Task 1 (P1): Explain the ethical issues a business needs to consider in its operational activities. Business Ethics is the moral principles of the right and wrong things that an organisation can do. The aims are controlled by organisations within the business, for example, Social services/a private business. An honourable behaviour is behaviour of right or wrong. Business moral values include the practices and behaviours (good or bad) within the organisation. Business managers in these organisations create decisions aimed at accomplishing their assigned aims and objectives.
The decisions made can be related to the staff. Tesco’s Ethical concerns: Ethical Issue 1: Tesco’s mission of “unbeatable price” to its customers have reduced its prices, which is causing UK farmers to become very close to becoming bankrupt, due to the price reduction. This shows that Tesco don’t have care and a strong relationship for/with their suppliers. Tesco are doing this because they want to attract more customers to buy their products, so they reduce their prices to do this.
However, as customers are first to be served within the business it means that they are a priority other than the farmers. This is because the farmers only supply the products, but Tesco would still need their suppliers, because if they are bankrupt there wouldn’t be any stock coming in. The good side of this is that because Tesco aim to get the best value for their customers. They have achieved this aim by dropping their prices. Ethical Issue 2: There is also a concern of Environmental damage such as the demand of Palm oil.
This is making natural forests into wildlife deserted places. In 2004 was known as the worst offenders of the social and Environmental issues, which gave them a really bad reputation. They say that they care about the environment, but they don’t realise the damage they are doing to the natural forests. This is because many customers tend to buy Palm oil products, because of this Tesco have a high demand for this specific product, which means they have to raise their stakes. There is also a concern of pollution made to the environment caused by the delivery Lorries.
This is because there are too many people demanding there shopping to be delivered because, they are not bothered to shop themselves. Ethical Issue 3: Tesco have released a new clothing range of recycled clothing. This shows that they are trying their hardest to have a good reputation when it comes to Environmental Ethics. This benefit’s the customers because they are given lower prices for them, compared to the prices for newly produced clothes. This also benefits the Environment because there is a reduction of how much pesticide is used for growing cotton.
Bad Ethics are sometimes done when the stakes within the business get higher, because they could lose a big sum of money. The advantage of this is that, if the stakes are raised the company has a chance of raising their profit and making their business into a highly rated multi-branded empire. Good working Ethics consists of: being honest, dependable, efficient, initiative, positive attitude, and team-working. Workers need to be honest to customers and staff, because it shows that they are trustworthy.