AB - The business organisation,

stakeholders and the external environment

Environmental Factors

IMPACT ON THE ENVIRONMENT:

Business impact on the environment includes:

1) Depletion of natural resources (fuels and metals);

2) Destruction of the natural beauty of the environment;
3) Smog and pollution;
4) Health impact on local populations;
5) Industrial waste;
6) Non-recyclable products.

Evolution of the awareness of environmental factors:

Impact of increased environmental awareness of society on business organisations:

Governmental regulations: Society factors: a) Carbon footprint

limits;
b) Pollution limits; a) Environmentally friendly products;
c) Waste disposal regulations; b) Recycling;
d) Environmental impact inspections; c) Business reputation.
e) Environmental licensing frameworks;
 f) Recyclability targets.

Additional costs

Business dividend

Substantial benefit Boost in sales

CORPORATE AND SOCIAL RESPONSIBILITY POLICY:

Corporate and social responsibility policy - policy in which the business sets out its position in respect of
environmental protection.

CSR policy often includes:

1) Internal standards and targets;

2) Domestic requirements;
3) International requirements.

Adopting CSR policy requires an organisation:

1) To establish controls and

monitor the infrastructure;
2) To have external review;
3) To report annually.

Real internal commitment is crucial and may be realised through:

1) Green production technologies;

2) Producing and selling less damaging products.

ECONOMIC SUSTAINABILITY BENEFITS:

For owners: For employees:

- Extended life of the business; - Job security extended along with the
- Better overall business performance; business life;

- Higher customer loyalty; - Healthier working environment;

- Healthier living environment in the local

community;
 For customers: For government:

- Green products; - International environmental

- Green products often have lower costs; commitments;

- Lower costs of recycling; - More sustainable tax revenue stream;

- Retained natural resources wealth.