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2.2.2 Environmental considerations

2.2.2 Environmental considerations

The environmental impact of business activity

  1. Traffic congestion: deliveries, staff driving to work and customers arriving by car all add vehicles to local roads, so journeys take longer for everyone in the area.
    1. A large distribution centre can generate hundreds of lorry and van movements a day, which is why councils often refuse or restrict planning permission near housing.
  2. Disposing of waste: packaging, offcuts, unsold stock and food that has passed its date have to go somewhere, and landfill takes up land and leaks liquid and gas as the waste rots.
    1. Businesses pay for commercial waste collection and landfill tax, so waste is a direct cost as well as an environmental problem.
  3. Noise pollution: machinery, deliveries and building work disturb people living nearby, especially early in the morning and late at night.
  4. Air pollution: burning fuel in factories, boilers and delivery vehicles releases fumes that worsen air quality and affect the health of people in the surrounding streets.
Example
  • A firm running older diesel vans in London pays the Ultra Low Emission Zone charge of £12.50 a day for each one, which turns air pollution into a bill.
  • Airports such as Heathrow restrict night flights because of complaints from residents under the flight path.
  • A supermarket that throws away unsold bread each evening is paying twice: once for the flour and once for the waste collection.

Recycling and reducing waste

Definition

Recycling: processing used materials so they can be made into new products instead of being sent to landfill.

  1. Sorting waste at source: separate bins for card, glass and plastic mean less goes into general waste, which cuts the collection charges the business pays.
  2. Redesigning packaging: removing plastic film from a multipack, or switching a tray from black plastic to cardboard, makes the packaging recyclable and uses less material in the first place.
  3. Reusing and reselling: pallets and crates can be returned and used again, and offcuts such as scrap metal or sawdust can be sold to another business rather than thrown away.
  4. Redistributing unsold stock: Tesco passes surplus food to charities through its Community Food Connection scheme, which keeps edible food out of landfill.
Common Mistake
  • Recycling is not free: someone has to sort the waste, extra bins take up space, and recyclable packaging usually costs more per unit than plastic.
  • Packaging also has a job to do, so a lighter box that lets goods arrive damaged creates more waste than it saves.

How businesses accept greater environmental responsibility

  1. It is a choice, not a legal duty. The law sets limits on emissions and waste disposal, and accepting environmental responsibility means going further than those limits because stakeholders expect it.
  2. Changing the vehicles: DPD and Royal Mail are replacing diesel vans with electric ones and planning routes to cut mileage, which reduces both fumes and fuel spending.
  3. Changing the premises: fitting insulation, LED lighting and quieter machinery, and limiting deliveries to daytime hours, reduces energy use and noise for the neighbours at the same time.
  4. Changing where it buys from: choosing a UK supplier instead of one overseas shortens the journey the materials make, which cuts transport emissions and congestion on long routes.
Example
  • UK supermarkets have removed plastic bags for loose fruit, cut back film on multipacks and set up in-store collection points for soft plastic.
  • The carrier bag charge of 10p pushed shoppers towards reusable bags and cut the number of single-use bags handed out dramatically.

How consumers accept greater environmental responsibility

  1. They change what they buy. Shoppers choosing refills, loose vegetables or a product with less packaging shift demand towards firms that offer those options.
  2. They change how they buy. Taking a reusable cup to a coffee shop, or grouping orders into one delivery instead of three, reduces the waste and mileage the business creates on their behalf.
  3. They put pressure on firms directly. Customers who complain about excess packaging, boycott a polluter or support a campaign group make the issue expensive enough for the business to act on.
Note
  • Consumer pressure works through demand, so a business responds when enough customers act, not when a few complain.
  • Global warming, finite resources and the longer-term trade-off with profit are covered in sustainability; this article deals with the immediate impact and the direct costs and benefits.

Costs and benefits of accepting responsibility

  1. The costs arrive first. Electric vans, cleaner machinery and recyclable materials all have to be paid for before any saving appears, which squeezes the profit margin or forces prices up.
  2. Some choices lose sales or convenience. Banning night deliveries to protect neighbours means lorries queue in daytime traffic, and a dearer green product can be undercut by a rival that changes nothing.
  3. Using less of something saves money. Less packaging, less energy and less waste sent to landfill all reduce running costs permanently once the initial spending has been recovered.
  4. Reputation and fewer penalties: a firm known for acting responsibly wins customers who care, keeps the local community and council on side, and is less likely to face fines or tighter restrictions.
Exam technique
  • Name the specific impact rather than writing "it harms the environment", so say congestion, landfill waste, noise or air pollution.
  • A question asking you to analyse the costs and benefits of this business accepting greater environmental responsibility needs both sides developed, not a list of green ideas.
  • The error to avoid is treating a green change as costless; almost all of them need spending up front.
Self review
  • Name four environmental impacts of business activity.
  • What is recycling, and how does it reduce a firm's waste costs?
  • Give two ways a business can accept greater environmental responsibility.
  • Give two ways consumers accept greater environmental responsibility.
  • State one cost and one benefit to a business of reducing the pollution it causes.
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2.2.2 Environmental considerations Revision Guide

  1. GCSE
  2. /Business
  3. /2.2.2 Environmental considerations

Revision notes for AQA GCSE Business 2.2.2 Environmental considerations. Open the guide for explanations and worked examples. Written against the AQA GCSE Business (8132) specification, so the content matches what's examinable rather than general Business background.