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Business Unit 4
Chapter 4: Ethical, legal and environmental factors
Environmental factors
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Cards (12)
Types of environmental costs
Pollution(air, water, noise)
Climate change
Congestion
Water disposal
Destruction of the environment
Air pollution
Introduction of
carbon tax
to make it more
expensive
to operate methods of production that causes
climate change
Noise pollution
The airports can fine airlines that break certain noise levels which adds to the costs of running flights
Solution: Operate at a different time
Congestion
Large cities like London introduced a congestion charge to discourage people from travelling by car
The
environment
agency
A government body that monitor and control
pollution.
They help to reduce
emission
, clean
rivers
, and introduce
legislation
to businesses.
What are
Pressure Groups
?
A collection of people who combine to bring influence on the
decision-making
of a company to achieve a specific
outcome
Lobbying
Uses techniques such as petitions, leaflets and demonstrations to win the support of the public and politicians
Direct actions
Can be taken in many forms:
Picketing factories and retail
Boycotting the products
Occupying business premises
Violent and illegal actions
The role of the government
Signed a range of EU
limits
and
controls
designed to restrict the
negative
impact of business activity.
E.g landfill tax, the climate change levy
Advantages of waste management
Reduce costs
can reduce tax
Businesses can find ways to use waste more effectively
Reducing waste can give the business a good image
Disadvantages of waste management
Can be difficult to arrange waste
can be very expensive
Smaller businesses have a disadvantage as they don't have the resources to spend on WM
Higher business cost may rise prices of products to consumers
Benefits of environmental awareness
Improve business and brand reputation
Recruitment of employees who commit themselves to ethical company objectives
Greater customer loyalty