Ethical and environmental considerations — OCR GCSE Study Guide

Overview

This study guide explores the vital role of ethical and environmental considerations in modern business decision-making. As societal expectations evolve, businesses face increasing pressure to operate responsibly, not just profitably. Examiners expect candidates to understand the inherent conflict between ethical practices and short-term profit maximisation, and to evaluate how long-term benefits—such as brand loyalty and regulatory compliance—often justify these decisions. You will need to apply these concepts to real-world scenarios, understanding how businesses treat workers, source materials, and manage their carbon footprint.

Ethical Considerations

Treatment of Workers

Key Focus: Fair wages, safe conditions, and avoiding exploitation.

Business Impact: Ethical treatment often increases operational costs in the short term. However, it leads to higher employee retention, better motivation, and improved productivity. For example, fast fashion brands face severe reputational damage when exposed for using sweatshops.

Examiner Tip: Always link the treatment of workers back to business costs and staff turnover rates.

Treatment of Suppliers