Braeside High School
BTEC Extended Diploma in Business (Marketing)
Unit 37 Understanding Business Ethics
Assessor Mr. Rowland Njagi
Date issued: 10/09/2013
Date of Submission: 23/09/2013
Assignment brief 1: Ethical issues
Ethical issues that a business should consider in its operations. A case study of Safaricom Ltd.
Business ethics are the accepted principles of right or wrong governing the conduct of business people. An ethical strategy is a strategy or course of action that does not violate these accepted principles.
Ethics committee of Safaricom Company Ltd
An Ethics committee has been constituted comprising of nominated Executive committee members and chaired by the Chief ...view middle of the document...
• Employment practices
• Human Rights
• Environment obligations
• Moral Obligation
These are explained in detail below:
1. Employment practices
Ethical issues associated with employment practices abroad include:
When work conditions in a host nation are clearly inferior to those in a multinational’s home nation, what standards are to be applied in such an instance?
While few would suggest that pay and work conditions should be the same across nations, how much divergence is acceptable?
2. Human Rights
Questions of human rights can arise in international business because basic human rights still are not respected in many nations.
These issues involve:
Rights that we take for granted in developed nations, such as freedom of association, freedom of speech, freedom of assembly, freedom of movement, and freedom from political repression are by no means universally accepted
The question that must be asked of firms operating internationally is: ‘What is the responsibility of a foreign multinational when operating in a country where basic human rights are trampled on?’
3. Environmental obligations
Ethical issues arise when environmental regulations in host nations are far inferior to those in the home nation. Developing nations often lack environmental regulations, and according to critics, the result can be higher levels of pollution from the operations of multinationals than would be allowed at home nation.
Environmental questions take on added importance because some parts of the environment are a public good that no one owns, but anyone can despoil.
The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation
Corruption has been a problem in almost every society in history, and it continues to be one today.
Safaricom Ltd and other international businesses can, and have, gained economic advantages by making payments to government officials
The Kenya Parliament passed the Economic Crimes Act to fight corruption. The Act outlawed the paying of bribes to foreign government officials to gain business deals.
It is illegal for any business in Kenya to make bribes or accept bribes as it constitutes illegal business practices which are punishable under the law.
5. Moral Obligations
Multinational corporations have power that comes from their control over resources and their ability to move production from country to country. Safaricom ltd is one of the largest companies in East and central Africa.
Moral philosophers argue that with power comes the social responsibility for corporations to give something back to the societies that enable them to prosper and grow.
Social responsibility refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions.
Advocates of this approach argue that businesses need to recognize...