HOW TO BE SUCCESSFUL
Companies need to consider a number of factors to be successful:
- Environmental legislation is increasing in many countries. Strict enforcement of environmental legislation has created the need for companies to find effective approaches to managing environmental affairs. Non-compliance means fines, penalties for willful violations and reputational risks. In addition, public outcry and loss of confidence in products of companies that do not comply with environmental regulations may result in the loss of business.
- Transparency and public engagement. In the interest of the local community and the broader public, many organizations now carry out environmental audits and report regularly on their environmental performance.
- Employees are increasingly interested in and concerned about the environmental credentials of their employer and may create internal pressure to lessen environmental damage.
- Shareholders. More and more shareholders of larger organizations are financial institutions whose interests are driven not only by financial performance. A category of ethical or ‘green’ investors is emerging, and organizations may wish to consider whether they should present themselves as eligible for such investments.
- Pressure groups. A phenomenon of the late 20th century was the massive growth and influence of environmental pressure groups.
- Customers. There are opportunities for organizations operating to high environmental standards to gain market advantage. In some sectors, there are customers willing to favor ‘green’ organizations, which may therefore be able to increase market share or charge a price premium. A number of companies try to differentiate themselves from their competitors by promoting their ethical standards.