Influences on Business Flashcards
What are the ethical considerations for businesses
- treatment of workers
- treatment of suppliers
- treatment of customers
- sourcing of materials
- marketing decisions
Treatment of suppliers?
Fair trade-about:
- better prices,
- decent working conditions
- local sustainability
- fair terms of trade for farmers and workers in the developing world
What is ethical sourcing?
- The process of ensuring the products being sourced are obtained in a responsible and sustainable way, that the workers involved in making them are safe and treated fairly and that environment + social impacts are taken into consideration during the sourcing process
What does business ethics mean?
- moral principles that guide the way a business behaves
What does trade-off mean?
- finding a balance between achieving two objectives like profit and ethics
What are environmental considerations?
- sustainability
- waste disposal
- pollution
- climate change
Marketing decisions - ethics
- businesses have a legal duty to make ethical decisions about their marketing
- according to UK, government marketing and advertising must be:
- legal
- decent
- truthful
- honest
What are inferior goods?
-goods that as consumer incomes fall, the demand for them rises (goods with not great reputation)
What are normal/ branded goods?
- as incomes rise, customers buy more normal goods (better reputation)
What is the economic climate?
- the general condition of the UK economy
what does economy mean?
- the production and consumption of goods and services and the supply of money
What happens to the prices and the impact on goods and demands when an economy is in recession
- unemployment is high and costs rise
- products customers buy will change
- businesses need to adapt and supply products + services are in demand
What is child labour?
the employment of children in an industry or business, especially when illegal or considered exploitative.
What is climate change?
long-term shifts in temperatures and weather patterns
What is consumer income?
the money that a consumer earns from either work or investment
what are customers?
a person who buys goods or services from a shop or business
what is the distribution of income
a measure of how income is distributed amongst individuals and households in a society
What is economic growth?
a rise in the total amount of goods and services produced in an economy over time
What does it mean when a business is environmentally friendly?
operates in a sustainable manner, causing minimal damage to the environment and using renewable resources where possible
What is free trade?
the movement of goods and services without government restrictions
Globalisation definition
the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange
What is Gross Domestic Product (GDP)
the measure of the market value of all final goods and services produced in a period of time within a country
What is international branding
the process of creating a brand image that’s consistent and recognised in markets all over the world
What is level of unemployment?
the number of people without a job- this affects consumer income so affects consumer habits
