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Business environment issues (Externalities (Private cost (Private cost of…
Business environment issues
Sustainable development:
Defiition: development that doesn't harm future generation
How can a business have a sustainable development?
Use renewable energy
Recycle waste
Use fewer resources
Develop new enviromental friendly products and production method
Business examples:
Addidas
BMW
Kesko
Biogen
Externalities
Definition: Externalities are third party effects arising from production and consumption of goods and services for which no appropriate compensation is paid.
External costs
Are costs paid for by the rest of society, other than the business, as a result of business activity
such as: water pollution, air pollution
External benefits
Are the gains to the rest of society, other than the business, as a result of business activity
such as: the reduction of traffic jam
Private cost
Private cost of an activity are the costs paid for by a business or the consumer of the product
Example: The cost of a car business are its fuel and maintenance for testing
Private benefits
Private benefits of an activity are the gains to a business or the consumer of the product
Example: Profit comes from sales of a perfume business
Social cost = external costs + private costs
Social benefit = external benefits + private benefits
Social example: feul, maintenance, insurance, depreciation, and operator's friving which are used by socially, other public services such as roadways, drainages system, etc.
4Ocean
Description
4ocean is a for-profit company founded in Boca Raton, Florida in 2017 that sells bracelets made mostly from recycled materials, as well as apparel and other merchandise for which the materials are environmentally and socially responsibly sourced.
Things they are doing
the business have recovered millions of pounds of ocean plastic and other harmful marine debris since 2017
Trash they have cleaned
Florida (US)
209 lbs
Bali (ind)
47,277 LBS
HAITI (HT)
40,872 LBS
they are going to start at Guatemata next