O Ethical and Environmental Flashcards
1
Q
Benefits of ethical operations
A
- The company can gain a competitive edge and USP over competitors which do not act ethically
- Increases sales and customer loyalty and they will be attracted to supporting an ethical business
- Higher prices can be charged as customers will be willing to pay more for an ethical product
2
Q
Costs of ethical operations
A
-Costs such as manufacturing and labour costs will be higher than if they were to operate unethically, for example to use child labour in a foreign country
3
Q
Benefits of environmental responsibilty
A
- Can reduce costs if things are being reused or recycled to create new products
- Can be a USP and gives the business a competitive edge
- Reduces costs of landfills
- Improves the brand’s image as they are being seen to have good CSR
4
Q
Costs of environmental responsibility
A
- Can be quite costly to set up recycling facilities
- Product may be seen as inferior if recycled
- Can be time consuming
5
Q
Ways a business can be more environmentally friendly
A
- Recycling and reusing products reduces the use of landfills
- Reduce transport and source local suppliers to reduce carbon footprint and pollution
- Use renewable energy such as solar panels and wind turbines to reduce carbon energy consumption
- Reduce energy consumption by setting automatic lights
6
Q
Describe fairtrade
A
The fairtrade movement is controlled by the fairtrade foundation and ensures that producers of fairtrade products receive a fair price for their product, regardless of the price on the world market dictated by unfair trade terms.
7
Q
Benefits of fairtrade activities
A
- Improves the company’s reputation as they are seen to be ethical
- Fairtrade mark makes products more attractive to customers
- Quality of life for the workers should improve
8
Q
Costs of fairtrade activities
A
- The higher price could deter some customers
- Limits the choice of suppliers for a business.
