ENVIRONMENTAL MANAGEMENT

AND TECHNOLOGY

TOPIC 5
ENVIRONMENT AND BUSINESS

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 LEARNING OBJECTIVES

❑ Describe environment as an important issue for the

strategic management process.

❑ Describe corporate "greening" process.

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 LEARNING OUTCOMES

❑ Student is able to describe the environment as an

important issue for the strategic management process.

❑ Student is able to describe corporate "greening" process.

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ENVIRONMENT AS AN IMPORTANT ISSUE
FOR THE STRATEGIC MANAGEMENT
PROCESS

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 Threats to business and society

❑ Finite natural resources – lack of raw materials

❑ Agriculture production – change in climate cause food

shortages, increase food prices

❑ Environmental disasters – losses of lives and properties

❑ Health problems – Eyes irritation, breathing difficulties,

etc

❑ Legal matters – irresponsible polluters will be penalised

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 Advantages to business and society

❑ Sustainable use of natural resources – sustainable

business

❑ Minimize environmental risk and liabilities – less

pollutions, retain competent human resource

❑ Environmental restoration – balanced ecosystem

❑ Better living quality – clean and healthy environment are

essential for good living quality

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THE CORPORATE "GREENING" PROCESS AND
STRATEGIC MANAGEMENT MODELS

© LMS SEGi education group 7

 Extended producer responsibility (EPR)

❑ Strategy used in Organization for Economic Cooperation and

Development countries to achieve waste prevention and reduction,
and increased use of recycled materials in production.

❑ Extend the responsibilities assigned to the producers and

distributors in the past to include responsibilities for the
management of the product at the after-use stage

❑ E.g. electric/electronic products, packaging, automobiles, waste

papers and motor oils.

Last Updated:1 September 2023 © LMS SEGi education group 8

 Green purchasing network (GPN) (1)

 Countries actively involved : Japan, Korea, Taiwan,

China and Thailand

 Pursuing – Malaysia, Philippines and India

 Goals of environmental labeling and declarations is to

encourage the demand for and supply of products and
services that cause less stress on the environment

Last Updated:1 September 2023 © LMS SEGi education group 9

 Green purchasing network (GPN) (2)

❑ Green purchasing require the public, government and

business to consider
❑ The necessity of purchasing

❑ The environmental impact of the products and services at

all stages of their life cycles before making the decision to
purchase

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 Green purchasing network (GPN) (3)

❑ It is about buying products and services that after

consumption are recyclable or reusable – waste
minimization

❑ Additionally, involved green technology that use minimal

energy e.g. renewable energy technologies

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 Corporate Social Responsibility (CSR) (1)

❑ Concept whereby companies integrate economy, social

and environmental concerns in their business operations
and in their interaction with their stakeholders on a
voluntary basis

❑ Intrinsically linked to the concept of sustainable

development

❑ E.g. tree planting activities, wildlife conservation,

recycling, river conservation, etc

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 Corporate Social Responsibility (CSR) (2)

❑ Advantages

❑ Corporate branding – Positive publicity

❑ Easier to recruit and retain competence human

resources

❑ Part of continuing process of building long term

values – with suppliers and customers

❑ Differentiate yourself from other competitors

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 KEY TERMS

❑ EMS – Environmental Management System

❑ OECD – Organization for Economic Cooperation and

Development

❑ EPR – Extended Producer Responsibilities

❑ GPN – Green Purchasing Network

❑ CSR – Corporate Social Responsibility

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 REFERENCES

❑ Sheldon, C. ed. (2007). ISO14001 and Beyond:

Environmental Management Systems in the Real World.
London, Greenleaf Pub.

❑ Gilbert, M. and Gould, R. (1998). Achieving

Environmental Standards, 2nd ed. Pitman Pub.

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