BUSINESS ENVIRONMENT

Course name: business environment

Business Environment

Sustainability

No concept associated with environmental protection has enjoyed more widespread public legitimacy than sustainability, something scientists and social activists alike have long advocated in an attempt to encourage careful use of resources. The premises for sustainability are that care for the environment is essential to social and economic development; that natural resources are the base of industry, including agriculture; and that only by sustaining that base can humanity sustain development. It is a systemic concept for suggesting how society might enable all beings to meet their needs and express themselves while preserving diversity, both within the human species and beyond it. The idea of sustainability is likely to remain prominent in public discourse surrounding the interaction of environment and economic development.

Corporate Social Responsibility

Corporations are the most common form of business organization and are established as a legal entity separate from its constituent members or shareholders. In a corporation with shares, ultimate responsibility is usually allocated to the board of directors, which is elected by shareholders and accountable to them. All persons, regardless of their position in the corporation, including directors and officers, are evaluated in reference to the fundamental purpose of the corporation. Beyond electing the board of directors, shareholders do not participate in the decision making and operation of the organization. Decision makers in a corporate context, as anywhere else, are liable for the consequences of their decisions. Where the decisions are within the legal authority of the decision maker, liability for the consequences remains with the corporation and not with the individual person. Corporate responsibility then is related to the purpose of the organization as established by law, and where the corporation is a business, the responsibility is to conduct business in compliance with the law. Internally, the board of directors usually bears substantial responsibility for all the corporation's acts or omissions.

Sustainability Continuum

This chart expounds the continuum on which different companies fall and how it transforms from Stage I to Stage 5. At Stage 1, companies' which are having PR crisis and which has been imposed regulation comes. At Stage 2, there are companies which discover the benefits of being eco friendly and then it moves towards Stage 3. At stage 4, companies form an integrated strategy. At stage 5, sustainability becomes a legitimate end in itself (Willard, 2005).

Sustainability Drivers

Founder's Commitment

One of the most vital drivers of sustainability is Founder's commitment and vision for the sustainability of environment. This commitment is the reflection of his firm believes towards caring environment.

Public pressure

One of the most inclining factors for sustainability is public pressure. Through proper sustainability and CSR companies can achieve good relations with the stakeholder. One feature of CSR is about how the company is for stakeholders, seeking their participation and working with them, namely the shareholders, employees, creditors, suppliers, customers, communities, organizations non-governmental organizations and governments. Stakeholder engagement includes maintaining an open dialogue, caring for their environment, the willingness to form effective partnerships and transparency demonstrated by measurement practices, accounting and ...