 How it affects a company’s operation  The need to understand the complexity of business ethics and  the stages that must be established for the proper handling of ethical problems.  The research that underscores the complexity of business ethics.  Numerous areas of ethical concern for business organizations.

 Why questionable pricing strategies might adversely affect the running of a retail operation.  The typical ethical dilemmas that businesses face.  Codes of ethics and how they are written to meet the needs of business organizations.  The need to include social responsibility in the retailer’s overall marketing plan.

 Many ways in which fashion retailers do their share to aid charitable and other causes.  The ways in which fashion retailers are becoming more socially responsible.

 Is it ethical to conduct personal business while on the job,  call in and claim you’re sick when it is just an excuse to take a day off,  habitually arrive late for work and leave before the work-day ends,

 lie to customers about the advantages of the merchandise you are trying to sell, or  to surf the Internet during company time.  Those in management as well as the rank and file employees are tempted by these types of ethical dilemmas.

 Her indictment affected  Kmart, where she has been a shining light with her line of home products;  the licensees that manufacture her goods, such as Shaw Industries,  the producers of her Signature flooring collection; and  the syndicated TV shows that feature her products, to name a few.

 As defined in Webster’s Dictionary, ethics are, “moral principles, rules of conduct.”  It requires that people learn right from wrong.  People do not always agree on what is right or wrong and use their own interpretations of a situation.

 If Johnny is asked to tell a lie to cover for his boss, is he merely following orders from his superior, or  is he engaging in an unethical practice?  Some ethicists believe that ethical decision making is duty based and that it should be universally applied.  Others, however, theorize that ethical decision making is situational and depends upon what is happening at that time.

 Buyer conflicts of interest  Most buyers approach their job using data and scientific methods.  Some, however may base their purchase decisions from vendors on personal rewards.  Big NO NO!  Most orgs have strengent policies against accepting gift, money, trips, tickets, etc that would influence a person’s decision process.

 Stein Mart  dor dor  May Company  No employee shall own significant stock in a competitor

 Vendors should not participate in practices outside the US that are not legal in the US  Child labor – Cathy Lee Gifford  This is a PR night mare  Drives consumers away  It’s the store’s responsibility to make sure the foreign manufacturers follow American standards regarding production of their goods.  They must sign contracts that state they will follow the Fair Labor Standards Act of 1938.

 If offering an item on Sale and comparing it to the regular list price, the regular price needs to be stated when it was.  If regular list price was three years ago then comparing it today to that price is not ethical.  Home shopping networks are notoriously bad for doing this. Buyer Beware!

 Advertising an item on sale then when the shopper arrives the item is no longer in stock  This is called Bait and Switch  Today the quantity of the stock offered must be mentioned in the ad.  Sears at Christmas offered front load washer and dryer but only had 4 on hand.

 Make a list of all the ethical issues you might come across at work.

 Exaggerating your credentials on your resume  Using the Internet on company time  Bypassing your immediate supervisor  Not following lines of authority  Becoming romantically involved with a supervisor  Calling in sick to get a day off  Knowing another person lied about something and not telling

 Misrepresenting product information  Falsifying expense accounts  Giving bad reviews when inappropriate

 Most retail organizations have a written code of ethics that employees must read and sign prior to working for the org.  You’ll study these on page 125 of your book.

 When a disaster hits and all the retailers line up to donate goods and serve it has to be genuine and managed carefully so not to look self serving.  They earmark and set aside funds for people in need, but must not over “tout” this in the media or else look self-serving.  Give some examples of what could be considered social responsibility today?