Questions and Answers
A code of ethics should only address the behaviour of employees when interacting with customers.
False
Rewarding ethical behaviour can be achieved through both monetary and non-monetary rewards.
True
Regular training is unnecessary for reinforcing the principles of a business's code of ethics.
False
Enforcing a code of ethics may lead to some employees feeling like their values are being questioned.
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A business can greatly improve its corporate image by promoting its code of ethics transparently.
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One disadvantage of a code of ethics is that culture clashes could occur if employees perceive it as a mere formal requirement.
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Companies need to regularly update their code of ethics to reflect new behaviours considered unethical.
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External audits of ethical practices are unnecessary for businesses since they can evaluate themselves.
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The consequences of breaching the code of ethics should always be vague to allow for employee discretion.
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Creating a code of ethics is only beneficial if it is strictly enforced without any exceptions.
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Study Notes
Taxation Policy
- Reduction in PAYE rates increases disposable income, stimulating demand for goods and services.
- Maintenance of a low 12.5% corporation tax encourages foreign direct investment, supporting business growth.
- Adjustments to tax rates, such as lowering stamp duty, can particularly benefit sectors like construction.
- Increasing tax credits provides more disposable income for PAYE earners, further enhancing demand.
State Agencies
- State agencies support business through advice, training, mentoring, grants, and market research.
- Examples include Enterprise Ireland and IDA Ireland, which focus on indigenous industries and attracting foreign investment, respectively.
Enterprise Ireland
- Aims to develop indigenous industries with a focus on export growth, enhancing Ireland's balance of payments.
- Provides trade fair events, funding support, export assistance, and R&D incentives to support businesses in expanding internationally.
Industrial Development Authority (IDA)
- Attracts and develops foreign direct investment in Ireland by providing crucial data and location advice to multinational companies.
- Facilitates networking with local businesses and education institutions to cater to the needs of incoming companies.
Government Expenditure
- Capital expenditure, like building infrastructure (e.g., M20 motorway), creates jobs and boosts demand for materials.
- Current expenditure supports public sector salaries, increasing income and demand for local goods and services.
Government Grants
- Grants support various business activities, including R&D, machinery purchases, and training, with no repayment required if conditions are met.
- State agencies like LEOs, Enterprise Ireland, and IDA offer these grants to encourage business growth.
Government Planning
- National wage agreements provide predictability in wage costs, reducing industrial relations risks for business.
- Government decisions on wages and taxes hold significant implications for production costs and attractiveness for foreign investment.
Government Regulation of Business
- Environmental protection efforts include the establishment of the EPA to monitor business activities impacting the environment.
- Consumer protection is ensured through the Competition and Consumer Protection Commission, enforcing consumer rights and business conduct.
- Employee protection covers unfair dismissal and workplace equality through various laws.
- Data protection is emphasized through the Data Protection Commission, ensuring compliance with GDPR guidelines.
Community Development
- Focuses on local efforts to enhance both social and economic aspects, promoting self-reliance and empowerment.
- Local teams create development plans and secure funding, fostering growth driven by the community rather than external agencies.
Economic Benefits of Community Development
- Direct job creation boosts local spending, benefiting local businesses.
- Spin-off effects occur as local suppliers benefit from increased business activities.
- Promotes an enterprise culture encouraging innovation and new businesses.
- Improved standard of living as local income increases.
- Local authority revenue rises from commercial rates, allowing infrastructure improvements.
Social Benefits of Community Development
- Builds community spirit and confidence, replacing negativity with hope for growth.
- Empowers locals, fostering pride in community achievements.
- Helps retain population in rural areas, preventing depopulation and service closures.
- Increased local revenues can improve public infrastructure.
Community Development Organizations
- Local Enterprise Offices (LEOs), Leader Programme, Pobal, and Area Partnership Companies facilitate community development.
Local Enterprise Offices (LEOs)
- Comprises 31 offices that act as a primary resource for business startup and growth support.
- Funded by the Department of Business, Enterprise, and Innovation for broad reach and impact.
LEO Support and Services
- Mentoring programs connect businesses with experienced professionals for personalized guidance.
- Encourages the establishment of discipline procedures and ethical conduct within companies through ethical audits and rewards for ethical behavior.
Code of Ethics
- A formal statement outlining expected moral behaviors for all business stakeholders.
- Aids in decision-making, setting high standards, enhancing corporate image, and defining clear rules and consequences.
Benefits of a Code of Ethics
- Facilitates improved decision-making by considering stakeholder impacts.
- High standards clarify expected behavior for management and staff.
- Promotes a positive corporate image through public commitment to ethical practices.
- Establishes clear rules and encourages reporting of unethical behavior.
Disadvantages of a Code of Ethics
- Potential culture clashes can lead to dismissive attitudes towards the code.
- Regular updates are necessary to stay relevant, requiring ongoing attention.
- Enforcement might lead to industrial unrest and necessitates training, demanding time and financial resources.
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Description
Explore how government actions such as taxation policy, state agencies, government expenditure, grants, and planning contribute to business growth. This quiz covers significant policies that impact businesses and their operational capabilities. Test your knowledge on key concepts around government support for the business sector.
