Define the term 'ethics'.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [2] (a) A system of moral principles/norms/values (that may or may not mention an understanding of right and wrong); That affects the behaviour/manners of a business and encourages fairness, truthfulness, a concern for social responsibility, the environment, often in the form of a code of conduct or set of rules and regulations, or an example e.g. not using child labour
2. [3] (b) A business is likely to assess all of its objectives to ensure they are compliant with its ethical code; It may lead to the sacrifice of a measure of profit to accept social responsibility; A business will be concerned that all the practices of its suppliers are ethical, e.g. use of child and forced labour – production in sweatshops, violation of worker rights, health and safety standards; A business may be subject to influence of external stakeholders, e.g. pressure groups, consumer activism; Ethical and unethical behaviour can also relate to internal stakeholders e.g. ethical considerations by employees will affect the working environment and hence motivation and productivity; Common business areas where objectives are tested by ethics include advertising, personal selling, contracts, pricing and suppliers; Attracts ethical customers; Leads to socially responsible activities. Accept any other valid response