Business Ethics

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Business Ethics

Considers the ethical relationship between businesses and consumers, and businesses and their employees

- Also considers the impact of globalisation on the environment and society

Ethicists disagree about the purpose of business in society

- Some see the main purpose of business as to maximise profits for its owners or shareholders; only those activities which increase profits are encouraged as this is the only way the company will survive (economist Milton Friedman)

- Others see businesses as having moral responsibilities to their stakeholders, employees, local community and wider society

- Others have adapted social contract theory (ideas of John Rawls in 'A Theory of Justice') to business - employees and other stakeholders are given a voice as to how the business operates

Due to changing times, ethics in business and corporate social responsibility are becoming crucial

- Consumers have shown dissatisfaction through taking to the streets and riots from Genoa to Seattle; stakeholders, especially consumers, are becoming increasing empowered and vocal, forcing businesses to review their strategies

Organisations such as The Body Shop and The Co-operative Bank - led the way to bringing business ethics and social responsibility into the public eye, campaigning for issues such as human and animal rights, fair trade and environmental impact

- Consumers - now expect businesses to be socially responsible

- Businesses are increasingly thinking about what they can achieve by putting the power of their marketing behind some key social issues so that they can make a positive difference

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