environmental and ethical issues

Question 1

how does business activity impact the environment

Answer 1

• pollution from production processes that harm air quality
• disposal of toxic material into rivers
• excessive fossil fuel usage which emit pollutants that lead to global warming

Question 2

arguments for socially responsible production

Answer 2

• global warming and climate change affect everyone
• using up scarce resources leaves nothing for future generations
• increased social awareness is leading to increased demand for these products
• pressure groups are taking actions against businesses that are not environmentally friendly

Question 3

arguments against socially responsible production

Answer 3

• methods to achieve this are expensive and reduce profits
• products may have higher prices
• businesses will become less competitive
• they may face a fall in demand
• governments should engage in protecting the environment

Question 4

how can businesses contribute to sustainable development

Answer 4

• using renewable energy to slow the depletion of resources
• recycling reduces the amount of resources used
• efficient use of resources so they can be conserved
• developing new production methods or using non toxic materials that do not harm the environment

Question 5

environmental pressures & consumers

Answer 5

• consumers are more socially aware and are demanding products for the same
• some consumers are willing to pay higher prices in order to do their part
• if people stop consuming products made at the expense of the environment the business would get bad publicity
• businesses might have to therefore adopt environmentally friendly products to maintain a good brand image

Question 6

when will pressure groups be successful

Answer 6

• public support for instance through media coverage
• consumer boycotts are impactful
• the pressure group is funded and organised

Question 7

when will pressure groups be unsuccessful

Answer 7

• firms activities are legal even if unpopular
• firm sells to other businesses not consumers
• cost of changing production methods exceeds the loss of sales

Question 8

policies that governments could impose to encourage businesses to be environment friendly

Answer 8

• business production banned in certain places
• banning single use plastic
• banning dumping of waste into water bodies
• banning production of non recyclable products
• financial penalties through pollution permits

Question 9

benefits of ethical decisions

Answer 9

• could see an increase in sales
• good publicity
• increased capital as investors may want to be linked with such businesses
• less risk of legal action

Question 10

limitations of ethical decisions

Answer 10

• higher costs of production
• prices have to increase
• sales may fall
• short term profits will decrease