Ethical and environmental considerations key terms

Ethical trade‑off

A decision point where a business must balance ethical considerations against potential profit gains.

Corporate social responsibility

Corporate social responsibility (CSR) is a business model in which companies integrate social and environmental concerns into their operations and interactions with stakeholders, aiming to create value for both the business and society.

Ethical sourcing

The practice of ensuring that the materials and products a company purchases are produced in a way that respects human rights, environmental standards, and fair labour practices.

sustainable supply chain

A supply chain that integrates environmental, social, and economic considerations to minimise negative impacts while ensuring long‑term viability.

Environmental cost

The cost a business incurs to reduce or avoid environmental harm, encompassing both direct financial costs and indirect costs such as brand reputation.

trade‑off

A situation where improving one business objective requires compromising another.