Ethics of Global Business

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Ethics in Global Business

Ethics refers to the moral principles which inform business decisions above and beyond the requirement to do so by law.

Stakeholder conflicts

A stakeholder is any individual or group of individuals involved in or affected by the actions of a business.
The objectives of different stakeholder groups can conflict, and this is called stakeholder conflict.
Stakeholder conflict can occur in different ways:
- Shareholders can demand dividend payments and shareholder value, but this may mean compromising the pay and working conditions of employees.

Environmental impact

Being ethical can involve considering your impact on the environment and taking steps to reduce the emissions and waste produced by the business.
If MNCs use cheap labour to extract non-renewable resources in some countries, many consumers may use this as unethical.

The supply chain

When operating globally, a business must consider its supply chain:
- Global businesses may need to ensure they do not exploit labour in countries where working conditions may be poorer than home markets.
- Global businesses may need to ensure they do not support child labour in countries where regulations may be poorer than home markets.
- For example, Zara was accused of exploiting child labour through its supply chain in Turkey though claimed it did not realise its suppliers were using children to manufacture clothing items.

Misleading consumers

When carrying out marketing activities, businesses must ensure they comply with laws and regulations to ensure they do not use misleading product labelling or inappropriate promotional activities.
- For example, food producers from across Europe were found to be using misleading labelling to sell meat products in 2015. Some meat products were found to contain horsemeat.

Opportunity cost

Although a worker earning £1/day working for an MNC sounds awful. If the alternative jobs available in that nation pay 50p/day, then the MNC is doubling that person's earning power and standard of living.
The impact of MNCs should not be judged by your standards, but by the opportunity cost for that individual worker.

1Exploring Business

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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