2.2 Ethical and Environmental Considerations Flashcards

1
Q

What is meant by the term “ethics”?

A

When a business makes a decision based on what’s thought to be morally right or wrong.

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2
Q

What is meant by the term “social responsibility”?

A

An approach to managing a business in which the interests of all groups in society are taken into account when making decisions.

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3
Q

What are the ways a business can behave ethically?

A
  • treating customer ethically.
  • treating employees ethically.
  • treating suppliers ethically.
  • treating local residents and the wider community fairly.
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4
Q

What is meant by the term “environment”?

A

The natural world in which we live.

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5
Q

What is meant by the term “external costs of production”?

A

When a business’ activities result in harmful effects on other people not directly involved in production.

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6
Q

What is meant by the term “non-renewable resources”?

A

Resources of which a limited amount exists such as coal and oil.

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7
Q

What is meant by the term “global warming”?

A

The gradual heating of Earth’s surface, oceans and atmosphere.

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8
Q

What are examples of social costs or poor ethics?

A
  • exploiting labour or using child labour.
  • providing false information to customers.
  • bullying suppliers.
  • water, air or noise pollution.
  • destruction of the physical environment.
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9
Q

What are examples of good ethics?

A
- paying fair wages.
- using sustainable materials.
- minimising environmental impact.
- prioritising animal welfare.
- not exploiting workers.
- considering all of the stakeholders in business decision.
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10
Q

What is meant by the term “trade offs”?

A

When one or more things are given up in order to achieve an alternative.

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11
Q

What are examples of a trade off?

A
  • if a business behaves ethically, its giving up the opportunity to maximise profits.
  • if a fair price is paid to suppliers in order to not exploit them then this will increase costs.
  • providing customers with fair prices may lower revenue.
  • using environmentally friendly production processes, with low pollution, can increase costs.
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