Effects of Environmental Improvement on Business
When the full system effects of environmental improvement are considered, it is evident that business will be significantly affected. When you put together your business case for environmental improvements, you may find it useful to consider both financial and non-financial factors. These include reduced costs, increased business opportunities and an improved image to stakeholders like customers, suppliers, and investors.
(a) Face more regulations: Business will face more regulations from all levels of government Involvement of government is necessary in order to establish priorities and goals and to maintain coordination towards them.
(b) Increased costs and liabilities: Business will have increased costs and liabilities for environmental improvement. Air and water which formerly were part of the public common now will be part of the internal cost system of business.
(c) Nebulous and difficult: the Third effect is that business decision-making environment will become more nebulous and difficult.
(d) Need to adjust: Business will need to adjust its procedure, organizational units, and lifestyle in order to improve both its social inputs and outputs.
(e) Necessary to do more system thinking: Business will find necessary to do much more system thinking and global thinking than formerly.