Ethics

Overview

Stakeholder conflicts, pay and working conditions, emissions and waste disposal, exploitation of labour in supply chains, and misleading marketing.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is meant by stakeholder conflicts in a business context?

   Model answer

   Situations where the interests of different stakeholder groups (shareholders, employees, customers, suppliers, local communities, governments) are incompatible, forcing businesses to make ethical trade-offs.

2. 2

   Explain the common stakeholder conflict that exists between shareholders and employees.

   Model answer

   Shareholders seek profit maximisation, while employees seek higher wages and better working conditions. These goals are often incompatible as higher wages reduce profits.

3. 3

   How might stakeholder conflicts arise between shareholders and environmental groups?

   Model answer

   Shareholders may prioritise short-term returns, while communities and pressure groups demand long-term environmental sustainability, creating tension between profit and environmental responsibility.

4. 4

   State three ethical considerations regarding pay in global businesses.

   Model answer

   Whether wages meet living wage standards, equal pay for equal work, and fair distribution of rewards between executives and workers.

5. 5

   What does 'living wage standards' mean as an ethical pay consideration?

   Model answer

   Whether the wages paid are sufficient for workers to afford a basic but decent standard of living, rather than just meeting minimum legal requirements.

6. 6

   Identify four elements that constitute ethical working conditions.

   Model answer

   Safe working environments, reasonable working hours, job security, and respect for workers' rights to organise.

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