2.2 Ethical and Environmental Considerations

Question 1

Define ethics.

Answer 1

Ethics refers to whether a business decision is thought to be morally right or wrong.

Question 2

How can a business behave ethically?

Answer 2

By considering the whole community and not just profits when making decisions.

Question 3

What are some ethical business activities?

Answer 3

• Donating significant amounts of profits to a charity.

- Setting up a business in an area of high unemployment.

Question 4

What are some illegal activities that a business may do?

Answer 4

• Child labour.

- Paying employees below minimum wage.

Question 5

How can consumers improve the environment?

Answer 5

• They can recycle products at home.

- They can buy more environmentally friendly products to encourage businesses to produce these products.

Question 6

What are advantages of environmentally friendly and ethical policies?

Answer 6

• Can charge higher for their products.

- Can attract more customers to your business.

Question 7

What are the disadvantages of environmentally friendly and ethical policies?

Answer 7

• Following these policies can increase costs for a business.
• If you claim to follow these policies, you need to stick to it.