Explain how ethics may influence the objectives of a business.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [Explanation] The moral principles that guide the way a business behaves – distinguishing between 'right' and 'wrong' and then making the 'right' choice.
2. [Explanation] The objectives of a business may include survival, growth, market domination, profit, and the pursuit of any of these may well involve ethical dilemmas.
3. [Influence] Ethics prevent a business pursuing negative objectives such as profit maximisation at any cost.
4. [Influence] Prevents a business exploiting workers to maximise profits by the government setting minimum wage levels.
5. [Influence] Prevents a business exploiting suppliers to maximise profits (preventing late or slow invoice payments).
6. [Influence] Prevents a business deciding on a low cost location in a country that has few regulations e.g. child labour, lax pollution laws, poor health and safety, bribery, slavery.
7. [Influence] Encourages CSR.
8. [Influence] Encourages recycling.
9. [Influence] Encourages employee welfare.
10. [Influence] Encourages sustainable production.