Bringing the Environment Down to Earth - Article Example

Summary of Article and Case Study Article: Brining the Environment Down to Earth by Forest L. Reinhardt\ Synopsis of the article In the article by Forest L. Reinhardt, the main components include the company management, shareholders consultation, competitor and management, government concerns, and regulators, which conflict when it comes to environmental matters. Indeed, the issue of environmental revolution has had many companies adopt new management and operation strategies that would keep the companies in business amid environmental and other risks. Normally, the managers are the focus in every company especially when it comes to the day-to-day management of the company amid stiff competition. In this regard, the managers have to include the shareholders and other stakeholders such as government in implementing the environmental aspect into their business or lines of operation. While environmental product differentiation plays a major role in gaining competitive edge in the market, it is also important to note that the managers of a particular company ought to consider environmental risks and the competitors. This actually means that the company ought to incorporate competitor and environmental management into their strategies in consultation with their respective shareholders and the relevant government agencies so that the company in question operates in a harmonious manner. This will save not only costs but also it will also ensure that the company reaps the maximum benefits of upholding the highest environmental standards. Certainly, environmental issues are inevitable in the sense that they are part of the social responsibility that a company ought to initiate in its operation. In this case, the company managers and executives ought to frame the environmental problems as company problems. Nonetheless, government comes in between the company and its profitability making it an adversary hence making the environmental question a pessimistic one and a zero-sum game. Important features, facts, and highlights from the article. When it comes to the list of important features, facts, and highlights from the article, it is worthy to note that most of the features and facts revolve around the company’s profitability and the question of environmental sustainability. Indeed, environmental concern is a major issue especially in the contemporary business world where governments and other agencies take the issue of environment seriously. In this case, many company managers have resorted to product environmental differentiation, which is an operation strategy to beat the competition. Managing competition is an important aspect in most companies but perhaps the biggest question is whether environmental concern works for the benefit of the company or against it. Another key fact from the article is the management of environmental risk in the sense that the risk presented by the environment itself calls for suitable risk management techniques. In this regard, appropriate management of the environmental risks can offer competitive opportunities to the companies involved. Such management techniques may include pollution control and environmental safety. This means that company managers and executives have to incorporate environmental risk management cautiously not to affect their profitability and competitiveness because the main aim of such companies if to make profits and environmental concerns come second. Lastly but more importantly, it is vital to redefine the markets once the issue of environment chips in. this is especially so because environmental concerns significantly change the dynamics of most companies in terms of operation strategies and products. This will involve a great deal of innovation and product differentiation in order to meet the environmental needs while at the same time continuing with the same high level of consumer satisfaction. Usually, markets are dynamic, every company can implement the necessary strategies, and policies that will not only improve on the company as a brand but will also give a new dimension to the market with the intention of managing competition and risks. Summary of thoughts, reflections, and reactions on the article Concerning personal reflections and reactions, I would like to note that though environmental concerns are equally important as the profitability is to the companies, the initiators and implementers of environmental sustainability ought to be cautious. This is rightly so in the sense that environmental sustainability ought to be in harmony with favorableness of companies to operate in a particular environment. This means that in as much as it is important for businesses to watch the environment, it is not prudent to act adversely to the companies in the name of saving the environment. Thus, harmonious working relationships among all the stakeholders involved is vital in order to maintain the balance between profitability and environmental sustainability. Another point worth noting is that company managers and executives ought to weigh all risks equally, irrespective of whether they are exposed to the risks direct or indirectly. In this regard, companies should take environment in which they operate very seriously. More specifically, pollution control and cleaner production is essential in the modern world where environment plays a key social factor. This will not only give a company a competitive edge in the market but it will also redefine the market also. When it comes to the issue of most companies being quite reluctant to take the environmental challenge I feel that they ought to understand the current market dynamics and embrace product environmental differentiation. Perhaps will lead to cleaner production in most companies hence the consumers of their products and services will have high regard for the companies due to their care for the environment in producing of high quality products and services. Case Study: Fuji Water and Corporate Social Responsibility-Green Makeover or Green “Washing”? by The University of Western Ontario The relevant stakeholders When it comes to the case study by the University of Western Ontario, it is important to note that the environment plays a central role in uniting and dividing various stakeholders. Of course, the main and most relevant stakeholder in the case study is the Fiji Water LLC., which is a bottled water company with its headquarters in the United States. The second most relevant stakeholder in the case study is the environmentalist and conservation groups that heavily oppose the industrial bottling of water for export. A third stakeholder is the Fiji government, which although benefits directly from the revenues earned from exports, is under pressure to declare the company environmentally unsustainable. Another stakeholder in the case study includes various governments in which Fiji Water exports to that have elicited mixed reactions concerning the carbon footprint of bottled water from Fiji. Ethical Issues in the case Certainly, the case study is awash with ethical issues ranging from environmental concerns to in appropriate marketing strategies. In essence, the main ethical issue is the environmental concern that has put Fiji Water in a complicated situation with its products. While Fiji claims that their bottled water are carbon negative, various stakeholders from across the globe have strongly refuted such claims as ‘green washing’ on the part of the company. Indeed, environment is a significant factor when it comes to production and Fiji Water has been heavily accused of disregarding the same for profitability. This is especially so in the sense that that carbon footprint of the exported bottled water from Fiji is significantly high, at least according to conservationist groups and other research agencies. Another ethical issue in the case study is the issue of pricing whereby it is estimated that the price of bottled water, particularly the one from Fiji Water, ranges from 500 to 1000 times the price of ordinary water. This phenomenon has led to a heated debate as to whether Fiji Water should continue exporting water, which is readily available from the taps, across the continents. Thus, people spend more money than is necessary in buying bottled water making the bottled water not only an environmentally unsustainable product but also an unnecessary financial burden to those who purchase it. Besides, credible research has proved that the bottled water is no healthier than the ordinary tap water and this raises questions over the huge discrepancies in pricing. Lastly but more importantly is the issue of ‘green washing’. This is indeed an ethical issue in the sense that advertising or any marketing campaign for that matter ought to embrace a high standard of honesty and accuracy so that consumers and other stakeholder are not swindled by phony inferences. While Fiji Water attempted to project its image as a conservation conscious company particularly when it came to matters environment, conservationists thwarted such insinuations claiming that indeed Fiji Water was the direct opposite of going carbon negative. Among the claims that the anti-Fiji conservationists presented included the provision of deceptive and misleading information by not exhaustively calculating the carbon footprint. Such Green washing practices are heavily condemned in the environmental realm specifically because they amount to significant ethical contraventions particularly in environmental matters. Contentious Ethical Traditions/Perspectives When it comes to the ease of decision-making of Fuji Water, there are two major ethical traditions/perspectives between the stakeholders and the company. The first one is conservation that has seen various stakeholders taken a unanimous decisions and resolution against Fuji Water Company. This is particularly so in the sense that the conservationist and environmental bodies are against the tradition of exporting water while water is virtually available in all places of the world. Indeed, their viewpoint is associated with using common sense or logical reasoning in that it is not beneficial to the greater global community to transport water as a precious or rare community. Another ethical tradition that brings conflict between the company and some stakeholders is the quest by the company to occupy global market with a readily available community. While marketing is part of every business operation and management plan, it is worthy to note that it should not be taken too far to the extent that the product loses its value and authenticity. This, being the exact case with Fuji Water Company in the sense that they want to dominate the global market thus forces them to lie about their actual carbon footprint. I would recommend that Fuji Water Company should continue with the business because it is both beneficial to the Fuji government and the local community. In addition, Fuji Water Company should carry on with the social responsibility through environmental sustainability. However, I am of the strong opinion that Fuji Water Company should not cover a wide geographical scope in terms of its exports, as this tends to increase the carbon footprints of its products. Besides, exporting water over expansive geographical scopes only increases the price of the bottled water, which is unnecessary. Lastly but more importantly, Fuji Water company should operate in accordance with the international best practices so that they change their tarnished image. This is especially so in the sense that they ought to be truthful in their disclosures and always strive to attain the highest environmental sustainability standards. Read More