4 National wealth and the impact of business activity
In this unit you will learn about:
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the impact that business activity may have on the environment, including pollution and global warming the impact that business development may have on national wealth and the depletion of natural resources and sustainable development.
We all care about the environment. Most businesses also want to conserve – in other words preserve and protect – our environment and ensure that their activities do not damage it in any way. However, making production environmentally friendly could: • add to the costs of a business, which might reduce the amount of profit it makes • be good for public relations by giving a business a positive image that could boost its reputation and lead to further sales • result in new business opportunities for businesses as, increasingly, consumers look for more environmentally friendly products
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lead to the development of new environmentally friendly production techniques which can help reduce wastage, so cutting costs for businesses. Environmental issues have become an important global issue for individuals, businesses and governments. For businesses this represents both a threat and an opportunity. There is a danger that their current products, or methods of production, and distribution will have a negative impact on people outside the business. Businesses must therefore change how they operate to minimise their costs and avoid legal action. Alternatively they might look to adopt more ethical policies to prevent them gaining a poor reputation with their customers.
Businessinincontext context Business As consumers we all contribute to environmental pollution, for example through waste. Consider the waste that you produce in a week from the products you buy. • Paper waste: for example from school, college, work and magazines. How much paper do you throw away? Do you use both sides of a page?
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Food waste: Do you ever leave part of a meal either at home or at a fast-food or other restaurant? Metal or plastic: for example empty drinks cans, bottles or containers. Other materials such as ball-point pen refills, printer cartridges and batteries that you throw away.
Questions 1 Try to find out what happens to the waste. Is it recycled? Does it end up being taken by the council to a landfill site? 2 Where did the waste come from? Was it produced by a business in order to aid the sale of its product? Was it the product itself?
3 Draw a diagram linking the waste products to you, the consumer. Include the method of disposal and the businesses who made it. What do you think the effect of all this waste is on the environment?
National wealth and the impact of business activity
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