Ethics, the Environment & Business Flashcards

All 15 cards in this deck

What are business ethics?

Doing what is morally right in business decisions, e.g. paying suppliers fair prices.

What is the trade-off between ethics and profit?

Acting ethically usually raises costs, so short-term profit may fall even though it can attract customers and raise revenue later.

Give one benefit to a business of sourcing products ethically, e.g. paying Fairtrade prices.

Ethically-minded consumers may pay a premium price for the products, increasing revenue and improving brand image.

Give one risk of a business abandoning an ethical scheme to cut costs.

Ethically-minded customers may switch to rivals, so revenue could fall by more than the costs saved and damage the brand's image.

What does sustainability mean for a business?

Operating in a way that meets present needs without damaging the environment or using up resources for the future.

Give two ways a business could reduce its environmental impact.

Any two of: reduce packaging used; make greater use of renewable energy; recycle waste; reduce emissions from transport.

Give one advantage to a business of improving its environmental sustainability.

Any one of: improved brand image; less pressure group activity; less likely to pay fines for pollution; can charge a premium price, adding value.

Give one drawback to a business of becoming more environmentally friendly.

Costs rise, e.g. more expensive packaging or materials, which may force prices up and reduce competitiveness.

True or false? Acting more ethically or environmentally always reduces a business's profit.

False. It can raise costs, but it may also add value and allow a premium price, so profit margins can rise instead.

How can pressure group activity affect a business's product?

The business may change the product or its packaging, e.g. removing plastic packaging, to meet the group's demands.

How can pressure group activity affect a business's price?

Meeting the group's demands raises costs, so the business may have to raise prices to maintain its profit margins.

How can pressure group activity affect a business's promotion?

Protests bring negative media coverage, damaging brand image, so the business may spend more on promotion to repair its reputation.

Give one method a pressure group might use to influence a business.

Any one of: organising a boycott of its products; holding protests; running a petition; campaigning on social media or in the press.

How can pressure group activity affect a business's place?

The business may change where it sources or sells its products, e.g. switching to local suppliers or no longer selling through outlets the group targets.

Give two ways a business's activities can harm the environment.

Any two of: pollution of the air or water; noise; extra traffic from lorries and deliveries; greenhouse gas emissions that add to climate change; using up land and natural resources.