Ethics - is the judgment of whether a decision is right or wrong. Unlike legal issues there is no requirement for businesses to operate ethically.

Ethical issues:

• Treating workers badly or not paying a living wage
• Harming the environment through business operations
• Not behaving responsibly towards all stakeholder
• Working against the local communities wishes
• Discriminating in any way

Corporate social Responsibility - a business being conscious of the kind of impact they have on all aspects of society.

Benefits of ethical behaviour:

• Attract new customers to the business
• Attract new and better quality employees
• Encourage employees to stay with a business
• Encourage investment
• Create positive publicity
• Result in increased sales and profits

Effects of ethical issues on areas of business:

• Marketing - ethical behaviour can be used as a marketing tool to attract customers
• Financial - avoiding tax legally can reduce costs but is seem as unethical business practice
• People - workers will be proud to work for an ethical business
• Operations - have to think about how their production effects society and the