6.1 environmental considerations

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  • 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

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