Theme 3 Topic 12 - Business Ethics and CSR

Question 1

Define Ethics

Answer 1

Consideration of the moral right and wrong of a decision at an often strategic level

Question 2

What are four ethics of strategic decisions?

Answer 2

The environment, Corruption, Animal rights, Workers in developing countries

Question 3

Define Ethical Codes and Ethical Objectives

Answer 3

Lay down how employees in the business should respond in situations where ethical issues arise

Question 4

What are three advantages to a business of behaving ethically?

Answer 4

Improved brand and business awareness, New sources of finance (e.g. ethical investors), Better employee motivation and recruitment

Question 5

What are three disadvantages to a business of behaving ethically?

Answer 5

Higher costs (e.g. using Fair Trade suppliers), Higher overheads (e.g. training of ethical policy), Danger of building up false expectations

Question 6

Define Corporate Social Responsibility (CSR)

Answer 6

A businesses responsibility to not just its shareholders, but to all stakeholders

Question 7

What are three examples of social and environmental audits businesses might conduct?

Answer 7

Employment indicators, Human rights indicators, Product responsibility

Question 8

What are three purposes a business might use pay and rewards for?

Answer 8

Attracting employees with the right skills and knowledge, Reward and motivate staff, Maximise productivity levels

Question 9

Define Trade Off

Answer 9

Exists when the selection of one choice results in the loss of another

Question 10

What are two examples of trade offs experienced by businesses behaving ethically?

Answer 10

Raise costs, Reduce revenue