UNIT 4 ETHICS facilities for

Unit 4 ethics Unit 4 ethics 1 Avoiding paying tax 2 Claiming extra expenses 3 Using work facilities for private purposes (for example, personal phone calls) 4 Accepting praise for someone else’s ideas.

U n i t 4

e t h i c s

1 Avoiding paying tax

2 Claiming extra expenses

3 Using work facilities for private purposes (for example, personal phone calls)

4 Accepting praise for someone else’s ideas or work

5 Selling a defective product (for example, a second-hand car)

6 Using your influence to get jobs for relatives (nepotism)

7 Ringing in sick when you are not ill

8 Taking extended lunch breaks

9 Giving good references to people you want to get rid of

10 Employing people without the correct paperwork

Avoiding paying tax

Claiming extra expenses

Using work facilities for private purposes (for example, personal phone calls)

Accepting praise for someone else’s ideas or work

Selling a defective product

Using your influence to get jobs for relatives (nepotism)

Ringing in sick when you are not ill

Taking extended lunch breaks

Giving good references to people you want to get rid of

Employing people without the correct paperwork

B What examples can you give of businesses behaving badly?

c New words and phrases

Market capitalization/ Market cap

- refers to the total value of a publicly traded company's shares.

- is calculated by multiplying the total number of a company's outstanding shares

by the current market price of one share

FTSE stands for Financial Times Stock Exchange.

- is the combination of FTSE 100 and FTSE 250;

- is the largest 350 companies by market capitalization.

S & P 500 , or the Standard & Poor's 500 Index, is the share index of the 500 US companies listed on the NYSE and NASDAQ with the highest market capitalization.

I – Read the article and answer these questions.

1 What ethical issues do these industries face?

• the food industry

Their products cause obesity. 

• mobile phone operators

They are challenged to protect teenagers from online pornography

• record companies

They sue music-lovers for sharing illegal files on the Internet

1 What ethical issues do these industries face?

• computer and telecommunications companies

They use factories in the developing world that have poor working conditions

• the financial sector

They lend to/give loans for socially or environmentally controversial projects in the developing world

• oil and mining groups

They don’t make public their payments to developing countries

• footwear and clothing brands

They should have increased the transparency of their supply chain and taken steps to improve often terrible labour standards

2 Which areas of business do not give enough information about social and

environmental matters?

- hotels and leisure, and software and computer services

3 What examples are given of companies taking positive steps?

- There ‘s greater demand for the assistance from Business for Social Responsibility (BSR);

- A group of leading banks, including Citigroup, Barclays and ABN Amro, promised to avoid giving loans for socially or environmentally questionable projects;

- Levi Strauss, Nike and published on the Internet the first independent audits of their supplier factories, along with the steps taken to improve often terrible labour standards;

- Kraft announced in July it would cut fat and sugar in its food, limit portion sizes and stop marketing in schools;

- In the UK, the trend is also reflected in the sharp rise in social and environmental reporting over the past two years;

- 100 of the FTSE250, 40 of the 50 largest European companies and 22 of the S&P top 50 produce reports on environmental, social and ethical issues

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CRITICAL THINKING

What can (i) consumers, (ii) shareholders, (iii) employees do to try

to change the behavior of businesses that are behaving

unethically?