Ethical Factors

Question 1

Ethics

Answer 1

Concerned with the judgement about whether something is morally right or wrong

Question 2

Benefits of ethical behaviour

Answer 2

Attract new customers to the business
Encourages investment
Creates positive publicity
Results in an increased sale and profits

Question 3

Disadvantages of ethical behaviour

Answer 3

Increase costs- price increases, meaning they may be less competitive in terms if price
Lower output
Have to create an expectation, which may be high and not met- customers may feel mislead