Environmental and Ethical issues

Question 1

State how business decision can have negatively and positively impacts on environment

Answer 1

Negative impacts:

• Overuse of natural resources
• Increased pollution
• Habitats destroyed

Positive impacts:

• Lower cost for improved goods
• Increased employment
• Better infrastructure
• Increased awareness

Question 2

State why a business may not worry about the

environment

Answer 2

• Higher costs, leading to lower profits
• Increasing prices may make it uncompetitive as consumers unwilling to buy
• Some owners claim that there is not enough proof that
  the business activity is doing permanent damage to the
  environment

Question 3

State why a business may be conscious of activity

Answer 3

• Negative activity affects all
• Using sustainable resources allows business to charge higher
• May be pressured by pressure groups, otherwise face lawsuits and poor business reputation

Question 4

State how a business can contribute to sustainable development

Answer 4

1. Recycling
2. Reusing
3. Preventing from pollution
4. Using renewable resources
5. Prevent wastage of resources and energy

Question 5

Define and sate characteristics of a pressure group

Answer 5

Pressure group: A group coming together to the same cause, to pressure businesses to change its policies to become environmentally friendly

Characteristics:
- Pressure through boycotting, petitioning and raising awareness to others

Question 6

State why and how businesses reacts to environmental pressures

Answer 6

Why:

• To avoid damaged reputation
• To prevent ceasing of operation
• Allow for growth
• Prevent lawsuits

How:

• Using sustainable methods
• Following government regulations
• Reduction of use of energy

Question 7

Benefits from environmental pressures

Answer 7

Benefits:

• Costs saved from recycling and saving energy
• Incentives provided
• Increased awareness
• Allows to compete