ENVIRONMENTAL
AND ETHICAL
ISSUES

Textbook, Chapter 27 [pg 329-339]

Name: …………………………………………………

Class: ……………

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Learning outcomes:

• Describe how business activity can affect the environment.

• Explain the concept of externalities.
• Explain what sustainable development means.
• Explain how increasing concern for environment and pressure groups are
influencing business decisions.
• Explain how legal controls can be used to influence business decisions to
protect environment.

 
 
 
BUSINESS ACTIVITY AND THE ENVIRONMENT

Definitions to learn:
Social responsibility __________________________________________
___________________________________________________________  

Environment ________________________________________________
___________________________________________________________  
 
 
EXTERNALITIES

Definitions to learn:
Private costs _______________________________________________
___________________________________________________________  

Private benefits ______________________________________________

___________________________________________________________  

External costs _______________________________________________

___________________________________________________________  

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External benefits _____________________________________________

___________________________________________________________  

Social costs ________________________________________________

___________________________________________________________  

Social benefits ______________________________________________

___________________________________________________________  

SUSTAINABLE DEVELOPMENT

Definitions to learn:
Sustainable development _____________________________________
___________________________________________________________

Sustainable production methods ________________________________

___________________________________________________________

Sustainable development – What can business do?

1. Use r_____________ energy

Explanation: ________________________________________________
___________________________________________________________  
 
2. R___________ waste

Explanation: ________________________________________________
___________________________________________________________  

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3. Use f________ resources

Explanation: ________________________________________________
___________________________________________________________  
 
4. D___________ new e________________ friendly

Explanation: ________________________________________________
___________________________________________________________  
 
RESPONDING TO ENVIRONMENTAL PRESSURES AND
OPPORTUNITIES

A) Pressure Groups
Definitions to learn:
Pressure groups ____________________________________________
___________________________________________________________

Consumer boycott ___________________________________________

___________________________________________________________
 
Pressure group activities is likely to Pressure group activity is unlikely
change business actions when: to result in a change in business
actions when:

a)

b)

c)

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B) Laws passed by government

1. L _____________ in environmentally sensitive areas such as national parks.

2. M_____________ products that cannot easily be recycled.

3) F___________ penalties, including pollution permits.

ETHICAL ISSUES

Definition: _______________________________________________________
_______________________________________________________________

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