Water Scarcity and its impact on Business Information 2022

Running Head: Water Scarcity and its impact on Business
Corporate Sustainability
Essay
System04104
8/19/2019

Water Scarcity and its impact on Business
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Water Scarcity and Its Impact on Business Sector
Water scarcity is one of the major risks for the global economy that is rising because
of increasing demand of water and unpredictable changes in the climate. Water scarcity is a
threat for business world and its urgently required immediate focus and support of both
public sector organisations and private sector organisations. Various scientists and
researchers are trying to aware people and organisations about their role in preserving water
for future development and growth (Gasbarro, Rizzi, & Frey, 2016). The water scarcity is one
of the three global systematic risks that raise highest concern for the whole world. However,
this issue needs consumer awareness, governmental laws and regulations, and targeted
investments in the business sector to preserve water and ensure sustainable use of water.
According to a report of UNESCO, it has been found that business organisations in all
over the world use more than 20% of all water globally. However, this scenario is different in
high-income and developed countries where industries are using largest part of the ground
water or pure water. The percentage of water uses in high-income areas of developing and
developed countries is 40% and in some areas, it is up to 59%. However, when the low-
income countries will focus on the industrialisation and economic growth, their water use and
water consumption patter will be evolving in the same direction as well (Chartzoulakis &
Bertaki, 2015). This is the reason that why most of the developing and developed countries
are focusing on water-use efficiency improvements and sustainability in water consumption.
However, the irresponsible behaviour of modern business organisation towards reducing the
water use is a major concern for almost all the countries.
As water scarcity causes because of declining in groundwater level, reduced river
flows, heavily polluted waters and shrinking lakes etc. Water is not only essential for human
life rather it is also crucial in various the industries (Chartzoulakis & Bertaki, 2015). For
example, in bakery products water is a crucial factor for baking food products, clothing
industry also uses water, agriculture industry uses water for food processing, and farming,
manufacturing industry also uses water in various activities of its business practices
(Olmstead, 2010). It is crucial to known that most of the business organisation and their
production system based on water and the scarcity in water may affect the business world
(Lenzen, Moran, Bhaduri, Kanemoto, Bekchanov, Geschke, & Foran, 2013). Especially in
pharmacy sector, manufacturing sector, and agriculture sector etc. However, this concern is

Water Scarcity and its impact on Business
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rising every day with increasing population and economic growth, increasing demand of
products and services, climate change etc. It is really challenging for the people to face the
water scarcity and this urgency required a global business sustainable development approach
to resolve the issue related to water scarcity. Climate change is the major reasons that cause
flood and droughts, which further leads to the water scarcity in the reason (Lambooy, 2011).
In such a scenario, it is essential for the business world to focus on water-use
efficiency techniques and strategies. However, this techniques and strategy is particular
required in agriculture sector where irrigated agriculture is done by the farmers. Water
scarcity poses serious threats for the supply chains and in business operations in several
ways. The reduced water supply directly affects the manufacturing sector and its supply
chains. The modern business organisations are operating their business operation in many
global locations (Mancosu, Snyder, Kyriakakis, & Spano, 2015). Therefore, managing the
crisis related to water scarcity is really a challenge for the modern business organisation.
Especially, this problem is not posing threats in only some specific areas rather it is a global
threat that affects the worldwide economy and business operations in next few years
(Northey, Mudd, Werner, Jowitt, Haque, Yellishetty, & Weng, 2017). The effect of water
scarcity on supply chains negatively affects the business operations in manufacturing sector.
It has been also found that most of the modern business organisations do not have proper
planning or any strategy to reduce the consumption of water. More than 75% of the modern
business organisations have water sustainability goals but among them 82% of the companies
do not have expertise or proper technology to achieve their goals that reduce the consumption
of water (Marston & Cai, 2016).
The unavailability of resources and lack of action at the facility level are some of the
major concerns that create obstacles for the business organisation to reduce the water scarcity
crisis. However, the role of both private and public business organisations is crucial in
reducing the water scarcity issue but the approach of both the sector is disappointing for the
whole world. Although most of the countries and their government formulated water-
conservation plan and they have strong legislation related to this but implementation of these
legislation in the business organisations is still questionable (Olmstead, 2010). However, the
poor data management, ineffective/wasteful irrigation techniques, inadequate sewage
treatments are some of the major reasons that affect the water sustainability plan of most of
the countries. The major impact of water scarcity can easily be noticed in the agriculture

Water Scarcity and its impact on Business
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sector too. It means the agriculture sector specifically required specific improvement in water
use efficiency and sustainable approach to save water for the future generation. People cannot
be denied that water is an essential part for agriculture business where the whole agriculture
operations like farming and nursing depends on water. Therefore, using appropriate strategies
and techniques to reduce the water consumption in farming is necessary for the world.
However, the private sector organisations are also facing the same problem related to water
scarcity but they failed to take effective actions to control this global concern (Sun, Wang,
Engel, & Wu, 2016).
Water is not only required for business industry or human life rather it determines the
socio-economic development of the world as well. Water uses for energy generation, healthy
ecosystem, and food production. To conserve water the United Nations conducted its first
conference in 1977 on water conservation. Apart from this various events was conducted to
spread global awareness among people about saving water (Veldkamp, Eisner, Wada, Aerts,
& Ward, 2015). The latest Paris convention on climate change was also dedicated to water
conservation in various countries. The major focus of these evens was to force the developed
and developing nations to seriously focus on water conservation and urge people to save
water. It was also include strict rules and regulations for business organisations for their
responsibility to towards the water scarcity concern. Almost 80% countries are focusing on
developing new technologies and strategies to save water and ensure that every business
organisation will adopt proper technology and strategy to conserve water. Governments are
forcing the private business organisation to fulfil their social responsibility through CSR and
initiate for water sustainability (Whelan & Fink, 2016).
Water scarcity affects the business organisations and their global operations because it
forces the governments to make strict rules and regulations for business organisations that
affect the overall business operations and supply chain. For example, the higher water prices
reduced the rations consumptions for the business organisations, government poses strict
emission control regulations, or mandatory for some business operations to use effective
water-saving technology that can affect the operational cost (Lambooy, 2011). This also
affects the image of brands in the public because business organisations will face reputational
risks that people and media will be aware that companies are not using unsustainable water
use strategies and technology. Countries like Mexico, India, Japan Australia, China etc. are
the major water exporter countries. This means these countries may use the domestic water

Water Scarcity and its impact on Business
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resources for exporting products to those countries (Middle East Countries like UAE, Iraq,
and Iran etc.) that are importing large amount of water resource goods from these countries
(Wang, Zhang, Shahid, Guan, Wu, Gao, & He, 2016).
The most of the countries are focusing on water conservations and making some strict
rules and regulations for water conservation in the country. Some of the countries uses the
house water tank or water tank and make it compulsory for people to conserve the rainwater
for future generation. However, people, the business organisation, and the government all
know that accessing the fresh water will be not easy in next 10 to 20 years like the earlier
days (Ridoutt, & Pfister, 2010). The water scarcity poses a great threat for the business
organisation and it will be dangerous than any other natural resources like oil and gas. There
are so many substitutes of oil and gas that will help the business to grow and develop but
there is no alternative for the water in the world. Therefore, it is necessary for every business
organisation, whether it is private or public to focus on water conservation and water
sustainability approach to conserve water for next generation and for the future.
In the end, it can be concluded that water scarcity is a serious global concern and it
has adverse effect on the business organisations and on their operations. The modern business
organisation needs to adopt new technology and strategies that help the world to preserve
water for our future. Although, the global initiative to force the modern business
organisations to adopt and implement efficient water-use technology may affect the
operational cost of the business organisations but it will surely save our future from waterless
life.

Water Scarcity and its impact on Business
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References
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