1 Business Ethics & Social Responsibility ‘Doing the Right Thing’ Business Ethics Business Ethics is the way in which a business behaves when making decisions on how to satisfy customer needs and wants. Being ethical is when a business makes a decision not just based purely on making profit, but considers issues such as: Should we use products tested on animals when making our goods? Should we use child labour to make our products as cheaply as possible? Should we produce goods when we know it will harm the environment? The companies on the following page are well known for considering what is right when making decisions. Task 1: Think, Pair, Share Read through the information provided. With your shoulder partner, discuss and agree why you think the following 4 companies consider themselves to be ‘ethical’. -Copy the table provided into your jotter. Share your reasons with the class. Learning Intention To understand what makes a business ethical To understand what makes a business socially responsible and be able to give examples I can explore ethical issues relating to business practice eg Fairtrade, Recycling & Packaging When participating in an enterprise activity, I can explore ethical issues relating to business practice and gain an understanding of how businesses help to satisfy needs. SOC 3-20a
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Business Ethics & Social Responsibility Doing the Right Thing · 2018-01-08 · 1 Business Ethics & Social Responsibility ‘Doing the Right Thing’ Business Ethics Business Ethics
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Business Ethics & Social Responsibility
‘Doing the Right Thing’
Business Ethics
Business Ethics is the way in which a business behaves when making decisions on
how to satisfy customer needs and wants.
Being ethical is when a business makes a decision not just based purely on making
profit, but considers issues such as:
Should we use products tested on animals when making our goods?
Should we use child labour to make our products as cheaply as possible?
Should we produce goods when we know it will harm the environment?
The companies on the following page are well known for considering what is right when
making decisions.
Task 1: Think, Pair, Share
Read through the information provided.
With your shoulder partner, discuss and agree why you think the following
4 companies consider themselves to be ‘ethical’.
-Copy the table provided into your jotter.
Share your reasons with the class.
Learning Intention
To understand what makes a business ethical
To understand what makes a business socially responsible and be able to
give examples
I can explore ethical issues relating to business practice eg Fairtrade,
Recycling & Packaging
When participating in an enterprise activity, I can explore ethical issues
relating to business practice and gain an understanding of how businesses help
to satisfy needs. SOC 3-20a
2
The Co-op asked its customers what was important to them and they found that for over a quarter of customers their top ethical concern was animal welfare. As a result, the Co-op made several changes in their food stores. It banned the sale of eggs from caged hens and converted its entire own-brand hot beverage range to Fairtrade. The Co-op also became the first UK supermarket to ban animal testing for own-brand toiletries and cosmetics and it does not sell any products containing fur.
At our head office, stores and warehouses we are working tirelessly to reduce the amount of waste we send to landfill, and we would love you to help us by thinking about your waste too. After all, one man's trash is another man's treasure. We have joined forces with MADE-BY, a not for profit association who are helping Ted to look at our garments a bit more closely, from the fibres we use to make the products to the conditions for the people who work within our factories.
Good corporate citizenship extends across our
entire business so covers a wide range of areas and
includes many specific initiatives.
For example, in terms of vehicle innovations we've
developed new Eco technologies, such as advanced
EcoBoost petrol engines that reduce fuel
consumption and lower CO2 emissions. While our
ECOnetic range of cars are as fuel-efficient as
possible, without compromising the driving
experience.
We’re also committed to the environment, which is
why we source renewable energy wherever possible,
have developed a programme for greener vehicle
distribution and established best practice in both
product sustainability and vehicle recycling.
Of course, people are our greatest asset so human
rights are integral to our overall strategy. And a formal
Code of Basic Working Conditions is the foundation of
our operations around the world.
‘We sure aren't perfect, but we're trying to do the right thing’
It might make us sound a bit like a Miss World contestant, but we want to leave things a little bit better than we find them.
Our first and most important step in creating a sustainable business is to only use 100% natural, healthy renewable ingredients for our drinks – quite simply, we will put nothing into an Innocent Smoothie bottle unless it is made by nature. Of equal importance is that we will only ever make food that is genuinely good for people, each of our products has to have a positive health benefit, and be free of manufacturing shortcuts such as concentrates, flavourings or other weird additives that make food less wholesome.
In this topic we will look at in particular how businesses can be ethical in relation to the
environment, recycling & packaging and how they treat their suppliers (Fairtrade) but
there are many other ways a business can ensure it is ethical.
Task 1
Using Google research ‘The top 10 ethical companies in the world’. In your search box key in ‘the world's most ethical companies - Forbes ‘ and should be able to find those companies which follow ‘ethical’ principles.
Let your teacher know your findings and be prepared to share your findings with the class.
Class Discussion Point
Why do you think companies want to be considered ethical? Think of at least 3
reasons.
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One way in which a business can be ethical is caring for the environment. Businesses
can contribute to global warming and the greenhouse effect when their factories
produce air pollution; when they transport raw materials from a long distance and sell
their goods all over the world.
Governments want businesses to reduce their impact on the environment. Some
examples of how they can do this are given below.
Task 2
Access https://climatekids.nasa.gov/
Select ‘or go to the menu’
Read the information contained in
o What is global climate change?'
o What is the greenhouse effect?
o And others you may find interesting
Recycling
Recycling is when a business (or consumer) reuses waste products. For example
Nike have a ‘reuse a shoe campaign’ where consumers are asked to take their
worn out shoes to a Nike store and they will be ground up to make Nike Grind, a
material used to make athletic surfaces such as tennis courts and playgrounds.
Amazon requests customers return broken or unused kindles so they can reuse
Social Responsibilities are the duties that a business has towards the people who are
affected by it, for example, customers, employees and the local community.
Some examples of companies demonstrating social responsibility are:
Sponsorship of local events ie giving money to the local youth club so it can hold eg a
coffee and cakes morning to raise funds for new equipment such as pool/table
tennis tables for the club
Financial support for education programmes
Financial, food and clothing donations to those in need/charities
Below is an example of social responsibility demonstrated by a company.
A 'good' business is one which is socially responsible and takes ethical decisions and
actions at all times.
This means that a ‘good’ business minimises waste, treats its employees and suppliers
well, respects the environment, and returns some of its profit to the community in
which the sales are made.
There are also many advantages that businesses can gain from being ethical and
socially responsible:
1. It helps them keep high quality employees
2. It attracts good publicity and new customers
3. It attracts ethically-minded investors (more money!)
Working with and for the Community
Coca Cola invest in programmes at all of their sites for the benefit of local communities.
They focus on helping young people achieve their best in two main ways – supporting them through education and encouraging them to take part in physical activity.
Examples of how East Kilbride Coca Cola helps our local area include:
Sponsors of the EK half marathon Operate an education centre in East Kilbride
You can now watch a short video clip showing the impact of
‘Corporate Social Responsibility (CRS)’ on the Water Industry. It is
found in BBC – National 5 Business Management>Understanding
Fairtrade is a trading partnership between growers/producers and customers.
Fairtrade does this by providing fair trading conditions and by raising awareness of
the issues.
Class Exercise
Consider what buying Fairtrade
means to people in the UK and
what responsibilities a citizen of
a wealthy country has.
Did you know? The Co-op was the first UK Supermarket to launch an own brand Fairtrade product back in 2000. AND The Co-op sells Fairtrade products in more outlets than any other retailer (over 2,200), and provides over 180 grocery product lines – the widest range of Fairtrade products of any retailer.
Task 6: Think, Pair, Share
You have been sent shopping and
have been told to buy ‘Fairtrade’
bananas and chocolate. What does
this mean to you?
Task 7: Discussion
Do you agree or disagree with the following statements?
‘I am prepared to buy a Fairtrade product even if it is more expensive than a
similar non-Fairtrade product.’
‘In the UK we should only buy Fairtrade products’.
‘People shopping in the UK only care about price, not where their food comes from’.
Write down your answers in your jotter and then be prepared to share with the