Business Ethics and Social Responsibilities. Learning Objectives. To analyse the impact of ethical behaviour on business activities To analyse and evaluate business’ social responsibility to stakeholders. Business Ethics.
Definition: Ethics are the moral principles that should underpin decision making.
Business ethics can provide moral guidelines for conduct of business affairs.
2 influences that shape moral behaviour of businesses:
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?
The duties a business has to employees, customers and other stakeholders as well as to its shareholders
Shareholders wrong in certain circumstances.
Smile Magazine Ltd
Social audit – independent investigation into firm’s activities and its impact on society
K 2 P 2 A 4
K 3 P 3 A 4 E 5