Environment Strategy and Responsible Business
Environment Issues are Gaining Importance in Business Strategy
Aug 21, 2009
Two major factors compelled corporates to be more responsible on environmental issues. Firstly, the impact of environmental neglect, such as pollution-caused diseases, unpredictable weather, accumulating non-degradable waste and in numerous other forms, became too serious to be ignored. Secondly, the public, which included consumers of products and investors in businesses, increasingly began to prefer environment-conscious businesses while making purchases and investing money.
Environment and Business
Businesses found that care for environment can be good for their bottom lines.
- Caring for the environment enhanced their reputation and brand image
- More sales and greater customer loyalty
- Easier access to capital as even lending banks began to consider environmental issues
- Attracting talented employees who can choose their employers
Naturally, the impact on the bottom line was too great to persist with the old ways. Evaluating environment problems and their management became important components of business strategy development. The move for Corporate Social Responsibility (CSR) includes looking at the environment effects of business actions and taking steps to eliminate or minimize adverse impacts.
CSR is an increasingly significant movement now. Organizations like Coalition for Environmentally Responsible Economies (CERES) are creating awareness of the issues involved, and also helping organizations in taking concrete actions.
Environment and Industry
Industries can impact the air we breathe, the water we drink, the weather conditions we have to face, the surroundings among which we live and the health problems we face.
- Air quality is affected by pollutants like aerosols, asbestos, carbon monoxide, CFCs and other materials generated by industrial processes or consumer products that we use. These pollutants can cause health problems, climate change and acid rains, to mention just a few consequences.
- Water quality is affected by industrial effluents, sewer overflows, dumping of wastes and other actions. As a consequence, harmful substances can enter our drinking water systems and lead to health problems.
- Industrial activity is also leading to climate change that might be the underlying reason for the increasingly unpredictable weather that we face now. The changes can lead to problems like widespread water scarcity in the future.
- Wastes such as plastics that cannot be degraded biologically, and toxic materials can make our neighborhoods unlivable. Using recyclable materials and reusing what is left after the original use are some of the ways to reduce this problem.
It should be evident that a concern for environment while designing products and processes can cumulatively lead to dramatic changes in the quality of our lives.
How Do Businesses Care for Environment?
The Business and Sustainable Development website offers specific help to businesses in enhancing the sustainability of their businesses. These include professional training courses at the Sustainable Enterprise Academy and HRH Prince of Wales Business & the Environment Programme, as well as a great deal of reference material at the site itself.
Some examples of ways in which even small businesses can help the cause environment are:
- Reducing the pollutants they emit into the environs by adopting suitable industrial processes and treating what cannot be avoided.
- Using recyclable materials and reusing materials wherever possible.
- Minimizing the use of non-renewable resources and finding ways to use renewable resources in their place.
- Reducing wastage by improving production processes, and by developing products with greater durability and consumer life.
- Taking active steps to educate themselves and others about environmental issues and acting in environmentally responsible ways.
Environment case studies about business actions are available at the websites mentioned above.
Industrial processes and consumer products can affect the environment we live in, by damaging the quality of air and water, accumulating non-degradable waste and changing the world's climate. Such impact can lead not only to a lower general quality of life but also to serious health problems. Increasing awareness of these issues are making consumers, investors and even talented employees choose those businesses that have a reputation for environmental responsibility. The result is that business results are increasingly impacted by the organization's concern for the environment.
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