Business and the Environment

As economies globalize, new opportunities to increase prosperity and the standard and quality of life are arising through trade, business, knowledge-sharing and technological advancement. However, these opportunities are not readily available to an ever increasing population which are accompanied by new risks to the stability of the environment.

Industrialization while important for economic growth and development of a society, is also harmful to the condition of the natural environment. Industrial processes are the major contributors to climate change (due to GHG emissions), pollution of air quality, contamination of water and soil, as well as impact on human health.

Data has shown that positive improvement in the lives of many people around the world are counter balanced by alarming statistics about the state of the environment. Business decisions and operations have the potential to impact either negatively or positively on society and the environment.

Conservation of the natural environment (resources efficiency and management) and at the same time promoting economic development, are among the most difficult challenges currently facing humanity. Moreover, most policies and practices implemented by various businesses and companies, influence the shape and direction of our lives and that of the future generation.

Currently, some businesses are giving environmental issues the appropriate attention needed, because they have come to realise the potential disaster of neglecting the degradation of the environment and fast depletion of natural resources. For example General Electric, Toyota, Unilever and Dupoint have realised that going green has become a key economic driver and have/are investing heavily in greening their products and processes over the past few years.

Proper management of the natural environment helps organizations and businesses to better manage risk, attract and retain talent, save cost, improve their corporate image and reputation, develop new expertise and provide solutions on sustainability issues in their business processes.

Moreover, understanding sustainability issues, will help businesses and organizations to integrate environmental considerations into their financing decision making process. Lack of integration of environmental performance as well as sustainability will impact on the long term economic viability of the business/organization.

When businesses understand the importance of sustainability and strive to implement it in their core business model it helps prevent and reduce physical waste, increases energy efficiency, improves resource productivity. Consequently money is saved (profitability is improved) and competitiveness is enhanced.

Whereas, another key factor to why businesses need to care about the environment is simple; because environmental and economic footprints are aligned. Going green will not only help businesses/organizations to improve the state of the environment, but it will also increase the chances of the business/organization’s success and economic prosperity.

I agree that the primary purpose of any business is to make profit (because it’s vital for their success and survival), but I don’t think that’s their sole responsibility. Conservation of natural resources is also a deciding factor for the success of a business, due to the fact that most of them derive and make use of natural resources for their products and services.

 

I am of the opinion that the responsibility and goal of any business is to protect the economic system and the bigger socio-environmental system. They also have a duty of care towards their stakeholders, clients, consumers and the society at large, because these groups of people are more aware of the need to be more sustainable and are now demanding for cleaner and more ethical products and services.

In conclusion, the responsibility of businesses/organizations is not just limited towards society and to generate profit, but to ensure a steady flow of funds that can be diverted towards research and pursuit of society development and conservation of natural resources.

Without the realization of this duty and responsibility, I’m afraid that success and survival of businesses/organizations that fail to see the importance of sustainability will soon gradually fade out and cease to function.

Thank you for your time and thank you for reading!