paper 2 6.1 ethical and environmental considerations

Question 1

what are ethical and environmental considerations in business

Answer 1

businesses consideration og their corporate social responsibility

Question 2

what is ethics

Answer 2

what is the right or wrong thing to do

Question 3

give an example where ethics have changed over time

Answer 3

trading in slaves 200 years ago was seen as acceptable

Question 4

in what ways can employers act unethically despite being illegal in uk (5)

Answer 4

using child labour
paying to lower a wage
expecting workers to work to longer hours
not providing safe working conditions
descriminating based on gender, ethnicity or disability

Question 5

if a large company like tesco does not pay its bill what is the effect on smaller businesses

Answer 5

may go into liquidation

Question 6

what action ca small businesses take why

Answer 6

non as they may endanger the deals they have resulting in loss of profit and go out of business

Question 7

what tempts business to cut corners where ethical practices are concerned

Answer 7

attempt to keep costs low and compete

Question 8

why has globalisation not helped companies to work ethically

Answer 8

businesses find it difficult to know what is going on in factories that supply them that are else where in the world.

Question 9

give an example of a company who used unethical marketing

Answer 9

Marketing is price product promotion and place VW claimed its cars caused less pollution - claimed for several years all over the world and sold millions of cars

Question 10

how was vw guilty of false marketing

Answer 10

made false claims

Question 11

what is ASA

Answer 11

advertising standards agency

Question 12

what is ASA job

Answer 12

in uk applies the advertising code

Question 13

what does the advertising code state (5)

Answer 13

that all adverts should be legal, decent, honest and truthful. It explains what unethical means

Question 14

what is another potentially unethical practice

Answer 14

charging a higher price than is fair.

Question 15

which industries have been accused of not charging fair prices

Answer 15

energy and petrol companies - when price of gas falls they do not pass it onto customers as quickly as they should

Question 16

identify another unethical practice

Answer 16

testing cosmetics on animals

Question 17

what legislation ensures businesses who behave ethically

Answer 17

laws such as trade description act and sale of goods act

Question 18

is animal testing against the law

Answer 18

no though some believe it should be and then businesses can be prosecuted

Question 19

name an organisation important for encouraging ethical business practices

Answer 19

fairtrade

Question 20

what is the aim of fair trade

Answer 20

to bring justice and sustainable development to trade so that everyone through their work can maintain a decent dignified livlihood and develop their full potential

Question 21

how does fair trade achieve its aim

Answer 21

help those who live and work in developing countries

Question 22

how do fair trade guarantee to customers that the retailer has paid a fair price to the farmers who produced the goods so they have money to pay for education and other social needs

Answer 22

use fairtrade logo

Question 23

why do some critise fair trade idea (3)

Answer 23

in India and china many managed to increase earnings by producing the right goods

others say the prices producers are paid is not much more than that they would get usually

others say producers in third world countries may become dependent on fair trade

Question 24

what problems can being ethical bring to a company (4)

Answer 24

higher costs
lost sales
reduced profits
poor financial figures eg delay payments to smaller businesses

Question 25

what benefits can been ethical bring (4)

Answer 25

workers like it - trust their employer -improve motivaltion and increase output, easier to recruit
customers like it - good reputation increase sales , may help to gain contracts
investors like it - confident the business will make them look good
evidence that businesses with ethical producers are more likely to survive and be profitable

Question 26

how do households and businesses make use of the environment (3)

Answer 26

provides natural resources
we get pleasure from it
we dump waste there

Question 27

what are the 4 environmental considerations

Answer 27

sustainability waste disposal pollution and climate change

Question 28

what is sustainable production

Answer 28

making goods without depleting natural resources -

Question 29

how can businesses be sustainable (5)

Answer 29

use renewable resources
recycle resources
reduce waste
use energy sparingly

Question 30

examples of sustainable production (8)

Answer 30

solar and wind energy
sustainable construction - build using recycled materials
rotating crops- avoids using chemicals in soil
save water
switching off lights
dispose of waste properly or recycle
transport use fuel efficient vehicles- encourage staff to cycle avoid travelling to face to face meetings buy locally
avoid printing

Question 31

how are companies dealing with problem with increase in waste

Answer 31

use waste as a raw material

Question 32

name 3 types of pollution

Answer 32

air
noise
and pollution of rivers and seas

Question 33

what is climate change

Answer 33

long term change in weather conditions

Question 34

what are effects of climate change

Answer 34

sea levels rising
rain increasing
snow decreasing
global warming

Question 35

what is the cause of global warming

Answer 35

natural events - volcanic eruptions
human - burning fossil fuels and deforestation

Question 36

how is climate change having a negative impact on business

Answer 36

a report in 2016 predicted
businesses would have issues with loss of energy and ict connection making and receiving deliveries
farming would be effected by soil degradation and lead to higher food prices

Question 37

what business opportunities will global warming create

Answer 37

demand for insurance against risks of climate will increase
care homes will need to invest in AC
improve and build flood defences

Question 38

what are the benefits to a business to be environmentally friendly (5)

Answer 38

increased sales - customers becoming more aware of negative effect on environment

reduced costs - using energy saving devices, reducing amount of packaging they use , buy locally,

reduce tax bills - governments impose taxes to pay for environmental damages they cause so reduce problems caused will reduce tax paid.

getting subsidies - government offer money to encourage businesses to introduce environmentally friendly products

reduce resourse scarcity - eventually resources will run out so businesses should reduce the amount of resources they use

Question 39

what are the problems of being economically friendly

Answer 39

costs increase

Question 40

why do costs increase when being economically friendly (3)

Answer 40

raw materials produced environmentally friendly ways cost more
capital costs - need to buy equipment to introduce environmentally friendly production
production methods maybe more expensive