The purpose of this essay is to demonstrate ways in which a company can reduce its carbon footprint. The essence of a company’s strategic planning process can be found right in their mission statement. Throughout the essay I will emphasis the importance of sustainability and its effect on business and the environment.
Sustainability can be defined as, the development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Dahlstrom, 2011). This is a very important issue and companies have to recognize the effects of their operations. Simply operating a business solely on the objective of earning a profit can potentially come back to bite you in the end. There are true cost and risk associated with the way we do business. Some companies operate with the mindset they can do whatever they want right now. “I’ll be gone” or “You’ll be gone” when the bill comes due (Friedman, 2009). In respect to our future generation that effect is going to be global climate change. We will begin to see increased health risks, decline in fresh water, rising sea levels, displaced people. Companies will see effects related to agriculture, tourism, and insurance related costs.
The potential outcome of global climate change can be compared to the collapse of AIG. AIG failed because they discounted to zero the very small, remote risk of simultaneous defaults in their investment or insurance portfolios (Friedman, 2009). The risk in fact was probably less than one percent, perhaps a great deal less – but it happened nonetheless (Friedman, 2009). In this case AIG had the benefit of being bailed out by the government. Our planet is not so lucky and will have to be offset by the way this generation and future generations conduct business.
One way in which a business can strive to become more green is by setting a goal to become carbon neutral by a specified date. This could be added to their mission statement and...
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