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Role of Ethics in Global Business Decisions - Coggle Diagram
Role of Ethics in Global Business Decisions
Environmental responsibilty
reduced costs
Recycling supplies, waste and being more efficient with resources
Staff loyalty
Working in a sustainable business with natural methods of lighting, heating and cooling is better for employees.
Satisfied and happy employees increase the overall moral of the business which in turn increases productivity and decreases absenteeism.
Public Image
Businesses promote CSR to differentiate and a customer is more likely to support a 'Green' business.
Businesses should
Make environmental sustainability a part of business plan and of CSR as well as reducing their impact on the environment
Offshore labour
In developing nations
Governments in lower developed countries might accept MNC's because they want to increase jobs.
Governments in developing countries wanting MNC's may not have comprehensive industrial relations legislation or choose not to enforce legislation. This leads to sweat shops.
Can create ethical dilemas
The poor are marginalised and do no have a voice
In developed nations
Honesty and fairness is valued within businesses
Unethical businesses may lose customers in developed countries
Also a financial basis for ethical businesses practices.
Outsourcing
The contracting or non-contracting of non-core activities to free up cash, personal, time, and facilities for activities in which a company holds competitive advantage.
Often an integral part of downsizing or re-engineering.
Examples: BHP outsourcing for their IT because it's not their 'specialty'