GCSE Business Revision — Environmental & Ethical Issues
Revise Environmental & Ethical Issues for GCSE Business with a topic explanation, worked example and common mistakes. Check the board notes for specification differences.
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What is Environmental & Ethical Issues?
Ethical issues in business involve considering what is morally right and wrong in decision-making, going beyond legal requirements. Environmental issues concern the impact of business activities on the natural world, such as pollution and resource depletion, leading to a focus on sustainability.
Board notes: Covered by all major boards (AQA, Edexcel, OCR). This topic requires students to think critically about the potential conflicts between profit and ethics/environmental responsibility. Students should be able to analyse business decisions from different stakeholder perspectives.
Step-by-step explanationWorked examples
Worked example
A clothing brand makes a trade-off. It could source its cotton from a supplier that uses cheap, polluting pesticides (bad for the environment) and pays its workers very low wages (unethical). Instead, it chooses to pay 20% more for organic, Fairtrade cotton. This increases its costs but improves its ethical and environmental reputation, which it uses in its marketing to attract customers.
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Start with low-focus cards for Environmental & Ethical Issues, then move into full exam-style practice when you want the heavier session.
Common mistakes
- 1Confusing ethical with legal. An action can be legal but still be considered unethical by society (e.g., paying very low wages in a developing country, even if it's above the legal minimum there).
- 2Thinking being ethical and environmentally friendly is always more expensive. While there can be initial costs (e.g., installing solar panels), reducing waste, saving energy, and building a positive brand image can lead to long-term cost savings and increased sales.
- 3Viewing sustainability as just about recycling. Sustainability involves balancing economic, environmental, and social factors to ensure that the needs of the present can be met without compromising the ability of future generations to meet their own needs.
Environmental & Ethical Issues exam questions
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Frequently asked questions
What is a business trade-off?
A trade-off is a situation where a business has to make a choice between two or more conflicting objectives. For example, choosing between the lowest cost supplier and the most ethical supplier is a common trade-off.
What does sustainability mean for a business?
Sustainability means a business operates in a way that does not negatively affect the environment or society. It aims to be profitable while also protecting the planet and treating people fairly for the long term.