Influences on business Flashcards
Define ethics
doing the right thing morally
Examples of ethical treatment of workers
pay fair wage
paid vacation sick days
good working conditions
Examples of ethical treatment of suppliers
pay on time
pay fair price
Examples of ethical treatment of customers
be truthful about information regarding products
Examples of ethical sourcing of materials
fair trade products
Benefits of ethical treatment of workers
increased motivation
improve customer service
increased worker retention
Benefits of ethical treatment of suppliers
good service provided
may receive discounts
Benefits of ethical treatment of customers
customer retention
Benefits of ethical sourcing of materials
insuring good standard of living
good reputation
charge premium price
Drawbacks of being ethical
more expensive and can increase costs
Sustainable production methods
renewable energy
minimise waste
recycled materials/packaging
reduce long term impact on environment
Benefits of using sustainable production methods
improved reputation
reduce bad publicity
increase brand loyalty
Drawbacks of using sustainable production methods
time consuming
increase costs
Define unemployment
people that are looking for work but can’t find it
Define demand
how much people want a product
How might a business be affected by an increase in consumer income?
Demand for product/service increases if disposable income increases. Increased sale- increased profit. luxury brands benefit more.
How might a business be affected by an increase in unemployment?
low unemployment means more people have jobs
this will mean higher income for worker-increase demand for goods- increase sales - increase profit
Define globalisation
Countries inter connected by trading
Define multinational company
a company operating in more than one country
Benefits of globalisation to uk business
access to more customers
wider market
reduce risks
cheaper/ labour
Drawbacks of globalisation to uk business
difficult to manage/ communicate
have to comply with different countries laws- increase costs
