Environmental and Ethical Issues: Environmental Concerns and Ethical Issues As Both Opportunities And Constraints For Businesses (Copy)
Cheat Sheet: 6.2.1 Environmental and Ethical Issues
Business Impact on the Environment
| Impact | Explanation | Example |
|---|---|---|
| Global Warming | Greenhouse gas emissions from factories & transport | Oil company burning fossil fuels |
| Pollution | Air, water, land pollution from production | Chemical waste into rivers |
| Resource Depletion | Overuse of non-renewable resources | Mining coal and oil |
| Waste Disposal | Increases landfill, harms wildlife | Fast food packaging waste |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Externalities
| Type | Explanation | Example |
|---|---|---|
| External Costs | Negative effects on third parties not included in business costs | Factory smoke causes health problems |
| External Benefits | Positive spillover effects | Training employees benefits wider industry |
Sustainable Development
| Concept | Explanation | Example |
|---|---|---|
| Sustainable Development | Meeting today’s needs without harming future generations | Using renewable energy like solar power |
| Business Role | Reduce waste, recycle, use eco-friendly materials | Car firms developing electric vehicles |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Business Responses to Pressures
| Pressure | Business Response | Example |
|---|---|---|
| Pressure Groups | Change practices to avoid boycotts | Clothing brands stop using sweatshops |
| Legal Controls | Follow environmental laws (pollution limits, fines) | Factories install filters to cut emissions |
| Opportunities | Go green = new market opportunities | Eco-friendly packaging boosts sales |
Ethical Issues
| Issue | Conflict | Example |
|---|---|---|
| Child Labour | Low-cost labour vs. ethical image | Garment industry criticised for child workers |
| Fair Prices to Suppliers | Paying fair trade prices vs. higher costs | Coffee companies adopting Fairtrade |
| Animal Testing | Product safety vs. animal rights | Cosmetic firms banned from testing |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Revision Bullets
- Business activities → global warming, pollution, waste, resource depletion
- External costs = negative spillovers; External benefits = positive spillovers
- Sustainable development → eco-friendly methods for long-term growth
- Responses: pressure groups, legal controls, ethical branding
- Ethical dilemmas: profit vs. ethics (child labour, fair trade, animal testing)
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course