2.1.4- ethics, emvironment and business

Question 2

What are ethics?

Answer 2

Ethics are the moral principles of right and wrong.

Question 3

Why have ethical issues become important for businesses?

Answer 3

Many firms have their own ethical policies, developed to ensure fair and honest practices for stakeholders.

Question 4

What ethical issues arise from UK firms treating employees and suppliers in other countries?

Answer 4

In some countries, it’s not illegal for people to work very long hours for very low pay, leading to concerns about exploitation.

Question 5

How can businesses ensure ethical treatment of overseas workers?

Answer 5

Businesses can write codes of conduct for factories overseas to ensure ethical treatment of workers.

Question 6

What is Fair Trade?

Answer 6

Fair Trade means that producers in developing countries are paid a fair price for their goods, allowing them to earn decent wages.

Question 7

What ethical considerations should businesses in the UK keep in mind?

Answer 7

Businesses should reward staff fairly, keep personal details private, and provide a comfortable working environment.

Question 8

What are some advertising ethics for businesses?

Answer 8

Firms must follow codes of practice in advertising, avoiding dishonesty and insults towards other brands.

Question 9

What are some products that cannot be advertised?

Answer 9

Cigarette adverts are banned on health grounds.

Question 10

What ethical practices should firms follow in product development?

Answer 10

Firms should use non-toxic materials, prioritize safety, and avoid animal testing.

Question 11

What is a trade-off in ethical business practices?

Answer 11

There can be a trade-off between behaving ethically and maximizing profit.

Question 12

What are the costs associated with ethical policies?

Answer 12

Ethical policies can be costly, leading to higher labor costs and challenges in sourcing ethically.

Question 13

How can increased costs affect a firm’s profits?

Answer 13

Increased costs may reduce profit margins, and raising prices could lead to lower sales.

Question 14

Why might firms still choose to act ethically despite potential profit loss?

Answer 14

Many firms believe in ethical practices and may gain customers who prioritize ethics over price.

Question 15

How can ethical marketing benefit a business?

Answer 15

By emphasizing strong ethical policies, businesses can attract customers and potentially increase profits.

Question 16

What positive effects can ethical behavior have on stakeholders?

Answer 16

Ethical behavior can attract investors and motivate employees, leading to increased productivity.

Question 17

What does being a ‘green’ business involve?

Answer 17

Being a ‘green’ business involves more than just buying a pot of green paint and a paintbrush.

Question 18

How can businesses impact the environment?

Answer 18

Businesses can impact the environment by producing waste that ends up in landfills, and causing air, noise, and water pollution.

Question 19

What are some concerns regarding global businesses?

Answer 19

People are worried that the combined impact of global businesses is damaging the Earth, particularly through the use of non-renewable resources and the release of greenhouse gases.

Question 20

What does sustainability mean for businesses?

Answer 20

Sustainability means working in ways that won’t damage the Earth for future generations.

Question 21

What are some ways businesses can be more sustainable?

Answer 21

Businesses can use less packaging, recycle more, dispose of hazardous waste carefully, use more efficient and quieter machinery, and utilize renewable energy resources.

Question 22

What is the consumer trend regarding environmentally friendly products?

Answer 22

Consumers are increasingly buying more ‘environmentally friendly’ products as they become more aware of environmental issues.

Question 23

What advantage can a ‘green image’ provide to firms?

Answer 23

A ‘green image’ can attract new customers and increase sales.

Question 24

What is a potential trade-off for businesses being sustainable?

Answer 24

The trade-off can be between being sustainable and making profit, as new equipment and processes can be expensive.

Question 25

What are pressure groups?

Answer 25

Pressure groups are organizations that try to influence decisions made by the government or businesses.

Question 26

How can pressure groups affect a business's image?

Answer 26

If a pressure group campaigns against a firm, it can lead to negative public perception and loss of customers.

Question 27

How might businesses respond to pressure group campaigns?

Answer 27

Businesses might change their marketing mix, such as altering products to be more ethically sourced or running promotional campaigns to repair their image.

Question 28

What example illustrates supermarkets responding to pressure groups?

Answer 28

Many supermarkets have changed their policies to reduce food waste by improving processes with suppliers and selling slightly odd-looking vegetables at a lower price.

Question 29

What is the consequence for businesses ignoring environmental issues?

Answer 29

Businesses that ignore environmental issues may find themselves losing customers.