“Planet” represents a proactive approach with regard to the natural environment. Companies have to contribute to solving environmental problems on which they have or may have influence. Finally, “Profit” is about creating economic value by producing goods and providing services. It is very important to keep the Triple Bottom Line in balance. When the focus is on one element only, the other two elements will suffer.
Information pertains to accountancy can provide feedback over its performance which eventually guide management in decision making process for its future. The concept of sustainable development assist in determining and informing regarding decision makings about business strategies. Accountants needs to comprehend the concept, to know how social and environmental issues creates an impact towards business process which eventually helps in developing decision making using appropriate information provided. The concept of Social and environmental sustainability needs to be entrenched in such a way that the business operates.
The waste management of a manufacturing company is one of the environmental matters that is mostly concerned by the society. The costs to manage the wastes from production could be very costly to a manufacturing company. Nevertheless, by using ABC system, a company can manage the production wastes in an effective and efficient manner. ABC system provides a road map to the cost reductions on waste management (Joseph & Thomas, 1995). It provides the activity-based information for the management to make better business decisions around sustainability and profit.
For example, technological, natural, sociocultural, economic, legal-political and international factors that influences all organizations about equally. And the task environment dimensions in which the organization interacts directly and have a direct impact on the organizations ability to achieve its goals, which includes customers, competitors, supplies and labour market. Uncertainty in the external environment influences todays’ organizations though the need for information about the environment and resources from the environment. The concept of uncertainty simply means that decision makers do not have sufficient information about environmental factors and they will have a difficult time understanding and predicting external changes. This can lead to increased risk of failure and difficulty in estimating the cost of various alternatives.
The idea is that these entities must maintain a balance on the equilibrium through its outputs to both the economy and ecosystem. Socially responsible companies are those who go past what is required by government or environmental groups. In today’s world where global issues such as global warming and poverty continue to become more concerning for the public, it is even more important for companies to ensure the welfare of society. The other variable of this question is financial performance. This portion is measured quantitatively rather than through action.
Identifying Firm’s Strength and Weakness: Business environment helps to identify the individual strengths and weaknesses in view of the technological and global developments. NATURE OF A BUSINESS ENVIRONMENT: The nature of Business Environment is simply and better explained by the following approaches. Fig 1.2 Different approaches to the Nature of Business Environment (i) System Approach: In original, business is a system by which it produces goods and services for the satisfaction of wants, by using several inputs, such as, raw material, capital, labour etc. from the environment. (ii) Social Responsibility Approach: In this approach business should fulfil its responsibility towards several categories of the society such as consumers, stockholders, employees, government etc.
Businesses are dependent on these resources in order to operate, the business sectors the book focuses on are: building, construction, chemicals, electric power, extractives, finance, food and beverage, healthcare, information and communication technology, tourism, and lastly transportation. Grossman states, “Similarly, climate impacts, resource scarcity, and resulting changes in population migration may have broader systems-level effects, destabilizing countries a... ... middle of paper ... ...d consumer relations, if they just prepare ahead of time. Grossman says it best, “in every sector, and in a myriad of ways, the impacts of changes in the environment on businesses are numerous, material, and imminent”. He then proceeds on how businesses that face the challenges and think ahead can prevent problems, “in many sectors and across geographies – are gaining competitive advantage by understanding environmental trends and taking action” (Grossman, D. pg. 45).
They need to be able to be better than their competitors. This furthermore leads to research and development to see the current trends. This is costly. Environmental factors cater for the protection of the environment. A business must carefully be able to look at its surroundings to see for benefits and ensure that its daily production does not interfere with society.
In order to be success in the businesses, it must meet the expectations from the society. How do management ethics relate to Corporate Social Responsibility (CSR)? The management¡¯s core ethical values and standards should underpin everything that it does and the way its employees conduct their everyday business. Management ethics is about "doing things ethically". How an organisation approaches the social and environmental impacts of its business operations and its voluntary contribution to the wellbeing of the global and local communities in which it operates, is often known as Corporate Social Responsibility (CSR); it is often about "doing ethical things".
Career fields are in demand based on the environmental impact. This is an intended priority among seekers of healthy spaces. Property Management of environmental sustainability transitions into the healthy culture that contributes to protecting the environment and maintaining a balanced planet. From the article “What Are the Environmental Responsibilities of Business?” the focus was placed on the tasks and important agendas of the organization. The agendas and tasks connect to the responsibility of an organization to implement healthy practices that promote environment responsibility and sustainability.