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.
Business Ethics and Social Responsibilities
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
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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