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Organizational Sustainability. Not all organizations believe that sustainability
can add value. Most direct their environmental capital ...
... Professor Minimala, a Professor of Organizational Behavior and Entrepreneurship,
spearheaded ... of expertise is in the field of “sustainability of innovation ...
... Understanding the concepts of organizational behaviour allows management to facilitate
the ... decision-making process which is crucial to sustainability and growth ...
... a new initiative is ‘How does diversity support organizational objectives in ... awareness
of workplace demographics; contributing to sustainability of program ...
... social responsibility: toward the moral management of organizational stakeholders’,
Business ... A. and Sutton, P. (2000) Corporate Sustainability, Allen and ...
Submitted by shanedd on April 29, 2007
Category: Business
Words: 878 | Pages: 4
Views: 176
Popularity Rank: 60,599
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Not all organizations believe that sustainability can add value. Most direct their environmental capital expenditures toward downstream end-of-pipe pollution controls or clean-up technologies. This can seem expensive which is why many non-sustainability focused organizations view environmental management as simply a cost center and seek to minimize the expenses of complying with regulations.
Interface’s experience, along with a growing stream of data from other sources, strongly suggest that the adoption of sustainability measures can be cost neutral or may even turn environment management into a profit center.
Initial investment costs may be (but are not always) required the return on sustainability-oriented investments can often be rapid and large. Small and mid-sized businesses can also benefit from adoption of sustainability measures.
Growing evidence suggests that, when sustainability measures are adopted through a wise and efficient process, they may be cost-neutral or even reduce costs and become a major source of value.
Just as sustainability measures can cut costs and raise shareholder value, environmental and social liabilities can reduce shareholder value. Growing evidence suggests that the more that directors and CEO’s fail to assess report and address environmental risks, the greater the potential for shareholder suits over breach of fiduciary duty.
Shareholder value can decrease because of:
• violations of environmental law
• lack of preparation for environmental regulations
• inadequate disclosure of environmental liabilities
-Companies that leave environmental and labor problems off the books are hiding potential major financial costs and committing clear violations of the law.
The adoption of sustainability measures can prevent the loss of shareholder value. Firms that fail to proactively reduce their risks are likely at some pint...
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