2.2 Ethical And Environmental Issues Flashcards
Ethical behaviour
Most businesses operate to meet the needs of the owners or customers.
Ethical businesses operate to meet the wider needs of their stakeholders, and try to act in a way that is just and fair.
For example; ethical organisations try and meet the needs of their employees and suppliers.
Ways a business could become more ethical
Paying workers higher wages Improved working conditions Reducing pollution Buying fairtrade supplies/agreeing to pay more to suppliers Donations to the community Saving elephants Reducing packaging
Some examples of environmental considerations
Traffic congestion
Businesses that manufacture will need to move their goods to the outlet where they are to be sold; shop, warehouse, wholesaler etc.
• This causes many lorries to be on UK roads, and as a result traffic congestion
• In response to this business tries to reduce the packaging so that more products can be transported in fewer lorries
Recycling
A new scheme in the City of London is aiming to recycle five million disposable coffee cups
• More than 100 retailers and 30 organisations are offering recycling facilities
• Only 1% of the 2.5 billion paper coffee cups used in the UK each year are recycled
Sourcing
Businesses should seek to source ethical products where possible
• Ethical sourcing is the process of ensuring the products being sourced are obtained in a responsible and sustainable way, that the workers involved in making them are safe and treated fairly and that environmental and social impacts are taken into consideration during
the sourcing process
What does a business need to do to reduce their carbon emissions
Businesses will have to be more energy efficient, they can get tax breaks from the government if they have less carbon emissions
Businesses will need to look at ways to use renewable energy (wind turbines, solar panels)
Ethics meaning
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 meaning
Profit measures the difference between the values of a business’s revenue (sales) and its total costs
Fair trade products meaning
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 products are produced
Social responsibility meaning
Social responsibility is an approach to managing businesses in shich the interests of all groups in society are taken into account when making decisions
The environment meaning
The environment is the natural world in whoch we live. It is the landscape and its natural features such as the seas, rivers, forests and mountains
External costs meaning
External costs of production arise when a business’s activities results in harmful effects on other people not directly involved in production
Non-renewable meaning
Non-renewable resources are those of which only a limited amount exists such as coal and oil
Global warming meaning
Global warming is the gradual heating of Earth’s surface, oceans and atmosphere
Pressure group meaning
A preasure group is a group of people with a common interest who influence public opinion and decisions by businesses and governments
Environmental responsibility meaning
Environmental responsibility refers to taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment
