How can a business treat its workers ethically?

An ethical employer pays a fair wage, provides safe working conditions and treats staff with respect. Some employers choose to pay the voluntary Real Living Wage, set above the legal minimum.

How can a business treat its suppliers ethically?

An ethical business pays suppliers a fair price and pays on time. A large buyer does not use its power to force small suppliers into unfair terms.

How can a business treat its customers ethically?

An ethical business sells safe products at honest prices, with clear information. An ethical business does not mislead customers or exploit vulnerable groups.

What is ethical sourcing of materials?

Ethical sourcing means buying materials from suppliers that treat workers fairly and do not harm the environment. A business checks its supply chain for child labour and unsafe factories.

What is Fairtrade, and why do some businesses sell Fairtrade products?

Fairtrade guarantees producers in developing countries a minimum price and an extra premium for community projects. Fairtrade products show customers that a business sources ethically.

OCR GCSE Business J204

Business Activity

Topic overview Enterprise and entrepreneurship Business planning and the business plan Sole traders, partnerships and limited companies Business aims and objectives Internal and external stakeholders Organic and external growth How business functions depend on each other

Marketing

Topic overview The purpose of marketing Primary and secondary market research Market segmentation Product design and the product life cycle Pricing methods Point of sale promotion and advertising Place and the marketing mix

People

Topic overview The role of human resources Organisational structures and ways of working Communication in business Recruitment and selection Employee motivation and retention Training and staff development Employment law

Operations

Topic overview Production processes Quality of goods and services The sales process and customer service Consumer law Business location Procurement and choosing suppliers Logistics and supply chains

Finance

Topic overview The role of the finance function Sources of finance Revenue, costs, profit and loss Break-even Cash, liquidity and profit Cash flow forecasts

Influences on Business

Topic overview Ethical and environmental considerations The economic climate Globalisation and multinational companies International branding and competition

Influences on Business

Ethical and environmental considerations

3 things to know
Component 02

Overview

Ethical treatment of workers, suppliers and customers, ethical sourcing and Fairtrade, unethical marketing, sustainability, waste, pollution, climate change, carbon footprints and pressure groups.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What does ethical treatment of workers look like in a business?

Key term

How can a business treat its suppliers and customers ethically?

Key term

What does it mean for a business to act ethically?

Questions from this subtopic

Each one with the model answer underneath.

1
What does it mean for a business to act ethically?
Model answer
An ethical business does what is morally right, not just what is legal or most profitable. An ethical business treats workers, suppliers and customers fairly.
2
How can a business treat its workers ethically?
Model answer
An ethical employer pays a fair wage, provides safe working conditions and treats staff with respect. Some employers choose to pay the voluntary Real Living Wage, set above the legal minimum.
3
How can a business treat its suppliers ethically?
Model answer
An ethical business pays suppliers a fair price and pays on time. A large buyer does not use its power to force small suppliers into unfair terms.
4
How can a business treat its customers ethically?
Model answer
An ethical business sells safe products at honest prices, with clear information. An ethical business does not mislead customers or exploit vulnerable groups.
5
What is ethical sourcing of materials?
Model answer
Ethical sourcing means buying materials from suppliers that treat workers fairly and do not harm the environment. A business checks its supply chain for child labour and unsafe factories.
6
What is Fairtrade, and why do some businesses sell Fairtrade products?
Model answer
Fairtrade guarantees producers in developing countries a minimum price and an extra premium for community projects. Fairtrade products show customers that a business sources ethically.

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Business Activity

Marketing

People

Operations

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Customers may receive quality.

poorerbetterhigher

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AOwners may gain from higher profit.

BEmployees may lose jobs or face lower pay.

CCustomers may receive poorer quality.

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Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Aim means a broad long-term goal of a business.

TrueFalse

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