Environmental Factors Flashcards
(16 cards)
The Environment Agency
The Environment Agency is the government body that monitors and controls pollution. It was set up in 1995 (Environment Act) and it has had a significant role in helping to reduce emissions into the air, cleaning up our rivers
and generally ensuring that UK businesses comply with the numerous pieces of legislation
introduced by the EU and UK Government.
Examples of green taxes
- The Climate Change Levy – This is a tax on energy use by non domestic users. The tax is designed to provide an incentive to reduce energy consumption.
- The Landfill Tax – This was the UKs first environmental tax (1996) and is a charge on waste going to landfills. Landfill sites in the UK are almost full. Trying to open new ones would be met with fierce opposition.
The role of the government
The UK Government has signed up to a range of EU limits and controls designed to restrict the negative impact of business activity. A range
of green taxes has been designed, not so much to punish businesses, but to encourage them to improve environmental practices. These are
often referred to as green taxes.
Pros of Waste Management
√ Waste management can help businesses to reduce their costs.
√ Businesses may be able to offer products at lower prices to consumers, giving the business a competitive edge.
√ By reducing certain types of waste, businesses might be able to reduce the tax they pay.
√ If a business has a well developed waste management policy, designed to protect employees and the environment from hazardous waste, its image may be improved.
√ By spending money on research and development in waste management, businesses may be able to find ways of using their waste productively, such as developing a material from
the waste that they can then sell.
Cons of Waste Management
X It can be difficult to arrange for waste to be disposed of correctly. The disposal of nuclear waste in particular has caused international
incidents in the past.
X Some aspects of waste management are very expensive and contribute to higher business costs, which can lead to a reduction in profit.
X Higher business costs may raise prices of products to consumers.
X Decisions to be made – with regard to the responsible disposal of waste or the costs incurred by doing it.
X Small businesses may be at a disadvantage as they will not have the resources to spend on waste management that larger companies have.
X Businesses that spend large sums disposing of waste in an ethical manner can be at a competitive disadvantage compared with those that do not take their social responsibilities so
seriously.
X A business must decide which is more important, its image with regard to the responsible disposal of waste or the costs incurred by doing it.
Benefits of environmental awareness
Environmental awareness can bring a number of advantages other than reduced business costs and avoiding legal penalties. These include:
√ Improved business and brand reputation – environmental friendliness can be a highly effective marketing tool.
√ Recruitment of employees who commit themselves to ethical company objectives.
√ Greater customer loyalty from growing number of ethical consumers.
Core waste-reduction process - Reduce, Reuse, Recycle
- Reduce- Elimination at source is far more effective than dealing with waste as a product. Monitor what is coming in and where it goes.
- Reuse - Can waste be turned into a new resource? Shredded paper can become packaging, broken
items might be repaired, obsolete items put to an alternative use. - Recycle - Businesses are starting to get much better at turning waste into new products. Remaining waste (after reduction and reuse) should be separated into recyclable materials.
Define waste management
Waste is also a major issue for businesses. Waste impacts on many different areas of concern within the environment, from the excessive use of materials and
resources, e.g. unnecessary packaging, to the production of pollutants as a by-product of the
manufacture of goods and the safe disposal of waste generated.
Pressure on landfill space
At an all-time high and the identification of suitable alternative means of disposal presents some difficult problems.
Businesses increasingly recognise this as an area which needs improvement. They should design ways of cutting out waste where possible, e.g. through reduced packaging and identifying opportunities for reuse and recycle. This represents an opportunity for many businesses to drive down costs and even
improve profitability.
A number of factors contributing to the chance of pressure group campaigns succeeding
- the amount of publicity attracted
- the degree of public sympathy
- the alternative products available to consumers
- the potential damage to the business’ corporate image as a result of the activities of the pressure group.
Pressure groups can use two main tactics in attempting to achieve their aims
- Lobbying – Using techniques such as leafleting, petitions and demonstrations with the intention of winning the support of the public and politicians.
- Direct action – This can take many forms including picketing factories and retail outlets, boycotting the products of companies concerned, occupying business premises and public buildings and violent and illegal actions, such as letter bombs.
Aim of pressure groups
aim of making politicians, businesses and the general
public aware of the issues and their opinions in
order to bring about some specific change.
Pressure Groups
A collection of people who combine to bring about change :
* environmental groups, such as Greenpeace and Friends of the Earth
* groups concerned with consumer issues, such as the Consumers’ Association
* businesses lobbying the Government for changes in policy or legislation, for example, the Confederation of British industry (CBI);
* issues concerning the welfare of animals, such as Compassion in World Farming (CIWF)
* trade unions, for example, the National Farmers’ Union (NFU).
How do businesses contribute to the creation of environmental damage
- the emission of gas through production processes
- pollution caused by transporting raw materials and products, particularly using road vehicles which emit noxious gases and create congestion and noise
- the pollution of the sea by businesses using it as a ‘free’ dumping ground
- destruction of the natural environment as a result of activities such as logging.
Environmental Factors
Protecting the environment is now a mainstream business issue. Businesses can no longer afford to ignore their own impact on the environment, or the implications of a changing environment for their operations.
Environmental costs of business activity and impact on stakeholders
environmental costs of business activity used to be largely ignored by nearly all stakeholders; those stakeholders that did care were not listened to. Today, things are very different. The government and pressure groups (whether
local or global) have a strong influence on business activity and, to some extent, they are able to limit its wider environmental
impact. As well as these external influences, many businesses now undertake the control of their environmental impact without the
need for external pressure. Some produce and publish their own environmental audits, which measure their impact on the
environment and set out plans for
improvement.
