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Ethical and environmental considerations have become increasingly important to businesses as…
consumer concerns have the potential to quickly damage a business or brand reputation
Some companies have been able to use their ethical and environmental practices to…
add value to their brands and this had increase their profitability
Example of ethical considerations and business activity
Companies like H&M have faced criticism for using sweatshops and exploiting workers in developing countries
In response they have implemented a code of conduct for its suppliers and have started using sustainable materials
Implementing these ethical practices has come at a cost which has impacted the company's profit margin
Example of environmental considerations and business activity
Companies like McDonald's have faced criticism for contributing to deforestation in order to produce palm oil
In response, McDonald's has committed to sourcing sustainable palm oil but this has come at a higher cost than sourcing non-sustainable palm oil which has negatively impacted the company's profit margin
Pressure groups
Presorganisations that seek to influence public policy or business practices
Example of pressure group activity
Greenpeace is a pressure group that campaigns for environmental issues and it has targeted companies like Nestle for using unsustainable palm oil
In response, Nestle has committed to sourcing sustainable palm oil but this has impacted the company's marketing mix
Nestle has had to change its packaging and labelling to reflect its commitment to sustainability and it has had to spend money on advertising campaigns to communicate this message to customers
