Final Examination Business Organization And Management Scenario Planning Topic Challenges A Firm May Face In Pursuing Environmental Goals.pdf

Businesses difficulties pursuing environmental goals: Today's businesses need to be prepared and ready for their business systems to adapt to the "going green" movement of the world.. Th

VIETNAM NATIONAL UNIVERSITY

INTERNATIONAL SCHOOL

o0o FINAL EXAMINATION

Course Title: Business Organization and Management

Scenario planning

Topic: Challenges a firm may face in pursuing environmental goals

Prepared by:

Lương Minh Đức - 21070636

Lê Hải Hương - 20070207

Phạm Quốc Việt - 20071001

Đỗ Thị Minh Phương - 21070074

Ngô Hữu Biển - 20070113

Class code: INS201904 Lecturer: Phạm Hoàng Điệp

Hanoi December 28, th , 2022

EXECUTIVE SUMMARY

Environmental and sustainability are top of the mind these days, from Volvo’s recently announced switch to electric vehicles and hybrids to reports of increasing ice melt in the Arctic Sea More companies are managing sustainability to improve processes, pursue growth, and add value to their companies rather than focusing on reputation alone

Businesses difficulties pursuing environmental goals:

Today's businesses need to be prepared and ready for their business systems to adapt to the "going green" movement of the world The regulatory system that has become inefficient and ineffective, transformation of a business advocacy action model to a sustainable model and aligning sustainability goals with their overall company’s goals are difficulties that most businesses encounter in an attempt to integrate economic and environmental interests in their business This report was written with the objective of analyzing the difficulties that enterprises can face during the transition to green using the scenario planning framework In this scenario planning, we have four scenarios of achieving environmental goals in today's business world

TABLE OF CONTENTS

II CHALLENGES A FIRM MAY FACE IN PURSUING

3.7 Distillation and dialogue 14 3.8 Validation and refinement 15 3.9 Interpretation and implementation 17

V INDIVIDUAL CONTRIBUTION 22

The word "sustainability" is frequently used in business to indicate that present methods may be maintained with only modest adjustments to balance economic progress with related environmental and social challenges However, there are enormous issues that threaten our global society's entire viability, much alone individual firms or advancements Several of the most pressing issues are addressed, including population increase, clean energy supply, fresh water availability, and global climate change And the purpose of this study paper is to illustrate the obstacles that businesses face when pursuing environmental goals, as well as to propose answers for each company's unique circumstance

KEY WORDS

sustainable development; sustainability challenges; human population; fresh water; energy; global climate change; scientists’ responsibilities; environment goals; atmosphere, saving energy

I INTRODUCTION

The condition of the world’s environment and atmosphere are in fragile states because of human industrialization For years, people remained oblivious and ignorant of this fact but now it is a topic known around the world People alone have been making small efforts to help, such as recycling, driving a hybrid car or saving energy, but that alone cannot fix the damage done Businesses have a much larger impact on the environment Their changings can make a big difference when

it comes to saving the environment and creating a sustainable future This report is written to analyze the difficulties that businesses may encounter in the process of going green using script planning framework

Air Pollution is one of the largest environmental issues being fought today (Environment Canada 2010.) Air pollution is caused mainly from emissions from automobiles and burning coal for electricity (Environment Canada 2010.) The earth’s atmosphere is in a horrible condition because of human neglect and greed Scientists confirm that global climates have undergone significant changes in the past few years due to the condition of the atmosphere Environment Canada states this change has been brought on by the release of greenhouse gasses that are released into the atmosphere from burning fossil fuels These greenhouse gasses trap heat from the sun in the earth’s atmosphere and are causing it to heat up dramatically

Another cause of environmental destruction comes from waste The earth is becoming overcrowded and polluted with landfills (Environment Canada 2010.) The earth’s surface is rapidly becoming covered in garbage These landfills are cutting into and polluting natural habitats, reducing the area for wildlife to live The planet's water supply is becoming scarce This problem is going to become very serious and dangerous if nothing is done about it soon Fresh water is important to the survival of both humans and animals Polluted fresh water can cause serious harm to fish and other wildlife as water is home and a vital factor of

life to most animals (Environment Canada 2010.) Pollution and overconsumption both contribute to the earth’s dwindling supply of fresh water

With the world’s environment being in the fragile state that it’s in, a lot of people are concerned for our future Customers that feel this way are more likely to shop or deal with places that are taking interest in their concerns and making an effort to help fix the world Their preference is one of the major advantages of firms becoming green at this time Many businesses are discovering that by competing with other businesses to be greener, they may get more clients This will be one of the primary reasons for the firm to have more clients, as well as plans to expand the business for a longer period of time in the future Laws and regulations about waste and business practices are also being put into place that is forcing some organizations to be more environmentally conscious Therefore, this report will more clearly explain the reasons and difficulties that the company may encounter in the process of "going green"

We believe that the condition of our earth is important and must be saved Businesses have the largest impact on the environment, and we believe that their contribution to saving the environment will make a lot of progress towards that goal We recommend that businesses go green not only because it will help the environment, but we think that it will improve their business and help to create a sustainable future for everyone And we have the four scenarios that are based on four difficulties that businesses currently face chasing environmental goals The report will be based on the current situation of the business to make plans for changes Nowadays, there are still businesses that still keep the traditional way

of production However, a lot of organizations are implementing programs to minimize waste, minimize energy consumption and limit consumption of natural resources A lot of companies are developing buildings that are eco-friendly Thus,

we will go into detail about the most suitable plans to change for each type of business

The final portion of the study will detail how much these firms may contribute

to environmental conservation by switching from a commercial operating model to

a sustainability strategy This section will include graphs showing the differences

in environmental destruction as it was in the past, before going green was popular amongst businesses, and now that businesses are trying to be more conscious of the state of our environment This will help conclude if going green is really helping to save our world

II CHALLENGES A FIRM MAY FACE IN PURSUING

ENVIRONMENTAL GOALS

1 Determining the question.

Business sustainability is the practice of operating a business without impacting the environment negatively A green business functions in the best interests of the local and global environment, meaning it supports the community and economy dependent on a healthy planet An environmentally aware business considers more than just profits - it considers its impact on society and the environment Such a business is sustainable because it contributes to the health of the structure within which it operates, thereby helping construct an environment in which the business can thrive (University, M., 2022)

It is inevitable that making sustainability a core business strategy is now commonly regarded as best practice A sustainability agenda or strategy is more likely to thrive in terms of generating values, from increased long-term returns for shareholders, lower risks, and greater connection with incoming generations of consumers

But understanding the situation that the majority of businesses are only getting

to know the sustainability operating system as well as policies these days are only adapting to the environment's immediate problem, the leader of the agenda on sustainable business remains unknown We begin our scenario planning with a focus question which is a broad range yet a strategic topic that serves as the

scenario’s basis for accuracy and integrity: What if the integration of economic

and environmental is compelled to all business in 10-15 years? This is the

central question addressed in this study A timeframe of 10 to 15 years was chosen since it is long enough to allow for significant technological advancement while still being short enough to allow for some possibilities when economic and environmental are on the same direction as they march

2 Contextualization

Business and environment are the world's common interests On the other hand, those two interests seem to never be in the same direction as the majority of the world sees and conducts them as tradeoffs Poor environmental quality is an inescapable presence in many developing countries (NEWS, E.P.I.C., 2022) According to theecoexpert.co.uk, Energy, Transport, Manufacturing and construction, Agriculture, Food retail, Fashion, Technology are the top 7 polluting industries in the world It is essential for businesses around the world, especially those in the industries mentioned above to start thinking of harmonizing economic and environmental goals

The idea that a renewed interest in environmental management will result in increased profitability for business has widespread appeal This new vision sounds great, yet it is highly unrealistic based on the current state of the world's preparation More than half of businesses face challenges in implementing sustainability initiatives Environmental costs are skyrocketing at most companies, with little chance of economic payback in sight They are the result of a regulatory system that has become inefficient and ineffective With little words to express, it

is clear that businesses are doing better in terms of making profit without the

“going green” movement in the short term and even long term if current barriers and disincentives are not removed For instance, the conventional wisdom is that environmental regulations impose significant costs on private industry, slow productivity growth, and thereby hinder the ability of U.S companies to compete

in international markets

On the other hand, in one of the leading countries in sustainable development -Singapore, more than half of employers do not have well-defined sustainability goals or strategies for their business and 49% of businesses face challenges aligning sustainability goals with their overall company’s goals (HUB, N.T.U.C.L.E.A.R.N.I.N.G., 2022) From NTUC LearningHub’s Special Report

2022 on Sustainability, it can be seen that most business leaders acknowledge the gap in expertise and skill sets around the domain of sustainability, and 36% say that their organization needs external help in implementing sustainable goals beyond awareness This can be related to not just Singaporean firms but global firms too

3 External drivers

External drivers include forces outside of the organization that impacts the business The six main external factors can be remembered using the PESTEL acronym, which stands for political, economic, sociocultural, technology, environment, and legal factors

a Political and legal

As political officials leave office and new ones replace them, the policies they implement often affect businesses in relevant industries Because of the inconsistent nature of politics, businesses monitor legislative bills closely to prepare for potential changes Policies that can have long-term effects on companies include:

+) Taxation,

+) Tariffs,

+) Employment law,

+) Competition regulation,

+) Import restrictions,

+) Intellectual property law.

Companies affected by political decisions must modify their processes to comply with new legislation and regulations but doing so can keep them in business

b Economic

The state of the economy plays an important role in every aspect of daily life from the well-being of personnel to the ability of a company to thrive When the economy trends downward and unemployment rises, businesses may have to work harder to keep their staff and change their processes to continue earning revenue If the company produces products for retail sale, for instance, they may consider lowering the price to increase sales and positively affect their revenue

c Social Cultural

Where people live, their personal values and their socioeconomic status affect what, where and why people make purchases Businesses take social factors into consideration when developing and marketing products, and many use current events, movements and social issues to appeal to their customers For example, a company that supports a women's organization may earn the trust and loyalty of customers who identify as female Catering to the specific preferences and expectations of underrepresented groups, who have more influence on the market today than in past years, can also contribute to customer satisfaction and business growth And because each individual has a distinct concept of ethics and morality, some companies may find it challenging to balance the personal lives of staff members with their expectations in the workplace Employees' leisure activities, such as social media accounts, can reflect on their employer As representatives of the company, they have a responsibility to avoid behavior that could negatively affect the business Managers can address issues such as sharing classified information or the harassment of a colleague outside of work by establishing guidelines and taking disciplinary action when necessary