Businesses & The Environment - GCSE Business Studies - OCR, Edexcel, AQA - Environmental Impact

Summary

This video explores the impact of businesses on the environment, emphasizing both legal obligations and ethical responsibility. It discusses the role of environmental legislation, using examples like Volkswagen's emissions scandal to highlight the consequences of non-compliance. The main case study focuses on Fossil Fuels PLC, a company heavily reliant on non-renewable energy, and its PR head, Susie Spencer, who faces pressure to defend its poor environmental record. The video outlines the advantages and challenges of adopting greener practices, from improving reputation and customer loyalty to overcoming the high costs of change. Ultimately, it stresses the long-term benefits of sustainability for businesses.

Takeaways

• 😀 Businesses must comply with environmental legislation, which can vary depending on the industry and the products or services they offer.
• 😀 Environmental laws include regulations on land use, emissions, waste disposal, and resource management, with heavy penalties for non-compliance.
• 😀 An example of severe legal and reputational consequences is Volkswagen's scandal involving carbon emission tests, where the company paid over $23 billion in fines.
• 😀 Beyond legal obligations, businesses are under increasing pressure to act sustainably to protect the long-term health of the planet.
• 😀 Susie Spencer, a PR manager at Fossil Fuels PLC, faces a difficult challenge defending her company’s environmental impact, as the company still heavily relies on non-renewable energy sources.
• 😀 Fossil Fuels PLC hasn't transitioned to renewable energy sources like wind or solar, raising concerns about its future sustainability and environmental responsibility.
• 😀 Companies can improve their environmental impact by adopting sustainable practices like recycling, using renewable energy, promoting staff eco-friendly commuting, and adopting electric vehicles.
• 😀 Fossil Fuels PLC has the opportunity to improve its reputation by investing in environmentally friendly practices, potentially attracting new customers and green investors.
• 😀 The potential costs for businesses adopting environmentally friendly practices include investing in new technologies, retraining employees, and transitioning to renewable energy sources.
• 😀 Ethical business practices, such as reducing environmental impact, can lead to long-term benefits, including increased customer loyalty, positive brand reputation, and higher profits despite initial costs.
• 😀 Greenwashing, the act of falsely claiming environmental responsibility, can severely damage a company’s credibility and lead to negative publicity if their practices don't meet public expectations.

Q & A

What is the main topic of the video?

The main topic of the video is the impact of businesses on the environment, focusing on environmental legislation, business responsibility, and ways businesses can reduce their environmental footprint.

Why do businesses need to apply for planning permission before building on Greenfield sites?

Businesses need to apply for planning permission before building on Greenfield sites to protect undeveloped land, such as farmland or open countryside, from unnecessary development. This helps preserve the environment and biodiversity.

What are Brownfield sites, and why are businesses encouraged to build on them?

Brownfield sites are land that has previously been developed, often found in rundown areas. Businesses are encouraged to build on these sites because they help revitalize neglected areas, reducing the pressure on undeveloped Greenfield sites.

What are some of the environmental issues covered by legislation?

Environmental legislation covers issues such as emissions into the air, discharge of wastewater, the storage, disposal, and recovery of business waste, and other practices that could negatively impact the environment.

What consequences did Volkswagen face for breaking environmental laws?

Volkswagen faced heavy fines, legal costs, and damage to their reputation after it was discovered that they had used software to cheat carbon emission tests. This resulted in over 23 billion dollars in fines and the loss of customer trust.

What is meant by sustainability in business practices?

Sustainability in business refers to operating in a way that does not harm the long-term health of the planet. This involves reviewing business processes to minimize environmental impact and adopting practices like using renewable energy, reducing waste, and conserving resources.

Why is Susie Spencer concerned about her company, Fossil Fuels PLC?

Susie is concerned because Fossil Fuels PLC continues to rely 100% on oil and coal for energy production, without adopting renewable energy sources like wind and solar power. This lack of environmental responsibility has led to negative public perception and pressure from environmental groups.

What are the potential advantages for Fossil Fuels PLC if they improve their environmental practices?

If Fossil Fuels PLC improves its environmental practices, they could boost their reputation, attract new customers, potentially increase profits, and attract green investors. These actions could also prevent negative press and backlash from environmental groups.

What are the main disadvantages for a business like Fossil Fuels PLC in becoming more environmentally friendly?

The main disadvantages include significant costs for upgrading technology, decommissioning old plants, retraining employees, and investing in renewable energy infrastructure. Additionally, the short-term impact might involve reduced profits as these changes are implemented.

What is 'greenwashing,' and why is it important for businesses to avoid it?

Greenwashing refers to businesses falsely claiming to be environmentally friendly when they have not made real efforts to reduce their environmental impact. It is important to avoid greenwashing because it can lead to legal consequences and further damage a company's reputation if the public catches on.