The Impact of Business Ethics on Nestle
As you can see nestles whole foundation is based around ethics. As Nestle is a global company they have to take in many factors when considering their ethical policy, and the fact that they are a global organization, makes that process one step harder. Being a global company Nestle is affected by different laws around the globe. Nestles reputation is paramount to them so by having a strict code of ethics is to their advantage as consumer awareness is growing with each and every day. More and more people are becoming concerned and disturbed by moral issues surrounding companies, if a company does a certain action that consumers dislike, it can have drastic effects to revenues. Nestle have had first hand experience of the power of consumers, as not so long ago was involved in allegations that it was supplying unsafe addictive baby milk supplements to mothers in the 3rd world. This brought on an outrageous response from consumers all around the world, as this was seen to be immoral and totally unacceptable by such a large well-known and respected organisation as Nestle. As these allegations spread, it was devastating to Nestle as many retail outlets began to boycott Nestle by removing all Nestle products from the shelves. This boycott was done for several reasons by different outlets, the reason for this was because of consumers. If other companies were seen to be siding with Nestle, then that could conflict with their own ethical policies and consumers could be deterred by that fact. With the introduction and implementation of a strict and concise ethical policy, Nestle has seemed to redeem themselves by ensuring a good upstream communication. Nestle have also reached back into the good books by promoting their codes of ethics by various media's and making them readily available to the public. A list of Nestle ethics can be found on their web site, this list has covered everything from environmental issues to child labour, by doing this they have appealed to the moral issues facing everyday people and the emotions of its consumers. As Nestles ethics are so detailed and cover almost every aspect of moral dilemmas in various societies, Nestle now have the responsibility to live up to their word, and make sure that this policy does exactly what it says. The impact that this will have on them will be great, as it will be a fairly costly process to monitor all of these conditions globally. This would also have a positive effect in the respects of its consumers, as in this age the consumer market is more competitive than it ever was, and Nestle need to be seen as a consumer friendly organisation, sympathetic, moral and ethical. Consumers would see this as Nestle doing something beneficial and good for people.
Implications of Business Ethics on Stakeholders
The implications on stakeholders of Nestle is plain and simple, whatever Nestle do, so do they. What is meant by this is as follows; any actions that are taken upon Nestle than the stakeholders are doing these actions also, it can also be called, guilt by association. Any stakeholders also must abide by the ethics policies set out by Nestle, as guilt by association also functions the opposite way. Any actions deemed unethical or any unethical behavior by either party can result in harm for the other, a classic lose-lose situation, therefore upstream communication is essential for these ethics policies to be adhered to. The impact on all stakeholders can be a great strain, as Nestle have a very thorough and comprehensive ethics policy, to conform to this could take a great deal of time,
Conclusion
What is Business Ethics? Plain and simple, ethics is the choice between right and wrong.
The concept has come to mean various things to various people, but generally it's coming to know what it right or wrong in the workplace and doing what's right -- this is in regard to effects of products/services and in relationships with stakeholders. Wallace and Pekel explain that attention to business ethics is critical during times of fundamental change -- times much like those faced now by businesses, both nonprofit or for-profit. In times of fundamental change, values that were previously taken for granted are now strongly questioned. Many of these values are no longer followed. Consequently, there is no clear moral compass to guide leaders through complex dilemmas about what is right or wrong. Attention to ethics in the workplace sensitizes leaders and staff to how they should act. Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. However, attention to business ethics provides numerous other benefits, as well.
Список литературы
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Thompson, T. (1991,). Managing Business Ethics.
David Cotton, David Falvey, Simon Kent. Market Leader. 2004.
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http//: www.businessethics.com/index/benefits.htm
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