Chapter 2: Ethics

Question 1

Environmental Responsibility

Answer 1

Aims to meet the needs of corporate stakeholder while seeking to protect and preserve resources and environment for the future

Question 2

Avoid Environmental Harm

Answer 2

• Prevent damage to the environment with zero waste, sustainable living and reduce carbon footprint

Question 3

Reduce Illegal Dumping

Answer 3

• That is the unlawful deposit of domestic, commercial and industrial waste

Question 4

Practice Sustainability

Answer 4

• Aims to meet the needs of corporate stakeholder while seeking to protect and preserve resources and environment for future use

Question 5

Benefits of Sustainability:

Reduce Cost

Answer 5

• With efficient use of resources, reusing supplies and recycling waste
• Overall cost can be reduced in the long run

Question 6

Benefits of Sustainability:

Staff loyalty

Answer 6

• Being green creates healthier environment
• Staff feels like they are contributing to the environment
• Improve morale, productivity and reduce absenteeism

Question 7

Benefits of Sustainability:

Good Public Image

Answer 7

• Differentiated from its competitors and promote business into a positive light
• Increase sales revenue as people choose to invest in businesses that are committed to the environment

Question 8

Benefits of Sustainability:

Carbon Trading

Answer 8

• Federal government had placed cap on total amount of greenhouse gases released in Australia
• Businesses with leftover cap credit can sell to businesses that has exceeded its cap limit, hence increases profit margin.

Question 9

Outsourcing
and their
Ethical Concerns

Answer 9

• The practice of hiring a 3rd party to perform business functions

Ethical Concerns

• No substandard wages
• Act as if adequate compliance are ‘in place’
• Do not take adequate measures to protect customer’s data

Question 10

Offshore Labour
and their
Ethical Concerns

Answer 10

• The shift of location of service and production abroad.

Ethical Concerns

• Poor working conditions
• Low wages
• Basically child labour and Sweatshops -> working in long hours, poor working conditions and low wages

Question 11

Ethics

Answer 11

• The inner guiding moral principles, values and beliefs used to analyse and interpret a situation, then act on what one believes to be right

Question 12

Corporate Social Responsibility

Answer 12

• A voluntary commitment of businesses to include in their business practice economic, social and environmental considerations that is beyond those required by legislation

Question 13

Benefits of CSR:

Improve financial performance

Answer 13

• Improve employee satisfaction with the business, therefore improving productivity
• while helping companies to cater to customers that are responsive to sustainable practices
• Hence increasing sales and generating profit

Question 14

Benefits of CSR:

Improved public image

Answer 14

• Materials used in products are environmentally safe and processes are sustainable will go a long way in the eyes of the public

Question 15

Benefits of CSR:

Increase sales and customer loyalty

Answer 15

• Build trust between customer and company

- Build working relationship with existing and new clients, therefore increasing sales

Question 16

Benefits of CSR:

Better staff retention

Answer 16

• Attracts employees that are looking for businesses with sustainable practices, community mindedness and sound ethics
• Makes them feel like they are contributing to the society and environment.

Question 17

Benefits of CSR:

Reduce cost

Answer 17

• By using less energy and resources, therefore reducing cost