Business component 3- PESTLE (Ethical, Legal & Environmental)

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What are the different ethical issues a business will face?
Environmental
Animal rights
The treatment of workers
Treatment of suppliers
Treatment of customers
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Explain the meaning of corporate social responsibility (CSR)
CSR aims to ensure that firms conduct their business in a way that is ethical.
This means taking account of their social, economic and environmental impact, and consideration of human rights.
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What CSR may involve
Working in partnership with local communities
Socially responsible investment (SRI)
Building relationships with staff & customers
Environmental protection and sustainability
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What are the possible conflicts between ethics and profitability?
Face higher costs
revenue decrease
consumers may decrease due to increased prices
unhappy shareholders
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Why is acting ethically good?
Improved brand image
Marketing advantages
Reduced labour turnover & absenteeism
Improved staff motivation
Attract top candidates for jobs
happy stakeholders(staff, suppliers, customers)
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Impact/costs of business activity on the environment
Acting unsustainably harms the environment (e.g plastic in oceans affecting approx 50% of sea life)
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What is the impact of businesses implementing environmentally-friendly policies?
A reduction in o-zone emissions/lower levels of harmful emissions into the atmosphere/short-term concerns about the energy costs of implementing ‘eco-friendly’ options e.g. the concrete used in windfarms./Growth of NIMBYs
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What are the main legal concerns that a business faces?
Health and safety duties
employee rights (paid days off, minimum wage)
Employment law (anti-discrimination)
Consumer protection
Legal competition
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What impact does legislation have on different businesses and their stakeholders?
Employees- equal opportunities, safety against employers being bad
Consumers- protection against businesses (consumers rights act 2015- goods must fit description)
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Other cards in this set

Card 2

Front

Explain the meaning of corporate social responsibility (CSR)

Back

CSR aims to ensure that firms conduct their business in a way that is ethical.
This means taking account of their social, economic and environmental impact, and consideration of human rights.

Card 3

Front

What CSR may involve

Back

Preview of the front of card 3

Card 4

Front

What are the possible conflicts between ethics and profitability?

Back

Preview of the front of card 4

Card 5

Front

Why is acting ethically good?

Back

Preview of the front of card 5
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