Ethical Issues Lesson Objectives Define the terms ethics

Ethical Issues Lesson Objectives: üDefine the terms ethics and corporate social responsibility üI can identify issues that are unethical in the child labour trade üI can analyse the moral implications for companies that are not Fair Trade

Ethical Issues 1. 2. 3. State one benefit of creating a business plan. Give three elements that should be included in a business plan. State one legislation that a business must conform with. Should supermarkets sell chocolate cheaper than fruit? Wrappers 1 argument for 2 connectives 3 Keywords STRETCHWhy may someone disagree? Write an answer End 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 60

Ethics Doing what is morally right - behaving in a way which is acceptable to society Corporate responsibility is the commitment made by a business to act fairly and comply with standards and norms within the law. E. g Promises to pay fair wages to staff/ promises to tell customers the truth/ treats workers fairly with respect. LO 1

Cheap as chips but morally wrong? • https: //www. youtube. com/watch? v=g. S 7 K-Yf. Wh 0 w What does being unethical mean? To what extent do you agree with this comment and why ? What could Primark do to fix their reputation?

What did Primark do to show themselves as an ethical company ? • Ethical trading Policy (front window) • Mission Statement. Commitment to fair trade • Inspections by officers to see factories and working conditions • Kimble numbers to trace goods made • Commitment to pay fair wages and offer good working conditions Unethical • Child labour • Low pay for staff outside UK • Using sub contractors who outsource to refugee camps • Too few inspections of factories • Poor working conditions

The Trade – off Between Ethics and Profit Pressure Groups Liberty Amnesty International Expense!!! High ethical standards Businesses suggest that they are ethical because high standards mean high consumer reputation which leads to higher sales and profits, which can be reinvested into the business to keep standards high. What could be the impact of poor ethical behaviour ? High sales and profits Good consumer image End 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Paper 2 -Section C 12 marks/ Marks/ 12 Question 12 minutes L 3 - 9 -12 marks- Thorough context throughout (5). Five Layout Evaluate the importance of strict ethical policy in helping Primark to increase its profit (12 marks) Choose the option mentioned in the case study 2 BLT for your option 1 BLT with a disadvantage of your option Conclude (DJSAD) Key Terms v v v v v ethics corporate responsibility child labour environment unethical minimum wage pay factories working conditions impacts from up to two relevant points. Well-balanced evaluation, a judgement with clear justification based on thorough evaluation. Links throughout to business topics. L 2 - 5 -8 marks. Use context – two examples. Two impacts from up to two relevant points. Well-balanced evaluation, a judgement with a limited justification and repetition of the analysis in the conclusion. Makes some links to business topics. L 1 - 1 -4 marks. Lack of context– maybe one example. One impact from a relevant point. Simple point of balance or basic judgement to counter. Only discusses ethics. Context PRODUCT Clothes, cheap products, shoes, home goods INDUSTRY Clothes, fashion, design, home goods CUSTOMER Low income, value for money and expected low quality COMPETITOR Matalan, H&M, Bohoo, PLT, Missguided SELLING Low quality, low price, beauty range, Disney branded goods.

Question 10 Evaluate the importance of strict ethical policy in helping Primark to increase its profit (12 marks) Is the ethical policy important and does it affect profit ? Argue- Yes- Make your point/explain what you mean/make 2 to 3 links Eg. To some extent an ethical policy is important to help Primark make profits. This is because if Primark commit to paying shop floor staff fair wages and giving good working conditions it will lead to a good reputation and company image with the public and their customers. This is then likely to reverse some of the damage caused by the BBC and their use of child labour. If this happens then profits are likely to increase because low income customers will enjoy shopping for clothes with them as an ethical company. This will increase their sales revenue as customers are loyal to them over companies like Matalan. This will lead to a bigger brand recognition from organisations such as Disney who pulled their contract after the controversy in the Indian factories. However some customers are not concerned with ethical policies, they simply care about the price. This means that some customers will always buy from Primark regardless of any child labour being used which may be morally wrong but will not change their habits. This means sales would continue to rise and profits. However if some customers knew about them using child labour this could affect profits because ….

Hot Potato! Discuss the impact pressure groups have on a company! Describe one benefit to a business if it improves ethical behaviour. Explain the impacts of pressure groups