Ethical Business Behaviours

What are ethical practices?

Moral principles that guide behaviour and decisions.

Name three examples of ethical business practices.

Honouring commitments, being honest, and providing a safe workplace.

What are the benefits of ethical behaviour?

Better reputation, customer trust, and legal protection.

What are business ethics?

The application of moral standards to business behaviour.

What is corporate social responsibility (CSR)?

Business actions that respect people, society, and the environment beyond legal requirements.

Give two examples of CSR.

Reducing carbon emissions and supporting fair trade.

What is a social enterprise?

A business that aims to solve social or environmental problems while remaining financially viable.

What is the main goal of a social enterprise?

Achieving social objectives rather than maximising profit.

What does fairness and honesty involve?

Telling the truth, keeping promises, and avoiding misleading information.

What does respect for people involve?

Maintaining confidentiality, fulfilling obligations, and avoiding discrimination.

What is a conflict of interest?

When a person acts for personal gain instead of the employer’s interests.

Why are conflicts of interest unethical?

They can lead to corruption and damage a business’s reputation.

What is an ethical issue in financial management?

Falsifying financial information, such as overstating expenses or understating revenue.

What is an audit?

An independent check of financial records and accounting procedures.

Why are audits important?

They help detect fraud, theft, and misuse of funds.

What is a corporate code of conduct?

A set of ethical standards employees and managers must follow.

Name three ways a business can encourage ethical behaviour.

Avoid conflicts of interest, treat employees fairly, and minimise waste and pollution.