Ethical considerations Flashcards
What are Ethics?
The moral principles of right and wrong.
What does it mean if a firm has ethical policies?
They’ve developed ways of working that stakeholders think are fair and honest.
Why do some firms set up factories in other countries?
In some countries, it is not illegal for people to work very long hours for very low pay. So firms set up here to reduce labour costs.
What can businesses do to be more ethical for any factories they have overseas?
Write codes of conduct. This helps ensure that the workers are treated ethically.
Why is it better for firms to buy raw materials from Fair-Trade sources?
People in developing countries who the produce the goods are paid a fair price so they can earn a decent wage.
Other than treating people well, what is another ethical issue for a business?
When promoting products, firms can’t be dishonest or slate other brands in adverts. Some products can’t be advertised at all - cigarettes.
How do firms carry out product development in an ethical way?
Using non-toxic materials, paying close attention to safety and not using animal testing.
