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Sustainable Growth & Impact

Sustainable development aims to achieve economic growth without compromising future generations' living standards, emphasizing renewable energy, recycling, and environmentally friendly products. Environmental pressures from organizations can influence business decisions, leading to consumer boycotts and potential reputational damage. The document also distinguishes between private and external costs and benefits, highlighting their impact on society and the economy.

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heatherkamupira
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28 views2 pages

Sustainable Growth & Impact

Sustainable development aims to achieve economic growth without compromising future generations' living standards, emphasizing renewable energy, recycling, and environmentally friendly products. Environmental pressures from organizations can influence business decisions, leading to consumer boycotts and potential reputational damage. The document also distinguishes between private and external costs and benefits, highlighting their impact on society and the economy.

Uploaded by

heatherkamupira
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Sustainable Development

Sustainable development is development that does not put at risk the living standards of future
generations. It means trying to achieve economic growth in a way that does not harm future
generations. Few examples of a sustainable development are:
 using renewable energy- so that resources are conserved for the future
 recycle waste
 use fewer resources
 develop new environment-friendly products and processes- reduce health and climatic
problems for future generations
Environmental Pressures
 Pressure groups are organisations/groups of people who change business (and
government) decisions.
 If a business is seen to behave in a socially irresponsible way, they can conduct
consumer boycotts (encourage consumers to stop buying their products) and take
other actions.
 They are often very powerful because they have public support and media
coverage and are well-financed and equipped by the public
 . If a pressure group is powerful it can result in a bad reputation for the business
that can affect it in future endeavours, so the business will give in to the pressure
groups’ demands. Example: Greenpeace
 The government can also pass laws that can restrict business decisions such as
not permitting factories to locate in places of natural beauty.
 There can also be penalties set in place that will penalize firms that excessively
pollute. Pollution permits are licenses to pollute up to a certain limit.
Private Costs: costs paid for by the business for an activity.
Examples: costs of building the factory, hiring extra employees, purchasing new machinery,
running a production unit etc.
Private Benefits: gains for the business resulting from an activity.
Example: the extra money made from the sale of the produced goods etc.
External Costs: costs paid for by the rest of the society (other than the business) as a result of
the business’ activity.
Examples: machinery noise, air pollution that leads to health problems among near residents,
loss of land (it could have been a farm land before) etc.
External Benefits: gains enjoyed by the rest of the society as a result of a business activity.
Example: new jobs created for residents, government will get more tax from the business, other
firms may move into the area to support the firm-helping develop the region, new roads might be
built that can be enjoyed by residents etc.
Social Costs = Private Costs + External Costs
Social Benefits = Private Benefits + External Benefits

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