Reducing the Direct Impact of Lloyds TBS on the Environment - Essay Example

s Identification Lloyds TBS: Stakeholder There has been an increase in awareness and a concern for the environment in recent years. There is every sign that this will continue throughout the next generation. Companies destroy the environment and create global warming by discharging waste during the production of its goods and services. The government's ability to intervene by way of imposing taxes on companies that have or are capable of creating externalities in the environment has led to companies taking preventive measures by introducing programs in its firms to avoid contributing to the destruction of the environment. Lloyds TBS has introduced programs in order to reduce the direct impacts its firms have on the environment. "Lloyds direct impacts are largely in the UK, and are confined mainly to energy use (air conditioning, computer systems, lighting), executive travel, paper use and office waste. These are their four key performance indicators". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). The Environment Policy was created in 1996 bringing about improvements in waste recycling and efficient energy use within its firm. The firm's energy consumption is spent on cooling, lighting and running computer systems. Lloyds TBS has " developed a set of energy-management tools (they call it their energy bible) to help their building managers calculate the financial and environmental savings from improved energy efficiency. The firms aim is to reduce energy consumption by 3GWH". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). Lloyds TBS has expanded its operations in over 27 countries (India being one such country). Due to the firm's presence in so many countries and in different parts of the UK, travel has become an essential part of their business. In 2004, flights between the UK and India and also flights between Edinburgh and other UK destinations accounted for more than 40% of the increase in air travel. There has been an increase in road travel between 2001-2004, resulting in most of the vehicles of Lloyds being changed from petrol to diesel engine cars. "Diesel emits less carbon dioxide than petrol". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). "In 2004, the firm agreed a contract that will result in five of the group's main buildings using energy from sustainable sources (hydro). This change will allow the firm to save over 11,000 tonnes of carbon dioxide increasing the use of renewable energy to 10% of total electricity consumption". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). The firm has not been able to achieve in finding alternatives to improve their water usage owing to the "resources that was allocated to manage the water reduction program was diverted to their oil storage program which was a requirement by law and which had a potentially greater environmental impact". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). The planned water saving program is expected to be achieved by mid 2005. Lloyds TBS recycling schemes "include programs to recycle batteries, cardboard, CD's, mobile phones, paper, toner cartridges, and vending machine cups. The firm recycled 13.3 million vending cups in 2004 (34% up on 2003) and increased the amount of paper and cardboard recycled by 19% to 10,500 tonnes". (Corporate responsibility reports 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). Consumers' too are concerned about the environmental changes but the majority of them are unaware of the drastic effects that have taken place in the environment through their purchasing power. A consumer's purchasing power depends largely on factors such as the amount of disposal personal income available, his age, his lifestyle and his area of residence. A consumer who is unmarried and having the same income as a consumer who is married will have more purchasing power. But this does not necessarily mean that he alone will cause externalities in a negative way to the environment than would the married consumer. e.g. both consumers would have spent on purchasing electrical appliances such as a fridge, television, heaters, etc. because these are an important investment for their daily use. The consumer's purchase of electrical goods, buying more vehicles, increased holiday trips abroad have had an impact on increased energy consumption because of the availability of these products and services. The introduction of natural gas to the market and the benefits it has on the environment has reduced the consumer's consumption of coal and oil (which releases carbon and sulphur dioxide into the atmosphere) that was initially used as the source of energy for their fuel and electricity consumption. Pollutants such as nitrogen dioxide, sulphur dioxide and carbon monoxide are found in air pollution, which are extremely harmful to the environment and contribute to acid rain. Vehicles are one of the main reasons for air pollution in the city. To curtail this problem, city authorities have created a system of charging a motorist every time they enter the city. The creation of catalytic converters in vehicles has also reduced the amount of pollutants released into the atmosphere. But traffic pollution will still be one of the largest contributors of air pollution because as the consumer population increases so will the amount of vehicles used on the road. Eutrophication is one of the root causes of water pollution. The release of nitrogen from fertilizers during farming and the release of phosphate found in sewer waste into the inland rivers have contaminated the drinking water supply. Most consumers are unaware that they too, are responsible for the pollutants found in their drinking water. Consumers' choice of a product usually depends on how the product is displayed and whether they will benefit from purchasing the product. Packaging is one method used to determine this. Packaging protects the product by preventing it from being spoilt. The standard of packaging, its attractiveness, and the correct labelling of a product are vital in the decision making of the consumer as to whether he should purchase the product or not. Online banking has enabled consumers to create positive externalities in the environment because of its eco friendly services. Consumers do not have to travel to the bank to do their banking saving on fuel consumption used in travelling. There are no paper statements involved during the transactions, saving on transportation of mail. Social changes and political changes have had an impact on how an organization functions, treat their employees and retains its existing goods and services in the market. These changes have also had an impact on consumer spending and consumer's lifestyle. E.g. a price increase on fuel (gas and electricity) would lead to an increase in the price of goods and services. The result, people would incur a massive debt, as there would not be enough disposable income for payment of loans or payment on credit card bills. This change would have a negative effect on the consumer's purchasing power. They would have to forego purchasing products that are necessary for their daily use or find alternative products that are cheaper. Banks would incur a massive debt due to the non-payment of loans and credit card bills. Some companies will not be able to pay their employees resulting in the closure of its firm and a decline in production of goods and services in the market. Consumers can be prepared for such changes by having a proper savings plan tailored to suit the present and future. An organization can be prepared for such changes by having a proper business plan to help deal with and control these changes. The plan should cover changes that might occur in the present time as well as in the future. A country that has a high unemployment rate will result in a firm paying a low wage to their employee. But this does not apply to a country that has a minimum wage law (like in the UK). The minimum wage law has given unskilled workers the opportunity to earn a higher wage resulting in them having more disposable income to spend increasing their purchasing power. Due to the payment of higher wages, employers might consider to train their staff to be more productive. The minimum wage law will also give a chance for those who are unemployed to get back to work and not depend on unemployment benefits. One advantage of the minimum wage law is that more people will be working and spending which will be a less burden on the rest of the working community reducing their payment in taxes. The changes in banking services have resulted in online banking. Online banking provides a service that gives a 24/7 access to customers to withdraw money more quickly and conveniently without the hassle of travelling all the way to the bank. We are cash rich-time poor. Online banking is also cheaper for both the customer and the bank because there are no handling of checks and withdrawal slips. But this form of banking has had its problems such as customers being victims of online fraud. Unanticipated changes such as wars, famines, droughts are unexpected and we are unable to foresee them. The consequences of such changes can be devastating to the environment as well as the economy. Population growth has led to an increase in the number of smokers in the UK and the EU. Tobacco has contributed to a large number of deaths. Smoking in public places in countries of the EU is not prohibited. The EU does not have a legislation to ban smoking in the workplace or public places. But they should create one, and soon, because second hand smoke, just like firsthand smoke, is detrimental to one's health and may lead to cancerous diseases. Improvements in medical care and access to information on healthier eating habits have resulted in a significant growth of the ageing population. In some instances, age discrimination may take place in the workplace. The EU does not have legislation for the ageing population, which leaves them vulnerable to such treatments. The ageing population is highly dependent on the working population. It is the working population who is responsible for the existence of pension schemes, health care facilities and medical facilities through the taxes they pay. An increase in ageing population means an increase of payment in taxes. A decline in the birth rate would also suffice from this situation because fewer children will be born, as couples will be too busy working, having limited time to start a family. The Working Time Directive legislation was created by the EU to protect employees from working long hours. The maximum an employee should work is 48 hours per week. The case is different in the UK. Employees work beyond 48 hours per week. This may be due to the fact that most of the working force in the UK works on Saturdays and Sundays too. The rise in sea levels is the result of climatic changes. The European Union's involvement and efforts to cut down on carbon emissions have been successful to a certain extent through their European Climate Change Programme (ECCP). Lloyds TBS has been able to adapt to the external changes and internal changes in its firm by improving their services to their customers: showing more concern to the external environment: offering better career opportunities to its employees: investing in the future of the firm by focusing its efforts and resources in improving its existing services. Lloyd's Customer Service and Yield Management are responsible for "providing information relating to the external environment, markets, competitors and products" and they also "try to understand through research, the behaviour, attitudes and motivations of both existing and potential customers". (Customer Service and Yield Management. Lloyds TBS. 30 Apr. 2006. ). This service has helped the firm to improve its services in retail banking, wholesale and international banking to serve their customers better. Customers with disabilities i.e. poor eyesight, poor hearing, and wheelchair users have also benefited from Lloyds banking services. " Statements in Braille, audible tone prompts in cash machines, large cheque books and templates has made it easier for customers with poor eyesight to write cheques and sign credit cards: hearing induction loops provided in all its branches for customers with poor hearing: installation of ramps, automated doors and lowered counters in most of the branches has made it possible for customers in wheelchairs to gain easy access to the firms banking services". (Corporate responsibility report 2004. 2004. Lloyds TBS. 30 Apr. 2006. ). Lloyds Equal Opportunity policy was created by the firm to offer better job satisfaction for their employees and improve the firm's services to its customers. The policy states, At Lloyds TBS we believe that everyone, our staff and customers alike, benefits from equal opportunities in their career or in the service they receive. We actively promote equality at every level of our organization and throughout our businesses. We believe that no matter what you disability is, you are no less capable than anyone else. Lloyds TBS actively try to ensure that our employees are maintaining a healthy balance between work life and social life. The firm has been committed to establishing a worker friendly environment for its employees by offering them flexible working hours through their "Works Option policy" which helps the employees balance their personal life and professional life (employees can choose one of the following options- reduced hours, variable hours, compressed working, term-time working, tele-working, and job sharing): the Viewpoint survey, which allows employees to air their views on a range of issues in their working environment. Equality and diversity at Lloyds TBS has been one of the factors for the firm's success as well as the cordial relationship they have with their employees from different ethnic groups. The recruitment of employees of different ethnic groups have made it possible for the firm to function satisfactorily in different parts of the world as well as in its home base, the UK. The firm's success in extending its global operations in developing countries such as in Mumbai, India is an example of the firm's ability to contribute to an economy by opening the doors to new employment as well as raise the standard of living of the poor through their services. The call centre in Mumbai, India offers customers access to banking 24 hours 7 days a week. This is also known as offshore banking. With offices in India, "Lloyds TBS has invested in communities by providing very small loans to village entrepreneurs through its micro-credit India bank. These loans enable people to escape poverty and provide for their families". (Corporate responsibility report 2004. 2004 Lloyds TSB. 30 Apr. 2006. ). Asset based lending is another service of Lloyds TBS which has enabled the firm to help companies to expand by giving them finance against their assets to buy out another firm. This service has given Lloyds a direct route into new markets. Lloyds TBS has been able to maintain its pace with the changes that are occurring in the economy through the creation of policies and services with the customers, the employees and the environment in mind. These same policies have also helped them in their decision making which has been vital for the present and the future existence of the company. "We are all planning for the future and the only thing certain about the future is that it is uncertain". (Business Guide. May 2003.Lloyds TBS. Apr 30 < http://www.lloydstsb.com/business/contactus >) Works Cited Corporate responsibility report 2004. 2004. Lloyds TBS. 30 Apr. 2006. Customer Service and Yield Management. Lloyds TSB. 30 Apr.2006. Read More