How it affects a company’s operation The need to understand the complexity of business ethics and...

How it affects a company’s operation

The need to understand the complexity of business ethics and the stages that must be established for

the proper handling of ethical problems.

The research that underscores the complexity of business ethics.

Numerous areas of ethical concern for business organizations.

Why questionable pricing strategies might adversely affect the running of a retail operation.

The typical ethical dilemmas that businesses face.

Codes of ethics and how they are written to meet the needs of business organizations.

The need to include social responsibility in the retailer’s overall marketing plan.

Many ways in which fashion retailers do their share to aid charitable and other causes.

The ways in which fashion retailers are becoming more socially responsible.

Is it ethical to conduct personal business while on the job,

call in and claim you’re sick when it is just an excuse to take a day off,

habitually arrive late for work and leave before the work-day ends,

lie to customers about the advantages of the merchandise you are trying to sell, or

to surf the Internet during company time.

Those in management as well as the rank and file employees are tempted by these types of ethical dilemmas.

Her indictment affected Kmart, where she has been a shining

light with her line of home products; the licensees that manufacture her

goods, such as Shaw Industries, the producers of her Signature flooring

collection; and the syndicated TV shows that feature

her products, to name a few.

As defined in Webster’s Dictionary, ethics are, “moral principles, rules of conduct.”

It requires that people learn right from wrong.

People do not always agree on what is right or wrong and use their own interpretations of a situation.

If Johnny is asked to tell a lie to cover for his boss, is he merely following orders from his superior, or

is he engaging in an unethical practice? Some ethicists believe that ethical

decision making is duty based and that it should be universally applied.

Others, however, theorize that ethical decision making is situational and depends upon what is happening at that time.

Buyer conflicts of interest Most buyers approach their job using data

and scientific methods. Some, however may base their purchase

decisions from vendors on personal rewards.

Big NO NO! Most orgs have strengent policies against

accepting gift, money, trips, tickets, etc that would influence a person’s decision process.

Stein Mart

http://services.steinmart.net/services.nsf/vendor

May Company No employee shall own significant stock

in a competitor

Vendors should not participate in practices outside the US that are not legal in the US Child labor – Cathy Lee Gifford This is a PR night mare Drives consumers away It’s the store’s responsibility to make sure the

foreign manufacturers follow American standards regarding production of their goods.

They must sign contracts that state they will follow the Fair Labor Standards Act of 1938.

If offering an item on Sale and comparing it to the regular list price, the regular price needs to be stated when it was.

If regular list price was three years ago then comparing it today to that price is not ethical.

Home shopping networks are notoriously bad for doing this. Buyer Beware!

Advertising an item on sale then when the shopper arrives the item is no longer in stock

This is called Bait and SwitchToday the quantity of the stock

offered must be mentioned in the ad. Sears at Christmas offered front load

washer and dryer but only had 4 on hand.

Make a list of all the ethical issues you might come across at work.

Exaggerating your credentials on your resume

Using the Internet on company timeBypassing your immediate supervisor

Not following lines of authorityBecoming romantically involved with

a supervisorCalling in sick to get a day offKnowing another person lied about

something and not telling

Misrepresenting product informationFalsifying expense accountsGiving bad reviews when

inappropriate

Most retail organizations have a written code of ethics that employees must read and sign prior to working for the org.

You’ll study these on page 125 of your book.

When a disaster hits and all the retailers line up to donate goods and serve it has to be genuine and managed carefully so not to look self serving.

They earmark and set aside funds for people in need, but must not over “tout” this in the media or else look self-serving.

Give some examples of what could be considered social responsibility today?