Environmental and ethical issues 6.2 Flashcards
How does business activity impact enviroment
Businesses may use cheaper methods to make products which may be bad for environment to make a higher profit
Such as pollutions from factor chimneys reducing air quality
What is external costs and the concept
Costs that are paid by the rest of the society as a result from the business activity
Such as Noise from factory disturbing people, Waste products caused by pollution
What is external benefits and the concepts
Gains from the society as a result from business activity
Chemical factories may pay taxes where the government may use to spend on hospitals and so on
More jobs will be created when more waste is produced
What is sustainable development
Development which does not put at risk the living standard of future generations
What can businesses do for sustainable development
Recycle waste
Use renewable energy such as solar panels
Develop environmentally friendly products
What are pressure groups
Group pf people who act together to try to force governments or businesses ti adopt certain policies to save the environment as an example
How and why do businesses respond to pressure groups
Making products that are environmentally friendly, locating in less environmentally friendly areas
Governments can impose financial penalities
Pressure groups and public opinion
What is the role of legal controls over business activity affecting the enviroment
Government can make business activities illegal
Making products that are not easily recyclable
Locating in environmental sensitive areas such as national parks
What are some ethical issues a business may face
Employing child workers even though it is not illegal
Agreeing to fix high prices with competitors
Taking bribes to other people to gain secret information from other businesses
