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Business Studies IGCSEPDF 182
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6.2 Environmental and Ethical Issues
1. Business and the Environment
Definition: Social Responsibility
Social responsibility is when a business makes decisions that benefit stakeholders other
than shareholders, such as employees, customers, suppliers, the local community, and
the environment — even when it may not maximize profit.
2. Why Businesses Want or Don’t Want to be
Environment-Friendly
Example: A factory invests in waste-treatment systems to protect nearby
rivers, even though it increases costs.
Business Activities that Harm the Environment
Businesses can cause environmental damage through:
● Air pollution: release of smoke, greenhouse gases, and toxic fumes.
● Water pollution: dumping of waste, oil, or chemicals into rivers and seas.
● Land pollution: poor waste disposal and non-biodegradable packaging.
● Noise pollution: heavy machinery and traffic near residential areas.
● Resource depletion: using up scarce, non-renewable resources like coal, oil, or
rainforest wood.
● Loss of natural beauty: industrialization ruining scenic or natural areas.