Ethical And Environmental Considerations

Question 1

Ethics

Answer 1

Wether a business decision is right or wrong. An ethical decision is made on the basis of what is judged to be morally right.

Question 2

Ethical considerations

Answer 2

Are suppliers paid on time? Are employees treated fairly? Payed well? Child labour? Are comsumers aware of materials used for their products? Is advertising true and fair? Are products harmful?

Question 3

Ethical marketing

Answer 3

Behaving responsibly, fairly and honestly in all marketing activities by:
Designing products to reduce environmental damage,
Not targeting children with products with harmful side affects,
Not using dominant position in market to set unacceptably high prices.

Question 4

Ethical business operations

Answer 4

Ethically converting inputs (raw goods and labour) into finished products. Sometimes called production function. This can be:
Not buying resources from suppliers that are involved in unethical practices,
Manufacturing products that can be recycled

Question 5

Ethical human resources

Answer 5

Choosing to manage employees ethically by:
Not using zero-hour contracts,
Offering employees high quality training,
Paying wages sufficient to allow employees a decent standard of living.

Question 6

Zero hour contracts

Answer 6

When employees aren’t told how many hours they work in a week but are called to work whenever the manager sees fit.

Question 7

Ethical finance

Answer 7

May involve investing money on things which won’t directly increase profits, but help the local community or pay employees for charitable work during normal hours.

Question 8

Fair trade products

Answer 8

Have higher prices with the aim of improving living standards of those who live in poorer countries where products are produced.

Question 9

Social responsibility

Answer 9

An approach to managing businesses in which the interests of all groups in society taken into account when making business decisions.

Question 10

The environment

Answer 10

The natural world and it’s landscape

Question 11

External costs

Answer 11

May arise when a business’ production affects people who aren’t involved in production

Question 12

Non-renewable resources

Answer 12

Are those of only limited amounts like coal or oil

Question 13

Global warming

Answer 13

The gradual heating of the earth’s surface, oceans and atmosphere.

Question 14

Pressure group

Answer 14

A group of people with a common interest who influence public opinion and decisions by businesses and governments

Question 15

Environmental responsibility

Answer 15

The taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment.

Question 16

Sustainability

Answer 16

Methods of production which can be continued long term without damage to the environment

Question 17

Recycling

Answer 17

The reuse of raw materials used in making products, often for many times.

Question 18

Environmental reporting

Answer 18

The publication of a business’s environmental performance to the general public

Question 19

Advantages of acting environmentally friendly and ethically

Answer 19

Positive publicity, could charge higher prices if customers are willing to pay more, can be seen as a unique selling point.

Question 20

Disadvantages of acting environmentally responsible and ethically

Answer 20

Can increase costs, it can be cheaper paying minimum wage and using non-recycled materials, a business which claims to act responibly has to do so or risk bad image.