1.3 & 1.4 - Business Ethics & Social Enterprise vs Other Business Types

Question 1

What does being ethical mean?

Answer 1

Being ethical means behaving in a manner that is deemed ‘correct’ or ‘appropriate’ by society. Ethical decisions are not the same as legal decisions, as unethical decisions (eg. low pay to employees to maximize profit) may not always be illegal.

Question 2

What is the first strategy to ensure a business is as ethical as possible?

Answer 2

The first strategy is for businesses to have a ‘Code of Ethics’ or ‘Code of Conduct,’ detailing what is acceptable and unacceptable in the workplace.

Question 3

What is the second strategy to ensure a business is as ethical as possible?

Answer 3

The second strategy is for businesses to implement an ethics committee; a person or group of people appointed to ensure the codes are upheld.

Question 4

What is the definition of a ‘Traditional Business?’

Answer 4

A traditional business runs for profit, and most of the profit goes to the CEO of such business.

Question 5

What is the definition of a ‘Social Enterprise?’

Answer 5

A social enterprise is a business that trades to intentionally tackle social problems, improve communities and help the environment. However, unlike charities, a social enterprise doesn’t give all of their profit away.

Question 6

What is the definition of a ‘Charity?’

Answer 6

A charity is a non-profit business that gives all of their profit to a cause of choice.