Question 1: Define the term 'ethical business practice'.

Answer: An ethical business practice is a way of operating that is morally right, fair, and honest, respecting the rights of all stakeholders.

Question 2: Give two examples of ethical considerations a clothing retailer might face when sourcing products.

Answer: 1. Ensuring suppliers pay fair wages to workers. 2. Using environmentally sustainable materials.

Question 3: Explain why a business might choose to be environmentally sustainable even if it costs more initially.

Answer: Because it demonstrates corporate social responsibility, improves reputation, and can lead to long-term savings and customer loyalty.

Question 4: Identify one potential ethical issue that might arise if a company decides to cut costs by reducing employee wages.

Answer: It could be considered unfair or exploitative, harming employee wellbeing and damaging the company's reputation.

Question 5: Describe how a business can demonstrate ethical behaviour towards its customers.

Answer: By providing honest information about products, ensuring safety standards are met, and not misleading customers.

Question 6: Discuss the importance of ethics for a small local business versus a large multinational corporation.

Answer: Ethics are important for all businesses as they build trust and reputation. For small businesses, ethics can lead to strong community support, while for multinationals, they can prevent legal issues and global criticism.

Question 7: Sketch a poster promoting ethical trading practices that a business could display in its shop or workplace.

Answer: A clear, eye-catching poster with messages like 'We trade ethically', images of fair trade symbols, and brief statements about fair wages and sustainable sourcing.

Question 8: Draw a simple diagram illustrating the relationship between a business's ethical policies and customer trust. Label the key parts.

Answer: A flowchart with 'Ethical Policies' leading to 'Customer Trust', illustrating that strong ethical policies increase customer trust.

Question 9: Explain how transparency about business practices can influence consumer perceptions of ethics.

Answer: Transparency helps consumers see that a business is honest and fair, which can improve its reputation and encourage customer loyalty.

Question 10: Identify one challenge a business might face when trying to implement more ethical practices.

Answer: Increased costs or complexity in supply chain management.

Question 11: What might happen to a business’s reputation if it is found to have acted unethically?

Answer: It could lead to a loss of customer trust, negative publicity, and a decline in sales or legal consequences.