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CH 28 Environment and Ethical Issues - PPTX BM
CH 28 Environment and Ethical Issues - PPTX BM
CH 28 Environment and Ethical Issues - PPTX BM
Ethical Issues
EXTERNALITIES
Positive Externalities
New production technique can lead to better product
at reduced cost
Knowledge can be shared with other businesses
Improvement in infrastructure of the area the business
will set up
Consumers have access to improved product
Create employment opportunities
EXTERNALITIES
NEGATIVE EXTERNALITIES
Air pollution
Destruction of natural beauty if located close to
nature reserve
Traffic congestion
Destruction of ecology of the area
How do Businesses respond to
Environmental Pressures
Using green manufacturing methods which produce
less waste and pollution
Reducing use of energy
Obeying government regulations and standards
Follow sustainable business practices
Taking legal action against pressure groups
Why businesses respond to environmental
pressures
The business reputation may be damaged
The business may be closed down if the business does
not follow the government regulations to use greener
methods
Inability to meet government regulations may create
legal problems
Pressure groups may oppose the business
Opportunities presented by environmental
pressures
Using energy efficient machines may lead to cost
savings
Government may provide financial incentives to
encourage firms to use environmentally friendly
methods of production
Publicity gained from greener methods may attract
new customers