Ethics, the environment and business (2) Flashcards
What are ETHICS?
moral guidelines/ principles which govern good behaviour of individuals and businesses
What is a TRADE OFF?
balancing the drive for profit with the businesses ethicial principles
Why is being ethical good for businesses?
> avoids scandals and gives you a good name
>increase number of customers
Why do some businesses chose not to behave ethically?
> price to customers will increase
want cheapest materials to keep costs down and high profit margins
may be corrupted by money or personal gain
might not be enough extra sales to be ethical
What is a PRESSURE GROUP?
a group of people who join together to try and influence government policy or business policy for a particular cause
Examples of ethical behaviour by businesses
> treating workers and suppliers fairly
being honest with customers
ethical sourcing of materials
investing in the community
meeting government requirements and legislation
caring for the environment and operating sustainably
Impacts of pressure groups on PRICE
> increase the price of the product/ service is ethical
pay staff fair wages
pay suppliers fair prices where there is limited competition for suppliers
Impacts of pressure groups on PRODUCTS
> change key ingredients to use ethically resources raw materials
remove a product from the range because its not considered socially acceptable
create products that can be reused and not for single use only
ensure all products are safe
Impacts of pressure groups on PLACE
> source local products to reduce carbon footprint
>dont open stores in certain countries if they arent ethical
Impacts of pressure groups on PROMOTION
> include accurate/ honest information on all packaging
obey advertising legislation
promote there selves if they do something ethical
How environmental considerations influence business activity
>pollution >use of non renewable resources >waste disposal >reducing the use of packaging >carbon footprint
Advantages of a business thinking about the environment
+competitive advantage
+build brand loyalty
+improve brand reputation among key stakeholders
+avoids negative media
