Norms and Values in Business Ethics
Definition
Norms
Norms are shared expectations or rules that guide behavior within a group or society.
Definition
Values
Values are deeply held beliefs about what is important, right, or desirable.
The Role of Norms and Values
- Guiding Decision-Making: Norms and values help businesses make ethical choices by providing a framework for evaluating actions.
- Building Trust: Ethical norms and values foster trust between businesses, employees, customers, and the broader community.
- Shaping Corporate Culture: A strong ethical culture encourages employees to act with integrity and align their actions with the company's values.
A company that values sustainability might implement norms such as reducing waste, using renewable energy, and prioritizing eco-friendly suppliers.
Conflicts Between Norms and Values
- Internal Conflicts: Employees may face dilemmas when personal values clash with company norms.
- External Conflicts: Businesses may encounter conflicts between their values and societal norms or legal requirements.
A company operating in a country with lax environmental regulations might struggle to balance local norms with its commitment to sustainability.
Fair Trade
- Fair trade is a movement that aims to ensure ethical and sustainable practices in global supply chains.
- It focuses on fair wages, safe working conditions, and environmental sustainability.
Key Principles of Fair Trade
- Fair Compensation: Ensuring producers receive a living wage for their work.
- Safe Working Conditions: Promoting health and safety standards in the workplace.
- Environmental Sustainability: Encouraging eco-friendly practices and reducing environmental impact.
- Community Development: Investing in local communities through education, healthcare, and infrastructure.
Fair trade coffee cooperatives often invest in community projects like schools and clinics, benefiting the entire community.
Criticisms of Fair Trade
- Limited Reach: Fair trade programs may not reach the most vulnerable workers or regions.
- Higher Costs: Fair trade products can be more expensive, limiting consumer access.
- Certification Challenges: The certification process can be complex and costly for small producers.
Despite these criticisms, fair trade remains a vital tool for promoting ethical business practices and supporting marginalized communities.
