Know the social implications of business ethics and relate them to individual departments within your chosen business.
Write a
report to the chief executive of your selected business.
To:
From:
Title / Terms of reference:
Findings (Section 1):
Conclusions:
References:
To:
From:
Title / Terms of reference:
Findings (Section 1):
Conclusions:
References:
REPORT: SECTION 1
Explain that social implications refer to those actions of a business that have an effect on wider society.
Explain that social implications refer to those actions of a business that have an effect on wider society.
Pick areas of ethical concern that are particularly relevant for different departments your chosen
business.
Fully explain each ethical concern and why it is particularly
relevant to your business.
(Departments you could write about include Finance, Human Resource Management, Sales and Marketing, and Production).
Ethics in Finance:
Bribery - This is a form of corruption. It is the straightforward use of financial muscle to gain unfair advantage over others.
Bribery. Details here.
Executive pay - Should top executives be paid unrelated to their effort?
Insider trading - This refers to illegal use of privileged information in dealing on a stock exchange.
Executive pay - Should top executives be paid unrelated to their effort?
Insider trading - This refers to illegal use of privileged information in dealing on a stock exchange.
Insider trading. BBC news story here.
Lobbying - This means to approach an MP or minister with requests for actions or information. The intention is to persuade politicians to adopt a particular cause or issue to benefit it. It can be a source of corruption.
Lobbying - This means to approach an MP or minister with requests for actions or information. The intention is to persuade politicians to adopt a particular cause or issue to benefit it. It can be a source of corruption.
In a free enterprise economy a major business objective is to maximise profits.
In financial services what actions could be considered unethical?
Charging ultra high rates of interest for loans.
Ethics in Human Resource Management:
The law is used to ensure that when jobs are advertised, there is no discrimination.
People are entitled to feel that job selections are made on the basis of merit rather than on the basis of race, nationality, gender or other unfair grounds.
Job selection should be on the basis of merit rather than on the basis of race, nationality, gender or other unfair grounds.
The law is used to ensure that when jobs are advertised, there is no discrimination.
People are entitled to feel that job selections are made on the basis of merit rather than on the basis of race, nationality, gender or other unfair grounds.
Job selection should be on the basis of merit rather than on the basis of race, nationality, gender or other unfair grounds.
Wheelchair dancer sues company over dance floor ban. Details here.
Deaf failed by Welsh health boards under Equality Act. Details here.
Recruitment agency criticised for job ads specifying bra size. Details here.
Other HR issues could involve monitoring staff email and internet use.
Worker surveillance can be an important question in some organisations. The question is, to what extent is it reasonable for a member of staff to be watched, to have their emails checked, to have calls listened in to?
There are important questions of privacy involved.
How safe will staff feel if their management 'snoops' on them?
Worker surveillance can be an important question in some organisations. The question is, to what extent is it reasonable for a member of staff to be watched, to have their emails checked, to have calls listened in to?
There are important questions of privacy involved.
How safe will staff feel if their management 'snoops' on them?
Ethics in sales and marketing:
Unethical activities could include -
Spamming.
Spoofing.
Raising their own status through writing positive reviews.
People engaged in this activity are known as 'shills'.
A business could also be involved with 'greenwashing'.
Product placement in films and tv programmes could be considered an ethical issue.
Ethics in intellectual property:
Ethics in intellectual property:
It is important to respect patents for inventions, trade marks for brand identity, designs for product appearance and copyright for music and other written material.
Ethics in production:
The production of goods can lead to ethical problems for business, e.g. animal testing - British law requires that any new drug must be tested on at least two different species of live mammal.
Planned obsolescence - Businesses try to convince people, partly through advertising and promotions, that they need products.
There is nothing unethical in this.
However, it is not in the interests of business to produce goods that last forever.
Planned obsolescence is the deliberate development of products that will need replacing after a time (e.g. Microsoft, Iphone)
The production of goods can lead to ethical problems for business, e.g. animal testing - British law requires that any new drug must be tested on at least two different species of live mammal.
Planned obsolescence - Businesses try to convince people, partly through advertising and promotions, that they need products.
There is nothing unethical in this.
However, it is not in the interests of business to produce goods that last forever.
Planned obsolescence is the deliberate development of products that will need replacing after a time (e.g. Microsoft, Iphone)
Also, are there limitations to what a business should produce?
Task 2: M2
After each functional area:
Discuss the legal and other implications of discrimination in the recruitment, training or promotion of staff.
You could write the impact on :
Potential job applicants.
Existing staff.
Customers
The Equal Opportunities Commission. (Who can bring prosecutions against companies)
Marketing:
How are customers likely to view spoofing and inappropriate use of email (spamming)?
How are staff in the marketing department likely to feel about operating in this way?
How might rival firms respond?
Production / operations:
How are customers likely to view built in obsolescence?
What are the possible implications for customers of selling unhealthy food?
What might staff do if they are working for a business that operates in this way?
How might rival businesses respond?
Task 2: M2
After each functional area:
· What
are the implications of these ethical issues for different stakeholder groups?
You need to think about three stakeholder groups for each of the departments you you identified.
For example: The Finance department.
What are the legal implications for senior managers of authorising illegal bribes? Details here.
What are the possible implications on levels of motivation of senior managers who are expected to pay bribes?
What systems should company directors put in place to prevent bribery from ever happening?
What are customers likely to think about doing business with a company that pays bribes?
Click on the picture:
Executive pay:
How might 'ordinary' employees, shareholders and customers react to a story of a company boss receiving levels of pay hundreds of times higher than this?
Click on the picture.
Human resources:You need to think about three stakeholder groups for each of the departments you you identified.
For example: The Finance department.
What are the legal implications for senior managers of authorising illegal bribes? Details here.
What are the possible implications on levels of motivation of senior managers who are expected to pay bribes?
What systems should company directors put in place to prevent bribery from ever happening?
What are customers likely to think about doing business with a company that pays bribes?
Click on the picture:
Executive pay:
How might 'ordinary' employees, shareholders and customers react to a story of a company boss receiving levels of pay hundreds of times higher than this?
Click on the picture.
Discuss the legal and other implications of discrimination in the recruitment, training or promotion of staff.
You could write the impact on :
Potential job applicants.
Existing staff.
Customers
The Equal Opportunities Commission. (Who can bring prosecutions against companies)
Marketing:
How are customers likely to view spoofing and inappropriate use of email (spamming)?
How are staff in the marketing department likely to feel about operating in this way?
How might rival firms respond?
Production / operations:
How are customers likely to view built in obsolescence?
What are the possible implications for customers of selling unhealthy food?
What might staff do if they are working for a business that operates in this way?
How might rival businesses respond?
