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
what benefits can been ethical bring (4)
workers like it - trust their employer -improve motivaltion and increase output, easier to recruit
customers like it - good reputation increase sales , may help to gain contracts
investors like it - confident the business will make them look good
evidence that businesses with ethical producers are more likely to survive and be profitable
how do households and businesses make use of the environment (3)
provides natural resources
we get pleasure from it
we dump waste there
what are the 4 environmental considerations
sustainability waste disposal pollution and climate change
what is sustainable production
making goods without depleting natural resources -
how can businesses be sustainable (5)
use renewable resources
recycle resources
reduce waste
use energy sparingly
examples of sustainable production (8)
solar and wind energy
sustainable construction - build using recycled materials
rotating crops- avoids using chemicals in soil
save water
switching off lights
dispose of waste properly or recycle
transport use fuel efficient vehicles- encourage staff to cycle avoid travelling to face to face meetings buy locally
avoid printing
how are companies dealing with problem with increase in waste
use waste as a raw material
name 3 types of pollution
air
noise
and pollution of rivers and seas
what is climate change
long term change in weather conditions
what are effects of climate change
sea levels rising
rain increasing
snow decreasing
global warming
what is the cause of global warming
natural events - volcanic eruptions
human - burning fossil fuels and deforestation
how is climate change having a negative impact on business
a report in 2016 predicted
businesses would have issues with loss of energy and ict connection making and receiving deliveries
farming would be effected by soil degradation and lead to higher food prices
what business opportunities will global warming create
demand for insurance against risks of climate will increase
care homes will need to invest in AC
improve and build flood defences
what are the benefits to a business to be environmentally friendly (5)
increased sales - customers becoming more aware of negative effect on environment
reduced costs - using energy saving devices, reducing amount of packaging they use , buy locally,
reduce tax bills - governments impose taxes to pay for environmental damages they cause so reduce problems caused will reduce tax paid.
getting subsidies - government offer money to encourage businesses to introduce environmentally friendly products
reduce resourse scarcity - eventually resources will run out so businesses should reduce the amount of resources they use
what are the problems of being economically friendly
costs increase
why do costs increase when being economically friendly (3)
raw materials produced environmentally friendly ways cost more
capital costs - need to buy equipment to introduce environmentally friendly production
production methods maybe more expensive
