Ethics and the environment

Question 1

what is the definition of ethics

Answer 1

where a business makes decisions based on what is morally right rather than what’s more profitable

Question 2

examples of ethics

Answer 2

child labor
pay low wages
pollution
buying supplies that left damage to the environment

Question 3

advantages of being ethical

Answer 3

customer loyalty
brand awareness/image
USP
attract more customers

Question 4

disadvantages of being ethical

Answer 4

harder to grow
higher costs
bad publicity if the business is found out to be unethical

Question 5

businesses impact on the environment

Answer 5

laws about the pollution increased
- high cost for the business, charge higher prices

business activity can permanently decrease the environment
- using scarce resources leaving none for the future

Question 6

pressure groups

Answer 6

an organization to influence government policy or put “pressure” on a business activity this could harm the business reputation and reduce sales

Question 7

sustainability

Answer 7

the idea that goods and services should be made of resources that are renewable and can be replaced

Question 8

How can a business be sustainable

Answer 8

• use renewable energy
• recycle waste
• develop new environmentally friendly products

Question 9

Private costs and benefits vs external costs and benefits

Answer 9

Private costs/benefits are costs and benefits that the business has to pay/gain to a certain activity eg: cost of land (the business has to pay for the land)
However.. external costs/benefits are the the costs and benefits that society has to pay/gain to a certain activity eg: waste products causing pollution (the business creates pollution and the world has to pay for it)

Question 10

Social costs/benefits

Answer 10

This is a cost/benefits that governments use in order to analyse which is better for the planet and the business (social costs = external costs/benefits + private costs/benefits) if the social benefit is greater than the social cost that activity is usually accepted,

such as getting rid of a parking space that children play on and building a library, in this case the library would be better as it can create jobs and everyone can benefit from the library especially schools and children can learn and also play