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and local communities that have an interest in, or are affected by, a business."},{"text":"Competitors","correct":false,"explanation":"Competitors are rival businesses offering similar products or services. The correct term is stakeholders, because it includes anyone with an interest in or affected by the business."},{"text":"Shareholders","correct":false,"explanation":"Shareholders own part of a company, but they are only one type of interested group. The broader term stakeholders includes employees, customers, suppliers and communities too."},{"text":"Entrepreneurs","correct":false,"explanation":"Entrepreneurs start or run businesses, so they may be stakeholders but are not the general term for all interested groups or individuals. The correct answer is stakeholders."}]},{"id":"e46aa18e-bcc3-4ae2-85b5-f1f72573d413","cardType":"cloze","points":null,"front":"An ethical consideration asks whether a decision is [ ], not just [ ].","back":"An ethical consideration asks whether a decision is morally right or fair, not just legal or profitable.","mcqOptions":[{"text":"An ethical consideration asks whether a decision is morally right or fair, not just legal or profitable.","correct":true,"explanation":"Ethical decisions consider fairness and moral principles, rather than relying only on whether an action follows the law or increases profit for the business."},{"text":"An ethical consideration asks whether a decision is legal or profitable, not just morally right or fair.","correct":false,"explanation":"This reverses the distinction: legality and profit may be business considerations, but ethics focuses on whether a decision is morally right or fair."},{"text":"An ethical consideration asks whether a decision is popular or efficient, not just morally right or fair.","correct":false,"explanation":"Popularity and efficiency do not define an ethical decision. The correct distinction is between being morally right or fair and being merely legal or profitable."},{"text":"An ethical consideration asks whether a decision is environmentally safe or sustainable, not just legal or profitable.","correct":false,"explanation":"Environmental effects are a related but separate consideration. Ethics asks whether the decision is morally right or fair, rather than only legal or profitable."}]},{"id":"09913412-fc9c-408b-a414-febdb0fc36c7","cardType":"cloze","points":null,"front":"An environmental consideration asks how a decision affects the [ ].","back":"An environmental consideration asks how a decision affects the natural world.","mcqOptions":[{"text":"natural world","correct":true,"explanation":"Environmental considerations examine how business decisions affect nature, including ecosystems, resources, pollution levels and the wider surroundings in which people and other organisms live."},{"text":"local economy","correct":false,"explanation":"A local economy concerns incomes, employment and spending in an area. The environmental impact of a decision is assessed by considering the natural world instead."},{"text":"business reputation","correct":false,"explanation":"Business reputation may change because of environmental behaviour, but it is an outcome rather than the environment itself. The correct answer is the natural world."},{"text":"workforce","correct":false,"explanation":"The workforce refers to the people employed by a business. Environmental considerations focus on effects on the natural world, such as pollution, habitats and resource use."}]},{"id":"d18b0d2a-9b4e-40a8-bd0d-f448626d63aa","cardType":"basic","points":2,"front":"Why can ethical and environmental issues affect business performance?","back":"

Reward through buying, job applications or investment.
Punish through complaints, bad reviews or not buying.

","mcqOptions":[{"text":"

Reward through buying, job applications or investment.
Punish through complaints, bad reviews or not buying.

","correct":true,"explanation":"Ethical and environmental behaviour can attract customers, employees and investors, while poor behaviour can lead stakeholders to complain, leave negative reviews or stop buying."},{"text":"

Reward through lower taxes, cheaper loans or grants.
Punish through higher wages, more sales or expansion.

","correct":false,"explanation":"These outcomes are not the usual direct stakeholder responses. The correct answer is that stakeholders may reward good behaviour through support and punish poor behaviour through complaints or refusing to buy."},{"text":"

Reward through higher prices, fewer products or closures.
Punish through job applications, investment or loyalty.

","correct":false,"explanation":"This reverses the likely effects: support such as buying, applying for jobs or investing rewards a business, while complaints and refusing to buy punish it."},{"text":"

Reward through regulations, inspections or fines.
Punish through positive reviews, recruitment or investment.

","correct":false,"explanation":"Regulations, inspections and fines are mainly enforcement mechanisms, not rewards. Positive reviews, recruitment and investment support a business, whereas complaints and non-purchase create pressure."}]},{"id":"f64a9edc-6f12-486e-835a-d19e17cbf7a4","cardType":"basic","points":1,"front":"What is the immediate financial effect of ethical decisions such as higher pay?","back":"Costs rise.","mcqOptions":[{"text":"Costs rise.","correct":true,"explanation":"Paying workers more immediately increases the business’s wage expenditure, so costs rise before any possible longer-term benefits such as improved motivation or lower turnover."},{"text":"Costs fall.","correct":false,"explanation":"Higher pay directly increases wage expenditure rather than reducing it. The correct immediate effect is that costs rise, even if later benefits might offset some costs."},{"text":"Revenue rises.","correct":false,"explanation":"Higher pay does not immediately increase sales revenue; it directly affects expenditure. The correct immediate financial effect is rising costs, while revenue changes are uncertain."},{"text":"Profit rises.","correct":false,"explanation":"Profit may fall initially because higher wages increase costs, unless later benefits compensate. The immediate effect asked for is that costs rise."}]},{"id":"2d0e10f4-c7f2-42e3-945c-1e732838d1cb","cardType":"basic","points":1,"front":"What can fair treatment of workers reduce?","back":"Labour turnover.","mcqOptions":[{"text":"Labour turnover.","correct":true,"explanation":"Fair treatment can improve job satisfaction and encourage employees to stay, reducing the rate at which workers leave and need to be replaced."},{"text":"Market share.","correct":false,"explanation":"Market share measures the proportion of total sales held by a business. Fair worker treatment may influence it indirectly, but the direct reduction is in labour turnover."},{"text":"Product quality.","correct":false,"explanation":"Fair treatment may improve quality indirectly through motivation, but it does not directly measure employees leaving. The correct answer is labour turnover."},{"text":"Sales revenue.","correct":false,"explanation":"Sales revenue is income from selling products or services. Fair treatment can affect revenue indirectly, but the direct workforce outcome is reduced labour turnover."}]},{"id":"6ddfe0aa-fa08-448c-9b06-9c3e0b99909c","cardType":"basic","points":1,"front":"If labour turnover falls, which cost is likely to fall?","back":"Recruitment costs.","mcqOptions":[{"text":"Recruitment costs.","correct":true,"explanation":"When fewer employees leave, the business needs to advertise, interview and appoint replacements less often, so recruitment costs are likely to fall."},{"text":"Production costs.","correct":false,"explanation":"Production costs cover making goods or delivering services and may not fall when staff leave less often. The direct saving is on recruitment costs."},{"text":"Marketing costs.","correct":false,"explanation":"Marketing costs promote products and attract customers, not replacement employees. Lower labour turnover reduces the need to recruit, so recruitment costs are likely to fall."},{"text":"Raw material costs.","correct":false,"explanation":"Raw material costs depend on the inputs used in production. They are not directly determined by how often employees leave; recruitment costs are the likely saving."}]},{"id":"3009dd44-e2b0-4b08-b512-6c84f981e8ec","cardType":"basic","points":1,"front":"In the café example, what operational improvement can staff training cause?","back":"Staff make fewer mistakes.","mcqOptions":[{"text":"Staff make fewer mistakes.","correct":true,"explanation":"Training develops employees’ skills and understanding, helping them carry out café tasks more accurately and reducing errors in orders, preparation or customer service."},{"text":"Staff make more mistakes.","correct":false,"explanation":"Training is intended to improve employees’ skills and accuracy, so it should reduce rather than increase errors. The correct outcome is fewer mistakes."},{"text":"Staff need more supervision.","correct":false,"explanation":"Effective training should make staff more capable and independent, reducing the need for close supervision. In the café example, the operational improvement is fewer mistakes."},{"text":"Staff work fewer hours.","correct":false,"explanation":"Training does not necessarily change the number of hours employees work. Its operational benefit in the café example is improved accuracy, meaning fewer mistakes."}]},{"id":"21c5b4fe-ab06-4665-b687-7d819761662e","cardType":"cloze","points":null,"front":"The [ ] is the network of businesses involved in producing and delivering a product.","back":"The supply chain is the network of businesses involved in producing and delivering a product.","mcqOptions":[{"text":"supply chain","correct":true,"explanation":"A supply chain is the network of businesses involved in making, transporting and delivering a product, from obtaining materials through to reaching the final customer."},{"text":"distribution channel","correct":false,"explanation":"A distribution channel describes how a product reaches customers, but the wider network of businesses involved in producing and delivering it is called the supply chain."},{"text":"market segment","correct":false,"explanation":"A market segment is a group of customers with similar characteristics or needs. It does not describe the businesses involved in producing and delivering a product."},{"text":"production target","correct":false,"explanation":"A production target is the planned amount a business aims to make. The network of businesses involved in production and delivery is the supply chain."}]},{"id":"23404c05-c475-4117-bcf3-52ccd015be49","cardType":"basic","points":1,"front":"What supply-chain risk can unfair supplier treatment create?","back":"Suppliers may leave.","mcqOptions":[{"text":"Suppliers may leave.","correct":true,"explanation":"Unfair treatment can make suppliers unwilling to continue working with the business, causing them to leave and forcing the business to find replacements."},{"text":"Suppliers may expand.","correct":false,"explanation":"Unfair treatment is unlikely to encourage suppliers to expand their relationship with the business. The relevant risk is that suppliers may leave because they are dissatisfied."},{"text":"Suppliers may advertise.","correct":false,"explanation":"Advertising is not the main supply-chain risk caused by unfair treatment. Suppliers may instead leave, potentially disrupting production and deliveries."},{"text":"Suppliers may merge.","correct":false,"explanation":"Merging is not the typical consequence of being treated unfairly by a customer. Suppliers may leave the relationship, creating difficulty finding reliable replacements."}]},{"id":"b6d13b8f-d924-4934-887b-017c9ca2a1e1","cardType":"basic","points":1,"front":"How can unfair supplier treatment affect product quality?","back":"Suppliers may reduce quality.","mcqOptions":[{"text":"Suppliers may reduce quality.","correct":true,"explanation":"Unfair treatment can reduce suppliers’ motivation to meet high standards, so they may use cheaper materials or less care and reduce the quality of supplied products."},{"text":"Suppliers may increase quality.","correct":false,"explanation":"Unfair treatment normally damages suppliers’ motivation rather than improving it. The likely effect is reduced quality as suppliers cut corners or lower their effort."},{"text":"Suppliers may reduce prices.","correct":false,"explanation":"Lower prices do not directly explain the product-quality risk from unfair treatment. Suppliers may reduce quality instead, for example by using cheaper materials."},{"text":"Suppliers may increase output.","correct":false,"explanation":"Increasing output is not the likely quality consequence of unfair treatment. Suppliers may reduce quality when they feel undervalued or pressured by the buyer."}]},{"id":"b7423581-905f-4223-a20f-608ffd79fcfd","cardType":"basic","points":1,"front":"What should a mobile phone business make clear to treat customers ethically?","back":"Contract charges.","mcqOptions":[{"text":"Contract charges.","correct":true,"explanation":"Making contract charges clear helps customers understand the total cost and avoid unexpected fees, which supports honest and ethical treatment by the mobile phone business."},{"text":"Staff bonuses.","correct":false,"explanation":"Staff bonuses are an internal employment matter, not the key information customers need from a mobile phone contract. The business should clearly explain contract charges."},{"text":"Warehouse locations.","correct":false,"explanation":"Warehouse locations are not normally important contractual information for mobile phone customers. Ethical treatment requires clear information about the charges they will pay."},{"text":"Supplier profits.","correct":false,"explanation":"Customers do not usually need to know suppliers’ profits to understand their mobile phone agreement. The business should make contract charges clear before customers commit."}]},{"id":"3cd7d868-91df-4115-bf8f-7ac96d188e59","cardType":"basic","points":1,"front":"What can ethical treatment of customers strengthen?","back":"Brand image.","mcqOptions":[{"text":"Brand image.","correct":true,"explanation":"Ethical treatment can make customers view the business as honest and responsible, strengthening its brand image and potentially encouraging loyalty and repeat purchases."},{"text":"Production waste.","correct":false,"explanation":"Ethical customer treatment does not directly strengthen production waste; waste is an environmental or operational issue. It can instead improve how customers perceive the brand."},{"text":"Import tariffs.","correct":false,"explanation":"Import tariffs are taxes on goods brought into a country and are not strengthened by ethical customer treatment. Ethical behaviour can strengthen the brand image."},{"text":"Supplier turnover.","correct":false,"explanation":"Supplier turnover concerns how often suppliers are replaced and is mainly affected by supplier relationships. Ethical customer treatment primarily strengthens the brand image."}]},{"id":"506831f3-0a6a-4986-a81d-f2aa69ad2df0","cardType":"basic","points":1,"front":"What customer-data problem could damage an online retailer's trust?","back":"A data breach.","mcqOptions":[{"text":"A data breach.","correct":true,"explanation":"A data breach can expose customers’ personal or payment information, damaging confidence in the online retailer and reducing trust in its ability to protect data."},{"text":"A sales forecast.","correct":false,"explanation":"A sales forecast estimates future sales and is not normally visible to customers or a direct threat to their information. A data breach could damage trust."},{"text":"A stock rotation.","correct":false,"explanation":"Stock rotation is the process of selling older inventory first. It may affect operations, but it does not expose customer information or directly damage data trust."},{"text":"A pricing strategy.","correct":false,"explanation":"A pricing strategy may affect customer satisfaction, but it is not the customer-data problem described. A data breach can expose sensitive information and damage trust."}]},{"id":"df46e891-f2ed-4e5e-a517-bd0f5d1530e9","cardType":"basic","points":2,"front":"Why might ethical sourcing raise production costs?","back":"Suppliers with fairer labour standards may charge more.","mcqOptions":[{"text":"Suppliers with fairer labour standards may charge more.","correct":true,"explanation":"Fairer labour standards can mean higher wages, safer conditions and better worker treatment, increasing suppliers’ costs and therefore the prices they charge the business."},{"text":"Suppliers with larger advertising budgets may charge more.","correct":false,"explanation":"A supplier’s advertising budget does not explain why ethical sourcing raises production costs for the buyer. Fairer labour standards can increase wages and operating costs."},{"text":"Suppliers with more product colours may charge more.","correct":false,"explanation":"Having more product colours is not the ethical reason sourcing costs rise. Fairer labour standards can require extra spending on pay, safety and working conditions."},{"text":"Suppliers with weaker brand recognition may charge more.","correct":false,"explanation":"A supplier’s brand recognition is not the relevant cost pressure here. Ethical sourcing may cost more because fairer labour standards increase the supplier’s production expenses."}]},{"id":"694f0463-b25d-43e1-bd20-f5559be78dce","cardType":"basic","points":2,"front":"When is ethical sourcing more likely worthwhile for a clothing brand?","back":"When customers value quality, trust and values over lowest price.","mcqOptions":[{"text":"When customers value quality, trust and values over lowest price.","correct":true,"explanation":"Ethical sourcing is more worthwhile when customers care about responsible production and are willing to pay for it, allowing the clothing brand to recover its higher costs."},{"text":"When customers value discounts, speed and convenience over lowest price.","correct":false,"explanation":"These priorities do not specifically create demand for ethical sourcing. It is more worthwhile when customers value quality, trust and ethical values enough to accept higher prices."},{"text":"When customers value large quantities, rapid growth and variety over lowest price.","correct":false,"explanation":"These priorities focus on scale and product choice rather than responsible production. Ethical sourcing is more likely worthwhile when customers value quality, trust and values."},{"text":"When customers value seasonal changes, bold designs and promotions over lowest price.","correct":false,"explanation":"Fashion and promotional priorities do not necessarily mean customers will support the extra cost of ethical sourcing. The key is valuing quality, trust and ethical values."}]},{"id":"dcd014ef-9e65-45e2-9d56-b87479ee1928","cardType":"cloze","points":null,"front":"[ ] means making a product or business seem more environmentally friendly than it really is.","back":"Greenwashing means making a product or business seem more environmentally friendly than it really is.","mcqOptions":[{"text":"Greenwashing","correct":true,"explanation":"Greenwashing is the practice of presenting a product or business as more environmentally friendly than it really is, often through misleading claims or selective information."},{"text":"Carbon offsetting","correct":false,"explanation":"Carbon offsetting involves compensating for emissions by supporting environmental projects. The correct term is greenwashing, which means misleadingly making environmental performance appear better than it is."},{"text":"Recycling","correct":false,"explanation":"Recycling means processing used materials so they can be used again. The correct term is greenwashing, which describes misleading environmental claims about a product or business."},{"text":"Conservation","correct":false,"explanation":"Conservation means protecting and managing natural resources. The correct term is greenwashing, where a business exaggerates or misrepresents how environmentally friendly it is."}]},{"id":"70699afe-143c-4d09-8d99-d8c07acecd58","cardType":"cloze","points":null,"front":"Sustainability means using resources to meet [ ] without making it harder for [ ] to meet theirs.","back":"Sustainability means using resources to meet current needs without making it harder for future generations to meet theirs.","mcqOptions":[{"text":"Sustainability means using resources to meet current needs without making it harder for future generations to meet theirs.","correct":true,"explanation":"This is correct because sustainability balances present consumption with the need to preserve resources and environmental quality so that future generations can meet their own needs."},{"text":"Sustainability means using resources to meet future needs without making it harder for current generations to meet theirs.","correct":false,"explanation":"The generations have been reversed. Sustainability focuses on meeting current needs while protecting resources so future generations can meet theirs."},{"text":"Sustainability means using resources to meet current profits without making it harder for future generations to meet theirs.","correct":false,"explanation":"Sustainability concerns meeting people’s current needs, not simply maximising current profits. The correct definition protects future generations while meeting current needs."},{"text":"Sustainability means using resources to meet current needs without making it harder for future businesses to meet theirs.","correct":false,"explanation":"The second group is too narrow because sustainability considers future generations, not only future businesses. Resources should remain available for people in the future generally."}]},{"id":"c36a019c-f21e-4761-bef5-03d8402c8d44","cardType":"basic","points":1,"front":"What sustainable supplier choice can reduce transport emissions?","back":"Choosing local suppliers.","mcqOptions":[{"text":"Choosing local suppliers.","correct":true,"explanation":"Local suppliers are usually closer to the business, so goods travel fewer miles. This can reduce fuel use and transport emissions compared with using distant suppliers."},{"text":"Choosing overseas suppliers.","correct":false,"explanation":"Overseas suppliers generally require longer transport distances, increasing fuel use and emissions. Choosing local suppliers is the sustainable option because it reduces delivery distances."},{"text":"Choosing the cheapest suppliers.","correct":false,"explanation":"The cheapest supplier may be located far away and may not use environmentally responsible transport. Choosing local suppliers more directly reduces transport emissions."},{"text":"Choosing the largest suppliers.","correct":false,"explanation":"A supplier’s size does not necessarily determine how far goods travel or how much transport pollution is produced. Local suppliers can reduce emissions through shorter journeys."}]},{"id":"29ef0a85-8f2b-4344-b75a-9ceec2757e2d","cardType":"basic","points":1,"front":"What legal consequence can poor waste disposal cause?","back":"Fines.","mcqOptions":[{"text":"Fines.","correct":true,"explanation":"Businesses that dispose of waste improperly may break environmental laws and receive fines from the relevant authorities as a legal penalty."},{"text":"Warnings.","correct":false,"explanation":"A warning may sometimes be given, but the legal consequence identified here is fines. Fines are financial penalties imposed for breaking waste-disposal regulations."},{"text":"Tax rebates.","correct":false,"explanation":"Tax rebates reduce the amount of tax a business pays and are not a punishment for poor waste disposal. The relevant legal consequence is fines."},{"text":"Trade discounts.","correct":false,"explanation":"Trade discounts reduce purchase prices and are unrelated to legal enforcement. Poor waste disposal can instead lead to fines for breaking environmental regulations."}]},{"id":"bbd23b37-12ce-438b-a84f-dfd845e3156e","cardType":"basic","points":2,"front":"Why must an independent garage dispose of oil safely?","back":"Oil can pollute water and soil.","mcqOptions":[{"text":"Oil can pollute water and soil.","correct":true,"explanation":"Used oil contains harmful substances. If it is disposed of incorrectly, it can enter drains or land and contaminate water supplies and soil."},{"text":"Oil can improve water and soil quality.","correct":false,"explanation":"Oil contamination damages ecosystems and can make water and soil unsafe, rather than improving them. Safe disposal prevents this pollution and protects the environment."},{"text":"Oil can reduce noise and air pollution.","correct":false,"explanation":"Incorrectly discarded oil does not reduce noise or air pollution, and it can create environmental hazards. The key risk is pollution of water and soil."},{"text":"Oil can increase wildlife habitats.","correct":false,"explanation":"Oil spills harm plants and animals and can destroy habitats rather than increasing them. Safe disposal is necessary to prevent oil polluting water and soil."}]},{"id":"40bb90c5-355b-4e86-af0e-91ff18133c62","cardType":"basic","points":1,"front":"Which type of pollution can deliveries or machinery cause?","back":"Noise pollution.","mcqOptions":[{"text":"Noise pollution.","correct":true,"explanation":"Deliveries, engines and machinery can create unwanted or excessive sound. This is noise pollution, which may disturb local residents, workers and wildlife."},{"text":"Water pollution.","correct":false,"explanation":"Water pollution occurs when harmful substances enter rivers, lakes or seas. Deliveries and machinery primarily create unwanted sound, known as noise pollution."},{"text":"Light pollution.","correct":false,"explanation":"Light pollution comes from excessive or poorly directed artificial light. The noise from deliveries or machinery is classified as noise pollution instead."},{"text":"Soil pollution.","correct":false,"explanation":"Soil pollution involves contamination of land by harmful substances. Machinery and deliveries mainly produce disruptive sound, so the relevant type is noise pollution."}]},{"id":"2169832c-c921-497d-83d2-49abab85bff2","cardType":"cloze","points":null,"front":"Greenhouse gases such as [ ] trap [ ] in the atmosphere.","back":"Greenhouse gases such as carbon dioxide trap heat in the atmosphere.","mcqOptions":[{"text":"Greenhouse gases such as carbon dioxide trap heat in the atmosphere.","correct":true,"explanation":"Carbon dioxide is a greenhouse gas. Greenhouse gases absorb and re-emit heat in the atmosphere, contributing to the greenhouse effect and global warming."},{"text":"Greenhouse gases such as oxygen trap heat in the atmosphere.","correct":false,"explanation":"Oxygen is not classed as a greenhouse gas. Carbon dioxide is a correct example, and greenhouse gases trap heat in the atmosphere."},{"text":"Greenhouse gases such as carbon dioxide trap sound in the atmosphere.","correct":false,"explanation":"The greenhouse effect concerns heat, not sound. Carbon dioxide is the correct example, and it traps heat in the atmosphere."},{"text":"Greenhouse gases such as nitrogen trap light in the atmosphere.","correct":false,"explanation":"Nitrogen is not a greenhouse gas and the relevant trapped energy is heat, not light. Carbon dioxide trapping heat describes the greenhouse effect."}]},{"id":"e1d220bb-c006-44b0-9151-751ba18d8b10","cardType":"basic","points":2,"front":"How can extreme weather raise a UK food business's costs?","back":"Lower crop yields can raise ingredient costs.","mcqOptions":[{"text":"Lower crop yields can raise ingredient costs.","correct":true,"explanation":"Extreme weather can damage crops and reduce harvests. Scarcer ingredients may then become more expensive, raising the costs faced by a food business."},{"text":"Lower crop yields can lower ingredient costs.","correct":false,"explanation":"Lower yields usually make ingredients scarcer, which tends to increase their prices rather than reduce them. Therefore, lower crop yields can raise ingredient costs."},{"text":"Higher crop yields can raise ingredient costs.","correct":false,"explanation":"Higher yields generally increase supply and can reduce ingredient prices. Extreme weather is more likely to lower yields, making ingredients scarcer and raising costs."},{"text":"Lower crop yields can raise advertising costs.","correct":false,"explanation":"Lower yields directly affect the availability and price of ingredients, not necessarily advertising expenditure. The correct consequence is higher ingredient costs."}]}]}],"examCountdown":{"examDate":"2027-05-12","paperLabel":"Paper 1"},"heading":"Ethical and environmental considerations","title":"Ethical and environmental considerations Flashcards","topbar":{"backHref":"/gcse/business/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"2f1664b0-b27d-5014-aa71-6b0c069bc391","walled":"$L39"}],"$L3a","$L3b"]