Ethical Factors

Question 1

What are examples of a businesses ethical factors?

Answer 1

• Paying more than the minimum legal requirements
• showing consideration for the local community and the business’ impact
• considering environmental impact and adopting standards above the legal minimum
• adopting anti-discriminatory employment policies
• engaging in the work of charity and voluntary organisations

Question 2

What are the costs of ethical factors?

Answer 2

• Better than minimum standards of pay will increase production costs

Question 3

What are the benefits of ethical factors?

Answer 3

Positive publicity leads to:

• increased sales (and profits)
• attracting and retaining employees
• encourage investment

Question 4

What are Corporate Social Responsibility’s (CSR)

Answer 4

Businesses recognise that they have responsibilities other than to their shareholders.