Operations: Ethical And Environmental Flashcards
What are examples of ethical operations?
Paying employees a living wage which exceeds minimum wage rates.
Not using child labour or sweat shops in the production of goods.
Ensuring high farming standards.
Avoiding testing products on animals.
Supporting initiatives e.g Fairtrade, by choosing appropriate suppliers
What are advantages of ethical operations?
Improved reputation and image.
Higher prices can often be charges for products which are viewed as ethical.
Gaining a competitive edge over rivals.
What are disadvantages of ethical operations?
Often more costly, meaning increased production costs.
Less profits will be made due to increased production costs
What are examples of environmental operations?
Reducing the amount of packaging used for their products.
Minimising the amount of waste created and disposing of it in a safe, responsible manner.
Recycling as much as possible and making products and packaging recyclable where possible.
Using renewable energy sources e.g. wind and solar energy and taking steps to reduce their energy consumption.
Reducing their carbon footprint and levels of pollution.
What are advantages of environmental operations?
Recycling more and cutting down on packaging can reduce production costs.
Winning awards for being environmentally friendly e.g. recycling can be used as a marketing tool.
Higher sales and profits as customers are attracted to companies that help the environment.
What are disadvantages of environmental operations?
Recycling of materials can be a time consuming process.
Customers might perceive the quality of products to be inferior if recycled materials or packaging is used.
Acting in an environmentally friendly way can often be more expensive, meaning increases production costs
