Environment

1. Environmental
and ethical
issues

2. How business activity can impact
on the environment
 Negative impact
 Positive impact

3. Pollution
 Air pollution
 Land pollution
 Thermal pollution
 Light pollution
 Water pollution
 Visual pollution
 Noise pollution

4. Waste
 Types of waste
 Commercial waste
 IT waste
 Packaging waste
 Chemical and hazardous waste
 Paper waste

5. 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.

6. Use of energy
 Office equipment
 Lighting
 Heating and air conditioning
 Coal, gas and oil are natural resources

7.  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.

8. Use of natural
 Non-renewable raw materials
 Overfishing and deforestation

9. 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.

10. Social benefit
 The positive impact of a business decision on
society.

11. 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

12. 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.

13. 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.

14. 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

15.  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.

16.  Environmental-
 Social-
 Economic-

17. Environmental pressures and
opportunities
 Businesses have to respond to the threat they
face from environmental pressures.

18. Pressure group
 Demonstrations-
 Boycotting
 Petitioning
 Lobbying
 Increasing awareness of the issue

19. 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

20.  Legal pressure
 Defending business decisions in order to
improve their image, which may have been
damaged by pressure groups.

21. 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.

22. 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.

23. Opportunities presented by
environmental pressures
 Recycling
 Governments
 Publicity
 Telecommuting

24. Opportunities presented by
environmental pressures
 The green revolution
 Following government regulations and
standards can give a firm a competitive
advantage over other businesses.