Final answer:
Two ethical issues that may arise with physical distribution are environmental impact and labor rights.
Step-by-step explanation:
Two ethical issues that may arise with physical distribution are environmental impact and labor rights.
Environmental impact: Physical distribution involves the transportation and delivery of goods, which can have a significant environmental impact. The use of vehicles and the emissions associated with transportation contribute to air pollution and carbon emissions, leading to climate change.
It is important for companies to consider sustainable transportation methods and reduce their carbon footprint.
Labor rights: Physical distribution often involves the employment of workers in warehouses, transportation, and logistics. Ethical issues can arise in terms of fair working conditions, fair wages, and protection of workers' rights. Companies should ensure that they uphold labor laws, provide safe working environments, and promote fair treatment of their employees.