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Issues

Ethics in finance There are a range of ethical issues within finance involving how companies make their deals and payments below I will be talking about the different types of unethical issues and how accompany either prevents them or if the company does do them. Bribery Bribery is a form of corruption, this is the abuse of power and money to seek permission quicker or get a better chance at receiving that permission from a planning official or a councillor. Or giving money to a decision maker in a business or in the government. Executive pay One problem within business is excessive pay to higher position executives. Each year businesses within the US need to give out reports on salaries to their executives to make sure that they are not gaining unnecessary pay that is not related to any effort. This report gives shareholders information on what they executives are earning. Insider trading Insider trading is the illegal use of privileged information when dealing on a stock exchange. This is detected by the securities and investment board in the UK. Lobbying To lobby means a business in a situation where they have to change their actions in accordance to a new law they can “lobby” in an MP or minister so they can have influence over these changes so that they can benefit them. This is also a source of corruption. There have been many issues within McDonalds that fit under the category of unethical ethics in finance. One of these was the fact that McDonalds executive in Hong Kong was making fast food suppliers pay money so they could supply McDonalds and money was transported to him through their timely supplies (in foods). This is an example of bribery and external executive pay within McDonalds. This can be fixed by McDonalds implementing more ethical practices within their organisation. Another company that has been operating unethically in their finance department is apple. Though they are one of the world’s most profitable companies Apple underpays their employees. They are underpaying their product manufacturers significantly. And their suppliers which are Foxconn employ 235″,000 workers but are only paid £1.12 an hour. This is a great underpayment. Foxconn has sold close to 200 millions of apple electronics yet they are underpaid and their employees have not gotten an increase in salary. Ethics in human resources Discrimination The law is sued to ensure that when there is a job advertisement there is no discrimination that is involved within the advertisement. The advertisement should ensure that people are entitled to the job based on merit not race, gender, disability, nationality or any other unfair ground. Worker surveillance Worker surveillance is important but to what extent is it important? or how much surveillance must one employ be put on? And how safe it is to constantly watch a worker and monitor their emails or calls. There has been a case within McDonalds where two employees claimed that they were race and gender discrimination were directed towards them. They have accused their supervisor of making racial jokes, slurs and have been given different disciplinary standards than their white co-workers. To solve this error McDonalds needs to increase surveillance and make it clear that employees are allowed to report being mistreated when working. Employees did not feel safe reporting that is why there is no evidence of them reporting earlier when these issues started. They also need to make their ethical practice serious and make sure discrimination issues are learnt when n training or applying for the job. It has been reported that Apple makes their manufacturers stand on their feet and work for more than 24 hours. Their working conditions and human rights are so bad that 9 people have committed suicide within the space of 3 months. Managers have requested there be nets put up around the area so when people jump to commit suicide they are caught. This shows how extremely poor the human resources in Apple, they overwork, underpay their producers, having them sleeping in cramped and small areas and giving them poor working conditions. They really do need to change the atmosphere that they put their workers in and promote a more ethical way of treating their manufacturers. This does give Apple a very unethical reputation which if more publicised can ruin their product and cause a lot of violence. Ethics in production The production of certain goods can lead to ethical issues within a business. For example, there is a lot of animal testing around the world form shampoos to medicines. Though the number of experiments the UK have halved in the previous 30 years. There are certain laws like the animals act 1986 that says no animal should be tested if there is a realistic alternative. Planned obsolescence Businesses produce products that people done necessarily need. But people buy them anyway and this is because of the advertisements that tell people/make them think that they ned the product but what business fail to tell you is how long that product will last/expiry date. Planned obsolescence is the purposeful development of products that will need replacement. McDonalds has had cases in where people have found rocks and other things in their foods especially burgers and people have gotten food poisoning from their foods because of the food being expired. McDonalds needs to prevent this from happening by using a better sustainable supplier of their foods. This will promote more health and safety in McDonalds foods and less chance of getting sick also resulting in less cases that cost the company money. With the iPhone 6 and the iPhone 6s there have been reports of the phones bending when put into customers pockets. And this is because of the phone having weak parts around the volume buttons. this planned obsolescence can cause the phone to break easily when dropped resulting in the customer either having to fix t at an apple store are having to buy a new phone. Ethics in sales and marketing Sometimes a business might operate unethically within their marketing to create sales and they can do this in a number of ways. Spamming Spamming is done by emailing thousands of email users which is similar to chain mail. It is very hard to stop this from happening because these users usually change their emails so they can re send or keep on sending emails to other email users. Spoofing This is when an emailing makes an email appear to be sent form one source when it has actually been sent by another. This may look like a real address but it is not and by doing this the emailer cannot be traced back. Raising their own status This is where a business may pay people or have their own employees leave recommendations to their websites with are false and not by actual customers who have visited and liked the service that they have been provided with. These people are also known as “shills” Product placement This is a technique where a reference made on a specific product or brand is made on a different network. These can be films, television programmes. Green washing This is here a company portrays its products to be environmentally friendly more than it already is. McDonalds had been given a warning about their spamming of emails to customers for promotion. There was a function where you were allowed to send to friends about the news but the Australian communication and media authority found that this activity has violated the spam act. To fix this issue they would need to find another way to promote their products for example giving out menus with promotions on them for people to take home and maybe give to others to see. The menu could have all sorts of information on it. Before the release of the new iPhone 6 and 6s iPhone released an advertisement to customers giving them information on the new phone like the increased advantage of the phones displays which were false and spotted by the customers. Apple then saw a wave of criticism because of the misinformation given about the phones. Apple must ensure that they give all critical information on their phones and make sure if there are any issues with their phones they must fix the phone or inform customers before they purchase the phone. Ethics in intellectual property Intellectual property laws allow people town their own creative work the same as their physical property. The owner of this intellectual property a control and benefit from its use. Software privacy Protects people from getting their private information from being stolen. A browser offers certain levels of privacy. Though protection is very limited especially when visiting websites that require passwords. Counterfeiting This is the production of unauthorized fake products that are meant to destroy or take over the original product. This is made with the intent to overtake the original product and make this product an advantage of the company. Peer to peer file sharing Is a network of distributing information through people’s hard drives, their users known as peers do this to transfer music, documents and other files. But in the more recent times peer to peer file sharing has been used to copyright infringements. McDonalds has lost intellectual property rights over the trademarking of the famous “Big Mac”. Apple and Samsung have gone blow to blow law suit to lawsuit over their phones and similarities accusing each other of copyright. One example is Samsung accusing apples iPhone 6 of imitating the 2012 galaxy series. And there are other lawsuits arising because of apples imitations of Samsung’s products. Apple needs to ensure that they are not copying Samsung or any other company and coming up with original ideas. To ensure that the company reduces on lawsuits against them and that they may change their reputation to a more ethical and original point. Implications The environment On a global scale the natural environment has gone under threat. There are many different threats but the most dangerous and scary is climate change. Corporate Intelligent business leadership is now desired within a business to take account of ethical concerns. When CSR is established it means managers are responding to stakeholder concerns. Managers are required to comply with many laws including: staffing laws and consumer protection laws and environmental laws. Policies and practices Without policies and practices within a business some laws maybe breached and can result in harsh penalties for example fine. Any individual applying for a job must not be judged on the basis of their, nationality, age, disability or gender. These ensure that unjustified behaviour towards a candidate of application because of discrimination does not happen within the workplace.

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