2.2 - Ethical and environmental considerations

Question 1

Ethics

Answer 1

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.

Question 2

Profit

Answer 2

Profit measures the
difference between the
values of a business's
revenue sales and its
total costs.

Question 3

Fair trade products

Answer 3

Fair trade products
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.

Question 4

Social responsibility

Answer 4

Social responsibility is
an approach to managing
businesses in which the
interests of all groups
in society are taken into
account when making
decisions.

Question 5

The environment

Answer 5

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.

Question 6

External costs

Answer 6

External costs of
production arise when
a business's activities
result in harmful effects
on other people not
directly involved in
production.

Question 7

Non-renewable

resources

Answer 7

Non-renewable
resources are those
of which only a limited
amount exists such as
coal and oil.

Question 8

Global warming

Answer 8

Global warming is the
gradual heating of Earth’s
surface, oceans and
atmosphere.

Question 9

pressure group

Answer 9

A pressure group is
a group of people with
a common interest
who influence public
opinion and decisions
by businesses and
qovernments.

Question 10

Environmental responsibility

Answer 10

Environmental
responsibility refers to
the taking of decisions by
businesses, consumers,
governments and
other groups with the
intention of protecting the
environment.

Question 11

Sustainability

Answer 11

Sustainability refers to
methods of production
which can be continued
in the long term
without damage to the
environment.

Question 12

Recycling

Answer 12

Recycling is the reuse
of raw materials used in
making products, often
for many times. Examples
include the reuse of
glass, paper and metals.

Question 13

Environmental reporting

Answer 13

Environmental
reporting is the
publication of a
business's environmental
performance to the
general public.