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HOW ETHICAL ISSUES MIGHT AFFECT BUSINESS DECISIONS (Nike and child labour,…
HOW ETHICAL ISSUES MIGHT AFFECT BUSINESS DECISIONS
benefits and limitations
benefits
increase sales and competitors' sales will reduce
provided free promotion, competitors may suffer from bad publicity
long-term profits could increase
attract workers and investors --> easier to recruit best workers and raise capital from investors
less risk of legal action being taken against the business
limitations
higher costs (better condition)
prices might be set higher due to higher costs
if consumers prefer low prices to how products are made, sales could fall
short-term profits might fall
incomes of the illegal workers might fall to very low levels in some countries that do not employ them
Nike and child labour
Nike imposed strict conditions on the age of employees, but admitted there are cases when those conditions were ignored or bypassed
in Pakistan
1995, Nike said it thought it had tied up with responsible factories in Sialkot, in Pakistan, that would manufacture well-made footballs and provide good conditions for workers
Instead, the work was sub-contracted round local villages, and children were drawn into the production process
now, it insisted, any factory found to be employing a child must take them out of the factory, pay them a wage, provide education and re-hire them when old enough
in Cambodia
in recent years, Nike has been criticized for employing children in Cambodia, but the company defended itself by saying fake evidence of age could be bought in Cambodia for only $5
when it was exposed by the BBC, the company claimed it then re-examined the records of all 3,800 employees
fairtrade
examples
Ben & Jerry’s Ice Cream
The first ice cream company to use Fair Trade ingredients, Ben & Jerry’s launched their Fair Trade foray with their coffee flavors in 2005.
Rishi Tea
Grown in a Chinese mountain range with some of the oldest tea gardens in the world, Rishi Tea has always been harvested organically
Rishi’s Fair Trade practices have resulted in a scholarship program for children in middle school to university level
fair trade is an institutional arrangement designed to help producers in developing countries achieve better trading conditions
shell and ethics
ethics
integrity
value
trust
principles
morality
in general, ethics are a set of morals and principles that define what is good and bad
you will attract customers with good reputation
the relationships you create encourage people to invest both their time and sources into your company
shell corporation
Shell is one of the biggest climate polluters in the world
This transnational company has known about the severity of climate change and the impacts of oil and gas drilling for decades, but has not only misled the public on the issue, it continues drilling for fossil fuels