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Unit 37 Understanding Business Ethics P3
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P3 - describe the social implications of business ethics facing a selected business in its different areas of activity
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Sports Direct is a sporting goods retailer founded in 1982 by Mike Ashley . The business sells a wide range of products includingclothing, Sports clothing, outdoor equipment and sports accessories. In 2002 they acquired the rights to Lillywhites stores and L
Sports Direct has over 700 stores in the United Kingdom and 427 spread around continental Europe.
Human Resource Management Fi
Ethics in human resource management can affect Sports Direct in many Ethics regarding finance in Sports Direct can affec
different ways. Discrimination within the work place and the recruitment business in many different ways both positive and
selection can result in Sports direct getting sued or prosecutions taking tive. Insider trading is the illegal use of non-
place. For example, if an employee believes they were fired because of a dis- public material information for profit, typically on
criminatory factor such as age, race, sex, disability or religion they can file a stock market. If an employee who works in head o
lawsuit against the business. Sports Direct would be required to pay the for- knowledge privy to the selling of stock for examp
mer employee thousands of pounds in compensation as a result of the fi- stock price is going to fall and decided to sell their
nancial loss.
So they wouldn't make a loss and it became pub
Furthermore, if news of discrimination within Sports Direct whether that be
could also shift the publics image of Sports Direct
within the stores itself or throughout their recruitment process can damage
stock. This is due to the fact that unethical behavi
the brands reputation among consumers and investors. The negative effect
tion if investing their money in Sports Direct woul
this can have on Sports Direct is it can discourage investors from investing
business employees could be making decisions wh
In Sports Direct as a result of their own morals and the effect it would have on the business’ sales. Once Executive pay is when executives in business’ rec
customers learn of discrimination within the company many customers could stop shopping there in work and contribution to the business. This can aff
support of those who are discriminated against, additionally if people of their own stature were discrim- there are other people within the company worki
inated against. ceiving neither a financial or non financial reward
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