6.6 Environmental influences on business activity Flashcards
How can business activity affect the environment?
Business activity can cause air and noise pollution, road congestion, deforestation, greenhouse gas emissions, and depletion of non-renewable resources.
Why are environmental issues a growing concern for businesses?
Consumers are increasingly supporting businesses that adopt green policies and boycotting those that harm the environment.
What are the benefits for businesses of adopting environmentally friendly practices?
Benefits include marketing advantages, avoiding legal penalties, attracting skilled employees, reducing long-term energy costs, and avoiding the costs of environmental clean-ups.
What are the potential financial benefits of investing in green technology?
Although initially expensive, technologies like solar panels reduce long-term energy costs compared to traditional fossil fuels.
What are the arguments against businesses adopting environmentally friendly practices?
Green decisions can be costly, may push up product prices, reduce profits, and are less necessary in regions with weak environmental laws.
Why might businesses in developing countries avoid green practices?
In developing countries, economic growth is often prioritized over environmental protection, making cheap, non-green production methods more attractive.
What is greenwashing?
Greenwashing is when a business makes misleading or untrue environmental claims to appear more eco-friendly than they are.
How can greenwashing backfire on businesses?
If consumers or watchdogs discover that environmental claims are false, it can result in bad publicity and damage to the business’s reputation.
What is an environmental audit?
An environmental audit is an independent check that evaluates a business’s environmental performance, such as pollution levels, energy use, and recycling rates.
How are environmental audits used by businesses?
Businesses use them to compare current performance with past data, set sustainability targets, and report progress in reducing environmental impact.
How can environmental audits benefit businesses?
They can improve public perception, increase sales through positive media coverage, attract ethical investors, and boost employee morale.
What are the limitations of environmental audits?
They are voluntary, time-consuming, expensive to produce, and may be seen as publicity stunts unless made compulsory and verified independently.
What is the role of sustainability in business decisions?
Sustainable decisions help protect the environment, ensuring that future generations can enjoy the same quality of life.
Why are businesses increasingly making sustainable decisions?
Pressure from environmental groups, government laws, and consumer demand for eco-friendly products are pushing businesses to adopt sustainable practices.
