Ethical & Environmental Considerations Flashcards
All 16 cards in this deck
What is ethical behaviour in business?
Acting in ways stakeholders consider to be both fair and honest — doing what is right, even when the law does not require it.
Give three ways a business can behave ethically.
Paying suppliers on time; using fair trade resources; fair advertising.
(Also: good working conditions, donating funds to local communities, not testing on animals.)What does ethical treatment of workers involve?
Paying fair wages, providing good working conditions and allowing flexible working — and never using child labour.
Give two benefits to a business of behaving ethically.
Good publicity and a positive reputation, which brings customer loyalty and higher sales; and better motivated workers.
Give two drawbacks to a business of behaving ethically.
Higher costs, as ethically sourced supplies and fair wages cost more; this can mean higher prices and lost competitiveness, lowering profit margins.
What is a trade-off between ethics and profit?
e.g. a clothing business choosing between two suppliers
Giving up one thing in favour of another — e.g. paying more for a fair trade supplier and accepting a lower profit margin.
True or false? Behaving more ethically always reduces a business's profit.
False. Higher costs may be offset by a better reputation, customer loyalty and higher sales, so profit can rise.
Name four environmental impacts of business activity named in the specification.
Traffic congestion, disposing of waste, noise pollution and air pollution.
Give three ways a business can act with greater environmental responsibility.
Recycling its waste, reducing packaging, and using less energy or fuel (plus disposing of waste safely).
Give three benefits to a business of being more environmentally friendly.
Positive publicity and reputation; competitive advantage through a USP/differentiation; using fewer resources such as energy and packaging.
Give two costs to a business of accepting greater environmental responsibility.
Initial investment and research costs for new production methods; it is time-consuming and can divert resources from profit-focused activities.
How do consumers accept greater environmental responsibility in their decision making?
They choose recycled or low-packaging products and may be willing to pay more for environmentally friendly ones, so businesses that pollute lose sales.
True or false? Being more environmentally friendly can only ever add to a business's costs.
False. Removing packaging or using less energy and fuel cuts costs, so profit margins can increase.
What is sustainability?
Meeting present needs without damaging the ability of future generations to meet their own needs.
Which business activities contribute most to global warming?
Burning fossil fuels for energy, production and transport, which releases greenhouse gases and causes air pollution.
What can help offset the cost to a business of investing in sustainability?
Government subsidies and grants, plus savings from lower fuel consumption and reduced waste.