Ethical and Environmental Considerations

• ethics:

  the moral principles that guide how a business operates
• treating workers ethically:

  -paying a fair wage

  -providing good working conditions

  -allowing flexible working
• treating suppliers ethically:

  -paying fair prices

  -having reasonable expectations

  -paying bills on time
• treating customers ethically:

  -excellent customer service

  -quality products/services

  -providing to customer needs

  -giving clear and accurate product and service information
• reasons to be ethical:

  -benefit from good publicity

  -attracts customers -> more sales
• ethics vs profit:

  higher costs -> less competitive -> lower sales + reduced profit margins

  -motivates workers

  -customers may choose to support businesses behaving in a socially responsible way

  -investors may want to be associated with ethical businesses

  positive reputation -> higher sales -> higher profits
• green audit:

  an assessment of how a businesses activities impacts the environment
• 4 main influences businesses have on the environment:

  -climate change

  -pollution

  -sustainability (recycle materials + save energy/water)

  -waste reduction (reduce waste produced + use reusable materials)
• advantages of being environmentally friendly:

  -subsidies and grants

  -lower costs (may need initial investment e.g electric transport)

  -increased sales (customers supporting environmentally friendly businesses)
• disadvantages of being environmentally friendly:

  -increased costs (research + investment in new materials/production methods)

  -time consuming

  -potential for inaccurate claims (bad publicity)
• pressure groups influences on acting environmentally friendly:

  -lobbying

  -organise a boycott of a business/particular product

  -viral marketing
• marketing mix influences:

  product - reusable materials, sustainable sources

  price - changing strategies, make ethical products a realistic choice for consumers

  place - changing distribution methods, e.g electric transport

  promotion - change the way a product is advertised, e.g promote environmentally friendly products