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.




Credit:ivythesis.typepad.com


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