6 - External Influences

Question 1

What is the partnership Act?

Answer 1

Governs the rights and duties of people

Question 2

6.1 As an employer, how can you act ethically?

Answer 2

Not exploiting workforce, no child labour, pay above minimum wage, living wage, fair working practices.

Question 3

6.1 As a trader, how can you act ethically?

Answer 3

• Fair trade

- Fair prices

Question 4

6.1 As a business, how can they be environmentally friendly?

Answer 4

Recycle, reduce carbon emissions, manage waste, cut down on transport miles and energy used.

Question 5

If an individual falls over and injures themselves at work, what act would cover this?

Answer 5

The Health And Safety At Work Act

Question 6

What is the equality act

Answer 6

A law which protects you from discrimination and unfair treatment

Question 7

What year was the Companies Act set up?

Answer 7

2006

Question 8

What is the purpose of the Companies Act?

Answer 8

Provide for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions.

Question 9

What are the main factors of Employee Protection?

Answer 9

Health And Safety At Work Act, Equality Act, Working Time Directive, National Minimum Wage Act

Question 10

What is the Working Time Directive?

Answer 10

Setting minimum requirement for working hours, rest periods and annual leave

Question 11

6.1 What are the advantages of businesses not working ethically?

Answer 11

• They will be able to maximise profits

- They will be able to get more material and products, as they won’t have to find an ethical supplier

Question 12

6.1 What are the disadvantages of a business not working ethically?

Answer 12

• Customers won’t want to shop at that business

- Profits might decrease

Question 13

6.1 What are the advantages of a business acting ethically?

Answer 13

• Higher revenues – Demand from positive consumer support
• Improved brand image
• Business awareness and recognition
• Better employee motivation and recruitment
• New sources of finance – e.g. from ethical investors

Question 14

6.1 What are the disadvantages of a business acting ethically?

Answer 14

• Higher costs – e.g. sourcing from Fairtrade suppliers rather than lowest price, training & communication of ethical policy
• A danger of building up false expectations

Question 15

6.1 Some businesses organise corporate social responsibility (CSR) activities, give examples

Answer 15

• Charitable donations
• Humanitarian aid
• Health and welfare schemes
• Sponsorship of sport/educational/cultural events

Question 16

What is the national minimum wage act?

Answer 16

A wage which is payed to employees at the lowest amount