ethical, legal and environmental factors

Question 1

Ethical Factors and Considerations

What is an ethical business

Answer 1

It is one that considers all the needs of its stakeholders when making business decisions , when they set out objectives they take into consideration its social repsonibilites.

Question 2

Ethical Factors and consideration

Other ethical considerations

Answer 2

• Suppliers: They should be treated fairly this means sticking to the agreements that have been made and not forcing renogotiations upon suppliers
• Customers: The customers want a product or service at a good price business which fail to do this act unethically fail to fulfil moral commitment to customers

Question 3

Ethical Factors and consideration

Enviromental ethics

Answer 3

These are pressure groups that have been increasingly effective in influencing business decison makers. Orginasations such as greenpeace and Freinds of the earth have been effective in changing the course of actions of numerous enterprises

Question 4

CSR

What is corporate social resposibilty

Answer 4

This is the concept that businesses have a repsonsibilty that goes beyond making profits for their shareholders. Businesses need to monitor and take responsibility for the impact they have both on social welfare and the environment

Question 5

Legal Factors

What does Business legislation Cover

Answer 5

• Company Law
• Employment and Anti-Discrimination- Holdiays, Age, Race and sex
• Consumer Protection
• Competition policy- Stopping Monopolistic competiton
• Data Protection
• Intellectual property- Trademark, Patent, Copyright
• Minimum wage
• Health and Safety

Question 6

Enviromental Factors

The role of the Goverment

Answer 6

They have signed up to a range of EU limits and controls to restrict the negative impact of business activity. These come in the form of taxes such as:
* Climate change levy
* The landfill Tax

Question 7

Enviromental Factors

Impact of Enviromental Taxes

Answer 7

This has meant that businesses which are meduim sized users of energy face costs that 15%-25% higher as a result of these policies.
The Enviromental Agency monitors pollution and has a signifcant role in helping to reduce the emmisons into the air

Question 8

Enviromental Factors

How do pressure groups fight their case

Answer 8

• Lobbying: This is one of the most effective ways for pressure groups to achieve their set objectives. This invloves meeting with and discussing concerns with decsions makers such as MP’s
• Direct Action: This is becoming more popular as businesses are being forced to make policy revsersals as a result of pressure group action
• To gain as much publicity as possibe: The gaining of positive media attention. This raises public awareness of the issue
• Legal Action: They also fight their cases through courts qeustioning legality of proposed actions

Question 9

Enviromental Awareness

Benefits of enviromental awareness

Answer 9

• Improved business and brand reputation
• Recrutiment of employees comtting themselves to compnay objectives
• Greater customer loyalty from ethical consumers