7.6c - The Social Environment (Ethics)

Question 1

Ethics definition

Answer 1

A set of moral values held by an individual or group

Question 2

What are the internal pressures to be ethical?

Answer 2

• Business leaders
• Shareholders
• Employees

Question 3

What are the external pressures to be ethical?

Answer 3

• Government
• Competitive pressure
• Pressure groups

Question 4

What are the possible ethical stances a business can take?

Answer 4

• Shareholders are only responsibility
• Good relationships with all stakeholders
• Interests and obligations including in mission statement
• An ideological approach over financial considerations

Question 5

What is an ethical decision based on?

Answer 5

• Individuals
• Culture
• Society’s views
• Competitors

Question 6

Advantages of an ethical position:

Answer 6

• Competitive advantages

- Better qualified and more motivated staff with higher retention

Question 7

Disadvantages of an ethical position:

Answer 7

• May reduce profit
• Ethics are subjective
• Delegation to subordinates gives them ability to make decisions which may differ from the company’s ethical position