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

Answer: An ethical business practice is one that is morally right and fair, respecting the rights of customers, employees, and the wider community.

Question 2: Identify two reasons why a business might choose to operate ethically, even if it increases costs.

Answer: To build trust with customers and to maintain a good reputation, which can lead to increased customer loyalty and long-term success.

Question 3: Explain how a company’s decision to source materials from a supplier that pays fair wages reflects ethical behaviour.

Answer: It demonstrates a commitment to fair treatment of workers, ensuring they receive fair wages, and avoids exploiting labour, which aligns with ethical standards.

Question 4: Describe one potential negative consequence for a business that ignores ethical considerations.

Answer: The business may face negative publicity, loss of customer trust, and a decline in sales, damaging its reputation.

Question 5: Suggest two ways a business can demonstrate its commitment to ethics in its marketing strategies.

Answer: By being honest and transparent about its products and avoiding misleading advertising, and by promoting social or environmental initiatives.

Question 6: Explain what is meant by 'corporate social responsibility' (CSR).

Answer: CSR refers to a business’s efforts to improve society and the environment beyond its legal obligations, showing ethical responsibility.

Question 7: Discuss how ethical considerations can influence a business’s decisions about its suppliers.

Answer: A business may choose suppliers who follow ethical labour practices, ensure environmentally friendly processes, and avoid suppliers involved in unethical activities.

Question 8: Draw a simple flowchart showing the steps a business might take to ensure its operations are ethical.

Answer: A correct flowchart would include steps such as: 1) Establish ethical policies, 2) Train staff, 3) Monitor compliance, 4) Review and improve practices.

Question 9: Sketch a logo or symbol that could represent a business committed to ethical practices.

Answer: A correct sketch might include symbols such as a leaf (environment), a handshake (trust), or a scale (fairness). The design should be simple and convey responsibility.

Question 10: Evaluate the importance of ethical considerations for a new start-up business.

Answer: Ethical considerations are important for building trust with customers and partners, establishing a positive reputation, and avoiding legal or reputational risks that could threaten the start-up’s success.