Chapter 6.2 Flashcards
(21 cards)
What are the main business impacts on the environment?
Air pollution, waste disposal, use of fossil fuels, transportation congestion, and land usage.
What are private costs in business?
Costs paid by the business, such as rent, land costs, and running expenses.
What are private benefits in business?
The money a business receives from selling goods and services, essentially its profits.
What are external costs?
Costs paid by society, such as pollution (from waste, fumes, and noise).
What are external benefits?
Gains to society, such as job creation, increased competition, and taxes paid to the government.
What is sustainable development?
Development that does not risk future generations’ living standards, using renewable energy, recycling, eco-friendly products, and lean production.
What are some examples of sustainable practices?
Using solar panels, recycling, eco-friendly packaging, and eco-friendly manufacturing equipment.
What are the advantages of businesses choosing sustainable decisions?
Improved brand image, attracting more customers, increased demand, and higher prices.
What are the disadvantages of businesses choosing sustainable decisions?
Higher costs for special equipment, and the difficulty in finding environmentally friendly suppliers.
What are pressure groups?
Groups of people who try to force businesses to adopt ethical policies, often through boycotts, demonstrations, and petitions.
What are legal controls in the context of business?
Laws created by the government to protect the environment, such as restrictions on waste disposal and emissions.
How can the government intervene in business to protect the environment?
By issuing fines, pollution permits, or taxing companies based on their carbon emissions.
What are ethical issues in business?
Situations where making money conflicts with moral or fair practices, such as employee welfare, child labor, fair pay, and responsible waste disposal.
What are the advantages of businesses being ethical?
Improved reputation, motivated employees, and increased brand awareness.
What are the disadvantages of businesses being ethical?
Higher costs for raw materials, employee pay, and benefits, which reduce profitability.
What is one way a pressure group might influence a business?
By organizing boycotts, which decrease demand for the business’s products.
How can pressure groups create negative publicity for a business?
By writing negative reviews or making public statements about unethical practices, damaging the business’s reputation.
Why are legal controls important when deciding where to locate a business?
They prevent businesses from locating in environmentally sensitive areas, like national parks, and from polluting.
What is one benefit of being ethical for a business?
Building a better reputation, which increases customer loyalty and competitive edge.
What is one limitation of being ethical for a business?
Increased labor costs due to higher pay and benefits for employees.
Does being ethical always lead to lower profits?
Not always. While ethical practices can increase costs, they may also lead to higher demand and the ability to charge higher prices, resulting in more profits.
