Question 1: Define what is meant by an 'ethical business decision'.

Answer: An ethical business decision is one that is made based on what is morally right and fair, considering the impact on society, customers, and the environment.

Question 2: Give two examples of ethical practices a business might follow to be socially responsible.

Answer: Examples include using environmentally friendly materials and ensuring fair wages for employees.

Question 3: Explain why a business might choose to act ethically even if it costs more money.

Answer: A business might act ethically to build a good reputation, gain customer trust, and ensure long-term success, which can outweigh short-term costs.

Question 4: Describe a situation where a business might face an ethical dilemma. Include what the dilemma involves.

Answer: An ethical dilemma could involve a business deciding whether to sell a product that is profitable but harmful to the environment or to stop selling it to protect the environment, even if it reduces profits.

Question 5: Identify two possible negative consequences for a business that ignores ethical considerations.

Answer: Possible negative consequences include damage to the business’s reputation and loss of customer trust.

Question 6: Sketch a simple flowchart showing the steps a business might take to ensure its decisions are ethical.

Answer: A correct sketch would include steps such as: 1. Identify the decision, 2. Consider the impact on stakeholders, 3. Evaluate options based on ethics, 4. Make an ethical decision, 5. Review the outcome.

Question 7: List three stakeholders who are affected by a business’s ethical decisions.

Answer: Customers, employees, and the local community.

Question 8: Explain how consumer awareness of ethical issues can influence a business’s policies.

Answer: Consumers becoming aware of ethical issues can pressure businesses to adopt responsible practices, as they prefer to buy from companies that are ethical, which can lead to increased sales and a better reputation.

Question 9: Describe what a business might do to demonstrate its commitment to ethics to its customers.

Answer: A business might publish a code of conduct, participate in ethical campaigns, or ensure transparent communication about its practices.

Question 10: Draw a diagram illustrating the relationship between ethics, business decisions, and stakeholder interests.

Answer: A correct diagram would show ethics at the core, with arrows pointing to business decisions, which then connect to stakeholder interests, emphasizing the influence of ethics on decision-making and stakeholder impacts.