External Influences-STEEPLE-ethical

Question 1

Define ethics

Answer 1

Concerned with the judgement about whether something is morally right or wrong

Question 2

What are some things that businesses do that is often debated to be unethical?

Answer 2

Use of child labour to reduce costs
Zero-hour contracts
New drugs developed but too expensive for the majority

Question 3

Why might western retailers often outsource production to factories abroad, how can it be made ethical?

Answer 3

Availability of cheap labour

Use unannounced inspections to observe conditions and improve them/increase pay…

Question 4

What does tax avoidance include and why is it viewed as unethical?

Answer 4

Businesses using the legal loopholes to avoid payment of taxes
Puts smaller businesses at risk of collapsing as they gain more money than them due to lack of tax payments

Question 5

What are the 4 benefits of ethical behaviour?

Answer 5

Attracts new customers to the business
Attracts new and better quality employees
Encourages employees to stay with a business
Encourages investment

Question 6

What are the 4 disadvantages of ethical behaviour?

Answer 6

Higher costs
Danger of building up expectations
Less competitive on price
Could lead to less output

Question 7

Why are some businesses more affected than others by ethical issues?

Answer 7

Larger businesses-well known-more attention from media and customers
Businesses outsourcing production-safety and low wages
Businesses with lower price points-seek to lower the cost of production