3.2.2- ethical and environmental considerations

Question 1

ethics

Answer 1

ethics refers to whether a business decision is thought to be morally right or wrong, an ethical decision is made on the basis of what is judged to be morally right

Question 2

profit

Answer 2

profit measures the difference between the value if a business’ revenue (sales) and its total costs

Question 3

fair trade products

Answer 3

fair trade products are those for which customers pay higher prices and offer 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

Question 4

social responsibility

Answer 4

social responsibility is an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions

Question 5

the environment

Answer 5

the environment is the natural world in which we live, it is the landscape and its natural features such as the seas, rivers, forests and mountains

Question 6

external costs

Answer 6

external costs of production arise when a businesses’ activities result in harmful effects on other people not directly involved in production

Question 7

non-renewable resources

Answer 7

non-renewable resources are those of which only a limited amount exists such as coal and oil

Question 8

global warming

Answer 8

global warming is the gradual heating of the earth’s surface, oceans and atmosphere

Question 9

pressure group

Answer 9

a pressure group is a group of people with a common interest who influence public opinion and decisions by businesses and governments

Question 10

environmental responsibility

Answer 10

environmental responsibility refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment

Question 11

sustainability

Answer 11

sustainability refers to methods of production which can be continued in the long term without damage to the environment

Question 12

recycling

Answer 12

recycling is the reuse of raw materials used in making products, often many times, examples include the reuse of glass, paper and metals

Question 13

environmental reporting

Answer 13

environmental reporting is the publication of a businesses’ environmental performance to the general public