Ethical operations
Businesses can choose to work in a way that profits only the owners or in ways that benefit the community.
Working ethically means acting in ways that are both fair and honest.
A big business has a lot of power. It can either use this power responsibly or selfishly.
Many firms operate to meet the needs of owners.
Ethical firms also carefully consider the implications of what they are doing and the effect it might have on the community and the environment.
Ethics is about doing the right thing. Ethical behaviour requires firms to act in ways that stakeholders consider to be both fair and honest. Managers making ethical decisions take into account:
- Impact - who does my decision affect or harm?
- Fairness - will my decision be considered fair by those affected?
Methods of ethical operations
Methods of ethical operations could include:
- Fair trade – sourcing goods from suppliers that pay fair wages and provide safe working conditions for their employees.
- Fair wages – ensuring all employees receive a fair and legal wage ensures equality and reduces exploitation.
- Sustainable materials – sourcing eco-friendly or recyclable materials reduces environmental impact.
- Employee welfare – ensuring safe working conditions, equal opportunities and respecting workers' rights encourages an ethical workplace culture.
- Being transparent with customers – Accurate promotion of products and clearly stating ingredients, origins or practices helps build trust and avoids misleading consumers.
