Critically analyse the environmental debate and, thereby, identify a new business opportunity
Environmental issues, such as global warming, have been of concern for government pressure groups and other individuals. Some companies have responded positively to new regulations and seized/created new business opportunities that have come out of environmental concerns. Critically analyse the environmental debate and, thereby, identify a new business opportunity. Justify how you would exploit this opportunity.ß These three parts are needed to concern!!!!
The following points are important:
Ø Reasons for increasing concern??
- Rio world summit, global warming and green house effect, Exxon Valdez incidence, pressure from stakeholders (especially green activists)
Ø Why companies start to prepare voluntary environmental reports??
- Social responsibility, compliance plus strategy, tools of communication, to gain recognition of local community, staff and the government, as a tool to prevent legislation and govt intervention business ethics etc.
Ø Difficulties in environmental reporting??
- No universally acceptable standards, level of disclosure Vs business secrecy, commitment of top management, verifiability and creditability of the report, how to reconcile the conflicting demands of all stakeholders.
Ø Threats and opportunities to traditional business??
- Affected business: industrial organization, oil refinery, electricity generation companies, transportation, aviation etc.
- Threats-litigation for non-compliance, increasing demand for stringent legislation and heavier penalty, protest of green activist, poor company image, abandoned by green investors, increase in cost to comply with demanding legislations.
- Opportunities-compliance plus, leading edge strategies (ISO 14001), show-me strategy (e.g. shell)à increases in comparative advantages, export of technologyàincrease in revenue9e.g. scania euro IV engine), increase on commitment of staff, local community via transparent environment reporting.
-local experience in hk.
