3.4.4 Business Ethics (1/2)

Question 1

Business ethics

Answer 1

The moral principles that guide the behaviours of individuals and businesses

Question 2

Morals

Answer 2

Standards of behaviour, principles of right and wrong

Question 3

All businesses have to make what

Answer 3

Ethical decisions

Question 4

Ethical decisions

Answer 4

Choosing the alternative which provides more good and less harm to the organisation

Question 5

When making a decision Businesses must consider what

Answer 5

The impact they have on all stakeholders

Question 6

All businesses have to make ethical decisions as part of their what

Answer 6

As part of their corporate strategy

Question 7

What are some ethical issues surrounding businesses?

7

Answer 7

1) The environment ( are their decisions sustainable for the environment and not damaging it ? - Should they operate in developing countries to avoid environmental requirements)
2) Corruption ( Are businesses operating in a fair and honest way - is there bribery, tax avoidance, fraud, money laundering involved)
3) Workers ( Need to ensure employees have good working conditions, fair pay and care care for employees health and well-being - Are businesses exploiting workers in developing countries to lower the production of costs?)

4) Technology - Debates around the development of new technologies e.g genetically modified crops, biological experiments ( cloning)
, electronic cigarettes

5) Animal rights

Question 8

What are some ethical business practises that a business might adopt

7)

Answer 8

1) Treating workers and suppliers fairly
2) being honest with customers
3) ethical sourcing of materials
4) caring for the community
5) meeting government legislations
6) caring for the environment
7) only trading with ethical corporations

Question 9

What is an important issue in the area of business ethics

Answer 9

Pay & Rewards

Question 10

Why is pay and rewards an issue in some businesses

Answer 10

Because the principles behind who gets paid what are not always fair.

• In some businesses, senior leaders are paid extremely high bonuses, whereas some workers are paid the national minimum wage.
• There are also many industries where the pay gap between men and women is significant

Question 11

Remuneration

reward

Answer 11

The reward for work in the form of pay, salary or wages, including allowances and benefits

Question 12

3 reason why businesses use pay and rewards

Answer 12

1) Too attract employees with the right skills, experience + knowledge e.g footballers
2) -To reward + motivate existing staff
3) - Maximise productivity levels

Question 13

National minimum wage

Answer 13

Minimum pay per hour all workers are entitled to by law

Question 14

Living wage

Answer 14

An hourly rate of pay that is based on the basic living costs. It provides adequate coverage for basic necessities.

Question 15

Ethical businesses practices are not always aligned with what?

Unless what?

Answer 15

Proft maximisation

-unless a business has a long term perspective on success

Question 16

Acting ethically can be what

Answer 16

Can be expensive and it’s not the fastest way (but often the most sustainable) to make a profit

Question 17

Pressure groups

Answer 17

Organisations that try to make businesses change their behaviour or operations.

-focus on issues e.g animal-rights, workers, environment etc

can cause negative publicity for the businesses that don’t behave ethically, which can ultimately damage a businesses reputation