6.1 environmental considerations
- Created by: hanfa
- Created on: 27-12-20 16:56
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- 6.1
- environmental considerations
- sustainability: when the production or sale of a product involves the use of renewable sources rather than scarce sources. like using wind or solar power.
- waste disposal is environmentally friendly only if a business reduces . reuses or recycles its waste. an example is companies using aluminium could recycle rather than sending it to landfill
- pollution: the introduction of something harmful into the environment as a result of business activity. pollution can affect air, rivers and peoples hearing in the form of noise. examples are like when a business switches from diesel to battery powered car to help reduce air pollution
- climate change: occurs when weather patterns change or average temperatures rise or fall. an example could be a business trying to find a substitute to renewable sources of fuel than fossil fuels.
- disadvantages of being environmentally friendly for a business
- capital costs may rise if the business invests in new machines and plant to produce in an environmentally friendly was
- production costs may be higher if materials are produced in an environmentally friendly way
- sales may be lower if the business charges higher prices to cover extra costs of environmentally friendly production
- advantages of being environmentally friendly for a business
- costs may be lower because a business may have taken steps that would reduce energy bills and waste disposal costs.
- lower taxes and avoidance of paying fines because less pollution caused
- profits may be higher because revenue rise and costs fall
- sales may be higher because customers may prefer to buy from a business that a cares for the environment
- a business may gain subsidies from the government to help pay for environmentally friendly production
- factors to decide whether its better to be environmentally friendly
- depends on the customers wants. either lower prices or environmentally friendly production
- some countries have laws limiting their ability to be environmentally friendly.
- some business owners think its morally correct to not damage the planet with their business
- environmental considerations
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