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what does ethics mean?
moral principles that govern business behaviour
what is ethical business behaviour?
operating to meet the wider needs of their stakeholders
how could a business become more ethical?
pay higher working wages, reduce packaging, reduce pollution
what are the advantages of a business trading ethically?
increased sales, more motivated staff, competitive advantage
what are the disadvantages of a business trading ethically?
moving production into countries where child labour is normal is expensive, business can’t maximise profits for the shareholders
what is a trade off?
a compromise between one thing and another
what does environmental mean?
relating to the natural world and the impact of human activity on its condition
what does sustainable mean?
being able to be maintained at a certain rate or level
what is a renewable resource?
water, wind, wood
what is a non-renewable resource?
gas, oil, coal (fossil fuels)
how can a business be sustainable?
use renewable sources of energy, producing goods without chemicals
why is smaller packaging better for the environment?
you can fit more products in transportation-this helps stop traffic congestion
what does recycling mean?
the process of converting waste into reusable material or new products
how can a business be more environmentally friendly?
recycle ink cartridges, using solar energy, online marketing, recycling old batteries, using facetime, cycling to work, using email
how can a business be more sustainable?
limiting damage to the environment, using renewable materials, producing goods without chemicals
what impact does the air pollution law (a business neds to have a permit if they are going to pollute the air, risk of a £20,000 fine and prison sentence if not) have on a business?
the overall costs will get higher
what are the advantages of a business trading with the environment in mind?
can use their ‘green’ credentials to market their products, invest in greener energy
what are the disadvantages of a business trading with the environment in mind?
greener products are more expensive to manufacture, solar panels are a big investment which pushes up costs for the business
how will environmental and sustainable changes impact the reputation of the business?
giving the business a bigger competitive advantage, gaining more popularity due to being ethical
what is a pressure group?
organisations who try to influence what consumers think about the business and its environment (Greenpeace)
what actions can pressure groups do to influence businesses?
writing letters to mps, writing letters to the press, running campaigns
how can a pressure group influence the marketing mix?
boycott specific products, damage a brand with bad publicity, more research and development costs
how can a pressure group impact a business?
pressure groups starts a campaign against a business, consumers have new information about the product so now don’t trust the brand, revenues fall, sales fall, profits fall, business changes the way it trades (to be more ethical)
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