Resources | Revision Questions | Business Studies
Click on a question to view the answer
Businesses often rely on natural resources for production. Discuss how business activity can lead to the depletion of these resources. Provide specific examples to support your answer.
Answer: Businesses frequently depend on natural resources such as timber, minerals, water, and fossil fuels to manufacture goods and provide services. Unsustainable practices can lead to the depletion of these resources, impacting future availability.
Depletion of Timber Resources: Deforestation for agriculture, construction, and paper production is a major concern. Large-scale logging without replanting results in habitat loss, soil erosion, and reduced biodiversity. For example, the logging of rainforests for palm oil plantations in Southeast Asia is a significant example of timber depletion. This has devastating consequences for orangutans and other rainforest species.
Depletion of Mineral Resources: Mining operations extract minerals like iron ore, copper, and gold. These processes often involve large-scale excavation, which can lead to land degradation, habitat destruction, and water pollution. The extraction of rare earth minerals needed for electronics is particularly problematic due to the environmental damage caused by mining and processing. Furthermore, the finite nature of mineral deposits means that continued extraction will eventually lead to scarcity.
Depletion of Water Resources: Businesses, particularly in industries like agriculture and manufacturing, require large quantities of water. Over-extraction of water from rivers, lakes, and aquifers can lead to water scarcity for other users, including communities and ecosystems. Irrigation for agriculture is a major contributor to water depletion. Industrial processes often discharge wastewater, further impacting water quality and availability. The Aral Sea disaster, caused by excessive water diversion for irrigation, is a stark example of water depletion.
Depletion of Fossil Fuels: The use of fossil fuels (coal, oil, and natural gas) for energy generation is unsustainable. Fossil fuels are finite resources, and their extraction and combustion contribute to climate change. Continued reliance on fossil fuels will inevitably lead to their depletion. The increasing cost of fossil fuels also incentivizes businesses to seek alternative, more sustainable energy sources.
Conclusion: The depletion of natural resources is a significant negative environmental consequence of business activity. Businesses have a responsibility to adopt sustainable practices, such as resource efficiency, recycling, and investing in renewable energy, to mitigate this impact.
Question 1: Discuss why businesses may choose to respond to environmental issues. Consider at least three different reasons.
Businesses are increasingly responding to environmental issues for a variety of reasons. These can be broadly categorised into financial, ethical, and reputational motivations.
Improved Reputation: Consumers are becoming more environmentally conscious. Businesses that demonstrate a commitment to sustainability often gain a positive reputation. This can lead to increased customer loyalty and attract new customers who specifically seek out environmentally responsible brands. For example, a company that invests in renewable energy or reduces its carbon footprint may be viewed favorably by the public and media. This enhanced image can translate directly into higher sales.
Increased Sales: As mentioned above, a positive environmental image can drive sales. Many consumers are willing to pay a premium for products and services from companies that prioritize environmental responsibility. This is particularly evident in sectors like organic food, eco-friendly clothing, and sustainable tourism. The growing demand for 'green' products creates a significant market opportunity for businesses that can meet this demand.
Cost Savings: Implementing environmentally friendly practices can often lead to cost savings. This might involve reducing waste, improving energy efficiency, or optimizing resource use. For instance, investing in energy-efficient equipment can lower electricity bills. Reducing waste through recycling or reusing materials can also reduce disposal costs. These cost savings can improve a business's profitability.
Legal Requirements & Risk Management: Governments are introducing stricter environmental regulations, such as carbon taxes and waste disposal rules. Businesses must comply with these regulations to avoid penalties and legal action. Responding to environmental issues proactively helps businesses stay ahead of these changes and mitigate potential risks. Failure to comply can result in significant fines and reputational damage.
Employee Morale & Recruitment: Employees are increasingly seeking to work for companies with strong ethical values. A commitment to environmental sustainability can boost employee morale and make a business more attractive to potential recruits. This can lead to a more skilled and motivated workforce.
In conclusion, businesses respond to environmental issues for a complex combination of factors, ranging from financial incentives to ethical considerations and the need to maintain a positive public image. These motivations are often interconnected and mutually reinforcing.
Question 2: A large clothing company is facing increasing pressure from consumers to reduce its environmental impact. Explain how the company could respond to these pressures. Provide at least three specific examples.
A large clothing company facing consumer pressure to reduce its environmental impact has several options. These can be categorized into improvements across the entire product lifecycle, from design and sourcing to manufacturing, distribution, and disposal. Here are three specific examples:
These examples demonstrate how a clothing company can proactively address consumer pressure and improve its environmental performance. A comprehensive approach, incorporating multiple strategies, is likely to be most effective.