6 Local Community The business provides employment to local people.
It sources raw materials and other supplies from the local community.
It invests money in the local community.
ENVIRONMENTAL RESPONSIBILITY
Businesses have a responsibility to conduct their business activities without damaging the environment, i.e. they should not damage the air, sea or land.
Environmental Responsibilities of a Business Environmentally responsible firms should try to source renewable energy. Energy If waste is not disposed of appropriately, it can contaminate soil, water and air. Waste Businesses should take steps to reduce or eliminate the harmful substances they produce and emit. Pollution Environmental Responsibilities of a Business This can cause flooding, and loss of natural habitat for plants and animals. Deforestation Businesses should reduce their water usage and find ways to conserve water supplies. Water Scarcity Characteristics of an Environmentally Responsible Business Honest Communication Environmental Awareness Product Design Compliance with Environmental Laws Sustainable Development
Benefits
1 Access to Finance Businesses may find it easier to raise finance, as some investors will invest only in firms that meet their ethical, social and environmental responsibilities.
2 Recruitment and Retention Employeeswho are treated fairly and believe that the business behaves in an ethical manner tend to remain in their jobs longer. This helps to reduce recruitment, selection and induction training costs for the business.
