Business igcse (0450)
Section 5 Environmental and ethical issues
How business activity can impact the environment
Business activities main aim is to satisfy customers’ demand for
goods and services – but it often has an impact on the
environment. The environment means our natural world.
how business activity impacts on the environment:
• Aircraft jet engine emissions damage the atmosphere.
• Pollution from factories reduces air quality.
• Waste can pollute rivers and seas.
• Transport of goods by ship and trucks burns fossil fuels such
as oil - carbon emissions
Difference between private costs and benefits and external
costs and benefits
Example of a case study to explain
• A chemical company has chosen a site to open its new
factory which they believe it will be profitable. In the
decision the owners only considered costs and benefits to
the business itself which is known as private costs and
benefits.
Private costs Private benefits
Cost of land Money made from the sale of
chemicals
Cost of construction
Costs of running the plant
Transport costs
These are all costs relating to the Benefits relating to the business
business
Section 5 Environmental and ethical issues
How business activity can impact the environment
Business activities main aim is to satisfy customers’ demand for
goods and services – but it often has an impact on the
environment. The environment means our natural world.
how business activity impacts on the environment:
• Aircraft jet engine emissions damage the atmosphere.
• Pollution from factories reduces air quality.
• Waste can pollute rivers and seas.
• Transport of goods by ship and trucks burns fossil fuels such
as oil - carbon emissions
Difference between private costs and benefits and external
costs and benefits
Example of a case study to explain
• A chemical company has chosen a site to open its new
factory which they believe it will be profitable. In the
decision the owners only considered costs and benefits to
the business itself which is known as private costs and
benefits.
Private costs Private benefits
Cost of land Money made from the sale of
chemicals
Cost of construction
Costs of running the plant
Transport costs
These are all costs relating to the Benefits relating to the business
business
