Looking for a Tutor Near You?

Post Learning Requirement »
x

Choose Country Code

x

Direction

x

Ask a Question

x

Hire a Tutor
Dubai

Business Ethics

Loading...

Published in: Business Studies
27 Views

A lesson on Business Ethics Including a cashflow forecast starter activity

Joanne O / Dubai

8 years of teaching experience

Qualification: BSc Business Management and PGCE

Teaches: Business, IB Exam Preparation, Business Studies

Contact this Tutor
  1. Starter for 10! Month 1 A firm starts up and takes out a loan for $50,000. Repayments are $2,000 a month and start in month 2. They use the loan to spend $4,000 on stock @ $8 per unit. $30,000 worth of machinery and computer hardware. The rest, they keep for spare cashflow. • Rent, salaries and other fixed costs are $4,000 a month. The sell 300 units of stock at $15 each over the month. Month 2 • Loan repayments start Fixed costs remain the same A further 450 units of stock is purchased for the same cost per unit. Sales output increases by 12%. Selling price remains the same 1.) Calculate how much cash the business has at the end of month 2? 2.) How much profit/loss have they made over the two-month period. 3.) What is the monthly break-even point
  2. Month 1 Month 1 Starter for 10! A firm starts up and takes out a loan for $50,000. Repayments are $2,000 a month and start in month 2. They use the loan to spend $4,000 on stock @ $8 per unit. $30,000 worth of machinery and computer hardware. Rent, salaries and other fixed costs are $4,000 a month. The sell 300 units of stock at $15 each over the month. Month 2 Loan repayments start Fixed costs remain the same A further 450 units of stock is purchased for the same cost per unit. Sales output increases by 12%. Selling price remains the same 1.) Calculate how much cash the business has at the end of month 2? 2.) How much profit/loss have they made over the two-month period. 3.) What is the monthly break-even point Sales Total Infl ows Loan repayments Stock Mach.nery / computer h Ware Fixed Costs Tota I Outflows Net cashflow (total inflow — total outflow) Opening Balance (last months Closing balance) Closing Balance (net cashfltw' t opening balance) 2) 9540 - 4000-4000 - 4000 = 3) 4000 / (15-8) = Month 2 - 30000 - 2000 - 3600
  3. Starter for 10! Month 1 A firm starts up and takes out a loan for $50,000. Repayments are $2,000 a month and start in month 2. They use the loan to spend $4,000 on stock @ $8 per unit. $30,000 worth of machinery and computer hardware. Rent, salaries and other fixed costs are $4,000 a month. The sell 300 units of stock at $15 each over the month. Month 2 Loan repayments start Fixed costs remain the same A further 450 units of stock is purchased for the same cost per unit. Sales output increases by 12%. Selling price remains the same 1.) Calculate how much cash the business has at the end of month 2? 2.) How much profit/loss have they made over the two-month period. 3.) What is the monthly break-even point Sales I nflOWS Loan repayments Stock p uter h a rd ware 0 Fixed Costs Total Outflows Net cashflow Opening Balance Closing 2) 9540 -4000- MM1th 1 Asco 4 oco 38, 0M Month 2 5,040 5,040 2,000 3,600 4,000 9,600 (4,560) 16,500 11,940 .1 4000 - 30000 - 2000 - 3600 - 4000 = (38,060) 3) 4000 / (15-8) = 571
  4. What sort of customer are you and why? Conscience Casuals Blinkered Believers Aspiring Activist Focused Followers Ethical Evangelist They show little or no interest in ethical shopping? Their concern is focused on a single ethical issue. They express an interest in many ethical areas but will not go out their way to shop ethically. They do not shop ethically but pick and choose their areas of interests The most dedicated — will buy ethically whatever the cost and across a broad range of products.
  5. Ethics in Business htt s: www. outube.com watch Ethics are moral guidelines which govern good behaviour So behaving ethically is doing what is morally right Behaving ethically in business is widely regarded as good business practice. An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully: Ethics are about what is right and what is wrong Law is about what is lawful and what is unlawful An ethical decision is one that is both legal and meets the shared ethical standards of the community Businesses face ethical issues and decisions almost every day — in some industries the issues are very significant. For example: Should businesses profit from problem gambling? • Is ethical shopping a luxury we can't afford? Should fashion retailers use suppliers who don't pay a living wage? Should supermarkets dispose of out-of-date groceries or give them to food banks?
  6. What type of ethical issues do we see in business? I this $0,60
  7. The dilemma of ethical clothing at Primark As Primark sacks three of its suppliers, is saying 'it's a complex issue' still a defence for our addiction to cheap clothes? 'First thing yesterday morning - along, I imagine, with many journalists - I received an e-mail from the PR at Primark announcing that the chain is to stop buying clothes from three factories that it currently uses in southern India, all of which were found to be breaking Primark's code of conduct.' Has Primark acted in the correct way? Will this solve their ethical issues? sustainable-is-primark/ p R I MAR K
  8. Profits VS Ethics DarkSide Inc specialised in the manufacturing Of electronic gadgets. DarkSide was known for its cut- throat business practices, exploiting suppliers, and using cheap, hazardous materials. The company's only focus was maximising profits, even if it meant ignoring the consequences Of their actions. However, as time went on, customers became more aware Of the impact that businesses had on society and the environment. This led to a shift in consumer behaviour, With customers seeking out companies that not only Offered high-quality products but also demonstrated a commitment to ethical and sustainable practices. Faced With declining sales and a negative reputation, the leadership Of DarkSide realised that they needed to change their ways if they wanted to Stay afloat in the competitive market. They started by thoroughly reviewing their supply chain and making changes to ensure that suppliers were treated fairly and ethically. This included paying fair wages, reducing waste and emissions, and using sustainable materials in their products. The company also rebranded itself as BrightSide Inc and launched a new marketing campaign that highlighted their commitment to sustainability and ethical business practices. TO their surprise, the new approach resonated With customers, Who responded positively to the company's transformation. BrightSide•s reputation quickly improved, and their customer base grew as word spread about their new ethical approach. In addition to improved customer relations, BrightSide•s commitment to sustainability and ethics also had a positive impact on their bottom line. The company was able to reduce waste and improve efficiency, Which reduced costs and increased profits. Their employees were also more motivated and engaged, leading to increased productivity and higher quality products. In conclusion, the Story Of DarkSide Inc. shows that it's possible for companies to change their ways and become more ethical and sustainable. The decision to prioritise ethics and sustainability not only leads to improved customer relations and reputation, but it can also have a positive impact on a company's bottom line. The Story Of BrightSide is a testament to the power Of positive change and the importance Of doing business in a responsible and ethical manner. 1) What were the key factors that led to the transformation of DarkSide Inc. into BrightSide Inc.? 2) How did BrightSide Inc. successfully rebrand itself as an ethical and sustainable company, and what steps did it take to improve its supply chain practices? 3) Considering BrightSide's transformation, what lessons can other businesses learn about the benefits of prioritising ethics and sustainability in their operations? 4) Do companies have an obligation to prioritise ethics over profits?
  9. Is ethical behaviour good or bad for business? Identify the advantages and disadvantages to a business prioritising ethical objectives
  10. Is ethical behaviour good or bad for business? The advantages of ethical behaviour include: • Higher revenues — demand from positive consumer support • Improved brand and business awareness and recognition • Better employee motivation and recruitment • New sources of finance — e.g. from ethical investors The disadvantages claimed for ethical business include: • Higher costs — e.g. sourcing from Fairtrade suppliers rather than lowest price • Higher overheads — e.g. training & communication of ethical policy • A danger of building up false expectations
  11. Business Objectives and Social Responsibility Can A Business Make Too Much Profit Whilst Customers uffer Financially? As uoted by BP —they seen a E6.9bn profit earned between April 2022 and June 2023. 1) How much profit is that per day? (approximately) 2) As a result, how should the UK government react? 3) Is it morally ok for multinationals like BP to make such profits? 4) Do you believe that BP have a social responsibility to make a greater contribution back to society? https://www.voutube.com/watch?v=kCF2J5E70aQ&t=3s
  12. Practice exercise 1 I Explain one reason for businesses to exist. 2 What does the term •mission' mean for a business? 3 What are business objecti ves? Explain the relationship between mission and objectives. 5 When might survival be an important business objective? Analyse the reasons why growth is an important objective for a newly established estate agency operating in a competitive market. 7 Analyse why social and ethical objectives might contribute to the achievement of profit and growth-related objectives for a fashion retailer, 8 What does the mnemonic SMART stand for in relation to objectives? 9 Which of the following objectives is more likely to be a SMART objective? a) •To increase sales by 3 per cent over the next 18 months.' b) improve market share in the near future.' c) •To expand the business to cover more areas of the UK! 10 Explain why there is a hierarch Of 0b' https://www.tutor2u.net/business/reference/business- ethics-revision-quiz
  13. he managers of a public limited company believe that it is important for the busines to behave ethically. To what extent do you think that an ethical approach to business is now essential for anagers in public limited companies? (25 marks) Examples of how the assessment objectives might be met in this question include: - demonstrate knowledge and understanding of relevant issues such as a public limited company and ethics (AOI). - be applied to the context of a public limited company at this time ("now") (A02). - analyse the possible impact that an ethical or an unethical approach might have on the business (A03). - evaluate qualitative information to make an informed judgement on whether an ethical approach is essential. For example it may consider the pressures "now" and the pressures on public limited companies to decide it is essential or to evaluate the factors that might influence how important it is (A04).
  14. Should businesses be concerned about the environment? What are their What impact will these sustainability objectives? have on the business? Are there any other objectives the business should prioritise? Why? Sainsbury's

Need a Tutor or Coaching Class?

Post an enquiry and get instant responses from qualified and experienced tutors.

Post Requirement

Related PPTs

Upload PPTs

If you have your own PowerPoint Presentations which you think can benefit others, please upload on MyPrivateTutor. For each approved PPT you will get 100 Credit Points and 100 Activity Score which will increase your profile visibility.

Upload Now
Home > PowerPoint Slides > Business Ethics