BTEC Business Level 3, Unit 37: Understanding Business Ethics

Businesses are limited in what they do. Sometimes by laws and sometimes by the conventions and social codes we live by. Gathered together these are what we refer to as ethics and they can apply to every aspect of business behaviour. Whereas it could be argued that most laws have there origins in ethics, ethical behaviour, by individuals and business go beyond legal requirement and are discretionary, that is to say we can choose to follow them or not.

Businesses have not always behaved ethically and many still do not. This unit examines what pressures there are on businesses to behave in an ethical manner.

Learning outcomes
On completion of this unit you should:
1 Understand the meaning and importance of ethics in the business world
2 Understand the implications of businesses operating ethically
3 Know the social implications of business ethics
4 Understand ethical concerns facing different communities.

Context:

You have been asked to research and draw up a report explaining business ethics for an organisation that is about to be floated on the stock exchange. The report will demonstrate an understanding of ethical business behaviour; the implications of it and why it is increasingly seen as such a serious issue for more and more businesses.

P1 explain the ethical issues a business needs to consider in its operational activities.

• Begin by explaining your own understanding of the term “ethical issues” explaining some of the examples given below. • You must explain how these influence an increasing range of business activities.

Operational activities: definitions of business ethics; ethical activities; values of businesses; professional ethics; individual ethical behaviour

Ethical issues: corporate governance; corporate social responsibility; environment;