Cambridge IGCSE Business Studies
25 Environmental and ethical issues Teaching ideas Guidance notes This chapter covers a number of issues, for which there are no definitive answers. Issues such as cost-benefit analysis and sustainable development can produce a range of answers. Students need to practise identifying and explaining points in a variety of situations. Looking at local examples should help students have a better understanding of the issues. Discussions and presentations are a good way to allow students to explore a range of issues. Try to find examples that are relevant to your country, as this can help students develop a better insight into the various views/issues being raised.
Activity 25.1 Business decisions and externalities (AO2, AO3, AO4) A major transport company wants to build a new distribution centre on an area of wasteland close to a local school. The land is used by local children as a playground. The business hopes to create 100 new jobs. Supporters think it would allow local shops to have a wider choice of goods to sell. Large vehicles would transport deliveries throughout the day and night to ensure shops always had access to inventories. 1 Identify possible social costs and benefits if the new development goes ahead. 2 Would you allow the company to build the new distribution centre? Give reasons for your answer.
Activity 25. 2 Sustainable policies (AO1, AO2, AO3) Shell is a global energy company that provides oil and gas products. Shell believes in sustainable development. It tries to take account of economic, environmental and social
considerations as part of its business decisions. While Shell’s objective is growth, the company tries to address the global problem of carbon dioxide (CO2) emissions
by supplying more natural gas to generate electricity, helping develop alternative energies such as carbon capture and being more energy efficient at all its operations.
1 What is meant by sustainable development? 2 Explain ways in which Shell could demonstrate it is trying to act in a sustainable way. Some examples are given in the text to help you. 3 Explain possible reasons why businesses try to act in a sustainable way.
Discussion ideas: Ethical awards (AO2, AO3) In 2013, Kellogg’s and PepsiCo were among a number of major companies criticised for their lack of commitment to improving the rights of women and farmers who help produce their successful products. The following month, they were named as two of the world’s most ethical companies by a leading independent organisation. All winning companies are likely to use these awards as part of their marketing – on websites,
press releases and on the products they sell. But what do these awards do? What is ethical or unethical and who decides? Awards create a lot of media interest, and can lead to some discussions within each sector about how they might improve their ethical standards. But is it more a case of celebrating what they have done, rather than tackling the actual problems of sustainability and other supply chain issues?
Source: Adapted from Guardian Sustainable Business Blog, 3 September 2013.
© Cambridge University Press 2014 Cambridge IGCSE Business Studies
Chapter 25 Resources
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