Ethical Evaluation of Alter Eco & Nestlé
Ethical Evaluation of Alter Eco & Nestlé
Introduction
Literature Review
In recent years, an increasing number of well-known scandals lead to public concerns about deception and fraud in multi-national corporations (MNCs) and a subsequent demand for improved business ethics and greater corporate responsibility (Ferrell, Fraedrich and Ferrell 2013, p.8). According to Ferrell (2013), the ability to recognize and deal with complex business ethics issues has become a significant priority in the 21st-century companies.
Ferrell (2008) stated that business ethics comprises the principles and standards that guide behaviours in the world of business, which often determine whether a specific action is right or wrong, ethical or unethical.
From a historical perspective, the first knowledge of business ethics originated 750 years ago, however, it appears to be a consensus that the business ethics principles had not been widespread before the 1970s (McMahon 2002). Business was firstly described in a formal way in US in 1970s. The interest in business ethics has dramatically accelerated in the last 20 years of last century and it was during that period that business ethics concepts were firstly introduced to Europe and Asia. Recently, more sophisticated concepts of business ethics, such as corporate social responsibility (CSR), is being studied among MNCs. It is generally accepted that business ethics concept has been divided into three strands. The first strand, described by DeGeorge (2005) as ethics-in-business, was simply the long tradition of applying ethical norms to business. It has been applied to all other areas of life, and this was developed prior to 1960s. DeGeorge (2005) stated that the second strand was the development of academic field of business ethics, which is more critical and descriptive that happened between 1970s and 1985. The Last strand, which was after 1985, is ‘the adoption of ethics or at least the trappings of ethics in businesses’ which
Introduction
Literature Review
In recent years, an increasing number of well-known scandals lead to public concerns about deception and fraud in multi-national corporations (MNCs) and a subsequent demand for improved business ethics and greater corporate responsibility (Ferrell, Fraedrich and Ferrell 2013, p.8). According to Ferrell (2013), the ability to recognize and deal with complex business ethics issues has become a significant priority in the 21st-century companies.
Ferrell (2008) stated that business ethics comprises the principles and standards that guide behaviours in the world of business, which often determine whether a specific action is right or wrong, ethical or unethical.
From a historical perspective, the first knowledge of business ethics originated 750 years ago, however, it appears to be a consensus that the business ethics principles had not been widespread before the 1970s (McMahon 2002). Business was firstly described in a formal way in US in 1970s. The interest in business ethics has dramatically accelerated in the last 20 years of last century and it was during that period that business ethics concepts were firstly introduced to Europe and Asia. Recently, more sophisticated concepts of business ethics, such as corporate social responsibility (CSR), is being studied among MNCs. It is generally accepted that business ethics concept has been divided into three strands. The first strand, described by DeGeorge (2005) as ethics-in-business, was simply the long tradition of applying ethical norms to business. It has been applied to all other areas of life, and this was developed prior to 1960s. DeGeorge (2005) stated that the second strand was the development of academic field of business ethics, which is more critical and descriptive that happened between 1970s and 1985. The Last strand, which was after 1985, is ‘the adoption of ethics or at least the trappings of ethics in businesses’ which
References: Attfield, R. (2006). The shape of a global ethic. Philosophy & social criticism,32(1), 5-19. Retrieved from http://psc.sagepub.com.ezproxy2.library.usyd.edu.au/content/32/1/5.full.pdf+html Burchell J. 2008, ‘Just what should business be responsible for? Understanding the concept of CSR’ in J. Burchell (ed.), The corporate social responsibility reader: context and perspectives, Routledge, New York, pp. 77-118. Freeman, R. Harrison, J. And Wicks A. 2007, Managing for stakeholders: survival, reputation, and success, Yale University Press, New Haven. Henry,S. (2000). Utilitarianism. Utilitas, 12, pp 253260 doi:10.1017/S0953820800002879. Retrieved from http://journals.cambridge.org.ezproxy2.library.usyd.edu.au/download.php?file=%2F8952_F29EC864A08AB702FFF051DFBBEB161C_journals__UTI_UTI12_03_S0953820800002879a.pdf&cover=Y&code=236e9e9fcd077bbbe332fec41a70bb64 Mees, J. 2013, Marketing ethics (IBUS6005), at The University of Sydney, Sydney, 22 April. Slote, M. (1995). From morality to virtue. Oxford University Press on Demand. Retrieved from http://www.oxfordscholarship.com.ezproxy2.library.usyd.edu.au/view/10.1093/0195093925.001.0001/acprof-9780195093926