Politics of the Environment: Reasons for Embracing Environmental Concerns - Assignment Example

Politics of the Environment Davis (2003) defines environmental politics as is concerned with evolution of environmental movements and parties; analysis the making and implementation of public policy in the area of the environment; comments on ideas generated by the various environmental movements and organizations; and the international environmental issues which are of increasing salience. Businesses have increasingly become interested in responding positively to environmental issues in recent times. This environmental concern influences business operations, wider context of policy, public opinion and environmental concern. The environmental issues are mainly impacted on by the company culture, communication and influence on the environmental agenda (Mitchell, 2009). Businesses have approached environmental issues in various ways including environmental policy and auditing, environmental advertising and marketing and environmentally based communications. As such business organizations have a vital role to play in ensuring sustainable environment (Doyle and McEachern, 2007). They need to devise business models which are beneficial to the business and at the same time contribute to safety of the environment. Experts argue that environmental sustainability is a strong foundation for ensuring sustainable development and that emphasis should be placed on environmental and social welfare alongside economic growth (Fischer, 2000). This essay critically evaluates the reasons for embracing environmental concerns and explains what benefits this brings to business organizations Literature Review The environment has been one of the key policy issues that have gained tremendous importance in recent past (Stewart, 2009). This has seen many governments set stringent pollution targets (Howes, 2005). As a consequence, firms involved in provision of environmental solutions are enjoying innovative market opportunities. Environmental sustainability can only be attained by striking a balance between economic development, ecological system protection and maintenance of cultural and social wellbeing of communities. Thus business firms can benefit a lot from environmental sustainability (Daynes and Sussman, 2010). By ensuring environmental sustainability, businesses are able to reduce harmful impacts on air, land and water in addition to helping them to comply with statutory obligations. Business organizations have been forced to entrench environmental sustainability in their sustainability policies because both developed and developing countries are addressing future environmental concerns and climate change (Connelly and Smith, 2003). Thus business organizations are required to strike a balance between natural systems and sustainable business activities (Adair, 2006). Better businesses today are those whose activities cause no damage to the environment by using natural resources in a balanced manner, businesses are able to meet the demand of future generations (Harrison and Bryner, 2004). The increased global warming, the increased gas and electricity prices and the looming global water shortage have been the key drivers to the need to conserve energy and to be environmental steward (Carter, 2007). As a consequent most corporate firms are operating in a new regulatory environment, one that sets more stringent controls over water and energy consumption, greenhouse gas emissions, the use of hazardous substances and disposal of both standard and hazardous wastes. Most firm stakeholders such as investors, employees and customers demand that the firms they deal with have corporate environmental responsibility (Bocking, 2004). Another pressure for business firms to be environmentally sensitive emanates form the media fraternity and environmental advocacy groups. Even though firms are under immense pressure to be environmentally sensitive, many companies are yet to develop any type of policy that comprehensively addresses environmental issues. This is mainly because a smart energy and environmental policy is a complicated process. Few firms that try to craft overall energy and environmental stewardship plans have ended up concentrating on one or two specific problems without determining how business activities interrelate. Several problems have been cited for being behind inability of companies to develop policies which comprehensively address environmental issues (Haycox, 2002). First is the lack of a coherent, overarching environmental and energy strategy. Firms that are not able to come up with a strategy that is coherent that integrate business activities in conservation of the environment cannot come up with a policy that addresses environmental issues. Another, problem is lack of actionable data and the inability to measure energy use and greenhouse gas emissions and determination of how to reduce them. Unless a firm is able to quantify its energy use and greenhouse gas emission, it cannot be able to reduce them (Daynes and Sussman, 2010). Another problem is lack of understanding of the steps that need to be taken to enter new markets where issues related to energy, environmental and sustainability may be paramount. Prior to understanding legal issues related to environment in a new market a firm cannot be able to establish itself in such environment (Warren, 2002). Immature, supply chains that do not allow global consistency in the adherence to environmental policies is another problem that hinders devising of policies that address environmental issues in a firm. Firms which have product engineering, manufacturing and disposal practices that are not compatible with environmental stewardship also faces problems that hinder proper policy formulation to guide environmental issues in business activities according to Lemberg (2010). Firms which have travel and commuting policies which do not consider energy use and environmental impact cannot effectively formulate environmental policies. In spite this; Miller (2002) says sustainability is an important concern for business and society today. Environmental impacts are of increasingly importance and the drivers for reporting and assurance on such matters in annual financial statements are more than just a matter of complying with the law. Resource use, climate change and waste management among other environmental issues are now matters of strategic concern for many businesses. The integration of environmental issues with financial reporting frameworks enables users of financial statements to make economic decisions in regard to environmental impacts on assets, liabilities, income and expenditure in addition to revealing business opportunities and provision of a holistic approach to risk management. This can result in increased reputation, profitability and relationship with employers and customers (Shapiro, 2001). For instance, according to IBM projections, $1 in energy savings can often lead to an additional $6 to $8 in operational savings (Ignatow, 2007). Opportunities that may come with embracing environmental issues in businesses include differentiation of business brands and burnishing of business products and services. The enhanced brand image can result in delivery of market permission and drive customer and employee loyalty (Swearingen, 2010). Furthermore, it is argued that green policies can provide competitive differentiation to a business entity. Moreover, business benefit from increased energy and material effectiveness alongside complying with regulatory environments and pressure levied by the media, consumers, environmental advocacy groups and stakeholders. Evaluation All businesses have a limited life span. Sustainability of such businesses is a big issue. Environmental sustainability has been cited to be an important issue in increasing the life span of a business (Andonova, 2004). By observing environmental issues such as reduction of greenhouse emission, consumption of energy and water and proper management of wastes, a firm is able to ensure a sustainable environment which can support the businesses activities (Train, 2003). Compounded with balanced utilization of natural resources, environmental sustainability can greatly increase the life span of a business organization. Firms embracing environmental sustainability are able to lower the costs of running their businesses since they consume less energy and water (Okereke, 2007). In addition, such firms are able to differentiate their products and gain competitive advantage over their rivals who do not embrace environmental sustainability (Elliott, 2004). Since most stakeholders are environmentally conscious, firms with environmental policy which advocate for sustainability are able to attract talented employees in addition to good investors hence they can easily access human capital and raw material that can give the competitive advantage (Orr, 2004). As mentioned earlier, customers are looking for businesses and products which are produced in environmentally friendly situations (Daynes and Sussman, 2010). Thus firms which are able to offer such products are able to attract such customers and win their loyalty. With the increased regulations from governments around the global on environmental issues and pressure emanating from environmental lobby groups and other business stakeholders, businesses have no option but to devise ways of complying with these pressures or cease to exist altogether. Conclusion Environmental politics is concerned with evolution of environmental movements and parties; analysis the making and implementation of public policy in the area of the environment; comments on ideas generated by the various environmental movements and organizations; and the international environmental issues which are of increasing salience. Businesses have increasingly become interested in responding positively to environmental issues in recent times. Most corporate firms are operating in a new regulatory environment, one that sets more stringent controls over water and energy consumption, greenhouse gas emissions, the use of hazardous substances and disposal of both standard and hazardous wastes. Most firm stakeholders such as investors, employees and customers demand that the firms they deal with have corporate environmental responsibility. Even though firms are under immense pressure to be environmentally sensitive, many companies are yet to develop any type of policy that comprehensively addresses environmental issues. This is mainly because a smart energy and environmental policy is a complicated process. In spite this; sustainability is an important concern for business and society today. Environmental impacts are of increasingly importance and the drivers for reporting and assurance on such matters in annual financial statements are more than just a matter of complying with the law. Environmental issues are now matters of strategic concern for many businesses. Opportunities that may come with embracing environmental issues in businesses include differentiation of business brands and burnishing of business products and services. The enhanced brand image can result in delivery of market permission and drive customer and employee loyalty. Moreover, business benefit from increased energy and material effectiveness alongside complying with regulatory environments and pressure levied by the media, consumers, environmental advocacy groups and stakeholders. With the increased regulations from governments around the global on environmental issues and pressure emanating from environmental lobby groups and other business stakeholders, businesses have no option but to devise ways of complying with this pressure or cease to exist altogether. References Adair, R. 2006. Critical Perspectives on Politics and the Environment. New York: The Rosen Publishing Group. 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