3.2.2 Ethics and the Environment

Whether a business decision is thought to be morally right or wrong

• The environment

• Ethics

• Profitability

• Equality

Those for which customers pay higher prices and offer better trading terms, such payments with orders; the aim is to improve the living standards of people in poorer countries

• Organics

• London Stock Exchange

• Fairtrade products

• NFU

How having more of one thing may force you to have less of another, for example higher ethical standards might mean less profit

• Markets

• Comparative advantage

• Trade-offs

• Ethics

Greenpeace, Campaign Against Arms Trade and Corporate Watch are examples of what?

• Public Limited Companies

• Pressure groups

• Trade unions

• Multinational companies

Methods of production which can be continued in the long term without damage to the environment

• Public sector

• Charities

• Sustainability

• Nationalised industry

Co-op stores are built on a foundation of what?

• Capitalism

• Profit maximisation at any cost

• Break even only

• Social responsibility

These arise when a business’s activities result in harmful effects on other people not directly involved in production

• External costs

• Private costs

• Social costs

• Variable costs

The publication of a business’s environmental performance to the general public

• Environmental reporting

• Sustainability

• Environmental responsibility

• Recycling