307 Ethical Factors Flashcards
what is an ethical business?
one which considers needs of all stakeholders and social responsibilities when making business decisions.
what is an amoral business?
seeks to make profit at any cost, has no morals.
strengths of a business being amoral?
high profits
economies of scale
decisions made quickly
weaknesses of a business being amoral?
pressure groups
bad reputation
legal problems
unmotivated employees
what is a legalistic business?
complies with the law as it’s written but does no more.
strengths of being a legalistic business?
still maximising profits
avoid legal issues
decisions made quickly
weaknesses of being a legalistic business?
unmotivated employees
reputation issues
lose customers
what is a responsive business?
a business which accepts that being ethical has benefits.
strengths of being a responsive business?
better reputation
no legal issues
drawbacks of being a responsive business?
higher costs
decisions take longer
what is a fully ethical business?
ethics are at the core of the business and they want to benefit all stakeholders.
strengths of being an ethical business?
good reputation
USP
can benefit niche markets
no legal problems
weaknesses of being an ethical business?
higher costs
harder to reach economies of scale
decision making takes longer
what are the 5 types of ethical factors which must be considered?
environmental issues
animal welfare
treatment of workers
treatment of suppliers
treatment of customers
what does considering environmental issues and animal welfare look like?
throughout production, packaging, distribution, recycling, selection of raw materials.
what does considering treatment of workers look like?
complying to health and safety laws and paying minimum wage.
what does considering treatment of suppliers look like?
fairtrade, fair pay and negotiation especially in developing countries.
what does considering treatment of customers look like?
consumer rights act, equality act and advertising standards agency code.
why are environmental pressure groups an important stakeholder?
they have huge influence over business decision making. eg greenpeace.
what is corporate social responsibility?
idea that businesses have responsibility which goes beyond making profits, need to take responsibility for own impact.
