Different environmental factors affecting business
Environmental factors that change business are ubiquitous today in both small and large companies. Only some of them are pollution, warming of the atmosphere, rising sea levels and the availability of non-renewable goods. For example, a change in the availability of natural gas can significantly change the market. The less natural gas there is, more precisely the less available it is, the higher its price will rise, and this then increases the cost of doing business for all the companies that use it.
What is often forgotten are ecology-related factors that do not come directly from nature, so they are not purely ecological. Particularly important is the pressure of society to develop a ‘greener’ business. Various activist organizations advocate for environmental awareness of companies in various ways. Their pressure can be so strong that it can cost a company quite a lot of money. If the activity of these organizations in the media creates an image of a particular business as environmentally unacceptable, there is a high possibility that customers will stop consuming their products and services due to the moral ambiguity of production. Technological advances also open up numerous opportunities to improve business within the framework of sustainability, so it is difficult for companies to justify environmental pollution or simply not invest in its protection. Another factor is national or international sanctions that can financially damage a company, but also create a negative reputation.
Green transition for cleaner environment
All of these factors encourage companies to make changes in their business. Thus, there is a change in the organizational structure. What companies can do to make it easier to manage the changes brought about by environmental factors is to bring together a team of legal and environmental experts who can facilitate a green transition that inevitably awaits all companies.