Opportunities And Consequences Flashcards
(6 cards)
State two benefits to a business adopting sustainable practices?
New and emerging markets can be targeted through sustainable practices, leading to a sustainable branding, instilling a positive reputation for the business and having an increase of customers.
Development and expansion of products/services that serve into the sustainability agenda, further increasing customer engagement due to sustainable practice.
What is an environmental opportunity that can arise through sustainable business practices?
Waste can be utilised as a resource, helping to reduce landfill pollution whilst also increasing profit, e.g. use of agricultural waste to create biogas that can be utilised as an energy source.
How can government initiatives encourage sustainable practices?
Through the provision of funding for environmental services, such as farmers being funded for nature-friendly farming practices.
E.g. government will pay for actions for creating, managing and restoring habitats.
State two potential financial risks of sustainable practices.
Potential for additional business costs for the recall of products not complying with legislation.
Costs for environmental repair or restoration of damage to ecosystems caused through poor waste management.
How can non-compliance to sustainability affect customer bases?
The potential loss of customers due to a tainted reputation from non-sustainable practices or falsely misleading products/services, depleting the overall customer trust and desire to engage with that business.
What duty do businesses have when it comes to sustainability?
To ensure any product or service claims are not false or misleading to customers with all sustainability promises being truthful and accurate.
Business face reputational risks if these claims are proven untrue.
