Ethics

Question 1

What are ethics?

Answer 1

Moral rules or principles of behaviour that should make businesses deal honestly and fairly with each other and stakeholders

Question 2

What are environmental considerations within businesses?

Answer 2

emission and waste disposal

Question 3

What are supply chain considerations?

Answer 3

exploitation of labour and child labour

Question 4

What are some marketing considerations?

Answer 4

misleading labelling and inappropriate promotional activities

Question 5

What are some negatives to working ethically?

Answer 5

-it can raise costs
-it can reduce revenues

Question 6

What are some benefits to working ethically?

Answer 6

-marketing benefits, attracts customers but still no guarantee of success
-act as an equivalent of an insurance policy because it will stop them facing penalties for breaking the law

Question 7

Why do large companies need to take ethics seriously?

Answer 7

customers and society have become less tolerant of businesses who behave unethically. Some companies that adopted an ethical stance have gained more customers

Question 8

Cons of being ethical

Answer 8

• lower profits
• increase prices

Question 9

Evaluation of ethics

Answer 9

-adapt marketing if you use ethical business practices because increase customer awareness of being ethical, increasing sales, increase revenue (gain comp advantage)

-ethical finance, get ethical investors (some investors only invest in ethical companies) therefore allowing to expand business

-if have ethical HR, motivation may be increased as they getting paid more with better conditions