In 2022 the business environment is one that is characterized by intense levels of competition. Recent evidence is also indicating that the levels of competition within the world of business are increasing. More organizations are taking advantage of the power of big data to make informed and intelligent business decisions that can give them an edge over their competitors. In addition, the business environment is now one that takes place on an international scale. This is because of the explosive growth of the internet and the fact that today’s consumers are happy to buy from any company, regardless of where in the world it is located, if their products are of high quality and arrive in a reasonable timeframe. Today, businesses also need to be acutely aware of their impact on the environment and must strive to adopt environmentally responsible practices in all that they do. This article explores three key reasons why businesses must do this.
A legal requirement
In many countries there are legal statutes and regulations that businesses must adhere to that serve to protect the environment and the inhabitants of a nation. When a business is found to be polluting the environment as a direct result of its activities, it may be breaking the law and as such can be taken to court and prosecuted. One such example of this was the Sterigenics lawsuit that took place in Illinois, America. Sterigenics’ Willowbrook facilities were found to be releasing highly carcinogenic products into the environment and as a result there was an increased cancer risk in the local community. This led to a number of lawsuits being filed against the organization and the demand for compensation for the damage that had taken place.
To gain more customers
In 2022, customers increasingly want to trade with companies that promote ecologically friendly practices, minimize waste and operate in an environmentally sustainable fashion. They will be actively discouraged from trading with organizations that are found to pollute, be wasteful in production processes or do not take environmental responsibility seriously. For businesses to retain their existing customer base and encourage the growth of new trade they must demonstrate themselves as environmentally friendly organizations. Multinational companies such as Nike are increasingly using sustainable and recycled materials in their footwear manufacture as a way to help protect the planet and demonstrate their commitment to the environment.
To protect the planet
As a final point, one of the most important reasons for any business to operate in an environmentally responsible manner is to protect planet earth for future generations. The threats of climate change and global warming are now a reality rather than a simple hypothetical. This year, extreme weather patterns such as the flooding in Bangladesh has been attributed to humankinds’ impact on the planet. It is of vital importance that businesses seek to reduce their environmental impact and this can be achieved by reducing their carbon footprint and minimizing waste and energy consumption in all processes. In short, a combined and global effort is needed on the part of the world business community to minimize the effects of climate change and ensure that the planet remains inhabitable.