Understanding Business Ethics
Unit 37: National Diploma
Scenario: Business ethics - a study of a selected company
With growing interest among consumers regarding the business ethics of the businesses brands that consumers buy, Westminster council wants to conduct an independent review of some of the organisations that sell their goods and services in the borough. You have been asked to select one of the following brands and conduct research into their business ethics.
1. Using Primark as a case study, visit their website/conduct research into their activities to help with the tasks below.
Task 1: PRIMARK – GROUP PRESENTATION
• Explain the ethical issues Primark needs to consider in its operational activities (P1) • Explain the implications for both the business and stakeholders of the business operating ethically. (P2) • Assess how the business could improve the ethics of their operations. (M1)
SCENARIO: You are ethical investment consultants who advise clients on what type of ethical businesses to invest their money in. One of your clients is thinking of setting up a business that produces and sells ethical clothing for high street shoppers. Primark will be one of their main competitors and your client has heard that they have recently begun to change some of their business practices in the face of public criticism. In an effort to get a better understanding of their competitor’s activities, your client has asked you to investigate Primark’s business activities and report back to them in a formal presentation
Working in assigned group, you need to investigate and prepare a presentation which describes the following areas: A. Primark – company background and description of what type of clothing they produce B. Media attention – describe why Primark have attracted a lot of criticism over the last few years. Give examples C. What have Primark done to make their business practices more ethical? - Corporate Governance
- Corporate Social Responsibility
- Code of Conduct
- External Partnerships
D. Stakeholders – who are they?
E. Implications of ethical business practices on stakeholders F. Implications of improved ethical business practices for Primark G. Your suggestions for new ethical practices which Primark could use and the impact of these suggestions
DISTINCTION TASK - Individual Report.
• Evaluate the impact of the business’s ethical behaviour on stakeholders and the business. (D1)
Undertake a Cost Benefit Analysis for Primark summarising the impact that their ethical behaviour has on the business and its stakeholders.
To complete this task to distinction level you will need to: 1. Using evidence from Task 1 briefly explain who the stakeholders in the business are 2. List the ethical behaviour evident for the business
3. Decide whether this impact is positive or negative and explain why (who does it affect and how) 4. What does it cost/benefit the business to behave like this? (eg time, money, training, reputation, sales, competitive edge, unique selling point, employee loyalty, lower costs, increased costs, larger profit margins) 5. Evaluate the impact of this behaviour – it is worthwhile to the business? Is it sustainable (can it continue?) What might happen in the future if the business continues to take this type of CSR?
You can present your findings in a table if you prefer – make sure you change your page to landscape so that the table is large enough for the detail you will need to include. Example:
|(Un)Ethical Behaviour|The stakeholders who |How these stakeholders|Costs to business |Benefits to |Long term impact on | | |are affected |are affected (positive|(D1) |business |business and | | | |or negative and why) |...
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