In the business-to-business arena, many companies are formally embracing ethical business practices as part of their Social Responsibility programme. Sometimes they reflect these within company policy statements. So, for example, they will mandate that employees are not to accept or make bribes.
But what about ethics in terms of relationships and trading with customers, particularly consumers? Is it considered that in a free market economy the customer is able to make a choice? That they are therefore not coerced into buying the company's product?
Do customer simply consider products on price, quality and benefits or do they involve other considerations? And what about new business pricing practices such as charging different customers different prices for the same product or service. Is that ethical?
Increasingly supplier's ethical behaviour is forming an important element in the decision mix. Price is no longer simply measured on unit costs ("bangs for bucks" as the American's say). Customers now factor in the underlying business practices such as how production, distribution and marketing costs contribute (or don't contribute!) to the final price. And in an era of variable pricing, they consider if that final price is fairly differentiated across different types of customers.
Ethics are standards of conduct or moral judgement(s): principles of right and wrong that govern the conduct of a business, industry or profession.
Joseph Reitz, co-director of the International Centre for Ethics in Business at the University of Kansas.
The preliminary report from the
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