Business Ethics: Week 6- competitors, suppliers and ethics

Why are competitors an important stakeholder group for an organisation? (1)

1. Competitors have legal rights that can be protected by national and international trade agreements. e.g. the right to freely leave and enter the market, the rght to set their own prices e.c.t.

1 of 15

Why are competitors an important stakeholder group for an organisation?

competitors also have moral claims on an organisation that go beyond the law. For example, privacy or "fair play"

2 of 15

What is industrial network?

This refers to how a group of businesses bound by mutual interest and interlinked flows of resources and rewards.

3 of 15

What does industrial network involve/ relevant to suppliers?

It menas that any big decisions about how the firm deals with any single other single firm (such as one of its suppliers) can have a sig effect on others

4 of 15

Why are suppliers an important stakeholder group for an organisation?

they can benefit from the success of the corporation by receving orders for products/ services and they can be harmed by losing orders.- they have rights e.g. contract, fair deal

5 of 15

Competitors -Overly aggressive competition

Intelligence gathering -examples • Breaking and entering a competitor’s offices • Installing tapping devices • Hacking & stealing intellectual property • Using data collected by former employers • Misrepresentation –e.g. posing as potential customer/

6 of 15

Competitors -Overly aggressive competition (continued)

‘Dirty tricks’ • Stealing customers through questionable methods (e.g. misrepresentation) • Sabotage • Predatory pricing (product ‘dumping’) • Negative advertising

7 of 15

Consider the ‘ethicality’ of getting information from a competitor’s rubbish through the lens of… • Egoisttheory of ethics • Utilitarianethics • Kantianethics

ENSURE THAT YOU DO THIS AS PART OF YOUR REVISION JESS

8 of 15

What is insufficient competition?

Price fixing • Dividing territories This is known as collusion and cartels. - select goups of compeitors get together in a cartel or trading group to fix prices for mutual benefit

9 of 15

What are the problems with this (insufficient comp)

It can effect consumers. especially when it results in businesses being able to abuse their power in a market to explout customers through higher prices

10 of 15

what is the effect of Imbalance of power from suppliers?

• creates unfair conditions for the other party, and/or • establishes an unfair advantage in the marketplace Power derives from the degree of dependence on the other party

11 of 15

What is a conflict of interest?

This occurs when someone has a private or personal interestsufficient to influence the objective exercise of their official duties.

12 of 15

What are the issues with Suppliers & globalization?

Different ways of doing business: … … e.g. Gift or bribery? • Intention of the gift-giver • Impact on the receiver • Perception of other parties – Different standards (e.g. labor, environment, safety, transparency) – Extended chain of responsibilitie

13 of 15

Ethical sourcing (issues with suppliers and gloabilization)

explicit social, ethical, and environmental criteria •

14 of 15

Fair trade (issues with suppliers and globaliation

helping disadvantaged producers/small-holders

15 of 15

Get Revising

Business Ethics: Week 6- competitors, suppliers and ethics

Other cards in this set

Card 2

Front

Back

Card 3

Front

Back

Card 4

Front

Back

Card 5

Front

Back

Comments

Similar Business Management resources: