BUA chapter 2

Cacao bean sources: Over 70% derives from small farms in West Africa, principally Ivory Coast and Ghana.
Child slave labor: Significant concern in cocoa production, especially in Ivory Coast where cocoa represents half of the country's exports.
Farmer's earnings: Farmers often earn below the poverty line, even with exploitative labor practices.
Commodity volatility: Cocoa prices fluctuate significantly, leading farmers to seek cost-cutting measures.

Definition: Fair trade programs ensure farmers in developing nations receive equitable prices for their crops.
Certification Organizations: TransFair USA certifies fair trade cocoa, promoting safe and environmentally friendly practices.
Pricing of fair trade products: Fair trade chocolate costs more (e.g., $3.49 for a fair trade candy bar vs. $1.84 for standard); higher prices due to niche marketing and demand.
Supply chain profits: Critics argue that farm workers only receive a small fraction of the premium charged for fair trade products.

Ethical behavior: Defined by individual beliefs about right and wrong, influenced by societal norms.
Managerial ethics: Guide behavior in three areas: toward employees, organization, and other economic agents.
Whistleblowing: Employees reporting unethical behavior face risks, but laws protect their rights to report misconduct.

Consumer rights: Established by the Consumer Bill of Rights; includes the right to safety, information, choice, and to be heard.
Controversies in advertising: Examples include misleading labels (e.g., 'free range'), ethical dilemmas in promoting harmful products.
Corporate scandals: The Vioxx case as an example of violations leading to corporate crises and recalls.

Definition: The effort of a business to balance commitments to various stakeholders, including customers, employees, investors, suppliers, and local communities.
Primary focus areas: 1. Environmental issues (pollution and sustainability), 2. Customer rights, 3. Employee treatment, 4. Investment ethics.
Stakeholder identification: Groups directly affected by a company's practices include employees, customers, and the surrounding community.

Role of philanthropy: Many corporations allocate funding to charities and social initiatives, emphasizing their commitment to social responsibilities.
Examples of corporate foundations: Notable foundations include Novartis Patient Assistance Foundation and Wells Fargo Foundation, aiding various causes.

Regulation vs. influence: The government regulates businesses to promote social responsibility and ethical behavior.
Business lobbying: Companies use lobbying to influence legislation favorable to their interests.
Indirect influence: Tax incentives to encourage social contributions and responsible practices.

Formal dimensions: Legal compliance, ethical compliance, and philanthropic giving.
Informal aspects: Culture of ethical leadership and responsiveness to whistleblower reports help define social responsibility in organizations.

Changes in business ethics: Public attitudes shift over time, emphasizing the need for businesses to be accountable to societal standards.
Continuous vigilance: As businesses evolve, so must the ethical frameworks and practices to ensure a balance between profit and responsibility.