Syllabus: 3.2 Influences on Business
Module: 3.2.2 Ethical and Environmental Considerations
Lesson: 3.2.2 Ethical and Environmental Considerations

Introduction

This article unpacks Section 3.2.2: Ethical and Environmental Considerations from the AQA GCSE Business specification. Part of the wider 3.2 “Influences on Business” topic, this unit asks students to explore how businesses respond to growing social expectations, environmental pressures, and stakeholder scrutiny.

Students are expected to understand not just what these influences are, but how they impact business decision-making and performance. For teachers and curriculum leads, this section provides an excellent opportunity to combine case-based learning with critical thinking — encouraging learners to question not just how businesses operate, but whether they should operate that way.

Key Concepts

From the AQA syllabus, students are expected to know:

• Ethical considerations: what it means for a business to act ethically and the potential trade-offs this might involve (e.g. paying fair wages vs keeping costs low).

• Environmental impact: how businesses affect the environment (e.g. pollution, waste, energy use) and how they can reduce their footprint.

• Pressure from stakeholders: the influence of customers, pressure groups, government and the media in pushing businesses towards more ethical or sustainable practices.

• Advantages and disadvantages of acting ethically or being environmentally responsible — for example, cost implications, brand reputation, or impact on profits.

• How these considerations affect business decisions around production methods, marketing, location, and sourcing of materials.

This unit links closely with broader themes such as globalisation, stakeholder influence, and operational decisions.

Real-World Relevance

This topic couldn’t be more current. Students are often personally invested in ethical and environmental issues — from climate change to fast fashion — and many already bring strong views into the classroom.

Recent case examples worth referencing:

• Patagonia has embedded environmental activism into its brand, donating profits to climate initiatives.

• Boohoo has faced repeated criticism over worker conditions and supply chain transparency, with consequences for its reputation and share price.

• IKEA has invested heavily in sustainable materials and energy efficiency, both to reduce its impact and appeal to eco-conscious consumers.

These cases show both the risks of ignoring ethical/environmental concerns and the potential advantages of leading with them.

How It’s Assessed

In AQA GCSE Business, this topic typically appears in Paper 1, which covers “Influences of operations and HRM on business activity”.

Assessment guidance:

• Short and extended written responses are common — 3 to 6 markers asking students to explain or analyse ethical/environmental impacts on a business.

• Questions may use case study extracts, requiring students to apply knowledge contextually.

• Command words include:

  • Explain — requires reasoning or cause and effect

  • Analyse — requires breaking down the impact or implications

  • Evaluate — students must weigh up advantages and disadvantages, often with a justified conclusion

Students should practise structuring responses using PEEL (Point, Evidence, Explanation, Link) to develop high-quality written answers.

Enterprise Skills Integration

This is a prime opportunity to introduce real-world decision-making and trade-off thinking.

Using tools like Enterprise Skills’ Business Simulations, students can:

• Debate pricing vs ethics (e.g. pay suppliers fairly or lower costs?)

• Respond to a PR crisis involving environmental damage

• Navigate stakeholder pressure from pressure groups or investors

These experiences embed critical thinking, decision-making, and commercial awareness — all central to business education and real-world enterprise.

This is more than theory. It’s an applied, risk-free way for students to test their ethical instincts against business constraints.

Careers Links

Ethics and sustainability aren’t “add-ons” anymore — they’re embedded into roles across every industry.

This unit connects well to:

• CSR officers and Sustainability consultants

• Supply chain managers focused on ethical sourcing

• Marketing professionals managing brand reputation

• Environmental analysts working with data on business impact

It also supports Gatsby Benchmarks 4, 5, and 6:

• 4: Linking curriculum learning to careers

• 5: Encounters with employers — use guest talks from local business leaders on sustainable practices

• 6: Experiences of the workplace — case-based projects that mirror real business dilemmas

Teaching Notes

Top Tips:

• Anchor abstract ideas in familiar brands — many students already care about ethical shopping or environmental impact.

• Use before/after brand case studies to explore the effects of ethical lapses or leadership.

• Integrate mini-debates or dilemmas (e.g. “Should a business pay more for ethical suppliers if it reduces profits?”).

• Use Enterprise Skills’ Business Simulations for a plug-and-play option that makes this real — especially for time-poor teachers.

Common Pitfalls:

• Students confusing ethics with legal compliance — remind them that ethical behaviour often goes beyond the law.

• Over-generalising — encourage specificity in answers (e.g. not just “it’s better for the planet” but “it reduces carbon emissions from transport”).

Stretch and Challenge:

• Ask students to research and present on a business they believe is either leading or lagging in sustainability.

• Invite them to redesign a product or process from a brand they know, focusing on ethical or environmental improvements.