Ethical and Environmental Concerns

• What are ethics concerned with in a business context?

  Having standards of behaviour and 'doing the right thing'
• How does an ethical business act in relation to legislation?

  An ethical business acts in a socially responsible way, even if not required by legislation
• What is a good indicator of how ethical a business is?

  The way a business treats its workers, suppliers, and customers
• What are examples of treating workers ethically?

  • Paying a fair wage
  • Providing good working conditions
  • Allowing flexible working
• What are examples of treating suppliers ethically?

  • Paying fair prices
  • Having reasonable expectations
  • Paying bills on time
• What are examples of treating customers ethically?

  • Exceeding expectations with excellent customer service
  • Only providing what customers need
  • Giving clear and accurate product information
• Why might businesses that behave unethically receive bad publicity?

  Because they may be associated with practices like child labour
• What is a potential benefit for businesses that behave ethically?

  Good publicity that attracts customers and increases sales
• What is the Ethical Trading Initiative?

  An initiative that businesses can join to show they address child labour issues
• What is a common argument against being ethical in business?

  It often results in higher costs due to ethically sourced supplies
• How do some businesses view the relationship between ethics and profit?

  They believe there does not have to be a trade-off between ethics and profit
• What are some benefits of ethical business practices?

  • Motivated workers who work more efficiently
  • Customers who support socially responsible businesses
  • Investors who want to associate with ethical businesses
• How can ethical practices impact a business's reputation and profits?

  They can establish a positive reputation, leading to increased sales and higher profits
• What impact does any business activity have on the environment?

  It impacts the environment through the natural resources it uses or the waste products it produces.
• What is a green audit?

  A green audit measures the environmental impact of a business's activities.
• What is an example of what a green audit may involve measuring?

  Measuring its carbon footprint.
• What are the four main environmental issues that influence business activities?

  • Climate change
  • Pollution
  • Sustainability
  • Waste reduction
• What does climate change refer to?

  Long-term changes to weather patterns.
• How does business activity contribute to global warming?

  Through the burning of fossil fuels and the cutting down of trees.
• What does pollution commonly refer to?

  The contamination of air or water with harmful chemicals.
• What are the effects of air pollution?

  It can cause a number of health-related issues.
• How does water pollution affect the environment?

  It affects animals and plants that live in seas and rivers.
• What is sustainability in business?


  Working in a way that does not use up or destroy natural resources.
• What are some methods businesses can use to achieve sustainability?

  Using renewable energy, recycling materials, and using energy-saving devices.
• What are traditional methods of waste disposal?

  Incineration and landfill sites.
• Why is reducing waste beneficial for businesses?

  It reduces costs and the amount of waste to dispose of.
• What are the advantages of being environmentally friendly for businesses?

  • Subsidies and grants from the government
  • Lower costs through reduced environmental impact
  • Increased sales from environmentally conscious customers
• What are the disadvantages of being environmentally friendly for businesses?

  • Increased costs for environmentally friendly production
  • Time-consuming processes, especially in large businesses
  • Potential for inaccurate claims damaging reputation
• What can government subsidies and grants help businesses with?

  They can help reduce costs for businesses investing in environmentally friendly production methods.
• How can changes to business activities lower costs?

  By lowering the business's impact on the environment.
• How did Marks and Spencer reduce fuel consumption in their delivery vehicles?

  By introducing driver performance software.
• Why might producing goods in an environmentally friendly way be costly for businesses?

  It often requires research and investment in new production methods.
• What is a potential risk of making environmental claims?

  Inaccurate claims can cause significant damage to a business's reputation.
• What are pressure groups also known as?

  Interest groups
• What is the primary goal of pressure groups?

  To influence the decisions made by businesses, organizations, or governments
• How do many pressure groups try to influence businesses?

  By encouraging them to behave more ethically or environmentally friendly
• What are some methods used by pressure groups to influence businesses?

  • Lobbying
  • Organizing a boycott of a business or a particular product
  • Viral marketing
• What is lobbying in the context of pressure groups?


  A method used by pressure groups to influence decision-makers
• What is a boycott?

  Organizing a refusal to buy a business's products or services
• What is the purpose of viral marketing as used by pressure groups?

  To spread information rapidly through social networks to influence public opinion