Transcript Unit 1.13 - Legal & Ethical Threats

BUSINESS AND
MANAGEMENT
MODULE 1
BUSINESS
ORGANIZATIONS &
ENVIRONMENT
Legal & Ethical Opportunities &
Threats
 Governments
impose rules and laws
to ensure that the general public is
protected from the negative aspects
of business activity
 Government intervention also helps
protect the interests of business
Common Legislation

Consumer Protection
– False or misleading descriptions of their
product
– Products must meet certain standards

Employee Protection
– Anti-discrimination laws ensure fairness

Competition Legislation
– Protection of consumers and small firms
against monopoly powers, price fixing,
copyright and patent infringements

Social & Environmental Legislation
– Prevent the over consumption of “sin” goods
through taxation
Mini Case
Case: Amoy Foods
Source: Hoang, Business & Management,
Unit 1.5, page 90.
Business Ethics
 Moral
principles that should be
considered in decision making
 Ethical firms are responsible to their
employees, shareholders, customers
and suppliers
 Firms can benefit in several ways by
being ethical
Social Benefits
 Attract
and retain good quality
workers
– Google
 Attract
new customers and retain
existing ones
 Generates good publicity and public
relations
– The Body Shop
Social Audits
 Conducted
externally, they report on
the social stance of a business
 Typically it reports external matters
(such as pollution levels or
community project involvement)
 And internal issues (such as the
efficiency of waste management and
safe working conditions)