Exam code: 0450, 0986 & 0264, 0774
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Define ethical issues.
Ethical issues are about doing what is morally right and fair in business, not just what is legal or profitable.
Define fair wages.
Fair wages mean paying workers an amount that reflects the work they do and allows them to meet their basic needs, such as food, housing and healthcare.
Give two consequences for businesses that pay unfair wages.
Businesses that pay unfair wages can be seen as exploiting cheap labour, may face criticism or boycotts, and often experience low staff motivation and high turnover.
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Define ethical issues.
Ethical issues are about doing what is morally right and fair in business, not just what is legal or profitable.
Define fair wages.
Fair wages mean paying workers an amount that reflects the work they do and allows them to meet their basic needs, such as food, housing and healthcare.
Give two consequences for businesses that pay unfair wages.
Businesses that pay unfair wages can be seen as exploiting cheap labour, may face criticism or boycotts, and often experience low staff motivation and high turnover.
Define fair prices.
Paying fair prices means businesses give suppliers a price that covers production costs and provides a reasonable profit, supporting their quality of life.
Define child labour.
Child labour is when children are employed in harmful work, preventing them from going to school or involving long hours in poor conditions.
What are environmentally friendly suppliers?
Environmentally friendly suppliers use sustainable materials, produce goods with low environmental impact, and follow green practices, like reducing pollution or waste.
What is one disadvantage for businesses acting ethically?
One disadvantage is higher costs, such as paying fair wages or choosing ethical suppliers, which can increase production expenses.
A key advantage of ethical business behaviour is improved , as ethical businesses are viewed more positively by customers, the media and investors.
A key advantage of ethical business behaviour is improved reputation, as ethical businesses are viewed more positively by customers, the media and investors.
One disadvantage of being ethical is that it can lead to costs and prices, which may reduce sales if customers are not willing to pay extra.
One disadvantage of being ethical is that it can lead to higher costs and higher prices, which may reduce sales if customers are not willing to pay extra.
Why is child labour considered an important ethical issue for businesses?
Child labour is an important ethical issue because it exploits children, often involves unsafe working conditions, and can damage a business’s reputation if exposed.
To avoid links to child labour, businesses can carry out supplier and audits, work with charities to support programmes, and use certified suppliers.
To avoid links to child labour, businesses can carry out supplier checks and audits, work with charities to support education programmes, and use certified suppliers.