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(i) Define Ethical Business practice - Leaving Cert Business - Question B - 2002
Question B
(i) Define Ethical Business practice. (Business Ethics) (ii) Explain, using an example where appropriate, the impact that business activity has in the development ... show full transcript
Worked Solution & Example Answer:(i) Define Ethical Business practice - Leaving Cert Business - Question B - 2002
Step 1
Define Ethical Business practice. (Business Ethics)
Answer
Ethical business practice refers to the moral principles or rules of conduct that are generally accepted by society. These principles serve as guidelines for actions that individuals or organizations should follow under various circumstances.
In essence, ethical business practices encompass conducting business activities in a manner that aligns with values such as fairness, accountability, transparency, and respect for stakeholders. This includes considerations for fair competition, the responsible use of resources, respect for employee rights, and minimizing negative environmental impacts. For example, a company that chooses environmentally friendly practices and fair labor policies exemplifies ethical business behavior.
Step 2
Explain, using an example where appropriate, the impact that business activity has in the development of the Irish economy.
Answer
Business activity significantly contributes to the development of the Irish economy through several avenues:
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Creation of Wealth: Businesses create wealth by producing goods and services. The process of generating profits not only enriches the company owners but also provides incomes for employees, suppliers, and other stakeholders involved. For instance, tech companies like Google in Ireland contribute to the economy by creating high-value jobs and fostering further economic growth.
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Employment Opportunities: By establishing operations, businesses provide jobs across various sectors. This employment helps individuals support their families and contributes to the overall economic stability of communities.
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Innovation: Business activities foster innovation by developing new products and services, which can lead to new market opportunities. For example, startups in the Irish fintech sector drive technological advancements that enhance financial services.
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Government Revenue: Business activities increase government revenue through taxation. This revenue is essential for funding public services and infrastructure, which in turn supports business operations.
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Social and Community Development: Many businesses engage in corporate social responsibility (CSR), which supports community projects and charitable initiatives. Such contributions not only improve local conditions but also strengthen community ties, benefitting both businesses and society.
By providing direct benefits through wealth creation, employment, innovation, and community support, business activity plays a crucial role in the development and sustainability of the Irish economy.