Ethical & Legal Issues
What is the main purpose of business registration?
To make a business legally recognized.
An organization's overall principles that guides its decisions and actions in relation to internal or external issues.
Code of ethics.
What is one effect of misleading advertisements?
Customers lose trust.
Who designs the look of websites?
Web designer
A snack shop lies about ingredients to attract customers. What issue is that?
Misleading advertising (ethical & legal).
Using illegal funds as profit for another company violates what type of law?
Money Laundering.
A set of self written rules which explains how people working in a particular profession should behave as they carry out their work.
Code of practice.
What happens when businesses dispose of waste improperly?
Pollution/environmental damage.
Which job ensures businesses follow laws and regulations?
Compliance officer
A business dumps old oil into a river. Is this solely an ethical issue?
No, it is also illegal to dispose of waste in a way that negatively affects the environment.
Give one example of an ethical issue in business operations.
Honesty in advertising, fair treatment of workers, using safe products, etc.
Why is accountability important in business?
It ensures people take responsibility for their actions and decisions.
Withholding taxes harms which sector?
Government revenue/public services.
Which career involves creating apps and writing computer code?
Software developer
A company fails an inspection because they didn’t have proper documents. What did they forget?
Required legal documents/licenses.
What is the difference between an ethical issue and a legal issue?
Ethical = Right vs wrong. Legal = What is against the law.
The internal document that is the practical application of the code of ethics.
Code of conduct.
How does money laundering affect the economy?
Creates false money flow, destabilizes the financial system.
Name two careers in advertising or promotional communication.
Advertising professional, public relations officer, social media manager.
A phone repair shop charges more than promised and refuses refunds. Name one consequence.
Loss of customers / complaints / legal action.
A company pays employees below minimum wage. What two issues are present?
It is illegal AND unethical.
Which principle focuses on being clear, open, and honest in communication?
Transparency.
Give two consequences a business might face for illegal actions.
Fines, shutdown, lawsuits, loss of customers, damaged reputation.
Who helps companies create long-term plans for the future?
Strategic Planner
A business commits tax evasion. Give 3 effects:
Business can face fines or jail.
Government loses revenue for public services.
Economy weakens due to reduced investment funds.