eNVIRONM

ENTAL
&
By Ifeoluwatayo Oluokun
 table of contents
01 02 03
BUSINEss externalities Sustainable
activity and the development
environment
04 05
Responding to Ethical issues
environmental pressures
and opportunity
 BUSINE
01 SS
And the
• The goal of business activity is to satisfy
consumers’ demand, though it comes at a
cost for the environment.
Examples of how business activity affects the
environment include emission, pollution,
waste disposal and transport of goods

• Environment is our natural world

including for example, pure air, clean
water and undeveloped countryside.

• Social responsibility is when a business

decision benefits stakeholders other than
shareholders.
 arguments
A: Business should produce goods and servicies
profitably and not worry about the environment.

B: Businesses have a social responsibility

towards the environment and this can benefit
them too
 Arguments
Argument a
• Protecting the environment
can be expensive
• Firms might have to increase
prices to pay for
environmentally friendly
policies
• This could make firms
uncompetitive and they could
lose sales to businesses
• Consumers will buy less if
they have to pay higher prices
Argument b
• Global warming and global
pollution affect us all and
businesses have a social
responsiblility to reduce these
problems
• Using scarce resources which
are non-renewable
• Business activity can damge
the environment permernently
• Consumers are becoming
more socially aware- they are
incraesingly demanding
products from
environmentally friendly
 02
Externalities
 externalities
Many business activity leads to costs and benefit.

Private costs Private benefits External costs

The costs paid for by
business.
External costs
Costs paid for by the rest
of society, other than the
business, as a result of
business activity.
Gains to a business.
External benefits
The gains to the rest of
society, other than the
business, resulting from
business activity.
Costs paid for by the rest of
society, other than the
business, as a result of
business actiivity.
social costs
= external costs + private
costs.

Social benefits
= external benefits + private
benefits.
 sustainable
03
 The world’s demand for energy and carbon
dioxide emmisson
Sustainable development is
development which does not
put at risk the living standards
of future generations.
What can businesses do?
• Use renewable energy
• Recyclable waste
• Use fewer resources
• Develop new ‘environmentally
friendly’ products and production
methods Using these sustainable production methods businesses respond
positively to environmentally pressures and opportunity
 04
Responding to
environmental pressures an
opportunity
 THEre are 3 main ways society can make business
give the environment a higher priority
Pressure groups
Made up of people who want to change
business (or government) decisions and
they take action such as organizing
consumer boycotts (when consumers
decide not to buy products from businesses
Laws passed by that do not act in a socially responsible
way).
government Financial penalties
Government can make business activities
illegal e.g. locating in environmentally
Government can make business activities
sensitive areas such as national parks.
illegal e.g. locating in environmentally
sensitive areas such as national parks.
 ethical
05
 Ethical decisions
Ethical decisions are base on a moral code. Sometimes
referred to as ‘doing the right thing’.

• Do not take or offer bribes

• Do not engage in child labour
• Reasonable pricing
 Impact on business of ethical decision
Benefits drawbacks
Increased long- If consumer are only
term profits intrested in low prices
sales of the business
Less risk of legal may fall
action being taken Higher costs as adult
against the business workers are paid more
then child workers
THAN
KS!
Do you have any questions?
youremail@freepik.com
+91 620 421 838
yourcompany.com

CREDITS: This presentation template was

created by Slidesgo, including icons by Flaticon
, and infographics & images by Freepik

Please keep this slide for attribution