why is business ethics important

                                                  

Ethics issues a character's moral judgments about proper and wrong. Choices taken inside an organization can be made with the aid of individuals or groups, but whoever makes them can be influenced with the aid of the way of life of the employer. The selection to behave ethically is a moral one; personnel should determine what they think is the right route of movement. This may involve rejecting the path that would cause the most important brief-term profit.

Moral behavior and corporate social obligation can bring good-sized blessings to a commercial enterprise. For example, they may:

attract clients to the company's products, thereby boosting sales and profits

make personnel want to stay with the enterprise, lessen labor turnover and consequently increase productiveness

attract greater personnel looking to paintings for the commercial enterprise, reduce recruitment expenses and allow the enterprise to get the maximum talented employees

attract investors and preserve the organization's proportion price excessive, thereby protective the business from takeover. Unethical behavior or a lack of corporate social obligation, by way of contrast, may harm a company's reputation and make it less appealing to stakeholders. Earnings may want to fall as a result. At the side of excellent corporate governance, ethical behavior is a fundamental part of the whole thing that Cadbury Schweppes does. Treating stakeholders fairly is seen as an important part of the organization's success, as defined here: 'a creative and well-controlled corporate and social duty program is in the exceptional pastimes of all our stakeholders - no longer just our customers - but also our shareowners, employees, clients, providers and different business partners who paintings collectively with us. *'

ensuring that employees understand the business enterprise's corporate values is done via the announcement of 'our business standards' which makes clean the behavior it seeks from employees. Cadbury Schweppes' correct exercise turned into recognized whilst it turned into voted one of the 'maximum prominent agencies for community and environmental responsibility' by management nowadays magazine in 2003. It becomes also ranked 2nd within the food and drinks zone inside the business inside the network 'according to cent club' index of company giving for 2003, with funding inside the community of round 3of its united kingdom pre-tax profits.

Ethics at work

the supply chain and distribution procedure

this describes the manner wherein raw substances are sourced and converted into final merchandise and added to customers. Cadbury Schweppes has direct control over what takes place inside the transformation stage of its personal technique and also can have an impact on the behavior of providers and vendors. For example, it performs due diligence on ability suppliers by requesting them to finish a questionnaire previous to engagement. This allows Cadbury Schweppes to screen a provider and test they adhere to stringent requirements specifically criteria. One standard, as an instance, can be the surroundings, and the questionnaire lets in the supplier to explicit whether or not they perform audits or have an environmental coverage.

1. handling suppliers

Cadbury Schweppes deals with tens of thousands of suppliers around the world and aims to work closely with them to ensure they receive fair treatment.

In the case of cocoa farmers for example, Cadbury Schweppes is a member of a global coalition, which is comprised of industry, governments, non-government organisations and special interest groups created to improve working practices on cocoa farms. The coalition has funded independent surveys into cocoa farming in West Africa that have contributed to the development of programmes to help local communities. In 2003, the coalition also established a foundation, the International Cocoa Initiative - Working Towards Responsible Standards for Cocoa Growing, which aims to support field projects and will act as a clearinghouse for best practices to ensure that cocoa is grown responsibly.

The work of the coalition, however, is only one way to support cocoa farmers and their families. Another practice is Fair Trade. Under this scheme cocoa is paid for at a fixed minimum price with a premium going to the farmer co-operatives in exchange for using the Fair Trade logo and accreditation. Presently, a modest amount of cocoa goes to the Fair Trade market. This scheme works best when farms have access to communications and warehousing facilities. Many farms, however, are family owned operations in remote areas and access to a Fair Trade co-operative group may be difficult so the coalition is working to ensure these farms can benefit from the work that it does.

It is Cadbury Schweppes aim to help all cocoa farmers improve their standard of living by helping them develop sustainable crops of quality beans. In Ghana, for example, where Cadbury Schweppes buys most of its cocoa, the company supports farming communities through programmes on sustainable tree crop management and building wells for drinking water.

b) Manufacturing

As a major international company Cadbury Schweppes recognises its environmental responsibilities and the need to care for its workforce, local communities and all those who may be affected by its activities. For example, its environmental responsibilities include:

• treating waste water prior to disposal
• looking to improve its energy efficiency
• controlling the release of gases into the atmosphere.

c) Distribution - to wholesalers and retailers

The company aims to keep within acceptable limits the fuel consumption and air emissions that result from transporting its products. In the UK, for example, drivers are trained in the most efficient ways to operate their vehicles, which are also regularly maintained to keep them running at optimum efficiency.

d) Dealings with consumers

Cadbury Schweppes is committed to providing a range of high quality treats, refreshments and confectionery based oral care products which are marketed truthfully, labelled clearly and meet the highest safety standards.

For that reason the Cadbury Schweppes corporate social responsibility agenda now reflects growing consumer interest in issues of diet, nutrition and healthy lifestyle, and the way brands are marketed, especially to children.

The company also believes it is important to be open about its activities so its stakeholders can measure its success. Information is readily available in its reports and on its website regarding its progress in:

• community initiatives and employee volunteering
• environmental impact.