The environmental impact of business activity
- 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.
- 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.
- 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.
- Businesses pay for commercial waste collection and landfill tax, so waste is a direct cost as well as an environmental problem.
- Noise pollution: machinery, deliveries and building work disturb people living nearby, especially early in the morning and late at night.
- 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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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.
- 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
- They change what they buy. Shoppers choosing refills, loose vegetables or a product with less packaging shift demand towards firms that offer those options.
- 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.
- 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
- 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.
- 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.
- 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.
- 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.