Introduction

Aim and purpose

The aim of this unit is to introduce learners to the concept of business ethics and to examine its application to the conduct of individuals in organisations and to the conduct of the organisation as a whole.

Unit introduction

This unit introduces learners to the concept of business ethics and the application of ethical values to business behaviour. The topic applies to any aspect of business conduct, from boardroom strategies to how organisations treat their suppliers, to sales techniques, to accounting practices and to how they respond to wider issues of social concern such as sustainability. Ethics go beyond the legal requirements and are, therefore, discretionary. It is about how an organisation does its business and how it behaves intrinsically.

Ethical behaviour shows that an organisation considers the moral dimensions of its activities and how it ought to be acting. This unit examines business ethics and how taking an ethical stance affects businesses both internally and externally, including the effects on stakeholders. Learners will explore the social implications of business ethics on a wide range of business activities that affect the organisation itself and the external environment. This will include the ethical stance behind topical issues such as whistle blowing, employment practices, advertising to children, environmental awareness and using new technologies such as genetic modification of food.

As consumers become more ethically aware, explicitly ethical behaviour has increased. Whistle-blowing charters are not uncommon, renewable resources are used in production and products are ‘eco-friendly’. Consumers are now given a choice relating to the products and services that they use and this has given many businesses, such as those that do not use animal testing on cosmetics, the opportunity to grow in niche markets to satisfy consumer demand.

The unit also explores the wider impact of ethical concerns about how business practices can have local, national and global implications. The pressure of communities and groups on business operations has raised awareness of ethical concerns as varied as environmental degradation, executive greed and the use of child labour in the developing world. As people become more aware of different business activities, and as global changes continue to happen, businesses will change how they operate. The unit should develop anunderstanding of the ethical dimensions of business behaviour. 

Learning outcomes

On completion of this unit a learner should:

1 Understand the meaning and importance of ethics in the business world

2 Understand the implications of businesses operating ethically

3 Know the social implications of business ethics

4 Understand ethical concerns facing different communities.