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BUSINESS ETHICS

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TERMENI importanti pentru acest document

BUSINESS ETHICS

LEAD-IN:

Ethics are moral beliefs about what is right or wrong, and the study of this. Some actions are not criminal, but they are morally wrong , unethical. Areas where choices have to be made about right or wrong behaviour are ethical issues. Some organizations have a code of ethics or code of conduct where they say what their managers’ and employees’ behaviour should be, to try to prevent them behaving unethically. In the business world, ethics refers to a variety of things. Among them one may talk about owners and managers being socially responsible, that is not exploiting workers by underpaying them or making them work long hours (sweatshop labour). Managers should also have an affirmative action program (US), to avoid racial or sex discrimination. We also speak about ethical investment, that is taking into account environmental or green issues, not investing in arms companies or tobacco firms, trying to avoid causing damage in nature and pollution by investing in certain areas.




PRACTICE

  1. Other unethical issues are very serious and may come under the incidence of law as criminal actions. Match the following names of such actions with the corresponding definition:

insider trading, 2) price fixing, 3)market rigging, 4) bribery, 5) corruption, 6) faking, 7) fraud, 8) embezzlement, 9) money laundering, 10) company ‘perks’, 11) operating a cartel, 12) computer data protection

a)      a type of fraud where someone illegally gets money from their employer

b)      a group of companies in the same market secretly agree to fix prices at a certain level, so they do not have to compete with each other

c)      secretly giving money to somebody ( a business partner ) to get a favour from him/her

d)      stealing secrets from a computer network

e)      hiding the illegal origin of money

f)       someone buys or sells securities using information that is not publicly available

g)      a group of investors work together to stop a financial market functioning as it should, to gain an advantage for themselves

h)      paying someone illegally in order to do something

i)        giving some employees special benefits

j)       making goods in your own workshop and giving it the name of a well-known product, usually luxury products

k)      agreeing to set high prices with a competitor

l)        where someone offers to lend money, but demands that the borrower pays a “fee” before they get the loan

  1. Ethical issues are also reflected in the marketing area. Organisations which make ethical marketing decisions will probably be trusted by consumers and respected by the business community. Unethical marketing activities, on the other hand, can damage sales and destroy a company’s reputation. Which unethical marketing activities can you think of? What examples of unethical marketing can you give from your own knowledge or experience? What kind of unethical marketing activities might go on in the pharmaceutical industry?
  2. Read the following article from The Economist about the problems Glaxo, the world’s second – biggest pharmaceuticals company, had in the field of the ethics of marketing drugs and summarise in your own words the charges against the pharmaceutical industry.

Criticism may be nothing new for the drug industry, but the ferocity of recent attacks is starting to worry even the most hardened executive. The industry stands accused of conducting promotional drives disguised as educational and fact-finding campaigns; of offering doctors, not pens and note pads but hard cash; of distorting data to suit its promotional needs; of blurring side-effects; and perhaps worst as far as insiders are concerned, of bad-mouthing rival products and unnecessarily alarming doctors and patients.

Even Glaxo, long admired for its marketing, shocked the industry when in February 1990 it had a letter published in the Lancet saying that it had conducted tests on Omeprazole, a rival product made by Sweden’s Astra, which had shown that the drug caused cancer. Such “knocking copy” had previously been taboo. More recently some doctors have raised worries about how hard Glaxo is pushing its products and whether some of its promotional material might even be confusing.

A question The Economist therefore asked Ernest Mario, the firm’s chief executive, was: Is Glaxo pushing too hard? The Lancet letter, claims Mr. Mario, was not a marketing ploy but a genuine attempt to bring to light important medical information. Naturally, he says, he disapproves of public mud-slinging. But he admits that in the past few years pharmaceutical marketing has changed – often under Glaxo’s leadership.

In the early 1980s Glaxo broke the mould by launching Rantidine, its anti-ulcer cure, expensively around the world, rather than more conventionally in national markets. Glaxo was also one of the first to advertise directly to patients on American television, in a campaign about ulcers that was seen by 12m people.

According to Mr. Mario the laws of the marketplace now apply as much to pharmaceuticals as to consumer electronics: once armed with a new product, a company must establish its market share as quickly as possible, before rival firms produce competitive brands. There are already four drugs similar to Rantidine. In the past, drugs brought in good profits for a decade or more.

But does Glaxo “create” its markets? Glaxo has built up one of the world’s biggest sales forces for drugs. The firm is still recruiting in Europe in the expectation that several new products will be approved there. These days its marketing machinery goes into action far earlier in a product’s life. While a new drug is being developed, Glaxo holds costly symposiums to which it invites experts who know about the disease the drug is designed to treat. Critics say the aim is to build a market while the drug is more an idea than a reality. Mr. Mario says that drug companies use such symposiums to gauge market potential.

Might such heavy investment in development and marketing distort expectations inside and outside the firm? Some doctors believe that these practices raise the stakes in a new product to such an extent that a company’s scientific judgement might become clouded: that too little could be made of a drug’s side-effects, and too much of its benefits. Mr. Mario says that this is not possible. Any adverse information must be reported to regulators, he says, who are the industry’s final arbiters. The claims made by drug firms about their products are also regulated.

Recently there have been complaints that Glaxo is confusing doctors in its promotion of Salmeterol, an anti-asthma drug that was launched in Britain, through claims about it potency. Although Glaxo has changed its promotional material for Salmeterol, Mr. Mario believes that discussions about products should take place only with regulators. After all, drug firms do not have to publish data to get products approved, so even medical journals provide an incomplete view. Mr. Mario believes that Glaxo should not be responsible for telling doctors about unfavourable reports on its drugs. It is the regulators who must decide.

He may be placing too much faith in regulators. America’s Food and Drug Administration is in turmoil, overburdened and charged with corruption. In Britain critics believe that the relationship between drug firms and the Medicines Agency is too cosy. All information that passes between them about the approval of a drug is confidential. The agency is soon to be spun off from the Department of Health, financed solely by drug companies’licence fees. Moreover, recent surveys have shown that doctors are highly dependent on the industry’s marketing men for information, which means that an appropriate debate on potential side-effects can never really take place. This may be why the World Health Organisation has gone so far as to suggest that sales-forces for drugs should be financed by the state.

  1. Read the text again and find words which mean the following;

a)      to darken (paragraph 1)

b)      stratagem (paragraph 3)

c)      offending rivals in public (paragraph 3)

d)      to make a start (paragraph 4)

e)      to measure (paragraph 6)

f)       agitation (last paragraph)

UNIT V

TOURISM-TRAVELLING-BUSINESS TRIPS

KEY VOCABULARY

Travelling by rail

a)      Passengers

- to look at the railway guide/ timetable

- to buy a ticket for a train to Vienna

- to leave one’s luggage at the luggage office/ in a locker

- to meet smb. at the station

- to see smb. off on a train

- to change trains

- to miss/ catch one’s connection/ train

- to wait on platform six

- to get on the train

- to sit in a first/ second class compartment

- to take a seat in a smoking/ non-smoking carriage

- to put the suitcases on the luggage rack

- to put the windows up/ down

- to show one’s ticket to the inspector

- to sit facing/ back to the engine

- to have a drink in the buffet car

- to take the wrong train

- to pull the emergency brake

- to get off the train

- to go to the lost property office

b)      Trains

- to stand at platform six

- to be due to leave/ arrive

- to run every hour

- to depart

- to speed up/ slow down

- to make up for the delay

- to be in time/ delayed by sg

- to run to schedule

- to be ahead of schedule

c)      Types of trains

slow train/ passenger train/ fast train

through train/ direct train/ non-stop express

freight train/ goods train

Travelling by air

a)      Passengers

- to make a flight reservation

- to buy a ticket

- to fly in a scheduled/ chartered plane

- to go to the check-in counter

- to have one’s luggage weighed

- to pay an excess fare

- to queue up at the passport control and customs clearance

- to have a drink in the transit lounge

- to buy some cigarettes at the duty-free shop

- to hear the flight call

- to board the plane

- to find one’s seat in tourist/ comfort class

- to fasten the seat belts

- to take air-sickness pills

b)      Planes

- to be cancelled owing to bad weather

- to be delayed for technical reasons

- to pick up speed/ to take off

- to ascend/ descend

- to reach an altitude of … meters

- to hit an air pocket

- to make a forced landing

- to be hijacked

- to fly off course

- to run an automatic pilot

- to lower the wheels/ undercarriage

- to approach the runway

- to make a perfect landing

c)      People in the plane

pilot, co-pilot, operator and the cabin staff (steward, stewardess/ air hostess)

d)      Parts of the plane

cockpit, galley, passenger cabin, cargo hold, fuselage, hatch, jet engine, nose, tail, undercarriage, wing

Travelling by sea

-to come into the quay

-to drop/ cast anchor

-to lower the gangway

-to embark on/ disembark from a ship

-to feel seasick

-to sleep in a second-class cabin

-to walk on the deck

-to be shipwrecked

-to arrive at the harbour

a)      Types of watercraft

sailing ship, barge, tug, trawler, yacht, kayak, hovercraft, hydrofoil, tanker, submarine, ferry, ocean liner, vessel, raft, paddle-boat, rubber boat

BEFORE YOU READ

What means of transport should a businessman choose when travelling on business?

Why?

In your opinion which may the advantages be of flying in business class?

What special facilities should an airline offer to people travelling on business?

READING

A.

British Airways Business Class Travel

Booking your British Airways Business Flight

Flying Club World is an opportunity to make your time your own. From the calm of the lounges to the comfort of your own truly flat bed on board you have the personal space, privacy and flexibility you need to sleep, work or simply relax as you choose. The different zones of BA's innovative Terraces Lounges are designed to suit your changing needs and moods - from a peaceful sanctuary to a working zone, to a wine bar, and more. On selected overnight flights, you have the option of dining in the lounge before your flight, so you can get straight to sleep once airborne. Pre-flight dining is available at New York JFK, Newark, Boston, Chicago, Philadelphia, Toronto and Washington.

British Airways Club World Cabin Service

Enjoy the personal space, privacy and comfort afforded by Club World. In its unique cocooned environment, you have the flexibility to sleep, work or simply relax as you choose. Arrive refreshed at your destination, alert and ready for your day after a proper night's sleep on a truly flat bed*. Club World's award winning seat design converts in to a six foot (183cm) fully flat bed, providing a more natural sleeping position and, therefore, a better night's sleep. Some flights continue to feature BA's comfortable Cradle Seat with its unique tilting action, designed to support every part of your body. Your seat can be easily adjusted, so you can choose your most comfortable position for working, eating or relaxing.

With your own personal in-flight entertainment system, you can sit back and enjoy an extensive choice of on screen entertainment, interactive games and CD-quality audio. With in-seat lap top connection* and telephone, Club World has all the facilities you need to catch up on work and stay in touch with colleagues, friends and family throughout your journey.

*Available on all 747 and selected 777 aircraft

(https://www.waytetravel.co.uk/british_airways_business_class.php)

COMPREHENSION QUESTIONS

What kind of opportunity does Flying Club World offer?

What are the Terraces Lounges designed to?

Why may the British Airways Club World Cabin be considered a cocooned environment?



What entertaining and working facilities does this airline offer?

BEFORE YOU READ

What should a businessman be prepared for when travelling abroad on business?

2. What information should you know about the country that may help you strike a good deal?

3. How should you plan your trip?

READING

B.

Make The Most Of Business Trips

By Edward Chalmers

Success Correspondent - Every 2nd Saturday

Business travel is not like a vacation. Sure, it might involve exotic locales, a variety of cultures and customs, and introductions to new people, but many frequent fliers would be happier if they could just stay home

Travelling on business can be tiring and stressful, whether you go abroad for a meeting with a client or supplier, or fly to a nearby city every week to meet with your staff or your boss.

If your company asks you to take a business trip, here are some tips that will help you enhance your professional image while doing so.

Plan ahead

Research your destination

Whether you'll be travelling to Bangkok or Boston, go online and read up on the area, its history, points of interest, etc. Asking your client, supplier or colleagues pertinent questions will enhance your image and prove that you're interested in more than just business. It will increase your success at nailing the contract or delivering an exceptional presentation

Learn the customs

Understand local practices, food specialties, etc. to ensure you make a positive impression with your customers or associates. There are many cultural differences in the handling of business cards, the use of first names, the importance of being on time, and the significance of certain gestures that could make or break your business deal if you have not done your research.

Allow for delays

Plan your schedule with plenty of time between your expected arrival and your first meeting. Flight delays happen, as do traffic delays en route to the airport. A smart business professional will build extra time into his schedule to allow for delays.

Take a tip tutorial

Learn about local tipping practices in advance. This will avoid embarrassment if you're picking up the tab for dinner. In some countries, a gratuity or service charge is automatically added to your bill; in others, visitors from abroad often mistake the tax for a tip. Checking this out in advance will eliminate the guesswork and make you look worldlier.

Be prepared

Pack appropriately

Ensure your pockets, briefcase and carryon bag do not contain any prohibited articles. Even nail files and small scissors will be confiscated, and you may be subjected to a search. If you're flying with your boss or a colleague, they won't be impressed, nor will they be happy if you're fumbling to find your ticket or reservations record. Act like the important businessman you are -- you never know who you might run into at the airport.

Carry necessary documents with you

Ensure you have proper documentation, passport, visa, vaccinations, etc. Your professional image will be tainted if you have to cancel a meeting or presentation because you were refused entry into a country.

Furthermore, carry important business documents in your cabin baggage. If you're traveling to make a presentation or bid proposal, have backups of your material on a CD or floppy disk in your pocket.

(https://www.askmen.com/money/successful_100/118_success.html)

COMPREHENSION QUESTIONS

What other things should a businessman be attentive at when travelling abroad?

What other advice would you add to the listed ones?

Can you talk about a particular situation when the misunderstanding of the foreign partner has led to the losing of the client?

VOCABULARY PRACTICE

Fill in the texts below with the following words:

A)

a)      ticket machines

b)      luggage racks

c)      upholstered

d)      bulk

e)      booking offices

f)       carriage

The railway today still carries the 1. -------- of the passenger traffic. Using the train as a means of transport is very adequate when travelling on business. Many businessmen choose the train because in a train they have enough space to move around and they can be relaxed as opposed to a car where they have to be attentive to the road while driving.

Inside the first-class 2. -------- they can find very comfortable 3. -------- seats, there are 4. -------- over the seats where they can put their suitcases. During the journey businessmen may prepare for conferences, for meeting the future business partners, for business transactions, interviews or whatever their purpose may be.

Before getting on a train people should buy a ticket. You may buy a ticket at the ticket offices where there are usually long queues of people. To avoid such situations you may buy the tickets at 5. -------- and also there you may get information about the connections. You may also buy the tickets in advance at the 6. -------- where you make the seat reservations too.

B)

a)      boarding pass

b)      alight

c)      hand-luggage

d)      departure lounge

e)      TV screens

f)       runway

g)      tag

h)      passenger plane

i)        gate

j)       an excess fare

k)      has landed

l)        at snail’s pace

m)    take off

n)      altitude

o)      check-in counter

p)      is weighed

q)      duty-free shops

r)       loudspeakers

s)       safety belts

t)        air hostess

Air travel is definitely the quickest way of transport. In comparison to a 1. -------- the fastest express train seems to crawl 2. --------. Air travel is appropriate for businessmen, it saves time.

Before boarding the plane the passengers must register at the 3. --------. While checking in the luggage 4. -------- and the attendant attaches a special 5. -------- to it to prevent it from getting lost or misplaced. If exceeding the baggage allowance you will have to pay 6. --------. After the weigh-in you get a 7. -------- which indicates the flight number, the destination, the class (comfort, tourist or business) and the seat number. Once your passport has been checked you go to the 8. -------- where usually you have to wait before your plane is due to 9. --------. You will possibly find a 10. -------- there where you can kill the time until departure. The goods in such shops are always cheaper than their regular price.

It is wise to check the flight list on the 11. -------- to see if your flight is going to be delayed or not. Departures, calls for flights, delays, cancellations or changes are also announced over 12. --------. When the flight is announced you go to the right 13. -------- and boarding begins.

When you have climbed the steps up to the plane, stewards and stewardesses greet you on board the plane. You show your boarding card to them and take your seat. They help everyone to put the 14. -------- into the luggage-compartment and to adjust the 15. --------. When everybody has fastened the belts the plane begins to pick up speed and races along the 16. --------. In a moment it is off the ground and begins to ascend.

When the plane has reached the right 17. -------- the captain welcomes the passengers and gives information about the type of the plane, its speed and how high it is flying. In a short time the 18. -------- comes and serves light food and refreshments to the passengers.

After the plane 19. -------- on the tarmac and rolled to a stop ramps are driven up and passengers begin to 20. --------.

C)

a)      deck

b)      facilities

c)      portholes

d)      cabin

e)      have a dip

f)       crew

g)      staterooms

h)      ocean liners

Big 1. -------- are like real floating cities with all modern conveniences. They can transport several thousand passengers and together with the 2. -------- there are as many people on them as in a small-sized town.

The cabins are above and below 3. --------. A 4. -------- looks very much like a compartment of a railway sleeping car. The luxurious cabins of the first class passengers are known as 5. --------. They are quite spacious, beautifully furnished with private bathrooms attached. All cabins have 6. -------- which are round windows in the ship’s side made of very thick glass.

There is a wide choice of sports and entertaining 7. -------- on ocean liners: you can go dancing in a bar, have a good meal in a restaurant, listen to concerts, watch films, walk on the deck or 8. -------- in the swimming pool.

(Adapted from Némethné Hock Ildikó: 1000 Quest)

SKILL FOCUS

SPEAKING

Look at these situations and decide

Who could you speak in each case to get the info you require?

What would you say in each situations?

a.       You miss your train connection.

b.      You arrive in good time at the station but discover that you have lost your ticket

c.       You lose your boarding pass.

d.      Your suitcase with important documents has been misplaced.

e.       You hear that your flight has been cancelled.

f.        You have reserved a ticket but the clerk says your name is not on the computer.

g.      Your passport has been stolen at the station.

h.      Someone has pulled the emergency brake and you cannot arrive in time.

Imagine that a group of French delegates are on business in your country. What advice would you give to them?

Imagine that you are travelling to China on business. How do you prepare for the visit?

SKILL FOCUS

WRITING

Write the itinerary of an imaginary business trip to Canada. Present it to the group.



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