Should a business do the right thing even when it costs more?
Ethical and environmental considerations: the meaning of business ethics, ethical and unethical practice, the environmental impact of business activity and sustainability, and the costs and benefits of acting ethically and sustainably.
A focused answer to the Eduqas GCSE Business C510 content on ethical and environmental considerations, covering business ethics, ethical versus unethical practice, environmental impact and sustainability, and the costs and benefits of behaving responsibly.
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What this topic is asking
Eduqas C510 wants you to understand business ethics and environmental responsibility: what it means to act ethically, examples of ethical and unethical practice, the environmental impact of business activity and sustainability, and the costs and benefits of behaving responsibly. The exam usually frames this as a decision with a trade-off: doing the right thing often costs more, so is it worth it?
What business ethics means
The key idea is that ethics is about what is right, not just what is allowed. A business decision can be legal and profitable yet still damage a firm if customers see it as wrong.
Ethical and unethical practice
Environmental impact and sustainability
Business activity affects the environment through pollution, waste, emissions and the use of scarce resources (energy, water, raw materials).
The costs and benefits of acting responsibly
This is where the exam lives: ethical and sustainable behaviour involves a trade-off.
Whether responsible behaviour pays depends on the business and its customers. A premium brand whose customers value ethics can build a durable advantage; a budget retailer competing on price may find the extra costs hard to recover. The marks come from weighing this for the specific firm.
Try this
Q1. State two examples of unethical business practice. [2 marks]
- Cue. Using cheap labour in poor conditions, misleading advertising, aggressive tax avoidance, causing avoidable harm.
Q2. Explain one benefit to a business of behaving sustainably. [3 marks]
- Cue. A strong reputation attracts ethical customers and builds loyalty, which can justify a higher price and protect long-term sales.
Exam-style practice questions
Practice questions written in the style of WJEC Eduqas exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Eduqas 20182 marksState two ways a business could reduce its impact on the environment. (Component 2)Show worked answer →
A 2-mark AO1 recall question, one mark per valid method. Acceptable answers include: using renewable energy, cutting waste and recycling, using less packaging or recyclable packaging, reducing emissions (greener transport or production), sourcing materials sustainably, and reusing or refilling products. Markers want a genuine environmental action; a vague answer such as "being green" without a specific method would not score. Each clear, distinct method earns a mark.
Eduqas 20229 marksA clothing retailer is deciding whether to switch entirely to ethically sourced, sustainable materials, which cost more. Evaluate whether this is a good decision for the business. (Component 2)Show worked answer →
A 9-mark Evaluate question needing both sides and a judgement applied to the retailer. Benefits: a strong ethical and sustainable reputation attracts the growing number of consumers who care about these issues, builds brand loyalty and can justify a higher price; it avoids the reputational damage of an ethics scandal; and it may improve staff motivation and meet tightening regulation. Costs and risks: sustainable materials raise costs, which either squeezes the profit margin or forces higher prices that some price-sensitive customers will reject; the benefits (reputation, loyalty) are slow and hard to measure; and rivals may undercut on price. Judgement: the decision depends on the retailer's target market. For a brand whose customers value ethics and will pay a premium, the switch builds a durable advantage and is worthwhile; for a budget retailer competing on price, the higher costs may not pay back. A balanced conclusion weighs the cost against the reputational and demand benefits for this particular retailer. Markers reward two-sided analysis applied to the firm and a supported, context-specific judgement.
Related dot points
- The economic climate: the effect of changing consumer income and unemployment, interest rates, inflation and exchange rates on businesses, and how a business is affected by and responds to changes in the economic climate.
A focused answer to the Eduqas GCSE Business C510 content on the economic climate, covering how consumer income, unemployment, interest rates, inflation and exchange rates affect a business, and how businesses respond to changes in the economy.
- Globalisation and international trade: the meaning of globalisation, imports and exports, the opportunities and threats globalisation brings, the role of multinationals, and how businesses respond to international competition.
A focused answer to the Eduqas GCSE Business C510 content on globalisation and international trade, covering imports and exports, the opportunities and threats of globalisation, multinationals, and how businesses respond to international competition.
- Stakeholders: the main internal and external stakeholders of a business, their differing objectives, how business activity affects them, and how their objectives can conflict.
A focused answer to the Eduqas GCSE Business C510 content on stakeholders, covering internal and external stakeholders, their differing objectives, how decisions affect them, and how stakeholder objectives can conflict.
- The legal environment: the main areas of legislation affecting business (consumer protection, employment and health and safety), the purpose of each, and the impact of legislation on business costs and decisions.
A focused answer to the Eduqas GCSE Business C510 content on the legal environment, covering consumer protection, employment law and health and safety legislation, their purpose, and the impact of legislation on business costs and decisions.
- The marketing mix: the four Ps (product, price, promotion and place), pricing strategies, methods of promotion, channels of distribution, and how the elements of the mix work together.
A focused answer to the Eduqas GCSE Business C510 content on the marketing mix, covering the four Ps (product, price, promotion and place), pricing strategies, methods of promotion, channels of distribution, and how the elements work together.
Sources & how we know this
- WJEC Eduqas GCSE Business specification (C510) — WJEC Eduqas (2017)