Ethical and environmental considerations revision notes

The principles that guide a business's decisions about what is right or wrong.

Ethical behaviour refers to actions that are consistent with accepted moral principles, such as honesty, fairness, respect for stakeholders, and responsibility towards society and the environment.

CSR is a business model in which companies integrate social and environmental concerns into their operations and interactions with stakeholders.

The obligation of a business to minimise negative impacts on the environment through sustainable practices.

The cost a business incurs to reduce or prevent environmental damage, including direct financial outlays (e.g., pollution control equipment) and indirect costs such as reputational damage.

A trade‑off is a situation where improving one aspect of performance (e.g., sustainability) requires a compromise in another (e.g., profit).