UNIT:UNIT:Business Ethics Business Ethics

LESSON:LESSON:Ethical Business PracticesEthical Business Practices

AGENDAAGENDA

Label Investigation ActivityLabel Investigation Activity 10 min10 minEthics DefinedEthics Defined 5 min 5 minCASE - Where do you stand?CASE - Where do you stand? 15 min15 minWho is Responsible?Who is Responsible? 5 min 5 minCreating Change Creating Change 20 min20 minSo - what So - what isis Being Done? Being Done? 15 min15 minJournal ReflectionJournal Reflection 5 min 5 min

Maximizing ProfitMaximizing Profit

How can Canadian (North American) clothes manufacturers save $$/maximize

profits by relocating this product to developing countries?

BY: Reducing the cost of labour

By: Avoiding Government

legislation

By: By: sub-

contracting work to

local factories

What does the term What does the term ethicsethics really really mean?mean?

Ethics Defined:Ethics Defined:

Ethics refers to Ethics refers to standards of conductstandards of conduct, standards that indicate , standards that indicate how one should behave based on moral duties and virtues, how one should behave based on moral duties and virtues, which themselves are derived from principles of right and which themselves are derived from principles of right and wrong. wrong.

Or in other wordsOr in other words

Ethics refers to the way we treat others, and the way they treat Ethics refers to the way we treat others, and the way they treat us, based on morals or on what is defined as right or wrong.us, based on morals or on what is defined as right or wrong.

““Ethics is not about being better than someone else; it’s about Ethics is not about being better than someone else; it’s about being the best we can be.” being the best we can be.” 22

Business EthicsBusiness Ethics Business Ethics are concerned with the Business Ethics are concerned with the

behaviour of businesses in the treatment of behaviour of businesses in the treatment of employees, society, stockholders and employees, society, stockholders and consumers.consumers.

Businesses have values (either written or Businesses have values (either written or unwritten) that represent principles for the unwritten) that represent principles for the appropriate actions of their members appropriate actions of their members (employees).(employees).

Organizations may choose to express these Organizations may choose to express these principles in a formal code of ethics. principles in a formal code of ethics.

Code of EthicsCode of Ethics

The The Code of Ethics for Registered NursesCode of Ethics for Registered Nurses gives guidance for decision-making gives guidance for decision-making concerning ethical matters, serves as a concerning ethical matters, serves as a means for self-evaluation and reflection means for self-evaluation and reflection regarding ethical nursing practice and regarding ethical nursing practice and provides a basis for peer-review initiatives. provides a basis for peer-review initiatives.

A Typical Running Shoe A Typical Running Shoe

Profit 25%

Advertising7%

Raw Materials

13%

Labour4%

Other Costs 51%

Ethical Business PracticesEthical Business Practices Workers wages in developing Workers wages in developing

countries often equate to only 4% countries often equate to only 4% of the price paid for a pair of of the price paid for a pair of sneakers. For clothing it could be sneakers. For clothing it could be even less – as low as 0.5%.even less – as low as 0.5%.

The thing is that workers being The thing is that workers being paid more doesn’t mean that you paid more doesn’t mean that you as a consumer would have to pay as a consumer would have to pay more. Workers in Thailand more. Workers in Thailand calculated that to double their pay, calculated that to double their pay, it would cost (per pair of it would cost (per pair of sneakers) the equivalent of a pair sneakers) the equivalent of a pair of laces.of laces.

Ethical Business PracticesEthical Business Practices SWEATSHOP:SWEATSHOP:

Place of employment Place of employment having unacceptablehaving unacceptableworking conditions. working conditions.

Sweatshops are commonlySweatshops are commonlycharacterized by low pay, characterized by low pay, poor working conditions,poor working conditions,safety violations, and safety violations, and generally inhumane treatment generally inhumane treatment of employees.of employees.

Ethical Business PracticesEthical Business Practices

YouTube - Something to HideYouTube - Something to Hide

Behind the Labels : Garment Workers on U.S. Saipan - Google Video

Ethical Business PracticesEthical Business Practices

WHO IS RESPONSIBLE?WHO IS RESPONSIBLE? Factory ownersFactory owners

Government – both of the developing country and of the Government – both of the developing country and of the home country (i.e. Canada or US)home country (i.e. Canada or US)

Factory WorkersFactory Workers

The Multi-National Company itself (i.e. Nike, GAP)The Multi-National Company itself (i.e. Nike, GAP)

YOU AND ME – THE CONSUMERS!!YOU AND ME – THE CONSUMERS!!

What Can Be Done?What Can Be Done?

Your group represents the “stakeholder” you Your group represents the “stakeholder” you have selected (i.e. factory worker, Multi-have selected (i.e. factory worker, Multi-National Company). In that role – answer the National Company). In that role – answer the following 3 questions:following 3 questions:

1.1. Do you have any responsibility to change things?Do you have any responsibility to change things?2.2. What could you actually do?What could you actually do?3.3. If you feel there is little you can do, who do you If you feel there is little you can do, who do you

believe has the power to bring about change?believe has the power to bring about change?

You will present your ideas to the class as a group.You will present your ideas to the class as a group.

What is Being Done?What is Being Done? In Canada - Government laws, regulations and organizations (Ontario Ministry of In Canada - Government laws, regulations and organizations (Ontario Ministry of

Labour, Occupational Health and Safety Act, Workplace Safety and Insurance Board)Labour, Occupational Health and Safety Act, Workplace Safety and Insurance Board)

International Labour Organization (part of The United Nations)International Labour Organization (part of The United Nations)

Creation of Union, Trade and Other Organizations (Conference Board of Canada, Creation of Union, Trade and Other Organizations (Conference Board of Canada, Canadian Labour Congress, Union of Needletrades, Industrial and Textile Employees Canadian Labour Congress, Union of Needletrades, Industrial and Textile Employees (UNITE), National Labour Committee)(UNITE), National Labour Committee)

Anti-Sweatshop movement and activist groups (Students Against Sweatshops, Anti-Sweatshop movement and activist groups (Students Against Sweatshops, Labour Behind the Label)Labour Behind the Label)

Ethical ConsumerismEthical Consumerism

Behind the Label - You Can Make a DifferenceBehind the Label - You Can Make a Difference

Gap Inc. - Social ResponsibilityGap Inc. - Social Responsibility

What Can You Do?What Can You Do?GET INVOLVED! GET INVOLVED!

Learn about the products you buy!Learn about the products you buy!

Write a letter and ask specific questions that requireWrite a letter and ask specific questions that requirespecific answers, such as:specific answers, such as:

How do you investigate possible violations by your contractors or How do you investigate possible violations by your contractors or subcontractors?subcontractors?

What specific actions are you taking to improve the situation? What specific actions are you taking to improve the situation?

What is your company’s position on “full public disclosure” of factory What is your company’s position on “full public disclosure” of factory locations? (Full public disclosure would require companies to disclose the locations? (Full public disclosure would require companies to disclose the name and address of all factories where their products are made.)name and address of all factories where their products are made.)

And remember that companies don’t want to upset consumers! And remember that companies don’t want to upset consumers!

WEBSITES TO EXPLOREWEBSITES TO EXPLORE http://sweatshop.clc-ctc.ca/en/campaigns.html\http://sweatshop.clc-ctc.ca/en/campaigns.html\ http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/90o01_e.htmhttp://www.e-laws.gov.on.ca/DBLaws/Statutes/English/90o01_e.htm http://www.labour.gov.on.ca/english/about/index.htmlhttp://www.labour.gov.on.ca/english/about/index.html http://www.elaws.gov.on.ca/DBLaws/Statutes/English/00e41_e.htmhttp://www.elaws.gov.on.ca/DBLaws/Statutes/English/00e41_e.htm

http://www.ilo.org/http://www.ilo.org/ http://www.labourbehindthelabel.org/component/option,com_frontpahttp://www.labourbehindthelabel.org/component/option,com_frontpa

ge/Itemid,1/ge/Itemid,1/ http://sweatshop.clc-ctc.ca/en/index.htmlhttp://sweatshop.clc-ctc.ca/en/index.html http://www.nlcnet.org/aboutus.phphttp://www.nlcnet.org/aboutus.php http://www.studentsagainstsweatshops.org/http://www.studentsagainstsweatshops.org/ http://coopamerica.org/programs/rs/profile.cfm?id=271http://coopamerica.org/programs/rs/profile.cfm?id=271 http://www.conferenceboard.ca/GCSR/http://www.conferenceboard.ca/GCSR/ http://www.sweatshopwatch.orghttp://www.sweatshopwatch.org

Sweatshops a final look…Sweatshops a final look…

YouTube - Sweatshop Labour - YouTube - Sweatshop Labour - ConsumedConsumed

Business EthicsBusiness Ethics

An An Ethical DilemmaEthical Dilemma arises when two or arises when two or more “right” courses of action conflict, or a more “right” courses of action conflict, or a choice between two or more options must choice between two or more options must be made (i.e. short term vs. long term be made (i.e. short term vs. long term benefits.benefits.

Business Ethics in Foreign Business Ethics in Foreign CountriesCountries

Ethical imperialismEthical imperialism is the belief that certain is the belief that certain absolute truths apply everywhere. A company absolute truths apply everywhere. A company may believe that their understanding of what is may believe that their understanding of what is “good” should be recognized universally. “good” should be recognized universally.

Cultural relativismCultural relativism is the belief that behaviour is the belief that behaviour should be governed by what will bring about the should be governed by what will bring about the greatest good for the greatest number of people.greatest good for the greatest number of people.