chapter 28

Question 1

what is social responsibility?

Answer 1

social responsibility is when a business makes a decision that benefits stakeholders, rather than only the shareholders

Question 2

what are some business activities that impact the environment?

Answer 2

Air pollution, land, pollution, increase in carbon emissions 

Question 3

what are benefits and costs? 

Answer 3

all business decisions lead to benefits and costs. There are private and external benefits and costs. 

Question 4

what are private costs and benefits?

Answer 4

these are costs that the business pays for and the benefits the business gains 

Question 5

what are external costs and benefits?

Answer 5

The costs that the community, or the society has to pay, and what the society gains 

Question 6

what are some external benefits? 

Answer 6

employment, better infrastructure, better services due to more companies moving in, and better living standards 

Question 7

what is private costs plus external costs 

Answer 7

social cost

Question 8

what is private benefits plus external benefits 

Answer 8

social benefits

Question 9

what is sustainable development? 

Answer 9

this is development that does not compromise the living standards of future generations 

Question 10

what are pressure groups?

Answer 10

pressure groups are groups of people who work together to force, governments or businesses to adopt certain policies, and this can lead to consumer boycott in extreme cases

Question 11

what is consumer boycott?

Answer 11

this is when consumers decide not to purchase the products of a certain business, as they have not acted in a socially responsible way.

Question 12

what are the three types of pressure?

Answer 12

pressure groups, laws passed by government, and fines

Question 13

why do pressure groups work?

Answer 13

there can be a lot of public support, which can lead to a bad brand image, and reputation, leading to a loss in sales

Question 14

why are laws passed by the government effective?

Answer 14

this makes it more expensive to manufacture certain products at the business may not be preferred to produce so this discourages them from producing them

Question 15

how do fines work to pressure businesses?

Answer 15

This increases business costs as they are paying more fines, so this prevents them from increasing their business costs

Question 16

how can permits be used?

Answer 16

governments sell permits to companies to allow it to pollute the environment up to a certain level and if the company has polluted less than the limit that the government has allowed, they’re allowed to sell their permit to a company who pollutes more. this can encourage companies to reduce pollution, keeping it to a minimum as they can gain cash in return of selling the permit

Question 17

what are ethics?

Answer 17

ethics are the moral principles that an individual or business may hold
different companies have different ethical standards as everyone has different moral codes

Question 18

what are some unethical decisions of businesses?

Answer 18

Child labor, giving greater bonuses to managers and paying workers at a minimum wage, purchasing raw material or products that damage the environment and offering bribes in return for information 

Question 19

what are the advantages of ethical decisions?

Answer 19

these efforts are highly appreciated by consumers, which can encourage consumers to purchase from a specific company which creates good publicity, and as well as this, there is less of a risk of lawsuits, and it can be easier for the business to find workers. 

Question 20

what are the disadvantages of ethical decisions?

Answer 20

this can increase business cost to produce a product. Thus the business needs to increase their selling prize to ensure they get a profit which can discourage consumers from buying their products thus reducing sales, and as well as this some families depend on their children for money, which is why child labor is important for them