Only £1.99! How can this cover: Materials Labour Shipping Overheads and Profit? Do you think this is acceptable?

1. Only £1.99! • How can this cover: • Materials • Labour • Shipping • Overheads and • Profit? • Do you think this is acceptable?

2. Ethics (and sustainability) Today you will learn: that businesses need to be mindful of their ethical responsibility (and the need to be sustainable). You will be successful if you can: AO2: Explain the meaning of ethics AO2: Explain the ways in which businesses can be seen to be operating in an ethical manner AO4: Evaluate the consequences to businesses of not operating in an ethical manner

3. AO2: Explain the meaning of ethics What are ethics?Watch this: http://www.vidoosh.tv/play.php?vid=15020 http://clip.vn/watch/Christmas-trees-Only-fools-and-Horses,m5_/ What do you learn from this video? What do you think they did right? What did they do wrong? Overall did the business do the right thing?

4. AO2: Explain the meaning of ethics Ethics • Businesses have to act within the law, but also ethically. • What does ethics mean? • Ethics are a written and unwritten code of principles and moral values • They are the way people expect a business to trade (fairly and without endangering anyone or anything) • A business that operates unethically might not be breaking the law eg banks giving large bonuses. Any others?

5. AO2: Explain the ways in which businesses can be seen to be operating in an ethical manner Ways in which businesses can operate ethically Is this ethical?: • http://www.theguardian.com/global-development/poverty-matters/2011/apr/28/sweatshops-supplying-high-street-brands What is a sweatshop? • https://www.youtube.com/watch?v=QKRbrUdRVq0 Is this ethical? • http://www.cafedirect.co.uk/smallstory/(to find out more http://www.jusbiz.org/cafedirect.html) What does an ethical business look like? • Producing goods (services) that are fit for purpose • Not exploiting workforce/child labour. • Anything else?

6. AO4: Evaluate the consequences to businesses of not operating in an ethical manner What are the consequences of not operating in an ethical manner? egGap does not tell truth • http://www.bizcominthenews.com/bizcom_in_the_news/2010/12/gap-in-ethics-made-in-usa-made-in-china.html Pfizer sells drugs illegally • http://news.bbc.co.uk/1/hi/business/8235072.stm Consider: • What will happen as a result? Why do you think this? • Do you think the consequences are worth the risk?

7. AO4: Evaluate the consequences to businesses of not operating in an ethical manner What are the consequences of not operating in an ethical manner? The consequences of not operating ethically are: • Bad publicity • Poor reputation • Fines • Anything else?

8. AO2: Explain the meaning of ethics AO2: Explain the ways in which businesses can be seen to be operating in an ethical manner AO4: Evaluate the consequences to businesses of not operating in an ethical manner Task On the scheme of work (2.1.9) choose one of the articles and answer the questions following (try sharing out the articles around your table so you can report back to each other): Articles: • Cars fitted with latest safety equipment (Any) • Patent troll (Apple) • Levy on the profits of payday lenders (Any) • Banking bonuses (BMW) • Driverless car (Any) Questions (you must do Q2 and then start where you best think you should given the questions get harder) • What are the main points made in the article? • What is the moral question in the article? • What impact would doing the activity have on society? • What impact would doing the activity have on business? • What impact would not doing the activity have on society? • What impact would not doing the activity have on business? • What do you think should be done? Explain your reasoning.

9. (Ethics and) sustainability Today you will learn: that businesses need to operate in a sustainable way You will be successful if you can: AO2: Explain the meaning of sustainability AO2: Explain ways in which a business may act in order to achieve sustainability

10. AO2: Explain the meaning of sustainability AO2: Explain ways in which a business may act in order to achieve sustainability Explain meaning of sustainability • Define sustainable • able to be maintained • exploiting natural resources without destroying the ecological balance of an area This is what the BBC are doing: http://www.bbc.co.uk/outreach/sustainability/?source_url=/outreach/sustainability

11. AO2: Explain ways in which a business may act in order to achieve sustainability Ways in which a business may act to achieve sustainability • What is Marks and Spencer’s “Plan A”? • How have Marks and Spencer tried to become more sustainable? http://plana.marksandspencer.com/ Homework – find out about one other business trying to become sustainable.

12. Ethics and sustainability You (should) have learned: that businesses need to be mindful of their ethical responsibility and the need to be sustainable. You should be able to: AO2: Explain the meaning of ethics AO2: Explain the ways in which businesses can be seen to be operating in an ethical manner AO4: Evaluate the consequences to businesses of not operating in an ethical manner AO2: Explain the meaning of sustainability AO2: Explain ways in which a business may act in order to achieve sustainability