Environmental factors Flashcards
Environmental issues that influence a business
Climate Change
Water Scarcity
Air Pollution
Waste Management
Resource deplation
Why should a business consider environmental issues
Legal and Regulatory Compliance
Cost Savings
Reputation improves
Competitive advantage
Importance of an environmental policy to a business and its stakeholders
A better reputation leads to an increase in sales since customers would prefer businesses that care about the environment
Cost savings could lead to prices being lowered for the customer, meaning they would be able to purchase more
If the business was to be aware of its affects on the environment then they could avoid legal penalties which would increase costs as they would have to pay a fine
How to address environmental issues
Implement Sustainable Practices
Investing Into Renewable Energy
Support Environmental Regulations
Invest in Research and Development
Educate and Engage Employees
Importance to a business of being seen as environmentally friendly
Better Reputation
Increase in Sales
Reduce in possible penalties
Better awareness
Possible conflicts between environmentally friendly objectives and other business objectives
Having to invest into RnD or renewable energy is an opportunity cost and could also lower profits which may mean less dividends
Time lag in how long it would take to become more environmentally friendly
Do customers really matter? is it just wasted capital
Justify how a business can manage the conflicts between environmentally friendly objectives and other objectives.
The business may be wanting to maximise profit as a main objective, however by being environmentally friendly would increase costs, for example investment or more expensive materials which would reduce profit.
The impact and importance of an environmental policy to a business and its stakeholders
Better Reputation - Owner / employees
Increase in Sales - Owner
Reduce in possible penalties - Owner
Better awareness - Owner
Less damage to the environment - Local Area
Lower Prices - Customers
Justify ways in which a business can address environmental issues
Implement Sustainable Practices
Investing Into Renewable Energy
Support Environmental Regulations
Invest in Research and Development
Educate and Engage Employees
What is meant by sustainability
Sustainability in business refers to a company’s strategy to reduce negative environmental impact resulting from their operations in a particular market
How a business may act in a sustainable manner
Using renewable energy
Reduce the amount of waste a business produces
Reduce the energy
Impact and importance of sustainability to a business and its stakeholders
Improved Reputation
Increasing efficiency which would lead to reduce waste and costs
Simply helping with the planet.
How can a business become more sustainable
Using renewable energy
Reduce the amount of waste a business produces
Reduce the energy
