6.1 Ethical and environmental considerations GapFill

In business there may be situations where the owners need to choose between profits and ethical or environmental considerations.  We call this dilemma a  trade-off union trade-in barter .

Ethics means the understanding of right and wrong, and an ethical business understands what the right decisions are.  For example, a business can choose to pay its workers in poorer countries fair wages or it can exploit them in  sweatshops shops offices factories .  These choices will have an impact on   gains earnings profits income .  Paying workers fair wages and making sure they have good working conditions will be expensive, and this will have an impact on costs and on the profits of a business.

Some big   international organisation multinationals corporation (MNCs) such as Nike have been accused of being unethical in the way that they produce their products.  Some companies have used child labour, forced labour or slave   toil employment work labour in their supply chain in order to keep costs down.  Some multinationals make false claims in their advertising or marketing.

Environmental considerations concern decisions about the   star planet mars universe .  Again, multinationals such as Nestlé have been accused of being the cause of deforestation and climate change in their pursuit of palm oil as a raw material for their products.

Pressure groups such as Greenpeace can have an impact on the way that a company does business.  They carry out   elections expeditions campaigns reforms which aim to damage the brand until the company changes the product.  Some  pressure coerce force push groups may persuade customers to   reject walkout boycott protest (stop buying) products so that the business will feel pressure to change the product.  For example, John West Tuna now uses the pole and line method to catch its tuna rather than using nets which were harmful to dolphins.