Company and Company objectives
Every business company comes into existence for the achievement of predetermined objectives. These objectives determine the nature and sequence of the business activities undertaken by the company. The company must plan and smoothly execute its business activities to ensure that it stays relevant among the customers and can withstand the cut-throat competition prevailing in the business world. The formation of a business company is a complex and time-consuming process. This article is about Company Environmental Policies. The various objectives that a business company looks to achieve are enlisted below –
- To generate adequate profits and ensure the company’s survival in the competitive business world.
- To help the shareholders grow their wealth.
- To provide quality products at competitive prices.
- To ensure customer satisfaction and build customer loyalty.
- To increase market share and establish the brand image of the company.
- To ensure that the company does not engage in any activities or practices that may harm the customers or society.
- To take appropriate steps for the protection of the environment.
The rapid increase in business and commercial activities has taken a heavy toll on the earth’s environment. Business activities have lead to problems such as the increase in carbon footprint, deforestation, and also contributed to a significant increase in the various types of pollution. So it becomes the responsibility of business companies to devise appropriate policies and undertake serious efforts to safeguard the environment. Although the environmental objectives are not related to the prime objectives of a business organization. However, business organizations must make efforts to save the environment.
This article aims to provide information about the environmental policies employed by companies.
Environmental Policies
Business organizations have realized their duty towards the protection and maintenance of the environment. For this very purpose, the companies have employed several environmental policies to ensure the fulfillment of this purpose. In simple terms, an environmental policy of a business is the written document that lays down the principles and efforts of the company regarding managing the impact of its business operations on the environment. The framework of the policy clearly defines what the company shall do to reduce the various environmental problems. The various units and departments of the business organization must work in conjunction to ensure that the goals of environmental policy are achieved.
Objectives of Environmental policies
The environmental policies of business organizations are designed to fulfill the following objectives –
- To minimize any harmful impact on the environment due to the company’s business activities such as the manufacturing process used to make products.
- To ensure optimum utilization of natural and non-renewable resources and avoid any unnecessary wastage of these resources.
- To assess the environmental impact of a firm’s activities on periodic basics and take necessary action in case the impact of business activities is creating an adverse impact on the environment.
- To reuse and recycle the products and raw materials that are eligible to be reused or recycled.
- To ensure that the environmental targets laid down in the environmental policy of the company are successfully achieved.
- To minimize any type of pollution resulting from business operations.
- To commit to continuously improve environmental performance.
- To train the company’s workforce about various environmental issues and problems and educate them about the importance of protecting the environment.
- To ensure minimum water wastage.
- To manufacture energy-efficient products and products that do not emit excessive levels of chlorofluorocarbons(for firms manufacturing electrical appliances).
Benefits of Company environmental policy
The environmental policy adopted by the business organization not only helps to safeguard the environment but also provides an array of benefits to the company itself. The various benefits that a company can obtain through the use of a suitable environmental policy are discussed below –
- Less state intervention – The business activities of organizations who are following effective environmental policies will not be intervened by the authorities as everything will be as per the environmental policy, whereas a firm with no environmental policy in place, will see increases state intervention in business affairs. So, the environmental policy helps the organization to stay within the boundaries of the law.
- Reducing Liabilities – A business organization may become liable to pay several fines for violating the environmental guidelines. But the application of a suitable environmental policy will help the organization to fulfill its obligations towards the environment and avoid such unnecessary liabilities.
- Improving efficiency – The environmental policy of the company will enable the organization to maximize its efficiency. The environmental policy includes the necessary guidelines to avoid the wastage of nature and non-renewable resources. When an organization commits to reducing any wastage of the inputs, the efficiency of various processes in the organization is slated to rise.
- Enhanced brand image – Companies that strive for safeguarding the environment have a better brand image. Customers view such organizations as socially responsible organizations and are naturally inclined to buy the products and services of such organizations. Organizations keen to protect the environment not only witness an increase in customers, but also manage to develop cordial relationships with suppliers, external stakeholders, and investors of the business. Investors are keen to invest funds in an organization that cares for the environment. So employing an effective environmental policy can help the organization to establish a better brand image.
- Cost Control – Environmental policy helps the organization to exercise better cost control as environmental policy guides the organization to cut unnecessary energy costs, conserve water, and using renewable sources of energy.
- Attracting new employees – Organizations that recognize their responsibility towards the environment will attract more employees as employees are generally inclined to work for an organization that fulfills its responsibility towards social and environmental issues. So following an effective environmental policy can help the company to acquire new talent.
Role of Environmental protection agency
The environmental protection agency(EPA) was established to address various matters related to environmental problems. Environmental Protection Agency conducts regular environmental assessments to control the rising environmental problems. The environmental protection agency also regulates the activities of business organizations to ensure that all the activities comply with environmental guidelines. The environmental protection agency helps to safeguard the environment in the following ways –
- Business organizations must abide by the environmental regulations issued by the environmental protection agency. None compliance with these regulations may lead to authorized action against the business organization.
- The environmental protection agency issues guidelines related to environmental aspects such as – clean air, pure water, conservation of energy, resource utilization, pollution control, and emergency planning.
- The environmental protection agency ensures that business organizations employ only those processes which do not harm the environment and help to keep the air and water clean and minimize toxic waste. Business organizations are required to keep pollution levels within the allowed limits. In case the pollution levels go beyond the accepted limit, the environmental protection agency may impose hefty fines.
- Business organizations are instructed to use suitable liquid treatment methods so that the toxic waste and other pollutants do not enter the water bodies and contaminate the water.
- The environmental protection agency advises business organizations to give their best efforts to create a healthier and greener environment.
So whenever business organizations formulate their environmental policies, the organization must ensure that the environmental policy is designed keeping in the mind the instructions and guidelines provided by the environmental protection agency.
Conclusion – To recapitulate, it can be said that every organization whether small-scale or large-scale should do their part in protecting the environment from various harmful impacts that may arise from their business activities. Environmental problems such as the emission of greenhouse gases, global warming, environmental degradation, and depletion of non-renewable sources have been constantly on the rise in the 21st century. So constant efforts for tackling these threats to the environment are needed to minimize the harmful implications of these threats. All in all the need of the hour is that all business organizations must fully commit themselves to environmental management and design effective environmental policies and ensure that ensure the environmental guidelines mentioned in the policy are strictly followed.
Frequently asked questions
Question 1. How can business activities adversely affect the environment?
Answer 1. Business activities such as manufacturing processes may lead to the emission of various greenhouse gases which harm the environment. Production factories may also tend to dispose of chemical water without treatment into local water bodies causing widespread water contamination.
Question 2. Does every business organization use identical environmental policies?
Answer 2. The environmental policy designed and adopted by an organization depends on the nature of its products or services, manufacturing process, machinery, and waste treatment methods. So every organization employs a different environmental policy.
Question 3. How can customers be attracted to business organizations that go green?
Answer 3. Many business organizations go green in a bid to ensure a healthy and safer environment. Customers can be attracted to the organization’s green initiative through the following ways-
- By letting the customer know more about the benefits of green products.
- By using social media platforms to connect with the customers and promote green products.
- By employing green marketing campaigns.
