Environmental and Ethical Issues

Summary and Exam Tips for Environmental and Ethical Issues

Environmental and Ethical Issues is a subtopic of External influences on business activity, which falls under the subject Business Studies in the Cambridge IGCSE curriculum. This topic explores how business activities impact the environment and the ethical considerations businesses must address. Key concepts include the impact of business activities on the environment, such as climate change and pollution, and the role of externalities, which are the external costs and benefits affecting society. Understanding sustainable development is crucial, as it involves economic growth without depleting resources for future generations. Businesses face environmental pressures from consumers, pressure groups, and governments, which can lead to opportunities for adopting eco-friendly practices. Ethical issues involve making decisions based on a moral code, balancing profit maximization with social responsibility. Businesses may face higher costs but gain goodwill and avoid legal issues by making ethical decisions. Overall, this topic emphasizes the importance of businesses contributing positively to society and the environment.

Exam Tips

• Understand Key Concepts: Focus on understanding the definitions and implications of externalities, sustainable development, and ethical decision-making. These are often tested in exams.

• Real-World Examples: Use real-world examples to illustrate how businesses impact the environment and respond to ethical issues. This can help in essay-type questions.

• Pros and Cons: Be prepared to discuss the advantages and disadvantages of socially responsible production and ethical decision-making. This is a common exam question format.

• Legal and Social Pressures: Know how government regulations and consumer expectations influence business practices. This can be crucial for case study questions.

• Practice Exam Questions: Familiarize yourself with exam-style questions to improve your ability to apply theoretical knowledge to practical scenarios.