1.3.3BM SL20 flashcards

Ethical objectives and CSR

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Question

What is meant by ethical objectives?

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All 20 Flashcards — Ethical objectives and CSR

Card 1example

Question

What is meant by ethical objectives?

Answer

Ethical objectives involve doing the right thing: treating people fairly, being honest, and minimising harm.

💡 Hint

Ethics = right thing, not just profit.

Card 2example

Question

Define Corporate Social Responsibility (CSR).

Answer

CSR is when a business voluntarily goes beyond legal requirements to benefit society and the environment.

💡 Hint

CSR = beyond the law, voluntary.

Card 3example

Question

State one immediate impact of unethical behaviour on a business.

Answer

Reputation damage and negative publicity, which can quickly reduce sales.

💡 Hint

Short-term impact: reputation and sales.

Card 4example

Question

Ethical objectives mean doing the ______ thing.

Answer

Right.

💡 Hint

One word: right.

Card 5example

Question

State two common ethical issues in business.

Answer

Fair treatment of workers and ethical sourcing (avoiding child labour or exploitation).

💡 Hint

Pick 2: workers, marketing honesty, environment, data privacy, sourcing.

Card 6example

Question

CSR means going beyond ______ requirements.

Answer

Legal.

💡 Hint

CSR = beyond the law.

Card 7example

Question

State two examples of CSR actions.

Answer

Reducing carbon footprint (e.g. renewable energy) and supporting local communities (e.g. training or sponsorships).

💡 Hint

CSR examples: environment + community.

Card 8example

Question

How can unethical behaviour affect employees?

Answer

Staff morale can drop because employees feel embarrassed or unfairly treated, reducing motivation and productivity.

💡 Hint

Morale and motivation fall.

Card 9example

Question

State one consequence of ethical failures.

Answer

Loss of stakeholder trust and long-lasting reputation damage.

💡 Hint

Trust is hard to rebuild.

Card 10example

Question

Why do businesses adopt CSR? Give one reason.

Answer

To improve reputation and customer loyalty (ethical behaviour attracts and retains customers).

💡 Hint

CSR often strengthens the brand.

Card 11example

Question

Give one long-term impact of ethical failures on recruitment.

Answer

Talented applicants may avoid the business, making it harder and more expensive to recruit.

💡 Hint

Reputation affects hiring.

Card 12example

Question

Why might ethical objectives increase costs in the short term?

Answer

Because fair wages, safer conditions, and certified suppliers often cost more than minimum legal standards.

💡 Hint

Ethics can raise costs short-term.

Card 13example

Question

Give one example of ethical sourcing.

Answer

Choosing suppliers that can prove fair labour standards and no child labour, even if the inputs cost more.

💡 Hint

Ethical supply chain.

Card 14example

Question

How can CSR reduce risk for a business?

Answer

Ethical practices lower the chance of scandals, lawsuits, fines, and damaging media attention.

💡 Hint

CSR = risk management.

Card 15example

Question

Why can CSR support long-term profitability?

Answer

It can increase loyalty, strengthen brand reputation, and improve employee motivation, reducing costs linked to turnover and crises.

💡 Hint

Long-term brand + loyalty effects.

Card 16example

Question

Why can unethical behaviour reduce shareholder value?

Answer

Fines, legal costs and falling sales reduce profits, and investors may sell shares, lowering the share price.

💡 Hint

Profit drop + investor confidence.

Card 17example

Question

Exam rule: When discussing ethics/CSR, what should you always do?

Answer

Apply the point to the specific business and name the stakeholders affected.

💡 Hint

Apply + stakeholders.

Card 18example

Question

Exam skill: In an “ethical impacts” question, what should you always include?

Answer

At least 2 stakeholder groups and a clear explanation of how each is affected in the given business context.

💡 Hint

Stakeholders + applied impact.

Card 19example

Question

Explain “doing well by doing good” in a CSR context.

Answer

CSR can improve long-term profits through stronger reputation, loyalty, and motivated employees, even if it costs more initially.

💡 Hint

Long-term gains from ethical behaviour.

Card 20example

Question

In exams, what is the best way to score on ethics questions?

Answer

Identify the stakeholder(s) affected and explain the impact on the specific business in the scenario.

💡 Hint

Stakeholders + application.

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