BIS 513 Business

Strategies
Environmental Sustainability
Environmental Consciousness

 Urbanization
 Traffic Jam
 Deforestation
 Decrease in animal and plant species
 Air, water and land pollution
 Global warming

 They create threats and opportunites

Carbon footprint

 A carbon footprint is the total set of greenhouse gases (GHG) emissions

caused by an organization, event, product or person.

 An individual, nation or organization’s carbon footprint can be measured by

undertaking a GHG emissions assessment.

 Once the size of carbon footprint is known , a strategy can be devised to

reduce it, for example by technological developments, better process and
product management, consumption strategies, etc..
Green IT Issues

 Energy used by IT systems ( Data Centers ..)

 Production of
 network equipment,
 cables,
 plastics ....
 Requires a great amount of energy and releases large amounts of
Carbon dioxide.
Dynamic or turbulent Environment

 Pressure from environmentalists groups

 They force organizations to negotiate, to promise, to compensate...

 Demonstrations and other movements ruin company image in the eyes

of public.
Open Systems Approach
Areas of Proactivity

 Environment which consists of people, organizations, legislators may

influence the following directly:
 Behaviour of market segment
 Company strategy and policies
 Product specs and mix
 Promotional strategies
 Public relations strategies
 Distribution strategies
 Production / operation strategies
 Employement policies
Environment friendly perception

 Marketing
 Production
 Usage
 Waste
 Processes and phases used by the organization should be
percepted as environment friendly by the public
Green Issues

 Ozon layer
 Greenhouse effect
 Deforestation
 Pollution (Air, water, land)
 Acid rain
 Animal welfare ( IBM food trust – blockchain)
 Operations in developing countries ( Outsourcing, waste disposal ...)
Green Customer

 Green customers have serious concerns about the following areas and they
may change their purchasing decisions when they receive related new
information:
 Health
 Recycling
 Energy Saving and less usage of fossil fuels
 Savings in all sources
 Animal abuse
 Protection of forests, waters, animals and plants
 Less Genetically Modified Organisms ( Related to food especially)
Green opportunities

 Environment friendly technology, production

 Recyclable product parts
 Disposal management
 Producing energy from processing organization’s own waste
 Centralized control of electricity, heating, water consumption ...
 Advantages in public relations communications
 Green offices
 Announcement of carbon footprint reductions
Environmental Audit

 Done by Environmental Auditor

 Issues to be considered:
 Corporate environment
 Interest groups,
 Pressure groups,
 Speed of change,
 Adaptation of Company,
 Opportunities,
 Restrictions,
 Threats are determined.
Evaluation of Problems

 Degree of underestimating problems

 Degree of perception of customers’ need for changing

purchasing behaviour

 Degree of proactivity and shaping the environment

 Level of informing customers about the environmental

aspects of the product they buy.
The Environmental KUZNETS CURVE
Exercise

 Discuss
environmental issues influencing
McDonald’s