2.2 Flashcards
Ethics
refers to whether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right.
Profit
measures the difference between the values of a business’s revenue (sales) and its
total costs.
Fair trade
are those for which customers pay higher prices and offer better trading terms, such as payments with orders.
The aim is to improve the Living standards of people in poorer countries where the products are produced.
Social responsibility
an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions.
The environment
is the natural world in which we live. It is the landscape and its natural features such as the seas, rivers, forests and mountains.
External costs
of production arise when a business’s activities result in harmful effects on other people not directly involved in production.
Non-renewable resources
Are those of which only a limited amount exists such as coal and oil
Global warming
Is the gradual heating of earth’s surface, oceans and atmosphere
Pressure group
of production arise when a business’s activities result in harmful effects on other people not directly involved in production.
Environmental responsibility
refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment.
Sustainability
refers to methods of production which can be continued in the long term without damage to the environment.
Recycling
is the reuse of raw materials used in making products, often for many times. Examples include the reuse of glass, paper and metals.
Environmental reporting
is the publication of a
business’s environmental performance to the general public.
