22- environmental influences on business activity

8/13/2019 22- Environmental Influences on Business Activity

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A business is not only about _ _ _ _ _. It is

also about p _ _ _ _ _, s _ _ _ _ _ _ and the

environment.

Starter


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Environmental Influences on Business

activity

Lesson Outcomes:

Understand how the growing concern for theenvironment is influencing business decisions

Know how cost- benefit analysis can be usedto assess the overall impact of a business

decision


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Ways to make business more

environmentally friendly

The three main ways are:

1. Laws passed by government

2. Financial penalties, including pollutionpermits and additional taxes

3. Consumer action and pressure groups


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Businesses affectsociety

Sometimes in a positiveway


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Businesses affectsociety

Sometimes in a negativeway


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Corporate Social Responsibility- is

when a business takes decisions that

may benefit stakeholders other thanshareholders.


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Cost benefit analysis

Costs benefits analysis is the valuation by a

government agency of all the external and

private costs and benefits resulting from a

business decision.

It takes in to account all the costs of a

particular decision not just the financial ones.


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Keywords to learn

External costs- are costs paid by the rest of

society, as a result of the business decision

External benefits- are the gains to the rest of

society resulting from the business decision

Private costs- the actual costs to the business

as a result of its decision e.g. costs of land

Private benefits- are the financial gains made

by a business as a result of its decision


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Social benefits

Social benefits occur when a business has

a positiveeffect on a community and the

environment


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Social benefits

Social benefits occur when a business has a

positiveeffect on a community and the

environment

For example:

Creation of jobs


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Social benefits



environment

For example:

Creation of jobs

Regeneration of a

Brownfield site


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Social benefits



environment

For example:

Creation of jobs

Regeneration of a

Brownfield site

Community projects


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Social costs

Social costs occur when a business has a

negativeeffect on a community and the

environment

For example:

Pollution


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Social costs



environment

For example:

Pollution

Business closure


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Social costs



environment

For example:

Pollution

Business closure

Building on a

Greenfield site


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Social costs

Social costs occur when a business has anegativeeffect on a community and theenvironment

For example: Pollution

Business closure

Building on aGreenfield site

Big businesses forcing

out small local businesses


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Why are businesses becoming

increasingly concerned about greenissuesand behaving in an ethical

manner?


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They are afraid bad publicitywill

stoppeople buying their goods

and services


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Link


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Link
http://news.bbc.co.uk/1/hi/business/4376758.stm


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Answer the following question

A Japanese car manufacturers decision to locate a large car

assembly plant just outside the City centre

Evaluate the social costs and social benefits associated withthis project (9 marks)

Evaluate the social costs and benefits of the car factory locating outside the City


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Evaluate the social costs and benefits of the car factory locating outside the City

Centre (9 marks)

Introduction Explanation of what is proposed

____________________________________________________________________________________________________________________________________________________________(1 mark)

Social costs

____________________________________________________

_____________________________________________________________________________________________________________________________________________________(3 marks)

Social benefits

____________________________________________________

____________________________________________________________________________________________________________________________________________________(3 marks)

Conclusion your opinion of the overall impact on the local area

_________________________________________________________________________________________________________________________________________________________________________________________________________________(2 marks)


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Extension Activity- Poster drawing- Using

the environment

Draw a poster that shows the social costs and

benefitsthat result from business activity

The RULESfor drawing the poster are that youcan use lots of images but no more than 10

words

Once youve drawn it you need to explain it tothe whole class

22- environmental influences on business activity

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