Abstract: This essay presents the two major challenges faced by businesses towards climate change issues, which are efficiency and ethics of business. Some classical management theory can be applied in dealing with these challenges in order to save resources achieve sustainable development.
Key word: Challenges, climate change, management, sustainable development
Introduction
The unprecedented climate change rate of this era arouses the awareness of individuals and businesses. Because the influence of the business activities are the major reasons of environment change (Andrew 2011). Climate change can cause numerously detrimental results such as water resources damage, food production decreasing and the disappearing of some animals and plants. Businesses nowadays not only need to focus on achieving benefits and profits, but also they have to operating in a sustainable process (Ken et al.2009). In this particular circumstance, enterprises have the responsibilities to find better management methods and principals managing their staff and tasks, in order to achieve balance between profit maximum and environment protecting (Davi et al 2010). In this essay, I will present some challenges businesses are facing and look at Henri Fayol’s 14 principals to figure out which of them are suitable principals and methods can be applied in business management toward climate change issues.
Classical management theory
To find a suitable and efficient management method dealing with this
Sustainability from a strategic business perspective is the potential for the long-term well-being of the natural environment, including all biological entities, as mutually beneficial interactions among nature and individuals, organizations, and business strategies. (O.C Ferrell, Fraedrich, Ferrell, 2015). Business sustainably is often defined as managing the triple bottom line – a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. (Business sustainability definition from financial times lexicon, no date). This essay will discuss the idea of sustainability being an important element within a businesses and its core strategies and the importance of it within different businesses. Secondly, this study will look at how different stakeholders are affected and influenced by sustainability as this could be seen as a catalyst to improving the environment as a whole and. Then this study will look at how businesses not focusing
Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.
On the surface big business and climate change seem like fundamentally different issues, but upon deeper investigation, we can see that these issues have an underlying direct correlation. How can two ideas that are fundamentally different interact so thoroughly on one topic? Naomi Klein dedicates her work to investigate how these two issues interact, and what microcosms of our society encourage this interaction. Klein has a revelation about the issues with big businesses dominance over our society. She also suggests ways for us to change our lifestyle to be more environmentally friendly and prevent massive damages to the environment. Klein’s works have the power to change how we think about these big businesses’ presence in our society
In 1988, the National Aeronautics and Space Administration had conclusive proof products adding to the output of carbon dioxide and methane gases in the atmosphere were causing the earth to warm; and, if not stopped will make it inhabitable for human life. In the 1970’s the United States had conclusive proof that products releasing Chlorofluorocarbons into the atmosphere were causing the ozone layer to deplete; and, that if continued would be dangerous for human life. The United States took international global action, by joining the Montreal Protocol, to phase out the products producing chlorofluorocarbon and the ozone layer has been successfully replenished .
As we have seen an increase in awareness around sustainability and climate change, with the help of Al Gore’s Inconvenient Truth documentary in 2006, we see organizations moving towards mitigating the effects of climate change in various ways (Al Gore, n.d). As this corporate social responsibility has become more prevalent, organizations are now pushing their green agenda by publishing sustainability reports, doing mass marketing and implementing sustainable business practices to portray the image that they too are working towards protecting the earth’s natural environment all the while focusing on their underlying goal of selling their products and
Melting glaciers, depleting water resources and decreasing air quality needs immediate attention. Everyone needs air and water to survive. Business started practicing sustainable accounting in mid-70. This practice discloses non-financial and financial information related to the business activities that has direct impact on society and its environment (air, water, people etc.). Companies use triple bottom line method to calculate the impact of business activities on society and based on these calculation companies makes policies which make its operation more ecologically and socially
In the contemporary world, the importance of the environment, human lives in, which was always debatable, has now become controversial. The substantial influence of global warming has sparked the controversy over the potential impact of this trend on climate change in recent years. It can be agreed that governments as a more powerful body is responsible to control this unwanted change, however, multitude individuals claim that all companies and citizens themselves are part of the solution. This essay will examine all arguments on this contentious issue under scrutiny prior to reaching an informed conclusion.
Environmentalists are keen to highlight links between waste management in businesses, global climate change and weather. Business' who manufacture, distribute and/or use products have been attributing to global warming, all processes expel greenhouse gasses which have major repercussions on the planet.
According to Mindy S. Lubber president of Ceres, “many U.S. companies today are still downplaying the possible risks of climate change and its far-reaching business impacts.” Still using fossil fuels and releasing carbon dioxide in large amounts will have large effects on the Earth, if companies aren’t careful. The idea of global warming has been around in the United States for many years. In fact, climate change has had effects on people and the environment for a while, and it may continue. The companies use fossil fuels for energy to receive the positive business effects that they give. However, companies are already starting to see consequences for releasing too much carbon dioxide. Companies
To a regular person, the global concern about ‘going green’ might appear as a result of speculation from nervous politicians and alarmed citizens. But the reality is totally different. In recent years, businesses have gained much knowledge about the impact of their activities on environment and in turns their customers. Businesses are successively venturing to earn greater revenues. In this process, they are trying out every best possibility to entice their contributors- from customers to investors. Regardless to say, stakeholders these days are more socially responsible than ever. So to keep up to their expectations, businesses are also trying to expand or limit their activities to save the environment- from doing relentless research on lowering waste to lean management and even trying out various eco-friendly activities. Despite of all these, the ultimate question remains unanswered if it is financially beneficial to adapt those initiatives that is going to serve the
The majority of people in today’s global society have a false sense of security in believing that the effects of climate change will not take place until the very distant future, and are to dire to bear engaging. Environmental protection is currently one of the largest social issues facing different groups within society including; governments, special interest groups, everyday citizens and global organisations. The actions of organisations with regards to environmental sustainability are becoming a larger factor in business operations. Today’s more informed society expects businesses to perform out of the traditional economic measure of profit motive and adjust to society’s efforts to achieve modern sustainability goals. BHP Billiton (BHP) is the largest and leading global resources company, being the world’s largest producers of major commodities including; coal, copper, iron ore, nickel and uranium. BHP’s annual revenue for 2014 can be rounded off to $607,206million US Dollars and currently hires 128,800 employees and contractors over 141 locations. These figures not only represent how large BHP is, but they highlight the importance of BHP’s contribution to help achieve
When looking at the corporate businesses and the undoing of the human habitat; the United Nations has sanctioned many organizations to track climate change such as the UNEP, the World Meteorological Organization and the IPCC. Since the mid-eighties, these agencies have monitored the changes, yet have failed to convey the significance. Studies done by these agencies have concluded that the last fifty years are attributable to human activities and big corporations which lead to the changing in the compositions of the atmosphere throughout the 21st century (Saltori). These activities that are mentioned are those by means of businesses that grew into national conglomerates. Concurrent with business growth, the greenhouse gas emissions have grown seventy percent from 1970 to 2004 (Lehner). Recent studies have shown that 122 corporations produce eighty percent of greenhouse gases (IPCC). The climate is going to drastically change the world forever, but at whose expense? What exactly does the political eminence of these companies have
In a culture based on consumption and consumerism businesses are the forefront of society providing every good and service imaginable. Although, in today’s society there has been an increase in significant issues concerning the ecology of our planet that have come along with this consumer culture. With issues such a lack of clean water, lack of food, lack of energy and a rapid decline in biodiversity. This rapid decline in natural resources is due to mostly to the over consumption and alteration of the planet and its resources. Where do we start though in the process to protect and preserve our resources? It starts with the very businesses that we all buy from; a major part of our everyday lives and the largest consumers of resources businesses can play a large role in sustainability and climate action. Increasing pressure is being put on businesses to create a more sustainable society, this is being done through many business sustainable business efforts.
Intro: This report will aim to define responsible business, in relation to the vast range of topics such as Corporate social Responsibility/Corporate Citizenship, sustainability, whilst comparing these through academia and their different meanings relating to Responsible Business. Furthermore, this report will also aim to critically analyse climate change and its effect in relation to making Business more responsible as well as the drawbacks/opportunities this holds for business. Finally, this report will exploit the relation between government and Business; identify possible barriers for businesses through government via academic views and evidential impacts on businesses and how government supports business to create a more sustainable world, through incentives such as the climate change Act 2008.
This research is compiled to explain how good ethical practices and good values in business can yield sustainability within the business and the society as a whole and in order to do this the concept of ethical business practice and values have to be understood.