THE RELATIONSHIP BETWEEN BUSINESS AND THE ENVIRONMENT

Environmental responsibility is a vital component of a business strategy as it not only helps the environment, but it wins the trust of communities and gains the respect of the governments of the countries in which the business operates. All businesses impact on the environment: they emit pollution, they produce waste and use resources. Businesses, however, are continually being encouraged to improve their approach to environmental issues. Every year there is a prestigious award The Business Commitment to the Environment Award and in 2007 the Co-operative was one of the winners for its response to global climate change. Some of Its efforts for the environment Include: the reduction by 86% of its CO2 emissions, use of 98% green electricity and the ethical investment policy of the Cooperative bank. However, balancing business growth and environmental quality Is always going to be a challenge for business. Businesses are encouraged to have an environmental policy, just as they do for many other issues - again this has often been a reaction to consumer pressure, and also international pressure from organisations such as the World Wide Fund for Nature. UK law and the UN Global Compact also provide minimum standards for how businesses treat the environment, and not only the small but also the large multinational businesses will generally seek to operate within the law to protect their reputation. Example - The Anglo American Mining Company Anglo American is one of the twenty largest UK based companies, heavily involved in mining and quarrying - activities which have an immediate impact on the environment. When Anglo American carries out its mining operations it tries to have a positive effect in three areas: 1 In the area where the mine is located, it carries out its operations with care and tries to improve the lives of local people, e.g. minimising noise and other types of pollution. 2 In the area immediately surrounding the mine, it is active in conservation and improvement. 3 In the wider region around the mine, it contributes financially to local communities and helps generate new businesses. An example of Anglo American's environmental conservation projects is at Tarmac's Langford Quarry in the UK, where the company has created reed beds in streams and ponds surrounding the quarry. Reed beds are an endangered habitat and local people worked with Tarmac to plant the first 10,000 reeds. Supermarkets have been one of the businesses where the importance of 'green credentials' has become increasingly important. Concerns about 'food miles' and plastic and packaging are growing among consumers. Supermarkets have realised that they must compete on their environmental ethical credentials as well as price, availability, accessibility etc. as all these factors influence where consumers shop. Responding to consumer preferences, helping the environment, profitability and corporate social responsibility go hand in hand.