6.2 Flashcards
What businesses focus on to meet obligations
+ Energy use
+ Materials use
+ Impact on communities
Legal measures by business
+ waste
+ pollution
+ energy
Legal controls
+ Fines & penalties
+ Tax on energy use
+ Rules on natural resources
Sustainable business
+ No overall impact on the environment
+ Minimize effects on the environment
Sustainable activities
+ Dispose waste efficiently
+ Renewable energy
+ Recycling
Management’s responsibility on a sustainable business
+ Understand how changes effect stakeholders
+ Review progress, set goals
+ Anticipate legislations
Negative externalities
Social cost
E.g: pollution, takes up space, destroys natural reserves
Positive externalities
Social benefits
E.g: Employment, access to resources, high living standards
Advantages of an environmentally-conscious business
- Lower raw material costs
- Longer asset lives
- Customers’ goodwill
How government can help a business become environmentally-friendly
+ Make information available
+ Waste collection
Incentives to be environmentally-friendly
+ Tax credits & exemptions
Areas code of practice affect
+ Social responsibility
+ Environmental policies
+ Integrity
Benefits & costs of ethical decisions
+ Benefits: Customers good side, government’s favor, no threats from pressure groups
+ Costs: expensive
