3.4.4 Business ethics

Ethics

Moral principles that govern the behaviour of a business.

Trade-off

A trade-off arises where having more of one thing potentially results in having less of another. Often there is a trade off between ethics and profitability - ethical trading is expensive and this will have an impact on costs.

Corporate social responsibility (CSR)

A business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

CSR strengths and limitations

S: happy customers, good PR, happy community, cost reduction (lower turnover and waste).

L: CSR could be a fad, bad motive e.g. just for PR, cost, consumers may only care about price and look etc.