359038
Description
Mind Map by charcrawford, updated more than 1 year ago
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Created by charcrawford
about 11 years ago
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44. Business and the Environment
- Issues relate to pollution, global warming, sustainable
development. Businesses today are making more effort to
measure and publicise their performance, as it is a growing
concern to many stakeholders.
- Introduction: The environment acts as a external
constraint. The importance has grown in virtually every
developed and developing country. Remains imperfect.
- The environmental issues affecting business
- Pollution: As societies become wealthier, consumers start to think
less about money and more about their quality of life. -Voters put
pressure on government. - Firms don't want bad publicity.
- Recycling: The extraction of natural raw
materials is expensive and often
environmentally damaging. Higher levels of
recycling can reduce the need to extract more.
Reduces waste material. (recycling logo)
- Sustainable development: Resources such as oil,
coal and wood may run out. Businesses now try to
ensure they use replaceable natural resources.
- Global warming/ Climate change: caused by excessive
production of carbon dioxide. Largely comes from
burning fossil fuels (coal,oil) to produce electricity. 'Carbon footprint'.
- Pollution: As societies become wealthier, consumers start to think
less about money and more about their quality of life. -Voters put
pressure on government. - Firms don't want bad publicity.
- International environmental standards: 1997, 176 of worlds gov's
gathered - Kyoto Protocol. International Standards Organisation
(ISO) - environmental cerificate (ISO 14001) - manufacturing.
- Environmental auditing: An independent check on
the pollution emission levels, wastage levels and
recycling practices of a firm. If results are published
businesses may invest more into ways to improve
these. However, it is no longer a legal obligation.
- The environment and marketing: Many firms use environmental
friendliness as a marketing tool. Good reputation -> positive
encouragement to certain consumers to choose one brand over another.
- If a firm is successful, advantages: increased sales,
stronger brand loyalty, charge premium prices.
- However, important to remember that stronger
reaction to those who damage the environment. Bad
publicity -> significant marketing problems
- If a firm is successful, advantages: increased sales,
stronger brand loyalty, charge premium prices.
- The environment and production:
- MATERIALS used may be finite (limited supply) i.e. oil. Others replaceable
i.e. wood (sustainable). Often finite source is cheaper (plastic).
- PROCESSES used to manufacture products may be more/less harmful to
environment. Energy -> oil and coal -> finite sources. Burning -> generates
harmful emissions. Wind power is more environmentally friendly, but expensive.
- DIRECT harmful POLLUTION emissions cause immediate
environmental damage. (Result of accident?)
- MATERIALS used may be finite (limited supply) i.e. oil. Others replaceable
i.e. wood (sustainable). Often finite source is cheaper (plastic).
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