environmental issues

Question 1

what year was the environmental protection act

Answer 1

1991

Question 2

what is the point of the environmental protection act

Answer 2

• ensures firms must act responsibly
• can face fines if not
• doesn’t always stop companies causing environmental damage

Question 3

what is fair trade

Answer 3

• better prices, decent working conditions and fair terms of trade for farmers and workers
• ethical + helps a firm be socially responsible

Question 4

effect of fair trade on companies

Answer 4

• can help to add value to products, however unit costs increase so prices must increase
• some consumers will pay higher price, some won’t
• these product do better when economy is good

Question 5

arguments for being environmentally responsible

Answer 5

• reducing operating costs = less waste
• enhanced brand image and reputation
• avoid pressure group actions which can = bad is rep is bad
• growth of ethical investing means more potential capital
• attractive to some investors + easier to raise finance
• avoid excessive regulation and legislation
• socially responsible actions can be profitable

Question 6

arguments against being environmentally friendly

Answer 6

• ultimate aim is to make profit
• extra cost passed onto consumers
• businesses may not be able to use their resources as efficiently if there are restrictions
• may reduce firms intentional competitiveness if others not doing it
• as long as they comply with legislation they should be able to do what they want