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Business Studies IGCSEPDF 186
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Fines and
Penalties
Legal
Restrictions
Method
Environmental
Taxes
Pollution Permits
Explanation
Imposing financial penalties for
excessive pollution.
Businesses must buy licenses to
pollute up to a certain limit. Firms
that pollute less can sell their
unused permits.
Taxes on goods/services that harm
the environment.
(b) Government Actions
Governments can enforce environmental protection through:
Example
Example: Greenpeace campaigns against deforestation and ocean pollution,
forcing companies like Nestlé and Shell to change their sourcing and drilling
policies.
Impact on businesses:
● Damage to brand reputation if they ignore demands.
● Fall in sales due to boycotts.
● Forced policy changes to maintain public trust.
A steel plant exceeding
emission limits may face
heavy fines.
Encourages companies to
reduce pollution and sell
surplus permits for profit.
Banning harmful practices or limiting Restricting new chemical
factory locations near protected
areas.
plants near rivers or nature
reserves.
Carbon tax on petrol or coal
usage.