Ethical Operations

Question 1

Ethical trading initiative

Answer 1

Promote respect for workers rights
Aim for a world where all workers are free from discrimination
Companies adopt a code of labour practice

Question 2

Ethical trading initiative advantages?

Answer 2

Demand begin ethically motivated customers is growing so increased sales
Improved business reputation therefore brand awareness
Easier access to sources of finance
Improved employee motivation and recruitment

Question 3

Ethical trading initiative disadvantages?

Answer 3

High cost of sourcing ethical labour and materials
Higher overheads like training staff on ethical policy
Ethical standards vary between countries so mncs may struggle

Question 4

Fair trade advantages?

Answer 4

Growing market and more consumers want ethical products
Increase customer loyalty
Good public image
Recruitment of staff is easier

Question 5

Fair trade disadvantages?

Answer 5

Consumers have to pay higher prices for fair trade products
Promotes small scale production which defers large businesses
Concern over food miles and environmental impact

Question 6

Envroronmental factors and solutions to ethics?

Answer 6

Water/air pullition 
-avoid use of unnecessary pollutants 
Traffic congestion 
-use more electrical vehicles
Food miles
-use more local suppliers
Excessive waste/packaging being dumped 
-reduce packaging 
Energy use
-use renewable energy

Question 7

Benefits of being environmentally friendly?

Answer 7

Reducing energy costs reduces running costs
Reducing raw materials cuts production and waste disposal costs
Income can be generated from recycling
Preventing environmental damage is cheaper than fixing it
Investors more willing to invest
Reputation is enhanced and customer loyalty is improved