Business Environment, 1st Edition by Pearson

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Part IV: Business and Society

various risk-mitigation measures can be incorporated in each of the

four approaches discussed earlier. Improving the process, cutting

costs, differentiating the product and managing regulation can all

be viewed as methods to reduce the risk of incurring heavy losses

owing to environmental mishaps.

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Thus, environmental issues should be analysed as business

problems. A rigorous analysis is necessary to understand which

investments generate value for shareholders. While doing the bare

minimum to stay on the right side of the law is not acceptable,

pouring a large amount of money into environmental projects in the

name of discharging social responsibility is unwise. As Reinhardt

puts it “Campaigners aren’t ...