Ethical and environmental considerations notes

Question 1

What does ethics mean in business?

Answer 1

Ethics refers to a business decision that is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right. Some companies put what is morally right above profit.

Question 2

How can a business behave ethically?

Answer 2

• Are suppliers (especially small businesses) paid on time or is the payment delayed?
• Are employees treated fairly? Are they paid well? Is child Labour used in overseas factories?
• Are consumers aware of the materials used to make products?
• Is the business’s advertising truthful and fair? Are products harmful?

Question 3

Ethical marketing:

Answer 3

• Designing new products to reduce the damage they do to the environment - Tesla
• Avoiding targeting children with advertisement for products with potentially harmful side effects - junk food
• Not using a dominant market position to set unacceptable high prices

Question 4

Ethical operations:

Answer 4

• Managers might choose not to buy resources from suppliers that are involved in unethical practices such as destroying the rainforest or the employment of child labour
• An ethical business is likely to manufacture products that can be recycled once their useful life is over

Question 5

Ethical HR:

Answer 5

• Offering employees the opportunity of high quality training despite its cost
• Paying wages sufficient to allow employees a decent standard of living

Question 6

How does behaving ethically impact on profits?

Answer 6

• Using environmentally friendly resources or fair trade products, which are more costly
• Providing employees with high quality training (they may leave)
• Offering low priced products to certain groups such as OAPs
• Acting in a socially responsible way - taking into account the needs of all stakeholders

Question 7

What is meant by the term ‘environment’?

Answer 7

This is the natural world in which we live. It is the landscape and it’s the natural features such as rivers, seas, forests and mountains.

Question 8

What are the different types of air pollution?

Answer 8

-natural (e.g wildfires, volcanoes, lightning)
-agricultural (e.g fertilizer,animal waste)
-industrial (e.g factories, power plants)
transport (e.g cars,aeroplanes, traines, buses)

Question 9

How can businesses and consumers show environmental responsibility?

Answer 9

• The use of renewable sources of energy such as solar and wind power
• Means of transport that don’t cause pollution - electric vehicles
• Making products from recycled or renewable materials such as sustainable timber
• Producing goods and services without the use of chemicals and other products that damage the environment
• Disposing/reducing waste
• Recycling

Question 10

Consumers can take a range of decisions that can help protect the environment:

Answer 10

• Recycle products
• Buy environmentally friendly products - encourage businesses to produce them
• Complain to businesses whenever they are seen to damage the environment

Question 11

What is global warming?

Answer 11

The gradual heating of the earth’s surface, oceans and atmosphere, leading to a rise in average temperatures.

Question 12

What are the impacts of global warming?

Answer 12

• Melting of ice - rising sea levels
• Changes in weather patterns
• Shortages of water and drought