Ethical Considerations

Question 1

What are ethics

Answer 1

A companies moral compass in deciding what’s right and wrong

Question 2

What are some ethical issues that affect a business

Answer 2

Effect on environment
Child labour
Legislation
Animal testing
Zero hour contracts
Discrimination
Fair pay vs minimum wage
Tax dodging
Swearshops

Question 3

What are some disadvantages of acting ethically

Answer 3

Higher costs - wages
Less competitive on price
May lead to less output
Lower shareholder returns - discourage people investing
Difficult finding ethical suppliers Increased costs

Question 4

What are the advantages of Unethical sweatshops and factories

Answer 4

The factories provide people with jobs
The products stay cheap for consumer
The government gains money from taxes - improve social services

Question 5

What is the general rule for a business being more ethical

Answer 5

It’s more expensive

Question 6

What are the disadvantages of unethical factories and sweatshops

Answer 6

The factories are polluting the local environment
Local businesses can’t compete
They don’t pay workers a fair wage

Question 7

What are the 5 main objectives

Answer 7

Profit
Increase market share
Growth
Provide service
Survival

Question 8

How can a business act ethically in these areas:

Employer
Seller
Environment
Well being of others
As an outsourcer

Answer 8

Paying staff a fair wage
Selling products that are appropriatelly advertised
Using sustainable materials
Charity donations
Safe working conditions

Question 9

What is corporate social responsibility

Answer 9

A wider main objective that includes other stakeholders and society in general

A recognition of the fact businesses are no longer judged solely on its ability to provide a good or service

For example, McDonald’s signing pledges to promote healthy food to children

Question 10

How does environmental and ethical issues change a business operates

Answer 10

Businesses now will be more environmentally friendly which will serve as a form of promotion

Question 11

How does charity and fundraising change how a business operates

Answer 11

Most large businesses are now involved in charitable and community work

for example, a business will gain goodwill and publicity from sponsoring local sports team or equipment for schools