Over the past few decades, authorities have debated over the environmental aspects of corporate responsibility and begun implementing policy to regulate it. Besides legal requirements, stakeholders need to make their companies more socially and environmentally responsible to ensure their long term sustainable operations.
In traditional business models, corporate environmental responsibility was only linked with the public interest and perception as part of their marketing strategies. However with increasing pollution, climate change and other pressures on the environment, there is now a significant need for companies to develop and follow a strict Corporate Environmental Responsibility (CER) policy.
What is corporate environmental responsibility?
Corporate environmental responsibility deals with the environmental aspects of Corporate Social Responsibility (CSR). It is the way companies and enterprises incorporate and deal with environmental issues. One example is to develop operations to minimize waste and eliminate emissions. Overall, they help to maximize productivity and efficiency, and actually often make a company more profitable. Thus, a corporation can minimize practices that are badly affecting the environment and increase their competitivness at the same time.
The importance of environmental responsibility is increasing because of the destruction of biodiversity, global warming, climate change, extreme weather events and other factors.
At its core, the concept of CER is about the efficient and effective management of resources. Moreover, it helps to reduce financial cost and environmental impact of the use of these resources. Besides that, the main areas of focus that incorporate environmental responsibility are given below;
- Waste management.
- Energy-saving and efficiency.
- Sustainable procurement.
- Travel and transportation.
- Environmental management system.
- Sustainable events.
- Environmental risk management.
Why is Corporate Environmental Responsibility important?
There are many reasons why companies need to incorporate environmental sustainability into their strategic decision making. Thus, the main drivers are risks and incentives for organizations to improve standards.
Governmental policies
Regulations and governmental policies are the most influential and prominent factors for companies to consider. Moreover, organizations are often pressurized by NGOs and environmental activism. Besides that, taxes, subsidies, and tariffs help to facilitate the implementation of environmental and ethical responsibility.
Corporate image and public perception
Corporate sustainability depends on business practices and with the modern information revolution, ones that helps protect the environment will garner support over those who destroy it. Companies are commonly harshly judged on their policies of environmental stewardship.
Shareholders, consumers, partners, and employees demand companies to become more socially responsible and environmentally aware. Therefore, partners and customers want transparency from organizations. This means a focus on corporate environmental responsibility is very beneficial for companies public image.
How corporate environmental responsibility can make a company more sustainable?
The benefits of protecting the environment speak volumes about why it is important. Therefore, here are some clear advantages of CER for corporate sustainability.
Brand growth
Customers or business partners will increasingly consider a companies public image while deciding to do business with it or not. If a company shows commitment to ethical practices and CER, the news will spread. People will know about the company or brand, and that will increase credibility and awareness.
Save money
Many simple changes to maintain corporate environmental responsibility also helps reduce production cost. Some examples are;
- Sustainable packaging is often cheaper.
- Reducing waste cuts waste management costs.
- Reduction in carbon emission is often linked to lower utility costs.
Stay ahead of competitors
By embracing CER you can stand out in the industry as a corporate and social leader. Establishing a positive image as a company as one that prioritizes attention to environmental and social factors over profits will allow you to stay ahead of competitors.
Increase customer engagement
Clients are more likely to will reach out and engage with companies that are CER leaders. This is because customers prefer companies with good CER policy, as engaging with the company can then be seen itself as an environmentally good act and be guilty free. This increased customer engagement will help increased sales of the company through engagement and brand loyalty.
Better employee engagement
People prefer to work for companies that pay attention to environmental and ethical responsibility; it makes them feel better that they work for a company that helps protect and not destroy the world. Thus, it will allow your company to attract good talent with a strong sustainable system. Besides that, it will allow you to retain valuable employees who might otherwise become jaded or leave the company because of moral conflictions.
Government laws and regulations for setting CRE policy
Developing an ethical and environmental policy for the organization is not an easy task. There are typically no hard and fast guidelines or ‘one-size-fits-all’ solution.
Thus, it requires time and research to assure that your policy follows all laws and regulations given by the government. Guidelines for developing a strong corporate environmental responsibility and ethical responsibility policy which meet government guidelines include;
- Companies should respect and support the international human rights laws and provide essential protection.
- Organizations ensure that they are not complicit in any type of abuse of human rights.
- Businesses pay attention to effective recognition of rights of collective bargaining.
- Enterprises uphold freedom of association.
- Companies provide the elimination of all types of compulsory and force labor.
- Businesses uphold the effective and long-term abolition of child labor.
- Elimination of discrimination of occupation and employment is essential.
- Provide proper support to the precautionary approach towards environmental changes and challenges.
- Companies should promote and have a strict policy for corporate environmental responsibility.
- The development and implementation of eco-friendly technologies should be encouraged and promoted by organizations.
- Authorities of companies should work against all forms of corruption.
Poor CER policy examples
Many companies are trying to apply effective CER policy. However, some of them have done poorly. Here are a few examples;
BASF: The waste of the company consists of toxic pesticides. They are killing bees which are important for the sustainability of agriculture, food production and the environment.
Eskom: They have coal operated power stations that are emitting carbon and other harmful gases. Thus, it harms the environment and health.
Gazprom: Their oil spills are continuously damaging the environment.
Good CER policy examples:
Many companies have successfully implemented a good CER policy. Here are a few examples you need to consider.
Tesla, SolarCity, and Space X: These companies by Elon Musk are great examples of companies that are environmentally responsible. They are pushing our world towards a sustainable future. Electric vehicles and solar panels are helping prevent natural fossil fuels. As well as, they reduce the emission of harmful gases.
Starbucks: The company aims to create products that are beneficial to the environment. Therefore, they have a special C.A.F.E program that helps with environmental management. Besides that, the company is providing clean water to millions of people.
Live’s: They are focusing on environmental causes and human rights to reduce environmental footprints. Besides that, the Water<Less campaign is helping companies use less water that helps save over 1 billion liters of water per year. Thus, they are working to improve the manufacturing process for corporate sustainability.
Conclusion
Make your company environmentally responsible for a sustainable future. By developing a proper Corporate Environmental Responsibility policy and guidelines, not only will your company flourish but we can help protect our land from destruction and secure our long term future.
