Operations - Ethics

Question 1

Give 2 disadvantages of Fairtrade on a business

Answer 1

• Fairtrade marks can be lost → can ruin a business’s reputation
• Limited choice of suppliers

Question 2

Define Fairtrade

Answer 2

When suppliers of raw materials recive a guaranteed and fair price for their goods. Employees in the supply chains are treated fairly too.

Question 3

Give 2 advantages of Fairtrade on a business

Answer 3

• Businesses can be awarded the Fairtrade mark → appeals to customers
• Positive impact on producers of raw materials

Question 4

List 4 ways a business can be ethical

Answer 4

1. Not producing their products in sweatshops
2. Treating employees well
3. Not using child labour to produce products
4. Paying employees the minimum wage

Question 5

Give 3 advantages of operating as an ethical business

Answer 5

• Awards can be recieved - can be used in promotion to attract customers that value ethics
• Can attract and motivate staff that value the company’s morals
• Increases awareness of the brand

Question 6

Give 3 disadvantages of operating as an ethical business

Answer 6

• Higher costs
• Standards have to be maintained → Can put pressure on the business and lead to bad press
• Business is not able to just choose the cheapest supplier → decision-making is complex