Ethics

Ethics is about a business acting in a morally correct way regardless of the impact on costs and profit.

Examples of a business behaving ethically :

• Paying staff a fair wage - this will increase the costs of wages but may result in staff being loyal to the business. This means that productivity will increase aswell as staff retention rates.

• Listening to concerns about noise and air pollution - changing delivery times may impact revenue but will give a positive publicity in the local area therefore a rise in sales.

Benefits of ethical behaviour :

• Increases rep meaning more sales

• staff retention increases

• easier to recruit new staff

Drawbacks to ethical behaviour :

• Costs may increase which can damage profit in the short term

• Must follow through with ethical behaviour otherwise they could experience bad publicity

Environmental considerations :

• Traffic congestion

• Disposing of waste - This causes air pollution which damages the environment

• Noise and air pollution