External Infuences - Ethics

Question 1

Define ethics

Answer 1

Ethics is the judgement on whether something is morally right or morally wrong

Question 2

Name 3 benefits of firms behaving ethically

Answer 2

1. Attract more employees
2. Encourages investment into businesses
3. Creates positive publicity

Question 3

Name 2 disadvantages of TRADING ethically

Answer 3

1. Costly

2. Creates a sales expectation

Question 4

What business does ethics conflict with and why

Answer 4

Business growth because it’s cheaper and quicker to produce unethically as it skips out the extra production processes/costs

Question 5

Name 2 ways in which a business can increase their ethical profile

Answer 5

1. Produce domestically as all legislation will then be followed
2. Use a % of profits to help develop the third world