2.2 - Ethical And Environmental Considerations Flashcards
Ethics
Refers to whether a business 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 dofference between the values of a business revenue, and it’s total costs
Fairtrade Products
Those for which customers oay higher prices and offer better trading terms, such as payments with orders. The aim is to improve the living stamdars 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
The natural world in which we reside
External Costs
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
Those of which only a limited amount exists such as coal and oil
Global Warming
The gradual heating of earth’s surface, oceans and the atmosphere
A pressure group
A group of people who influence public opinion and decisions made by businesses and governments
Environmental responsibility
Refers to the making of decisions by businesses, consumers and governments and other groups with the intention of protecting the environment.
Sustainability
Methods of production which can be continued in the long term without damage to the environment
Recycling
The reuse of raw materials used in making products, often for many times. Examples of this include the reuse of glass, paper and metals
Environmental reporting
The publication of a business’s environmental performance to the public
