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Ethical, Legal, Environmental, and Sustainability Issues

Strategic Imperative

Why this matters

The consideration of ethical, legal, environmental, and sustainability issues is increasingly critical in modern business operations. Responsible management of these aspects not only ensures compliance but also builds reputation, stakeholder trust, and long-term viability.

Core Dimensions Overview

These four dimensions guide responsible corporate behavior and risk management.

E

Ethical Issues

Moral principles guiding behaviour towards stakeholders.
L

Legal Issues

Compliance with laws protects the business and its stakeholders.
S

Sustainability

Meeting present needs without compromising future generations.

Ethical Stakeholder Responsibility

Ethics relate to moral principles guiding behaviour towards workers, suppliers, customers, and the wider community.

🧑‍💻

Treatment of Workers

Promoting fair pay, safe workplaces, and Diversity, Equity and Inclusion.
🤝

Treatment of Suppliers

Transparent procurement and honouring agreed payment schedules.
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Treatment of Customers

Honest marketing communications and fair pricing.

Consumer Protection Compliance

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Requirement Goods must be Fit for Purpose, of Satisfactory Quality, and Services provided with Reasonable Care and Skill and within Reasonable Time Frame.
❌
Risk of Non-Compliance Failure to meet these can result in legal claims and financial penalties.

Employee Rights Legislation

Employee rights safeguarded by legislation to avoid disputes, fines, and disruption.

Right Legislation Protection
Pay Minimum Wage Ensuring fair pay.
Hours Working Time Regs Limits on hours worked and breaks.
Safety Health and Safety Provide safe working environments.
Job Sec. Dismissal Protections Preventing wrongful termination.

Environmental Factors Glossary

Ignoring environmental responsibilities risks reputational damage and legal sanctions.

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Pollution

Air, noise, and water pollution affect health.
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Climate Change

Must consider carbon footprint and regulatory pressures.
♻️

Waste Disposal

Proper management and recycling reduce harm.
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Audit

Regular checks ensure compliance and continual improvement.

The Three Pillars of Sustainability

Social + Economic + Environmental = Viability
Sustainability aims to meet present needs without compromising future generations by balancing equity, profitability, and resource protection.

Sustainability Action Framework

💡

Circular Economy & The Three Rs: Focus on designing processes so materials are reused and recycled. The key framework is Reduce, Reuse, Recycle. Beware of Greenwashing.

Environmental, Social, and Governance (ESG)

Component Focus Area
Environmental Managing carbon emissions, waste reduction.
Social Labour practices, community impact.
Governance Corporate policies, ethics, transparency.
ESG Reporting Disclosing performance to stakeholders.

The Business Case for Responsibility

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What is the primary driver for incorporating all these factors?
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It enhances reputation, meets stakeholder demands, mitigates risks, and drives long-term success.
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Ethical, Legal, Environmental, and Sustainability Issues Deck
Term
Ethical Issues in Business

What are ethical issues in business?

Answer
Definition

Moral principles guiding behaviour toward workers, suppliers, customers, and the community.

Term
Ethical Concerns for Workers

Name three key ethical concerns related to workers.

Answer
Examples

Pay gaps, working conditions, diversity/equity/inclusion.

Term
Transparent Procurement

Why is transparent procurement important ethically?

Answer
Importance

It prevents corruption and builds trust with suppliers.

Term
Consumer Protection Laws

What do consumer protection laws require of products?

Answer
Requirement

Must be fit for purpose and of satisfactory quality.

Term
Employee Protection Laws

What are some employee protection laws businesses must comply with?

Answer
Examples

Minimum wage, working time regulations, employment contracts, health and safety, unfair dismissal protection.

Term
Environmental Issues

Give two examples of environmental issues businesses must manage.

Answer
Examples

Pollution (air, noise, water); waste disposal and environmental audits.

Term
Three Pillars of Sustainability

What are the three pillars of sustainability?

Answer
Pillars

Social, economic, and environmental.

Term
Circular Economy

How does the circular economy contribute to sustainability?

Answer
Contribution

By designing products and processes to reuse and recycle materials, reducing waste.

Term
ESG Meaning

What does ESG stand for?

Answer
Definition

Environmental, Social, and Governance.

Term
Greenwashing

What is greenwashing?

Answer
Definition

Misleading claims exaggerating a company's environmental benefits.

Term
Importance of Sustainability

Why is sustainability important for businesses?

Answer
Reason

It ensures meeting present needs without compromising future generations.

Term
Benefits of Ethical Business Practices

How does ethical business practice benefit companies?

Answer
Benefits

Enhances brand loyalty and reduces legal risks.

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🌿 Ethical, Legal, Environmental, and Sustainability Issues Quiz

1. Which of the following is not part of the three pillars of sustainability?

Legal compliance is crucial but not one of the three pillars (social, economic, environmental).

2. What is the purpose of transparent procurement in supplier relations?

Transparent procurement ensures fairness and honesty in selecting suppliers.

3. Greenwashing refers to genuine efforts by companies to reduce their environmental footprint. (True/False)

Greenwashing is misleading by exaggerating environmental claims.

4. Which law protects employees against unfair termination?

This legal protection prevents wrongful termination of employees.

5. Name two environmental issues businesses must manage.

Pollution and waste disposal affect health, legal compliance, and environmental sustainability.

📊 Results

  • Notes and Quiz
  • Business
  • A Level
  • External Influences
  • OCR