307 Ethical Factors

Question 1

what is an ethical business?

Answer 1

one which considers needs of all stakeholders and social responsibilities when making business decisions.

Question 2

what is an amoral business?

Answer 2

seeks to make profit at any cost, has no morals.

Question 3

strengths of a business being amoral?

Answer 3

high profits
economies of scale
decisions made quickly

Question 4

weaknesses of a business being amoral?

Answer 4

pressure groups
bad reputation
legal problems
unmotivated employees

Question 5

what is a legalistic business?

Answer 5

complies with the law as it’s written but does no more.

Question 6

strengths of being a legalistic business?

Answer 6

still maximising profits
avoid legal issues
decisions made quickly

Question 7

weaknesses of being a legalistic business?

Answer 7

unmotivated employees
reputation issues
lose customers

Question 8

what is a responsive business?

Answer 8

a business which accepts that being ethical has benefits.

Question 9

strengths of being a responsive business?

Answer 9

better reputation
no legal issues

Question 10

drawbacks of being a responsive business?

Answer 10

higher costs
decisions take longer

Question 11

what is a fully ethical business?

Answer 11

ethics are at the core of the business and they want to benefit all stakeholders.

Question 12

strengths of being an ethical business?

Answer 12

good reputation
USP
can benefit niche markets
no legal problems

Question 13

weaknesses of being an ethical business?

Answer 13

higher costs
harder to reach economies of scale
decision making takes longer

Question 14

what are the 5 types of ethical factors which must be considered?

Answer 14

environmental issues
animal welfare
treatment of workers
treatment of suppliers
treatment of customers

Question 15

what does considering environmental issues and animal welfare look like?

Answer 15

throughout production, packaging, distribution, recycling, selection of raw materials.

Question 16

what does considering treatment of workers look like?

Answer 16

complying to health and safety laws and paying minimum wage.

Question 17

what does considering treatment of suppliers look like?

Answer 17

fairtrade, fair pay and negotiation especially in developing countries.

Question 18

what does considering treatment of customers look like?

Answer 18

consumer rights act, equality act and advertising standards agency code.

Question 19

why are environmental pressure groups an important stakeholder?

Answer 19

they have huge influence over business decision making. eg greenpeace.

Question 20

what is corporate social responsibility?

Answer 20

idea that businesses have responsibility which goes beyond making profits, need to take responsibility for own impact.