Ethical factors Flashcards
1
Q
What are ethical factors ?
A
Moral principles that guide the way a business behaves
2
Q
What 5 ethical issues do businesses face ?
A
- Environmental issues
- Animal rights
- Treatment of workers
- Suppliers
- Customers
3
Q
What is corporate social responsibility ?
A
Where a business accepts responsibility for its actions and social, environmental and economic impact on range of stakeholders
4
Q
What is profitability ?
A
The ability of a business to generate profits from its activities and is achieved by reductions in costs and increases in profit margins
5
Q
What are 4 advantages of being ethical ?
A
- Higher revenues
- Improved brand image
- Business awareness and recognition
- Higher staff motivation
5
Q
What are 3 stakeholders that evaluate ethical stance ?
A
- Staff = motivated
- Customers = higher sales
- Shareholders = depend on shares
5
Q
What are 3 disadvantages of being ethical ?
A
- Higher costs and overheads
- Lower profit margins
- Chances for growth reduced
