Ethical and environmental considerations Flashcards
Ethics
Refers to whether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right.
Profit
Measures difference between the values of a business’s revenue (sales) and its total costs. Revenue-total costs = profit
Fair trade products
Products for which customers pay higher prices and offer better trading terms, such as payments with orders. The aim is to improve the living standards of people in poorer countries where the products are made.
Social responsibility
An approach to managing businesses in which the interests of all groups in society are taken into account when making decisions.
Environment
The natural world in which we live
External costs
Costs which arise when business activities result in harmful effects on other people not directly involved in production.
Non-renewable resources
Resources which only a limited amount exists such as coal and oil.
Global warming
Gradual heating of Earth’s surface, oceans and atmosphere.
Pressure group
A group of people with a common interest who influence public opinion and decisions by businesses and governments
Environmental responsibility
Refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment.
Sustainability
Refers to methods of production which can be continued in the long term without damage to the environment
Recycling
The reuse of raw materials used in making products, often many times. Examples include the reuse of glass, paper and metals.
Environmental reporting
The publication of a business’ environmental performance to the general public.
Zero hour contracts
A type of contract where the employer doesn’t have to provide any minimum number of working hours to the employee.
