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

Answer: An ethical business practice is one that is morally right and fair, such as honest advertising, treating employees well, and not harming the environment.

Question 2: Give an example of a business decision that could be considered unethical and explain why.

Answer: An example is a company dumping waste illegally to save costs. It is unethical because it damages the environment and is against the law.

Question 3: Why is it important for businesses to act ethically? List two reasons.

Answer: Firstly, ethical actions build trust with customers and the community. Secondly, acting ethically can prevent legal issues and penalties.

Question 4: Describe how a business might demonstrate ethical behaviour towards its employees.

Answer: A business can demonstrate ethical behaviour by paying fair wages, providing safe working conditions, and respecting employees' rights.

Question 5: Explain what a company might do if it discovers that a product has a safety fault after it has been sold.

Answer: The company should recall the faulty products, inform customers, and take steps to fix the issue to ensure safety and maintain trust.

Question 6: What are two possible negative consequences for a business that does not act ethically?

Answer: Loss of customer trust and damage to the company's reputation are two possible negative consequences.

Question 7: Sketch a simple logo for a business that wants to promote its commitment to ethical practices. Use the large blank space provided.

Answer: A correct sketch would include a logo that features symbols like a leaf, a handshake, or a heart, indicating care for the environment or community.

Question 8: Describe a situation where a business might face a dilemma between making profit and acting ethically.

Answer: A business might consider cutting corners to reduce costs and increase profits, but this could harm customers or the environment, creating an ethical dilemma.

Question 9: Identify one way that consumers can influence businesses to act more ethically.

Answer: Consumers can choose to buy from ethical businesses and boycott companies that act unethically.

Question 10: Explain how social media can impact a business’s reputation if it acts unethically.

Answer: Social media can quickly spread negative news about unethical behaviour, damaging the business’s reputation and reducing sales.