3.4.3 Shareholders versus stakeholders & 3.4.4 Business ethics GapFill

Business ethics at    an ancient a military a plan a strategic  level is the understanding that some decisions may have  moral righteous immoral narrative principles behind them; for example, the decision of some tobacco companies to supply cigarettes to children in countries where there are no smoking laws to prevent it.  The company understands right and wrong and makes a poor decision based on profits.  Young people make excellent cigarette customers as they can become addicted at an early age and will be customers for life. 

There is a   write-off buyout fallout trade-off  between ethics and profits.  On one hand shareholders demand high   revenue equity dividends costs and high share prices, but this will mean that unethical decisions may be taken.  For example in Indonesia Nike does not pay its workers a living wage and in other developing nations Nike has a poor record of working   time conditions record notes .

At a strategic level a business can take ethics into its heart and develop a corporate social   rights rationale responsibility ruminate (CSR) policy. This outlines how the business intends to trade in terms of    money pollution costs charges , pay, resources and contribution to its local community, etc. 

Another ethical dilemma occurs in large corporations which pay top executives overinflated   balances stomachs salaries revenues.  This includes the banking industry, which has been accused of creating huge income  inequality incognito improvise equality  in the UK.