PART 1: ETHICAL RESPONSIBILITY
      •   Personal ethics relates to an individual’s view of what is 
          morally right and wrong.
      • Business ethics are the moral rules and standards that help 
         people to make decisions in a business. 
         Reasons for Unethical Business Behaviour
                        • If there is a culture of fear in the business, employees may 
           Fear          not report unethical behaviour.
         Pressure       •
           from          Staff might feel that they must act unethically to achieve 
                         unrealistic targets set by management.
      management
         Business       • If employees see senior management behaving in an 
         culture         unethical manner they may follow their example.
                        • Businesses may place an emphasis on making profit above 
          Greed          everything else. 
          Lack of       • Lack of legislation can make it easier for businesses to 
        legislation       behave unethically as there may be no consequences for 
                          their actions.
   Ways of Encouraging Ethical Business Behaviour
          1. An independent firm completes an ethical audit in the 
           business. It reviews how the business is run from an ethical 
           perspective. 
          2. Senior management must set an example for employees to 
           follow, so employees understand that they must act 
           ethically in business situations.
          3. Whistleblowing  occurs when a person in the business 
           reports unethical behaviour by co-workers or managers.
          4. During induction, employees should receive information 
           on the firm’s code of ethics. 
          5. Rewards can be offered to employees who act in an ethical 
           manner.
            Code of Ethics
  • A code of ethics is a formal written statement that outlines the 
   type of behaviour expected by the business from all employees 
   when dealing with stakeholders
 CODE OF ETHICS IN THE WORKPLACE
 Benefits 
 1 Ethical Behaviour
 It shows employees what ethical behaviour is expected of them in 
 the workplace. This can prevent unethical decisions being made.
 2 Marketing 
 Businesses with a code of ethics can use this in their marketing 
 material. This can increase consumer awareness of the ethical 
 beliefs of the firm and may increase sales and profits.
 3 Management Time
 Employees are empowered to make decisions on behalf of the 
 business in line with its code of ethics.