Syllabus: SQA - Higher Course Spec Business Management
Module: Management of Operations
Lesson: Ethical and Environmental

Introduction

This article explores the “Ethical and environmental” focus within the Management of Operations strand of the SQA Higher Business Management course. Directly aligned with the SQA specification, this topic helps students evaluate how operational decisions impact wider society and the environment—crucial in shaping responsible future leaders.

Ethical and environmental considerations are not optional extras. They now underpin how modern businesses operate. Understanding them helps students critically assess real-life business decisions, an essential skill for coursework and final assessments. For teachers, it offers an opportunity to bring values-led thinking into core teaching, with tangible links to sustainability and corporate behaviour.

Key Concepts

In line with the SQA Higher course specification for Business Management, students should understand:

• Ethical Issues in Operations:
  Including fair trade, avoiding exploitation of labour, and ensuring suppliers meet acceptable standards.

• Environmental Responsibilities:
  Including the use of sustainable raw materials, reduction of waste, recycling, and compliance with environmental laws and regulations.

• Sustainability:
  Businesses managing resources responsibly to avoid long-term depletion and reduce environmental harm.

• Corporate Social Responsibility (CSR):
  How ethical and environmental considerations contribute to a company’s CSR strategy, influencing reputation and stakeholder relationships.

• Operational Decision-Making:
  How ethical and environmental concerns affect key decisions, such as sourcing, production processes, and distribution.

These concepts equip learners to analyse how responsible management practices shape operational outcomes.

Real-World Relevance

The rise of ESG (Environmental, Social, and Governance) metrics in business shows this is not a box-ticking exercise—it’s mainstream. Take IKEA, which is committed to sourcing 100% of its wood, paper, and cardboard from sustainable sources. Or BrewDog, which became carbon negative by planting more trees than it emits carbon.

Even small businesses are feeling the pressure. Local cafes switching to compostable cups or hair salons cutting down on water use aren’t just doing it for show. Consumer demand and regulatory expectations are reshaping how all organisations operate.

In the classroom, this is a golden chance to bridge textbook concepts with what students see in the world around them.

How It’s Assessed

In SQA Higher Business Management, this topic can appear across both Paper 1 (the question paper) and the assignment:

• Paper 1:
  Expect extended response or short answer questions that require explanation and application. Students may be asked to:

  • Explain ethical or environmental issues facing a business.

  • Analyse the impact of ethical operations on costs or reputation.

  • Evaluate a business decision in light of environmental concerns.

• Assignment:
  Students can investigate how an organisation manages its operations ethically and environmentally. Strong assignments might examine a firm’s supply chain practices or carbon reduction strategy, backed by real evidence.

Command words like describe, explain, analyse, and justify are commonly used. Encourage students to support their answers with examples and consequences.

Enterprise Skills Integration

This topic naturally develops enterprise skills that go beyond textbook theory:

• Problem-solving: Evaluating how businesses can stay competitive while being ethical.

• Decision-making: Weighing costs, customer expectations, and sustainability.

• Critical thinking: Assessing whether green initiatives are genuine or greenwashing.

• Communication: Justifying operational choices to stakeholders in writing or presentations.

Practical classroom activities—like redesigning a product to meet environmental goals—can reinforce these skills in a hands-on way.

Careers Links

This content links directly to several Gatsby Benchmarks, particularly:

• Benchmark 4: Linking curriculum learning to careers

• Benchmark 5: Encounters with employers and employees

Careers where this topic is especially relevant include:

• Sustainability Officer

• Procurement Manager

• Supply Chain Analyst

• CSR Consultant

• Operations Manager

Use guest talks or recorded interviews with people in these roles to help students connect classroom learning to real jobs. Students should see this not just as an ethics lesson but as a foundation for meaningful, in-demand careers.

Teaching Notes

Quick wins for the classroom:

• Use case studies from real companies—especially ones students recognise.

• Debate activities: “Should a business pay more for ethical suppliers?”

• Bring in mock interviews: task students with ‘advising’ a business on ethical operations.

Common pitfalls:

• Students often give vague responses like “being green is good”. Push them to explain why and how this impacts costs, customer loyalty, or legal compliance.

• Misunderstanding ‘ethical’ as just ‘environmental’. Use examples to show the difference.

Extension ideas:

• Ask students to research local businesses and assess their ethical/environmental practices.

• Create a classroom challenge: “Design a zero-waste product launch.”