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AQA GCSE Business · 8132
AQA 8132 Check the specification (PDF) (opens in a new tab)
Business decisions affect more than customers and owners. A factory’s production processes, a shop’s deliveries and the journeys employees make to work can all affect the environment and local residents. Environmental responsibility means taking these impacts into account and making decisions that prevent or reduce harm.
Some harm creates an external cost: a cost borne by people outside the business. For example, residents may experience noise from deliveries even though they neither work for nor buy from the business. This differs from a business cost, such as the money the business pays its delivery drivers.
Consumers also make environmentally important decisions. Their choice of transport, products and ways of disposing of waste can reduce harm directly. Choosing businesses with greener practices also gives those businesses a reason to change: environmental responsibility can influence which products consumers buy and whether they return.
Businesses generate traffic through deliveries, employees commuting and customers travelling to their premises. When many vehicles use the same roads at the same time, traffic congestion causes delays. This can inconvenience residents and make business deliveries less reliable. Vehicle exhausts also contribute to air pollution.
A business can schedule deliveries outside busy periods and encourage employees to share cars, use public transport, walk or cycle. These decisions can reduce the number of vehicles travelling at peak times. Great Ormond Street Hospital in central London, for example, supports staff cycling by providing bicycle parking and free bicycle maintenance.
Consumers can accept responsibility by sharing cars or using public transport for shopping trips rather than each travelling separately by car. The effect of these choices depends on the location: alternatives are easier to use where public transport or safe walking and cycling routes are available.
Delivery timing involves a trade-off. Moving deliveries away from rush hour may reduce congestion, but deliveries late at night could disturb nearby residents. A responsible decision considers both traffic and noise rather than solving one problem by creating another.
Recycling involves processing waste materials so they can become new products. Paper, glass and metals can be collected for recycling rather than simply discarded. A business can provide recycling bins and arrange collection, or recycle suitable materials left over from production.
Recycling is different from reuse, which means using an item again without first processing it into a new material. Refilling a container or using a carrier bag repeatedly are examples of reuse. Reducing the amount of material used in the first place is another option: less packaging means less packaging waste to manage.
Businesses can redesign packaging, offer refillable products and make recycling easier for customers. LUSH Cosmetics, for example, sells products such as bath bombs and shampoo bars without packaging, avoiding the need to dispose of that packaging afterwards.
Consumers support these changes by buying refillable products, choosing products made from recycled materials, reusing bags and separating household waste for recycling. Business action and consumer action work together: providing recyclable packaging is more useful when customers actually put it into an appropriate recycling collection.
Not all waste can be recycled. Waste disposal concerns what happens to unwanted materials, including those that remain after opportunities to reduce, reuse and recycle have been considered.
Careless disposal can pollute land and water. Businesses therefore need suitable arrangements for handling and disposing of production waste safely. Environmental regulations restrict how waste can be disposed of, and breaking them can lead to fines and requirements to clean up damage.
Businesses can also look for useful purposes for their waste. For example, breweries can use suitable brewing waste as animal feed. This avoids simply throwing the material away and may reduce disposal costs.
Consumers have responsibilities too. They can dispose of household waste safely and reduce the amount they generate. Buying only the food a household is likely to eat reduces food waste before disposal becomes necessary.
Noise pollution is unwanted or excessive sound. Machinery, construction work and delivery vehicles can disturb nearby homes and businesses. Limiting noisy work and deliveries to suitable hours can reduce disturbance, although it may also restrict when the business can operate.
Air pollution occurs when harmful gases or particles enter the atmosphere. Industrial processes and transport are possible sources. Businesses can install suitable filters to reduce emissions from production, use more efficient machinery or replace conventional delivery vehicles with electric ones. Electric vans avoid exhaust emissions during use, though this does not mean all their environmental impacts disappear.
Consumers can help by using public transport, walking or cycling instead of driving where practical, or choosing lower-emission vehicles. Buying locally can also reduce transport distances in some circumstances. Businesses and consumers both need to consider how goods and people travel, not just what happens inside the premises.
Environmental responsibility can improve both efficiency and reputation. Using fewer materials and reducing waste can lower purchasing and disposal costs. More efficient equipment can reduce energy bills. Although savings may take time to recover the original investment, they can eventually improve profit.
Responsible waste disposal and pollution controls reduce the risk of fines, clean-up costs and damaging publicity. Meeting legal requirements is therefore important financially as well as environmentally.
A stronger environmental reputation can attract customers who care about these issues. They may choose the business over competitors, recommend it or remain loyal. Higher sales can help pay for greener practices, but the size of this benefit depends on what customers value and what they are willing to pay.
Employees may also feel proud to work for an environmentally responsible organisation. This can improve motivation and help recruitment and retention, reducing the disruption and costs associated with replacing staff.
Greener practices can require substantial spending. Pollution-control equipment, efficient machinery or electric delivery vehicles may be expensive to buy. Recycling collections, safe waste disposal and alternative packaging can add to everyday costs. Employees may need training and supervision to follow new procedures correctly.
Packaging decisions also have to protect the product. An alternative may reduce waste but be more expensive or unsuitable for hygiene and product protection. If costs rise, the business may accept lower profit or increase prices, potentially losing price-sensitive customers.
These decisions connect the business’s functional areas. Operations changes production, packaging and deliveries; human resources organises training; marketing communicates genuine environmental improvements; and finance assesses whether the business can afford the changes and their likely return.
For example, a town-centre food outlet could separate recyclable packaging, reduce food waste and arrange deliveries at times that limit congestion without disturbing residents. Less food waste could reduce purchasing costs, while recycling collections and staff training could increase costs. Customers may welcome the changes, but extra sales are not guaranteed.
The best judgement therefore depends on the business’s circumstances. A large business may be better able to fund expensive equipment than a small firm with limited cash. Where customers strongly value environmental responsibility, reputation and sales benefits may be substantial. Where customers mainly choose on price, low-cost waste reduction may be a more affordable starting point than major investment.
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Both businesses and consumers can reduce environmental harm through their choices.
| Consideration | Business response | Consumer response |
|---|---|---|
| Traffic congestion | Reschedule deliveries; encourage shared cars, cycling or public transport | Share cars; use public transport |
| Recycling | Provide recycling facilities; recycle production materials; reduce packaging | Recycle waste; choose recycled or refillable products |
| Waste disposal | Dispose of waste safely; find alternative uses for suitable waste | Dispose of household waste safely; avoid buying excess food |
| Noise and air pollution | Limit noisy operating hours; use filters, efficient machinery or electric vans | Use lower-emission transport; reduce unnecessary car journeys |
Distinction: reuse means using an item again; recycling processes waste into material for new products.
Benefits: lower material, energy and waste costs; reduced risk of fines; improved reputation, sales and loyalty; better employee motivation and retention.
Costs: investment in equipment; potentially higher packaging and disposal costs; staff training; restrictions on operating or delivery times.
Weigh initial and ongoing costs against likely savings and customer response. Consider affordability, location and customer price sensitivity. Environmental benefits do not automatically mean higher business profit.
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Develop a chain of reasoning: explain how a greener decision changes costs or customer behaviour, then link this to sales, profit or reputation.
Apply your answer to the business in the question. Delivery traffic matters differently to a town-centre shop and a factory with frequent deliveries.
Distinguish benefits to the environment or local residents from benefits to the business itself.
Do not assume greener practices always increase profit. Weigh likely savings and extra sales against investment, running costs and customer price sensitivity.
For an evaluation, make a justified judgement based on the business’s finances, customers and likely environmental impact.
Environmental responsibility
Making decisions that take account of environmental impacts and aim to prevent or reduce environmental harm.
Traffic congestion
A build-up of vehicles on roads that slows traffic and causes delays.
Recycling
Processing waste materials so that they can be used to make new products.
Waste disposal
Removing or treating unwanted materials, including waste that cannot be reused or recycled.
Noise pollution
Unwanted or excessive sound that disturbs people or their surroundings.
Air pollution
The release of harmful gases or particles into the atmosphere.
External cost
A harmful effect of business activity borne by people outside the business, such as disturbance to nearby residents from delivery noise.
Put your knowledge into practice — try past paper questions for Business
Environmental responsibility
Making decisions that take account of environmental impacts and aim to prevent or reduce environmental harm.
Traffic congestion
A build-up of vehicles on roads that slows traffic and causes delays.
Recycling
Processing waste materials so that they can be used to make new products.
Waste disposal
Removing or treating unwanted materials, including waste that cannot be reused or recycled.
Noise pollution
Unwanted or excessive sound that disturbs people or their surroundings.
Air pollution
The release of harmful gases or particles into the atmosphere.
External cost
A harmful effect of business activity borne by people outside the business, such as disturbance to nearby residents from delivery noise.