Define business ethics .

Business ethics relates to the rights or wrongs of making a business decision that go beyond legal requirements .

Why is behaving ethically likely to increase business costs ?

Ethical businesses pay fair wages , invest in green technologies and pay more for responsibly sourced raw materials and components. These higher costs may not be matched by higher revenue.

When behaving ethically reduces the overall level of profit a business makes, this is known as a _______ between ethics and profit.

When behaving ethically reduces the overall level of profit a business makes, this is known as a trade-off between ethics and profit.

True or False? Paying suppliers on time has no effect on a business's working capital.

False. Paying suppliers promptly reduces the working capital available to fund day-to-day business activities .

How does an ethical business approach its marketing activities ?

An ethical business is honest and responsible in its marketing activities.

Define ethical code of practice .

An ethical code of practice is a set of guidelines that determines the behaviour of all members of an organisation.

True or False? An ethical code of practice may require a business to stop working with a supplier that uses child labour.

True. Ethical codes commonly commit a business to break links with questionable suppliers , such as cancelling a contract with a supplier that uses child labour .

Why might ethical behaviour make a business more attractive to investors ?

Ethical businesses usually have an improved reputation . This is looked upon favourably by investors, especially those who prefer ethical investment .

How can ethical behaviour add value to a product?

In competitive markets, ethical behaviour can provide a unique selling point (USP) . This may allow the business to use premium pricing .

Workers are more likely to feel _______ to a business that does the right thing, so they may work harder to make it a success.

Workers are more likely to feel connected to a business that does the right thing, so they may work harder to make it a success.

How can ethical businesses help to solve social problems such as poverty?

Businesses that pay workers fairly and offer stable contracts help to reduce poverty levels .

True or False? Behaving ethically protects a business from negative media exposure.

False. Ethical businesses face high levels of scrutiny . If they fail to meet the highest standards, negative media exposure can damage their reputation and sales.

Define greenwashing .

Greenwashing is making misleading environmental claims, such as sustainability claims without evidence or overstating the positive environmental effects of products in advertising.

How can business activity lead to dereliction ?

Land and buildings can be made unusable when businesses process dirty or toxic materials .

Define visual pollution .

Visual pollution is caused by unattractive buildings or business works that worsen people's views of their surroundings .

Traffic ________ can be caused by vehicles delivering materials to and from businesses and by employees commuting to work.

Traffic congestion can be caused by vehicles delivering materials to and from businesses and by employees commuting to work.

True or False? Changing consumer attitudes are a key reason why businesses are taking steps to reduce their environmental impact.

True. Most UK consumers now expect companies to be environmentally conscious and make more responsible buying choices , so businesses are responding.

Give two ways a business can reduce its environmental impact .

A business can recycle or reuse more of its waste and switch to electric vehicles for staff. It can also encourage employees to use public transport, walk or cycle to work.

Define pollution permit .

A pollution permit allows a business to pollute up to a certain limit .

How can strict government waste regulations increase business costs?

Businesses face higher charges for disposal and limits on the volume of waste they are allowed to produce. Those that break the rules can be fined and ordered to clean up the damage.

True or False? A government switch from fossil fuels to green energy is likely to raise business energy costs in the long term.

False. In the long term, a switch to green energy such as solar and wind power should give businesses lower and more consistent energy costs .

What are the main costs of operating in an environmentally responsible way?

Businesses face the cost of replacing equipment and implementing greener ways of working . Day-to-day expenses, such as proper waste disposal, may also rise.

Environmentally responsible businesses must commit time to carrying out environmental ____ and producing reports on their progress.

Environmentally responsible businesses must commit time to carrying out environmental audits and producing reports on their progress.

How can environmental responsibility lead to long-term cost savings ?

Using energy, water and raw materials efficiently and reducing waste can cut a business's costs over time.

True or False? Green practices tend to lower employee morale because staff have to change the way they work.

False. Green practices can improve employee morale , recruitment and retention , as staff are often proud to work for environmentally responsible businesses.

How can environmental responsibility reduce a business's level of risk ?

Responsible businesses avoid the fines , legal action and reputational damage that can follow environmental incidents.

Define sustainability .

Sustainability means meeting our current needs without compromising the ability of future generations to meet their own needs.

Give two ways a business can make its operations more sustainable.

A business can use renewable energy , such as solar, and switch to green transportation , such as electric vans. It can also reduce water use and avoid toxic substances .

What are the main impacts of global warming ?

Global warming causes changes in weather patterns , more droughts and water shortages , and rising sea levels from melting polar ice caps.

How might global warming increase business costs ?

Businesses in high-risk areas face more disruption from floods or intense heat. Their insurance premiums may also rise.

True or False? Global warming may lead some businesses to relocate to less exposed regions.

True. Some businesses may relocate to less exposed regions, or take advantage of changed climates in areas that were previously unsuitable.

Long-haul tourist destinations may attract fewer visitors as consumers become more aware of the _______ from air travel.

Long-haul tourist destinations may attract fewer visitors as consumers become more aware of the emissions from air travel.

Define finite resource .

A finite resource is a natural resource that will eventually run out , such as oil, natural gas or coal.

True or False? Rare earth elements are available from many countries, so their supply to businesses is secure.

False. Around 97% of the world's supply comes from China , which can choose to restrict supplies .

Define circular economy .

A circular economy keeps resources in use for as long as possible and minimises waste by reusing, repairing, refurbishing and recycling materials and products.

How can businesses improve efficiency in response to scarce resources?

They can install energy-efficient equipment , redesign production processes and conserve water .

Switching to more sustainable raw materials, such as organic cotton, is an example of investing in sustainable __________.

Switching to more sustainable raw materials, such as organic cotton, is an example of investing in sustainable alternatives .

Why can adopting sustainable practices reduce profitability in the short term?

Sustainable raw materials may be more expensive , and adapting production processes and machinery may need significant capital investment .

True or False? Putting short-term profits ahead of sustainability always strengthens a business in the long term.

False. Ignoring sustainability can lead to resource depletion and environmental damage . This can cause legal issues and reputational damage that undermine long-term profitability .

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Ethical & Environmental Considerations (AQA GCSE Business): Flashcards

Exam code: 8132

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Define business ethics.

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Cards in this collection (39)

Define business ethics.
Business ethics relates to the rights or wrongs of making a business decision that go beyond legal requirements.
Why is behaving ethically likely to increase business costs?
Ethical businesses pay fair wages, invest in green technologies and pay more for responsibly sourced raw materials and components. These higher costs may not be matched by higher revenue.
When behaving ethically reduces the overall level of profit a business makes, this is known as a _______ between ethics and profit.
When behaving ethically reduces the overall level of profit a business makes, this is known as a trade-off between ethics and profit.
True or False?
Paying suppliers on time has no effect on a business's working capital.
False.
Paying suppliers promptly reduces the working capital available to fund day-to-day business activities.
How does an ethical business approach its marketing activities?
An ethical business is honest and responsible in its marketing activities.
Define ethical code of practice.
An ethical code of practice is a set of guidelines that determines the behaviour of all members of an organisation.
True or False?
An ethical code of practice may require a business to stop working with a supplier that uses child labour.
True.
Ethical codes commonly commit a business to break links with questionable suppliers, such as cancelling a contract with a supplier that uses child labour.
Why might ethical behaviour make a business more attractive to investors?
Ethical businesses usually have an improved reputation. This is looked upon favourably by investors, especially those who prefer ethical investment.
How can ethical behaviour add value to a product?
In competitive markets, ethical behaviour can provide a unique selling point (USP). This may allow the business to use premium pricing.
Workers are more likely to feel _______ to a business that does the right thing, so they may work harder to make it a success.
Workers are more likely to feel connected to a business that does the right thing, so they may work harder to make it a success.
How can ethical businesses help to solve social problems such as poverty?
Businesses that pay workers fairly and offer stable contracts help to reduce poverty levels.
True or False?
Behaving ethically protects a business from negative media exposure.
False.
Ethical businesses face high levels of scrutiny. If they fail to meet the highest standards, negative media exposure can damage their reputation and sales.
Define greenwashing.
Greenwashing is making misleading environmental claims, such as sustainability claims without evidence or overstating the positive environmental effects of products in advertising.
How can business activity lead to dereliction?
Land and buildings can be made unusable when businesses process dirty or toxic materials.
Define visual pollution.
Visual pollution is caused by unattractive buildings or business works that worsen people's views of their surroundings.
Traffic ________ can be caused by vehicles delivering materials to and from businesses and by employees commuting to work.
Traffic congestion can be caused by vehicles delivering materials to and from businesses and by employees commuting to work.
True or False?
Changing consumer attitudes are a key reason why businesses are taking steps to reduce their environmental impact.
True.
Most UK consumers now expect companies to be environmentally conscious and make more responsible buying choices, so businesses are responding.
Give two ways a business can reduce its environmental impact.
A business can recycle or reuse more of its waste and switch to electric vehicles for staff. It can also encourage employees to use public transport, walk or cycle to work.
Define pollution permit.
A pollution permit allows a business to pollute up to a certain limit.
How can strict government waste regulations increase business costs?
Businesses face higher charges for disposal and limits on the volume of waste they are allowed to produce. Those that break the rules can be fined and ordered to clean up the damage.
True or False?
A government switch from fossil fuels to green energy is likely to raise business energy costs in the long term.
False.
In the long term, a switch to green energy such as solar and wind power should give businesses lower and more consistent energy costs.
What are the main costs of operating in an environmentally responsible way?
Businesses face the cost of replacing equipment and implementing greener ways of working. Day-to-day expenses, such as proper waste disposal, may also rise.
Environmentally responsible businesses must commit time to carrying out environmental ____ and producing reports on their progress.
Environmentally responsible businesses must commit time to carrying out environmental audits and producing reports on their progress.
How can environmental responsibility lead to long-term cost savings?
Using energy, water and raw materials efficiently and reducing waste can cut a business's costs over time.
True or False?
Green practices tend to lower employee morale because staff have to change the way they work.
False.
Green practices can improve employee morale, recruitment and retention, as staff are often proud to work for environmentally responsible businesses.
How can environmental responsibility reduce a business's level of risk?
Responsible businesses avoid the fines, legal action and reputational damage that can follow environmental incidents.
Define sustainability.
Sustainability means meeting our current needs without compromising the ability of future generations to meet their own needs.
Give two ways a business can make its operations more sustainable.
A business can use renewable energy, such as solar, and switch to green transportation, such as electric vans. It can also reduce water use and avoid toxic substances.
What are the main impacts of global warming?
Global warming causes changes in weather patterns, more droughts and water shortages, and rising sea levels from melting polar ice caps.
How might global warming increase business costs?
Businesses in high-risk areas face more disruption from floods or intense heat. Their insurance premiums may also rise.
True or False?
Global warming may lead some businesses to relocate to less exposed regions.
True.
Some businesses may relocate to less exposed regions, or take advantage of changed climates in areas that were previously unsuitable.
Long-haul tourist destinations may attract fewer visitors as consumers become more aware of the _______ from air travel.
Long-haul tourist destinations may attract fewer visitors as consumers become more aware of the emissions from air travel.
Define finite resource.
A finite resource is a natural resource that will eventually run out, such as oil, natural gas or coal.
True or False?
Rare earth elements are available from many countries, so their supply to businesses is secure.
False.
Around 97% of the world's supply comes from China, which can choose to restrict supplies.
Define circular economy.
A circular economy keeps resources in use for as long as possible and minimises waste by reusing, repairing, refurbishing and recycling materials and products.
How can businesses improve efficiency in response to scarce resources?
They can install energy-efficient equipment, redesign production processes and conserve water.
Switching to more sustainable raw materials, such as organic cotton, is an example of investing in sustainable __________.
Switching to more sustainable raw materials, such as organic cotton, is an example of investing in sustainable alternatives.
Why can adopting sustainable practices reduce profitability in the short term?
Sustainable raw materials may be more expensive, and adapting production processes and machinery may need significant capital investment.
True or False?
Putting short-term profits ahead of sustainability always strengthens a business in the long term.
False.
Ignoring sustainability can lead to resource depletion and environmental damage. This can cause legal issues and reputational damage that undermine long-term profitability.

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