THE EFFECT OF ENVIRONMENTAL ISSUES ON BUSINESS MANGEMENT IN TODAY’S WORLD

ABSTRACT

The study was aimed at investigating the effect of environmental issues on business management in today’s world, a case study of selected business organizations in Abuja. The survey research was used in this study to sample the opinion of respondents. This method involved random selection of respondent who were administered with questionnaires. The target population of the study comprised staff of selected business organizations in Abuja. The questionnaire administered was one hundred and ten (110) copies and one hundred copies retrieved which constitute the sample size. The descriptive and analytical approach was adopted using Chi-square to test and analyze the hypotheses earlier stated. The findings revealed that there is a significant effect of environmental issues on business management in today’s world and that there is a significant relationship between environmental issues and business management in today’s world. It was therefore concluded from the findings that in today’s business environment, companies are working on ways to devote resources towards environmental initiatives in a way that satisfies their economic objectives. They need a way to translate environmental issues into a form that they can understand and manage. It was recommended that environmental issues have much to offer in shedding light on the triple bottom line of sustainable development: economic prosperity, environmental quality and social equity.

CHAPTER ONE

INTRODUCTION

1.1 BACKGGROUND OF THE STUDY

No business organization can operate successfully in isolation without dependence on supportive institutions, variables and factors (Oginni, 2010) i.e business organisation exists and operates within an environment where there is complex interplay in terms of activities as well as networks of relationship between and among human resources, material resources and other systems. In the views of Aborade (2015) all business decisions are found to be contingent upon a good analysis of the environment which is often the bane of all the constraints as this environment creates the opportunities, threats and problems for the business organisation.For centuries business was done without consideration for the environment. This resulted in damage to the natural resources. According to Welford & Gouldson (2013) environmental issues have been a matter of public concern for over a quarter of a century. As knowledge relating to the cause and effect of environmental damage has become more complete, the pressure to change the ways in which we behave has increased. Much of this pressure has been targeted towards industry, which is often identified as the major source of pollution. These days, companies have to respond to a wide range of environmental pressures. Consumers, prompted by environmental labelling, are exerting pressure through the marketplace, while environmental liability keeps investors interested. (Ward 2013:18). Companies operating are under increasing pressure to take their environmental responsibilities seriously and are introducing tougher environmental regulations. Environmental groups, in their campaign for a cleaner, safer world, continue to uncover and publicise foul deeds. Failure to respond to the pressure could result in legal action, bad publicity, loss of market share, loss of investor confidence, the wrath of the local community and even jail for senior managers (Fuller, Palframan & Tank 2015).

Environmental concerns have the capacity to affect both the short-run and longterm health of each firm. While this is particularly true with regard to those firms in heavy pollution industries, no firm or industry is immune from environmental risk (Allen 2014). During the 2017s and 2010s, the environmental disasters of Bhopal, Chernobyl, and the Exxon Valdez captured the public’s attention. However, the environmental damage caused by headline catastrophes is small compared to the daily damage that society causes and that ecologically sound business practices can reduce (Willits & Metil 2016). Traditionally, environmental issues and concerns have been viewed as a constraint to businesses. This has resulted in environmental managers relying heavily on a reactive, compliance-based approach to justify change. Businesses are now recognising that efficient management in the environmental arena can benefit the entire company and open new opportunities for increased profits (Metcalf, Williams, Minter & Hobson 2016). Our planet is plagued by environmental issues that are depleting our natural resources and putting an enormous strain on our livelihoods. If left unchecked, many of these issues will impact businesses directly and indirectly. In many instances, they are already doing so. Some of the primary environmental issues that are affecting businesses today include pollution, waste disposal, water quality, and water supply issues, and climate change.

Pollution is one of the world’s biggest environmental issues. The business impact due to pollution stretches far and wide, with just one example pointing to how pollution affects the health of people which then impacts medical costs and loss of productivity. Heavily polluted areas, for example, have a difficult time hiring and retaining workers. Waste disposal is another issue, with improper disposal resulting in foul smells, leaching into water supplies, and air pollution.

Climate change is a global issue with serious implications including environmental, social, economic, and political. Factors like coastal flooding can have a major impact on businesses, leading to operational disruption and losses for organizations. Climate change can also create a higher demand for energy as the temperatures get warmer and there is a higher demand for air conditioning use. This means higher costs overall to businesses. Higher demand for energy also translates into increased use of natural resources like water and fossil fuels, which can then turn into a lack of resources for companies to turn into products. Many businesses have already started to implement automated response systems to combat these negative effects.

Environmental issues that we face today make it clear that solving as many of these complex issues as we can best serve all sectors. It will also require the cooperation of all sectors. Environmental issues affect every individual, community, organization, and country. We must all become environmental stewards to keep the economy moving, surviving, and thriving.The environmental factors that are affecting business and will continue to affect production and the economy. Such issues as major storms, loss of resources, inflation, and scarcity of food and water – are creating serious detriments. However, solving these complex issues requires the cooperation of individual sectors. It is apparent that the environmental crisis we are facing calls on all business leaders to consider the environmental impact that their companies have and also calls on business leaders to take action to ensure that they meet all compliance needs and regulations.Though the situation is difficult, environmental issues also present an opportunity for businesses to step up and show their employees and markets where they stand and what they are willing to do to mitigate the risks. Employees, for example, perform better when they are healthy.

Businesses, however, should remain aware of current events and how they may affect their employees. An example is if the employees of a company are working outside and there are extremely high temperatures. Companies will sometimes provide a toll free phone number to support employees that want to request time off. The break times required may not be sufficient enough for the health, safety, and wellbeing of employees. Increasing awareness of environmental problems caused by economic activity has driven to greater political and social demands on companies to mitigate their environmental impact. Managers are faced with environmental issues. This is not just a matter of defending environmental values, but it can have a direct impact on ensuring sustainable economic success.

1.2 STATEMENT OF THE PROBLEM

The workplace environments in most forms are unsafe and unhealthy. These include poorly designed workstation, unsuitable future, lack of ventilation, inappropriate lighting, excessive noise, insufficient safety measure in fire emergencies and lack of personal protective equipment. People working in such environment are prone to occupational disease and it impact on employee’s performance. This affects production as many staff apply for sick leave to obtain treatment. This is found in most large organizations where the culture of motivation is lacking. Therefore, this study is set of look into how these environmental issues have affected business management in today’s world.

1.3AIMS OF THE STUDY

The major purpose of this study is to examine the effect of environmental issues on business management in today’s world. Other general objectives of the study are:

1. To identify key issues involved in environmental issues towards business management
2. To examine relationship between environmental issues and business management in today’s world
3. To determine the extent to which environmental issues affect business management in today’s world
4. To identify strategies that organisations can adopt in the wake of turbulent business environmental factors
5. To assess the challenges confronting business management in the business environment

1.4 RESEARCH QUESTIONS

1. What are the key issues involved in environmental issues towards business management?
2. What is the relationship between environmental issues and business management in today’s world?
3. What is the extent to which environmental issues affect business management in today’s world?
4. What are the strategies that organisations can adopt in the wake of turbulent business environmental factors?
5. What are the challenges confronting business management in the business environment?

1.5 RESEARCH HYPOTHESES

Hypothesis 1                                                                   

1. There is no significant effect of environmental issues on business management in today’s world
2. There is a significant effect of environmental issues on business management in today’s world

Hypothesis 2

H0: There is no significant relationship between environmental issues and business management in today’s world

H1: There is a significant relationship between environmental issues and business management in today’s world

1.6 SIGNIFICANCE OF THE STUDY

The Nigerian business environment in the last one decade has witnessed unsatisfactory progress cumulating into retarded growth rate, high rate of unemployment, low industrial output, coupled with poor demand in terms of services and tangible products.  The research work provided insight into the dynamism of business environment through which major and minor constraints in the environment were identified, the role of environmental factors in ensuring as well as heralding management of business organisations in relation to danger posed by these environmental factors were identified. The work has equally placed environmental factors in the fore front of business management thus enlightening that the success of any business organisation is contingent on understanding the environmental factors.

1.7    SCOPE OF THE STUDY 

The study is based on the effect of environmental issues on business management in today’s world.

1.8 LIMITATIONS OF THE STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 OPERATIONAL DEFINITIONS OF TERMS

Environment: This is the physical conditions that affect the behavior, growth and development of an individual factor; these are things that cause or influence the activities of another thing.

Enabling Environment: Environment means in other words the natural landscape together with all of its non-human features, characteristics and processes.An enabling environment is a rich and varied space where risks are minimized and well managed, and children are protected from harm and abuse.

Management:Is the organization and coordination of the activities of a business in order to achieve defined objectives. The directors and managers have the power and responsibility to make decisions and oversee an enterprise. The size of management can range from one person in a small organization to hundreds or thousands of managers in diverse institutions.