Page 101 - Bisiness Studies_Form_3

Business Studies for Secondary Schools
Strengthened organisational relationships
with customers: Ethical values improve
relationships between an organisation and
its customers. Ethical values strengthen
the organisation by ensuring consistency
in the standard and quality of the products. selling expired food products at a
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Ethical dilemmas
Ethical dilemmas are common, even in
small businesses. As aspiring entrepreneurs,
it is crucial to understand the following
ethical dilemmas:
Ethics are not optional: Ethical behaviour
is not just a nice-to-have thing; it is
essential for building a sustainable and
successful business. When you start
your own business, remember that your
decisions will impact your customers,
employees, and the community.
Short-term gains can lead to long-term
losses: Mr Juma might have made a
quick profit by selling expired food, but
he would have risked losing customers’
trust and damaging his reputation, which
would hurt his business in the long run.
Ethical decisions build trust and loyalty:
When customers know you are honest and
fair, they are more likely to trust you and
support your business. This trust leads to
loyal customers and repeat business.
Ethics contribute to a positive community
impact: Businesses are responsible for
contributing to their communities’ well-
being. By acting ethically, you can create
a positive impact and help build a stronger
society.
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Skills lab Activity
Mr Juma owns a small shop in a local
market in Ruvuma. Due to rising raw
materials costs, he is considering
lower price to avoid losses. He knows
this is risky, but he is worried about his
business failing. Imagine you are part
of a Youth Business Ethics Committee
that is helping local businesses make
better decisions, and Mr. Juma has
come to your committee for advice.
Work in small groups and help him
find the most ethical way forward.
Analyse this case study and identify
the following:
(a) What is the ethical dilemma Mr
Juma faces?
(b) What are the potential risks and
consequences of selling expired
food?
(c) What realistic alternative
solutions could Mr. Juma
consider?
(d) How would you advise Mr. Juma
to resolve this situation ethically?
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