is about doing what morally the right or not, applied in a business situation
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what does ethical behaviour require
Ethical behaviour requires firms to act in ways that stakeholders consider to be both fair and honest
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stakeholders of business
Production, suppliers, workers, customers, competitors, the product, the environment and local communities.
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what is trade off
is where something is given up in order to gain or achive something else.
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what do onwers believe as a result of being ethically
Many owners believe that acting ethically increases costs and so reduces profits.
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whats an example of a ethical trade off
a business can cut costs by hiring child labour at very low wages in developing countries. Paying below average wages lowers the firm's total costs
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whats an example of a firm being ethical
Fairtrade Foundation have built an ethical brand image, believing that customers are prepared to pay more for products that consider the environment and pay a reasonable wage.
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what would result if a firm acts unethical
can result in bad publicity
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stakeholder
anyone who has an interest in the business or is affected by the business activity
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pressure groups
Is an organised group that seeks to influence goverment policy or to protect or advance a particular cause or interest. e.g. animal rights or the enviroment
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how do pressure groups achieve their aims
Public meetings, distributing leaflets and posters, petitions, boycotting products, lobbying.
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Why are ethics important?(4)
Prevent pressure groups from damaging your business.(1)/ Allow a firm to attract ethically motivated customers.(1)/ Enhance a firms brand./(1) Reduce the likelyhood of any cost regulation/(1
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Why might ethics not be important?(4)
It is a budget firm so may not be interest in ethics.(1) At times of lo consumer confidece ethics are less important.(1) It can increase costs.(1) Other factors could casue profits to rise and may be more important(1)
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short term Environmental Effects(3)
Trafic congestion through thransport and deliveries.(1)/ Air, noise and water pollution through manufacturing and industry.(1)'/and is lost to future generations when new houses or roads are built on greenfield sites(1)
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Long term Environmental Effects(2)
Climate change- manufacturing can cause pollution affecting climate change(1)/ Depletion of resources such as timber, oil and metals are used to manufacture goods(1)
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social costs
egative effects of business activity on people and places
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what are ethical business careful at
re careful to minimise the impact of their behaviour on the environment.
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Example of how a government law proctect an eviroment
For example, firms must apply for planning permission before building factories or offices on greenfield sites.
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Other cards in this set
Card 2
Front
what does ethical behaviour require
Back
Ethical behaviour requires firms to act in ways that stakeholders consider to be both fair and honest
Card 3
Front
stakeholders of business
Back
Card 4
Front
what is trade off
Back
Card 5
Front
what do onwers believe as a result of being ethically
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