BUSINESS AND SOCIETY 1

BUSINESS AND SOCIETY/BUSINESS AND SOCIETY IN SOCIAL AND HISTORICAL

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 BUSINESS AND SOCIETY 2

INTRODUCTION

Reducing environmental impact in the workplace has come a long way. Since the 1970s, when

the contemporary environmental movement began and environmental laws were formed, this

issue has been a market-driven strategic concern. Since the 1990s, more than 90% of

organizations have said that environmental sustainability is critical to their bottom line.

Sustainable product and service promotion activities have been developed, and new roles, such

as responsible global development, have been established in many companies (Diffenbaugh and

Burke, 2019). If this concern continues, we may hope for a more habitable world for future

generations. However, many problems, such as climate change, water scarcity, animal extinction,

and others, are worsening. A sustainable firm has reached a point where it can proceed no further

in its current form. Although our path to the disaster hasn't altered, we'll get there far later than

initially anticipated. Instead of trying out brand-new products and services, companies now need

to focus on reshaping their existing markets. This paper will explore strategies for greening the

business sector.

DOMINANT DRIVERS OF ENVIRONMENTAL CHANGE

The first phase of business sustainability is predicated on a firm's model responding to market

shifts to increase competitiveness by integrating sustainability drives into existing business

issues. Therefore, the next stage of sustainable practices is based on a notion in which businesses

modify the market. This is known as "market transformation" (Fletcher, 2021). Companies are
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not content to wait for market shifts before acting; instead, they're actively bringing about such

shifts. We term these anthropogenic forces "Environmental Drivers" as they are inertia arising

from human activities. Overcoming these inertial forces will require significant time and effort.

Disaggregating the demands of the whole population into three categories—population,

economic growth, and technology—is necessary to ensure the long-term viability of businesses

and meet other social needs (Brown et al., 2022). Stakeholders are any persons or organizations

who have a vested interest in the results of a company's decisions and activities. There has been a

rise in the human impact on the world's climate during the last three centuries. Businesses

consistently use practices that reflect environmental norms and the importance placed on

material resources and social occurrences. According to the stakeholder model, for businesses to

succeed, their leaders must maintain open communication lines with community members and

the natural world.

Simply put, the natural environment is crucial to the business's success. The rules for managing

stakeholders may be used as a single point of reference. There is a responsibility on the part of

the industry to act as a steward of limited natural resources owing to the Society it serves.

We tend to focus on current measures in the workplace and daily life, but market transformation

may help businesses set future goals. The first reduces adverse environmental effects, while the

second strives to improve the world for future generations. The contrast between these two

strategies is essential. The vitality of a company may be gauged by looking at its internal and

external conditions, such as the state of the company's finances and the market and Society in

which it operates (Friedman, 2007).

One will help future leaders get hired in today's competitive job market, while the other will

help them grow professionally and reach their goals. Changes in corporate practices are
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necessary if environmental degradation is to be stopped. In the economic system, businesses play

the most crucial role. Businesses have access to resources that go well beyond the limits of

individual countries. Businesses generate everything we need, from food and clothes to cars and

power and even the means of transportation in the future (Schrempf-Stirling, 2013). While the

private sector cannot provide solutions, it is uniquely positioned to bring about the lasting,

systemic change it desperately needs. In terms of consequences, climate change may have far-

reaching effects on businesses. However, it also creates many new problems for companies to

address. Companies are shown to face new risks due to the societal effects of climate change.

These risks include but are not limited to increases in operating costs, reductions in the

effectiveness of existing products and services, and impacts on asset values. Another climate-

related issue is that firms may be liable for greenhouse gas emissions. There has been a rise in

lawsuits filed against fossil fuel companies and utilities because they are responsible for the

harmful impacts of global warming (Gore, 2015).

Organizations must address climate change through the four pillars of management:

administration, strategy, regulatory compliance, metrics, and goals. More openness is required so

shareholders and other stakeholders may evaluate a company's exposure to and response to

climate-related risks. Although the focus is on high-impact businesses, the guidance might be

helpful for various fields. Financial institutions, insurance providers, and asset managers face

climate risk in their portfolios (UNEP, 2020).

Numerous sectors in the actual world make use of this strategy, including the energy sector, the

transportation sector, the agricultural sector, and the forestry sector. Businesses in these areas

will face heightened scrutiny to disclose how climate change threatens their bottom lines and

supply networks (Davis and Caldeira, 2010). Although critical, evaluation of risks and setting
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objectives are not enough. Businesses must take measures to reduce pollution and risks. The use

of scarce water resources, the construction of dams, and the installation of thermal insulation to

protect industrial structures from harsh weather may all be reduced if the focus shifts to

renewable energy sources and natural resources. Taking advantage of opportunities to produce

corporate responses to climate change is another area where vital, required, and valuable work is

being done (The shareholder franchise and board primacy, 2021).

Adapting to a world impacted by climate change may require developing people- and economy-

friendly alternatives to goods and services that rely heavily on carbon emissions. When pushed

by interested parties, organizations act. Since there isn't much external pressure on businesses to

address climate change, almost a quarter of those questioned said they aren't doing anything to

control, prevent, or react to it. As few as 3% of businesses fail to respond to pressure from three

or more stakeholders. That's why most businesses' climate measures aim to produce immediate

financial benefits (Wiedmann et al., 2020).

Regarding specific actions, most businesses aim to improve energy efficiency and use greener

technologies. Government incentives for these kinds of measures help firms save costs. As a

result, businesses are quickly reaping the low-hanging fruit and saving significant money.

Making money while improving environmental sustainability via creating climate-friendly goods

and services is futility. In addition, businesses don't seem eager to coordinate with one another to

cut down on carbon emissions throughout their supply chain. But just 28% of respondents

confirmed that they do. This might be because of poor communication with other businesses and

a lack of financial incentives (Wiedmann et al., 2020). The risks posed by climate change are

seldom evaluated thoroughly or systematically integrated into an organization's framework of

governance processes. Businesses that state they are under pressure are more likely to include

climate risk monitoring and reporting in their corporate governance structures.

Potentially pivotal in encouraging firms to adapt to climate change are investors who are aware

of the dangers posed by the phenomenon. The political environment is an essential consideration

in any study of corporate transformation and the shifting dynamics of firms within the social

structure. To spur economic development, only a minority of political regimes have rejected

climate science and begun reducing regulations. The President of the United States has used the

same method for 35 years to purge the nation's most polluted areas. While certain members of a

carbon-constrained society may refuse to address environmental concerns, most businesses see

this trend. They do not believe that the current administration's stance indicates the future.

Market activity persists despite the absence of U.S. federal leadership since other national

governments and a plethora of U.S. state and local governments maintain enacting rules. It is

unlikely that global market shifts would slow down just because the United States is withdrawing

from the Paris Agreement (story of stuff, N.D.). Countries like Germany, India, and China are

assessing the potential of renewables and other drivetrain components (such as electricity and

hybridization) for the future of the energy and transportation industries. The findings show that

many organizations are changing in response to demands for improvement from various

stakeholder groups. However, much of the present movement seems reactive and focused on

immediate gains. Climate change's long-term risks and possibilities are infrequently examined

from a strategic approach. To have a deeper comprehension of climate change, businesses may

adopt the following steps:

 Determine the risks and opportunities offered by climate change to the firm and ways the

business can help solve the problem.

 Evaluate the total amount of emission cuts that will be necessary and the systems that

will be most effective in bringing them about.

 How much will it cost you to reduce emissions and adapt to climate change? Strategically

responding to climate change requires mainstreaming fears and risks into policymaking

processes.

CONCLUSION

The effects of climate change on the market for a company's goods and services are becoming

more apparent. This may necessitate a strategy shift for certain companies. Corporations need to

not only assess and mitigate risks associated with climate change but also include environmental

issues in their long-term strategies. Neglect to do this will negatively influence their business's

long-term sustainability.

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