  • responsible customer service
• outline the benefits of CSR

  • enhances the business image and reputation
  • adds value
  • improves employee motivation and productivity
• what is a corporate responsibility report?

  an annual report which outlines the steps that have been taken to meet the businesses commitments to a range of stakeholders