1 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.
2 Introduction: The environment acts as a external
constraint. The importance has grown in virtually every
developed and developing country. Remains imperfect.
3 The environmental issues affecting business
3.1 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.
3.2 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)
3.3 Sustainable development: Resources such as oil,
coal and wood may run out. Businesses now try to
ensure they use replaceable natural resources.
3.4 Global warming/ Climate change: caused by excessive
production of carbon dioxide. Largely comes from
burning fossil fuels (coal,oil) to produce electricity. 'Carbon footprint'.
4 International environmental standards: 1997, 176 of worlds gov's
gathered - Kyoto Protocol. International Standards Organisation
(ISO) - environmental cerificate (ISO 14001) - manufacturing.
5 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.
6 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.
6.1 If a firm is successful, advantages: increased sales,
stronger brand loyalty, charge premium prices.
6.2 However, important to remember that stronger
reaction to those who damage the environment. Bad
publicity -> significant marketing problems
7 The environment and production:
7.1 MATERIALS used may be finite (limited supply) i.e. oil. Others replaceable
i.e. wood (sustainable). Often finite source is cheaper (plastic).
7.2 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.
7.3 DIRECT harmful POLLUTION emissions cause immediate
environmental damage. (Result of accident?)