Going green as an strategic risk
A new report by Ernst & Yong ranks a growing "greening" concern as one of the top 10 strategic risks businesses face. The top three risks are: regulatory and compliance risk, global financial shocks, and aging consumers and workforce.
The report calls this increasing concern about the enviroment "radical greening" and states that going green is expensive at first, but it could be worthwhile if consumer tastes and the regulatory enviroment start to demand it; ok, perhaps that wasn't a jaw-dropping discovery, but the entire report still makes for a good reading.
Comments (2)
Delicious
E-mail
Facebook
Follow us on Twitter
And not only a strategic risk, radical greening due to climate change alarmism is also a food security risk. See how recent food prices have been going up partly due to large-scale conversion from food crops to bio-fuels.
Coming up next will be "eco-protectionism", like the proposed "carbon tariff" by rich countries for exports of developing countries that have no emission cuts/limit. Some parts of the world can go nuts due to radical greening.
Posted by: Nonoy Oplas, Philippines | Apr 6, 2008 9:30:30 PM
Addressing the risk of greening your company, and costs of social investments. Ever wondered about those charitable contributions your company makes every year? Perhaps you have one or more community investment programmes that are a little too remote or obscure to get to grips with. Do they have the desired effect? Do they create lasting and sustainable benefits? Or do you feel trapped by long term funding commitments of projects that will collapse if your company’s support is withdrawn? Perhaps the value of the investment diminishes before it reaches its target? Could the investment produce higher value yields than the capital amount allocated? Does the worthy cause need money at all, or would it fair better with specialist skills and competent management? Well you’ll never know the answer to any of these questions unless you undertake an economic impact assessment (EIA).
There is a vast array of alternatives to handing over a cheque periodically to a cause that no one would deny as being justified and worthy of association. But is handing over that cheque the best course of action for both the cause and your company’s corporate responsibility profile? Perhaps an investment could form part of a well-planned programme of support involving other donors. Often the objectives of the funding could be better defined and their achievement more easily measured. You really need to quantify the effect your company’s investment is having.
Posted by: Article 13 | Sep 30, 2008 5:24:44 AM