Ethical issues in retailing

Ethical issues in retailing

Ethics relates to retailer’s moral principles and values. Retailers have realized the advantages of reflecting an ethical sense in business operations. The organizational environment plays a major role in the kind of ethical sense the employees possess. Retailers are trying to ensure that their employees behave ethically. Though there are many laws influencing the business environment of the retailer, there are many more aspects that come under the purview of ethics. These aspects concern the merchandise buying and selling practices in the firm. Retailers also need to be socially responsible and environmentally concerned. They often undertake activities that are beneficial to the society. Retailers are also taking measures for waste reduction, trying to recycle the materials used and are switching over to environment friendly packaging materials.

Ethical Challenges

Ethical Challenges fall into three interconnected categories:

·         Ethics

·         Social Responsibility

·         Consumerism

Social Responsibility- A retailer exhibiting social responsibility acts in the best interests of society – as well as itself. The challenge is to balance corporate citizenship with a fair level of profits for stock holders, management, and employees.

Consumerism- Consumerism relates to the activities of government, business and other organizations that are designed to protect individuals from practices infringing upon their rights as consumers.