Ethics are tested in business almost everyday and in a wide range of business activities.
Let's take one of the above – suppliers.
A business cannot claim to be ethical firm if it ignores unethical practices by its suppliers – e.g.
An ethical business has to be concerned with the behaviour of all businesses that operate in the supply chain – i.e.
Businesses and industries increasingly find themselves facing external pressure to improve their ethical track record.
An interesting feature of the rise of consumer activism online has been increased scrutiny of business activities. Consumers are increasingly interested in the sourcing of their products and under what conditions they are produced. This is increasing pressure for what is known as safe sourcing.
Pressure groups are a good example of this. Pressure groups are external stakeholders they
Direct consumer action is another way in which business ethics can be challenged. Consumers may take action against:
Consumer action can also be positive – supporting businesses with a strong ethical stance & record. A good example of this is Fairtrade.
You might think the above question is an easy one for businesses to answer? Surely acting ethically makes good business sense? As with all issues in business studies, there are two sides to every argument:
The advantages of ethical behaviour include:
The disadvantages claimed for ethical business include:
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