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Ethical and Environmental Considerations - Coggle Diagram
Ethical and Environmental Considerations
Morals:
Standards of behaviour; principles of right and wrong.
Ethics:
Moral principles that govern a person's behaviour or the conducting of an activity
How can a business act ethically
The Treatment of Workers
• Not employ child labour
• Pay workers a fair wage
• Provide safe working conditions
• Not discriminate against worker
The Treatment of Suppliers
• Pay suppliers on time, so suppliers don’t face cash flow problems
The Treatment of Customers
• Be careful not to overcharge customers
• Treat customers with respect – be polite, courteous and helpful.
• Avoid making any false claims in adverts.
• Avoid putting customers in danger by selling dangerous products or providing unsafe services
Sourcing of Materials
• Avoid buying from businesses that use child labour or pay beneath the minimum wage
• Avoid buying from businesses that act in a way that harms the natural environment
If workers are paid a fair wage and work in good condition, improved happiness so work harder produce more.
There may be higher costs involved as business must pay higher wages and offer better working conditions
Business will have an Increased reputation hanks for acting ethically. This should lead to higher sales to customers, revenues and profits
Sales may fall if a business makes honest claims about its products, convincing less people to buy the product
Higher sales and better reputation should increase the number of possible investors and shareholders, giving the business more money to use to improve.
Environmental considerations
Sustainable Production
Sustainable production is making and providing goods and services without depleting natural resources in a way that will leave less resources available for the future
The sustainability problem refers to the current problem faced by 21st century citizens that high amounts of business behavior is fueled/supported by unsustainable methods, including
• Burning fossil fuels to heat and power buildings and vehicles.
• High chemical use within soils when growing crops.
• Using a large amount of water and paper in the production of goods or services
• Generating and irresponsibly disposing of a large amount of waste.
Pollution is defined as a business causing harm to the environment.
Businesses cause land pollution by sending lots of waste (and unnecessary waste) to landfill sites. They can reduce this by using less materials or using recyclable materials.
Business cause Air Pollution by emitting smoke and other gases into the environment from their factories and vehicles
Loud factories and vehicles on the roads create noise for stakeholders living nearby.
Businesses have been known place lots of their waste into rivers, or more simply, use large ships that empty their waste and exhaust fumes into the seas.
• Use renewable energy
• Recycle all waste.
• Use electric vehicles.
Advantages Disadvantages of being sustainable
Costs may be lower because a business may have taken steps to use less energy or create less waste, reducing energy bulls and waste
Production costs may be higher if materials produced in an environmentally friendly waste are more expensive.
Sales may be higher because customers may prefer to buy from a business that care about the environment.
Sales may be lower if the business charges higher prices to cover any extra costs of environmentally friendly production
Lower taxes and avoidance of paying fines may occur because a business creates less pollution.
Capital costs may rise if the business invests in new machines and plant to produce in an environmentally friendly way.
A business may gain subsidies from the government to help pay for environmentally friendly production.