Ethical and Environmental Considerations

Ethical and Environmental Considerations

• Ethical considerations involve making decisions that are morally right and fair. In business, this could include fair trade, treating employees well, and honest marketing.

• Environmental considerations involve businesses taking responsibility for their impact on the environment. This can include procedures to reduce waste, using renewable energy, and minimising carbon footprint.

• Businesses may choose to act ethically and environmentally responsible because it enhances their reputation, appeals to particular customers, and can make financial sense long-term.

• However, ethical and environmental choices may initially be more expensive. For example, sourcing Fairtrade products often costs more and installing renewable energy systems requires significant investment.

• Legislation also influences the ethical and environmental decisions of a business. Laws about minimum wage, workplace safety and environmental regulations are examples that businesses must comply with.

• Stakeholders (those who have an interest in the business like employees, customers, shareholders) often hold power to pressure businesses into behaving more ethically or environmentally friendly.

• The use of ethical and environmental audits can help businesses review their performance and make improvements. These audits identify areas of strength and weakness, allowing for changes to be made.

• Codes of conduct can be used within businesses to ensure ethical behaviour. These codes provide guidelines on appropriate behaviour and actions within the business.

• Consumer ethics play a part as well. Socially-conscious consumers are more likely to support businesses that align with their own personal ethical and environmental standards.

• Finally, external factors such as pressure from NGOs (Non-Governmental Organizations), media attention and public opinion can influence a business’s ethical and environmental considerations.