How business activity can impact on the environment
- Increased air pollution
- Increased land pollution
- Increased water pollution
How businesses can be ethical
- Use recyclable materials in packaging and products
- Source resources from an ethical source
- Use renewable energy in production and reduce fossil fuel usage
- Set up environmentally friendly campaigns
- Recycle any waste produced
Ethical issues vs profit
A business must weigh the benefits of behaving ethically against the impact on its profit.
| Reasons to be ethical | Reasons to not be ethical |
|---|---|
| The business can build a better reputation, as consumers may prefer environmentally friendly businesses | Fear of pressure groups (groups that fight for a cause by signing petitions and boycotting) |
| Owner's preference | It is cheaper to produce non-environmentally friendly goods |
| Profit margin will decrease | |
| Increasing prices may be unattractive to customers |
Pressure group — a group that fights for a cause by signing petitions and boycotting.