Topic 2.2 Ethical And Environmental Considerations. Flashcards
Define “ethics”
Ethics refer to whether a business decision is though to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right.
Define “profit”
Profit measures the difference between the value of a business’s revenue (sales) and its total costs.
Define “fair trade products”
Those for which customees pay higher prices and offee better trading terms such as payments with orders. The aim is to improve the living standards of people in poorer countries where the products are produced.
Define “social responsibility”
An approach to managing businesses in which the interests of all groups in society are taken into account when making decisions.
Define the “environment”
The natural world in which we live. It is the landscape and its natural features such as the seas, rivers forests and mountains.
Define “external costs”
External costs of production arise when a business’s activites result in harmful effects on other people not directlt involved in production.
Define “non renewable sources”
Those of which only a limited amount exists such as coal and oil.
Define “global warming”
The gradual heating of the earths surface, oceans and atmosphere.
Definw a “pressure group”
A group of people with common interest who influence public opinion and decisions by businesses and governments.
Define “environmental responsibility”
Refers to the taking of decisions by businesses, consumers, governents and toner groups with the intention of protecting the environment.
Define “sustainability”
Sustainability refere to methods of production which can be continued in the long term without damage to the environment.
Define “recycling”
The reuse of raw materials used in making products, often multiple times. examples for this is the reuse of glass, paper and metals.
Define “environmental reporting”
The publication of business’s environmental performance to the general public.
