Ethics in business operations

In this chapter we:

review ethical issues in procurement;

explore ethical aspects of business operations and information technology;

study ethical issues in marketing and market research;

consider competitors as stakeholders;

examine ethical aspects of international operations and global markets;

look at some ethical challenges in the global market; and

explore bribery and corruption around the world.

Here we consider ethical issues that can arise from business activities. First, we look at links with suppliers, what some call the upstream added-value chain of the business. We see the mutual interdependence of these firms and question whether they have a responsibility for each other's ethics. Concerns about bribery, business intelligence gathering, and abuses of power become important. Then we look at the business activities involving the manufacture of products or provision of services. The importance of information technology to modern business activities raises some important ethical issues. This brings us to the downstream activities of the firm, including relations with agents, distributors, wholesalers, retailers, customers and ultimate consumers. We review ethical aspects of marketing decisions, such as dishonesty in advertising. The literature of business ethics concentrates on relations with customers, but often pays less attention to concerns with competitors. Here we consider relationships with competitors and potential competitors, treating them as legitimate stakeholders. Many companies trade internationally and globalization, including the activities of multinational companies, have added a further dimension to ethical business practice.