ethical and environmental considerations Flashcards
examples of ethical issues for businesses
using child labour
paying workers low wages
expecting workers to work very long hours
not providing workers with safe working conditions
discriminating against workers on gender, ethnicity or disability grounds
other ethical issues for business
the treatment of workers
the treatment of suppliers
the treatment of customers
marketing considerations
sourcing of materials- fairtrade
ethical considerations and the impact on business
higher costs
lost sales
reduced profits
poor financial figures
how being ethical benefits the business
workers lwill trust their employer
customers like it because: being ethical helps a business gain a good reputation which leads to an increase in sales
investors feel confident that the business will make them look good
being ethical helps a business survive and to be profitable
How do households and businesses make use of the environment
it provides us with natural resources
it is something from which we get pleasure
it is somewhere to dump waste produced by households and businesses
examples of sustainability
solar and wind energy
sustainable construction
rotating crops
saving water
switching lights off
disposing of waste properly
transport
processing waste into products
avoid printing
environmental considerations
sustainability
waste disposal
pollution
climate change
deforestation
how much a business will be affected by a change in income
the bigger the change in income, the bigger the effect on the business
the type of product the business sells. more expensive products will experience a fall in sales as people will switch to cheaper alternatives
How businesses respond to a change in income
How much a business is affected by a change in employment
the larger the increase in employment, the larger the likely rise in waf=gews and business costs
is there is a rise in demand for skilled workers this may be more difficult
responding to changes in the economic climate
production
- reduce costs of production by reducing wastage. production could be outsourced to make it cheaper
by introducing new technology which can reduce labour and speed up production
Human resources
-motivating workers through schemes such as Bonuses so that they work harder
Finance
-if the business has loans it could look at changing these inorder to get a lower interest
marketing
- the product could be changed
- promotion could be increased
- different pricing stratergies
- the business might change place
the concept of globalisation
buying and selling goods in different countries
the movement of workers from country to country
the movement of capital from country to country
how has globalisation been encouraged
transport improvements
telecommunications and the internet
free trade arrangements
impact of globalisation on business
the growth of multinational companies
influence on business location
international branding
how businesses compete nationally
benefits of UK businesses locating in other countries
lower labour costs
lower technology costs
lower property costs
take advantage of expertise
skilled workers
demand
disadvantages of a UK business locating in another country
quality control
communications
transport
loss of sales
access to skilled workers
costs
the environment
