Environmental and ethical issues
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Environmental and ethical issues
How business activity can impact on the environment Negative impact
Positive impact
Pollution Air pollution Land pollution Thermal pollution Light pollution Water pollution Visual pollution Noise pollution
Waste Types of waste
Commercial waste IT waste Packaging waste Chemical and hazardous waste Paper waste
Emission of greenhouse gases Carbon dioxide, methane
Fossil fuels such as coal and oil
Heating and air conditioning systems release greenhouse gases from offices and factories into the atmosphere which lead to global warming.
Use of energy Office equipment
Lighting
Heating and air conditioning
Coal, gas and oil are natural resources
Reduce the amount of energy they use.
Renewable sources of energy such as wind and solar power.
These do not produce greenhouse gases and can easily be replaced.
Use of natural Non-renewable raw materials
Overfishing and deforestation
Externalities Some business activities are more
environmentally friendly than others.
Externality: The effect of business activities on unrelated parties.
Social cost: The negative impact of a business decision on society.
Social benefit The positive impact of a business
decision on society.
External costs and external benefits of business decisions Cost-benefit analysis: Analysis of the
costs and benefits of a project, the focus being on the social costs and benefits.
Positives or benefits- Negatives or costs
Sustainable development Use renewable sources of energy
Avoid unnecessary travel by promoting a work from home policy (telecommuting)
Avoid or reduce the use of chemicals that produce toxic waste.
Sustainable development Use packaging that is made of recycled
material.
Use packaging that can be recycled or reused.
Use energy efficient processes and equipment to minimise the use of enery.
Sustainable development Reduce waste or find a market where it
can be used as a raw material.
Work with employees, customers and suppliers fairly.
Sustainable development: A business activity is said to be sustainable
Sustainable development: A business activity is said to be sustainable if it has a positive overall impact on the environment and its stakeholders, ensuring its survival in the future.
Environmental-
Social-
Economic-
Environmental pressures and opportunities Businesses have to respond to the
threat they face from environmental pressures.
Pressure group Demonstrations-
Boycotting
Petitioning
Lobbying
Increasing awareness of the issue
How businesses respond to environmental pressures Using green manufacturing methods, which
produce less waste and pollution.
Reducing their use of energy
Obeying government regulations and standards.
Following sustainable business practices
Legal pressure
Defending business decisions in order to improve their image, which may have been damaged by pressure groups.
Why businesses respond to environmental pressures If a business fails to respond to
environmental pressures
The business’s reputation may be damaged. It may lose customers, employees and investors.
Why businesses respond to environmental pressures The business may be closed down if
government regulations to uses greener methods of production are not followed.
Inability to meet government regulations may create legal problems for businesses.
Pressure groups may opposes the business, produce negative publicity and prevent a company’s growth.
Opportunities presented by environmental pressures Recycling
Governments
Publicity
Telecommuting
Opportunities presented by environmental pressures The green revolution
Following government regulations and standards can give a firm a competitive advantage over other businesses.
Related Documents
