Today, running of businesses have and is continuously changing from the capitalism and profit oriented view to corporate service to the society. Corporate social responsibilities of the businesses in today's market and the environment are one of the major determinants of the success of the business. Businesses today have the responsibility of given back to the society through ensuring that the community around then profit from the existence of the business (Hawken, Lovins, & Lovins 2009). Apart from focusing on making a profit in an organization, managers and organization are now under force to ensure that they are in a position to impact to the society positively. The impact, in this case, can be defined as, environmental, financial, social, economic, and political and so on. It is expected that any organization should see to it that all its processes impact on the welfare of the society to some positive degree (Blair & Hitchcock, 2001). This is corporate social responsibility of business. Green Business is the business which complies with its corporate social responsibilities requirements and focuses mainly on its environmental sustainability measures (Habisch, 2005).
The society today is looking for healthier and sustainable foods sources and products, more fuel-efficient vehicles, energy conservation materials and other aspects which are sustainable in their lives (Elkington, 2004). Companies, on the other hand, are expected to concentrate on doing well by doing good which is through service to the society rather than only focusing on profitability. Companies are therefore expected to address the social ills either caused by their activities or the actions of other parastatals (Korten, 2001). The today's market and society believe that it is only when the social welfare in improved that everyone included the businesses win. This, therefore, calls for actions to move beyond trade-offs (Blair & Hitchcock, 2001). This essay will look into the environmental impacts of businesses given the green business. It then looks into the various which can be used successfully in creating a green business which provides sustainability.
Environmental Impacts of Businesses
Businesses affect the environment in which they operate in. In one way or the other, businesses affect the political, economic, social, technological, ecological and legal environments either positively and negatively (Korten, 2001). Businesses have continuously impacted on the lives of people, either consumers, stakeholders or those within the area of operation. Some of the ways in which business impact on the environment are discussed below. On the ecological environment, businesses and manufacturers today have impacted on the climate conditions very negatively. Statistics show that the forest cover in the world is reducing at a high rate. Corals reefs have been destroyed; there is increased soil erosion, and poor waste management has also caused a lack of fresh water supplies for human and ecological use (Habisch, 2005). The conflict between social sustainability and ecological sustainability has also led to low survival rates of the animal species (Zadek, Pruzan & Evans, 1997). More so, adverse climatic changes have been experienced in the world where global warming is inevitable. Poor management of the extraction, manufacturing, and processing of business has led to all these adverse effects. The ultimate impacts of these activities have led to massive deforestation, high level of diseases, lack of sustainable social resources and even death.
On the economic perspective, the business determines the type of capitals, good, and services to be owned and traded in an economy. Business impacts on the pricing of goods and services traded at any one time in the economy (Idowu, Capaldi, Fifka, & Schmidpeter, 2015). It ensures that individuals can access goods and services as desirable or as demanded. They set the prices of the good and services in an organization. Third, businesses can impact on the social environment of the people in many aspects. For example, businesses can improve or impoverish the standards of living of individuals in a community (Hawken, Lovins, & Lovins, 2009). They can also affect the health of a community either negatively or negatively. For example, companies dealing with the production of sulfur and other harmful products affect the level and quality of growth and intellectual development negatively (Mullerat & Brenna 2011). Children brought up near these industries are not able to attain physical and intellectual development well in comparison to others. Poor management of waste by business affects the social life of a community and may also affect the behaviors of these people. The quality of food substances sold and manufactured by businesses also plays a significant role in determining the quality of life of the people in that community and the customers themselves (Zadek, Pruzan & Evans, 1997). On the other, green businesses have positive effects on the quality of life of the people. For example, they can ensure proper access to quality goods and food for the community and customers. They can offer positive growth through training, sponsorship, and scholarships to the members of a given community.
Technologically, businesses are highly responsible for the technological advancement or dwarfism in a given setting. Businesses are the major distributors, manufacturer, processors and promoters of various technologies to people (Idowu, Capaldi, Fifka, & Schmidpeter, 2015). The more creative and innovative the businesses are, the more the people can access better and advanced technologies. The use of better technologies in an organization defines the possibility of better services and acquisition or proportional technologies by the stakeholders (Schreck, 2009). However, at times, the technologies adopted by the businesses may affect the health and the productivity of the environment. They affect the ability of the environment to be utilized maximally for the benefit of the stakeholders (Mullerat & Brenna, 2011). The technology adopted should, therefore, be controlled and managed effectively to ensure socials sustainability.
Corporate social responsibility theory
Corporate social responsibility (CSR) is one of the management theories which view the social responsibility of business as a core function and a determinant of its success. CSR is based on the responsibilities a business is required to fulfill to the immediate environment and other stakeholders in the business (Porritt, 2006). Drive towards the creation of Green Business, CSR uses various core elements which include performance management, public disclosure, stakeholder engagement, governance, assurance, and strategy. CSR is built on and ensures continuous learning, innovation, and performance. Business has a responsibility to manage itself effectively and govern its systems in the above lines for it to achieve effectiveness towards the environment. Governance involves the governing of the business itself in respect to itself, its codes of conduct and its external codes (Porritt, 2006). For example, this may involve the responsiveness and the interaction with the external environment. This also involves how the business deals with instances of corruption and bribery. Performance management involves how the business measures and controls its performance in specific areas (Blowfield & Murray, 2008). The Green Business is supposed to ensure that its performance is managed effectively and controlled to be in line with the acceptable standards. The strategy and the mission are hence set to inform of the performance standards and criteria (Habisch, 2005).
More so, green business in the view of the CSR requires a high level of assurance. This is the assurance to the external stakeholders that the business is undertaking functions and activities which are important. This, therefore, calls for audits and auditing to take place which may include Environmental Audit, Energy Audit, financial audits and conformance audits (Porritt 2006). The Green Business should ensure conformance to the International Standardization Organizations and other guiding principles (Welford, 1997). In addition to this, public disclosure is very important. This is where the external stakeholders are informed about the activities taking place in the organization and the measures being taken to place for continuous development. This is done by publishing their activities and using other media platform to communicate their activities to the public. The performance of the Green Business as seen in the CSR theory should be mirrored by the society's interest in the environmental-business relationship (Hawken, Lovins, & Lovins, 2009).
For the Green Business, all the processes impacting positively or negatively to the consumers should be considered. Fair operating practices should be highly considered while improving on labor practices, human rights, consumer issues, community involvement and development and organizational governance (Welford, 1997). Therefore, this calls for businesses to fulfill their philanthropic, ethical, legal and economic responsibilities according to Carroll’s CSR Pyramid.
Five capitals framework (Porritt) theory
According to Elkington, Green Business achievement is a function or integration and management of the five capitals which are manufactured capital, financial capital, social capital, human capital and natural capital (Elkington, 2004). Social purpose and responsibilities of the existence of the business can only be achieved with the view of the above capitals. In this theory, capital is stock or anything with the capacity of generating a flow of benefits which must of course be valued by humans.
The most important and core capitals in the definition of the responsibilities are the manufactured capital and the financial capital. For businesses to attain the level and the credit as Green Businesses, they have to ensure that the material's good or fixed assets used in the process of production are safe and environmentally friendly. These include the tools, machines and even the buildings used by the businesses. They should contribute to the social sustainability of the community and all its stakeholders (Elkington, 2004). The financial capital in this theory is viewed as the shares, bonds, and banknotes which take an important role in ensuring that other types of capital are traded and owned. This type of capital is the representative of other forms of capital. In its responsibility to the society, business should allow the public to invest and trade in it through shares, bonds, and banknotes (Elkington, 2004). This ensures that the society can benefit from its activities.
Social capital and human capital fall in the immediate adjacent category after the core capitals. For the Green Business, social capital involves the capacity with which the business can help in maintenance and development of human capital. The social capital is the ability to partner with other social amenities like the families, voluntary organizations, trade unions, other businesses and the schools to ensure the welfare of the society (Elkington, 2004). The human capital involves the ability to promote or health in promoting people’s health, knowledge, skills and motivation. This is the provision of the things necessary for productive working in the environment of a flourishing economy.
Lastly, five capital frameworks illustrate the possible utilization of natural capital in creation and sustainability of Green Business. The natural capital in this context is the stock or flow of energy and materials producing goods and services. These include the resources (both renewable and non-renewable), sinks and processes. Utilization of these resources for the green business should be geared towards achieving the organization's objectives while benefiting the society sustainably.
Conclusion
Nowadays, business operation is continuously changing from the capitalism and profit oriented view to corporate service to the society. CSR of the businesses in today's marketing environment and is one of the major determinants of the success of the business. Corporate social responsibility (CSR) is one of the management theories which view the social responsibility of business as a core function and a determinant of its success. The operations of the business affect business in various ways. Therefore, businesses must take appropriate actions to reduce environmental impact. The business operations impact on the ecosystem. Therefore, business operations should be sustainable and eco-friendly. On the economic perspective, the business determines the type of capitals, well, and services to be owned and traded in an economy. Green Business achievement is a function or integration and management of the five capitals which are manufactured capital, financial capital, social capital, human capital and natural capital.
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