paper 2 6.1 ethical and environmental considerations Flashcards
what are ethical and environmental considerations in business
businesses consideration og their corporate social responsibility
what is ethics
what is the right or wrong thing to do
give an example where ethics have changed over time
trading in slaves 200 years ago was seen as acceptable
in what ways can employers act unethically despite being illegal in uk (5)
using child labour
paying to lower a wage
expecting workers to work to longer hours
not providing safe working conditions
descriminating based on gender, ethnicity or disability
if a large company like tesco does not pay its bill what is the effect on smaller businesses
may go into liquidation
what action ca small businesses take why
non as they may endanger the deals they have resulting in loss of profit and go out of business
what tempts business to cut corners where ethical practices are concerned
attempt to keep costs low and compete
why has globalisation not helped companies to work ethically
businesses find it difficult to know what is going on in factories that supply them that are else where in the world.
give an example of a company who used unethical marketing
Marketing is price product promotion and place VW claimed its cars caused less pollution - claimed for several years all over the world and sold millions of cars
how was vw guilty of false marketing
made false claims
what is ASA
advertising standards agency
what is ASA job
in uk applies the advertising code
what does the advertising code state (5)
that all adverts should be legal, decent, honest and truthful. It explains what unethical means
what is another potentially unethical practice
charging a higher price than is fair.
which industries have been accused of not charging fair prices
energy and petrol companies - when price of gas falls they do not pass it onto customers as quickly as they should
identify another unethical practice
testing cosmetics on animals
what legislation ensures businesses who behave ethically
laws such as trade description act and sale of goods act
is animal testing against the law
no though some believe it should be and then businesses can be prosecuted
name an organisation important for encouraging ethical business practices
fairtrade
what is the aim of fair trade
to bring justice and sustainable development to trade so that everyone through their work can maintain a decent dignified livlihood and develop their full potential
how does fair trade achieve its aim
help those who live and work in developing countries
how do fair trade guarantee to customers that the retailer has paid a fair price to the farmers who produced the goods so they have money to pay for education and other social needs
use fairtrade logo
why do some critise fair trade idea (3)
in India and china many managed to increase earnings by producing the right goods
others say the prices producers are paid is not much more than that they would get usually
others say producers in third world countries may become dependent on fair trade
what problems can being ethical bring to a company (4)
higher costs
lost sales
reduced profits
poor financial figures eg delay payments to smaller businesses
