Advantages and Disadvantages of Business Environmental Factors

This essay delves into the advantages and disadvantages of businesses embracing social and environmental responsibility. It highlights how such practices can boost profitability, improve customer relations, and enhance a company's reputation. The essay also acknowledges the potential drawbacks, such as increased costs, conflicts with profit motives, and the risk of "greenwashing." Furthermore, it explores barriers to change, including a lack of adaptability, resistance to uncertainty, and concerns about competence. The author provides examples of government regulations and startup costs that can act as barriers to entry. The conclusion emphasizes the importance of social and environmental responsibility in the business domain. The essay is supported by several references to relevant academic literature, providing a comprehensive overview of the subject.

Running Head: ADVANTAGES AND DISADVANTAGES OF BUSINESS
Advantages and Disadvantages of Business in its Social and Environmental Responsibility
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ADVANTAGES AND DISADVANTAGES OF BUSINESS
Introduction
The concept of the environmental and the social responsibility has become increasingly
pervasive in its acronym in the domain of the different business cycles. The social and the
environmental responsibility of the business should be however made accountable to the
different communities of the society where it conducts its operation as well as to the different
shareholders for the actions taken by them along with its operations. When any business
corporation adopts the policy of the social and the environmental responsibility, at that time it
will be able to demonstrate the goals related to the different ethical values of respecting the
people, the environment on a whole along with the various communities
(Zhulavskyi,Smolennikov and Kostyuchenko 2017). The corporation will also take the major
initiatives in order to monitor and regulate the social and the environmental policies and its
associated reports.
Advantages
 A proper social and environmental responsibility of any business corporation will
improve the profitability and the value attached to the company. The introduction of the
different energy efficiency technique and the mechanism for recycling the wastes will cut
the rate of the different operational costs incurred and the other associated benefits of the
business environment. The environmental and the social responsibility will also enhance
the accountability of that particular company along with its transparency level. The
responsibility pattern will also lead to the stability in the investment pattern along with
the shareholders and the other members of the local communities.

ADVANTAGES AND DISADVANTAGES OF BUSINESS
 The responsibility results in the increase in the profitability and the value of the company.
The introduction of the various energy efficiency and the process of the recycling of the
wastes will cut down on the operational costs in order to benefit the environment. The
responsibility pattern has also resulted in the virtuous cycle of the company’s stock value
that will increase the access to the investment capital that will be raised in the most
simplified manner.
 The responsibility pattern will also help in the improvement among the relations of the
various customers. The majority of the customers believe in the social responsibility of
the business that attracts them the most. The customers are drawn more towards the
company that possess a good reputation of being a good form of corporate citizens.
Various researches have revealed that the consumers will be prepared to pay a higher
level of price for those products that will enhance the social responsibility patterns.
Disadvantages
 The first disadvantage adopting the social and the environmental responsibility is the
costs of the CSR to implement the business decisions. The costs will fall in a more
disproportionate manner on the small scale business corporation. The majority of the
business corporations will be able to afford the allocation system of the budget in the
terms of the reporting of the social and the environmental responsibility of the business
firm. The smaller business corporations will take the help of the social media platform in
order to communicate the policies of the social and the environmental responsibility to
the different form of customers along with the local community members.
 The second disadvantage lies in the conflicts of the different profit motives of the
business corporations. Even the larger companies at the cost of the types of the

ADVANTAGES AND DISADVANTAGES OF BUSINESS
responsibility can be the biggest restriction. Some of the critics however assume in the
fact the responsibility patterns in the execution of the futility objectives (Plambeck and
Taylor 2016). The company’s management theory will however provide the fiduciary
responsibility to the different shareholders of the company and the company in this
respect can directly challenge the responsibility of the company executives to the
shareholders of the corporation in order to maximize the level of profit share. The
manager will also be able to forsake the different level of profits in favor of the benefits
that the society does while it loses a particular job that will be replaced by those people
for whom profits will be the biggest priority (Zahra and Wright 2016).
 The concept of green washing is another restricting factor in terms of the functioning of
the business corporation. In this context, the different corporate practices will appear to
be environmentally more responsible without the actual representation a change in eth
process of the company in order to conduct a particular business. In this context the
product may be labelled as the ‘natural’ even though the products will be manufactured in
the same way as the cleaning of the different services that will label the operations as the
organic structure that will be similar to the organic form of food that carries a particular
significant context. The different customers will react in a positive manner to the
different types of claims, but the others will be restricted by the corporate nature of the
green washing (Schaltegger and Wagner 2017).
Barriers to Change
The most important barrier to change is the lack of will and adaptability of the business
corporations to adapt and incorporate to the different level of changes. The status maintained by
the various business corporations will be more convenient (Bhattacharyya 2016).The business

ADVANTAGES AND DISADVANTAGES OF BUSINESS
corporations mainly resist to the idea of the changes because of the lack of their control over the
certain processes of the construction of the business control over the time. The business
corporations also are not ready many a times in adopting the different levels of the uncertainty
levels which the corporation will avoid at the costs of the success of the company (Shaukat, Qiu
and Trojanowski 2016).
The loss of the particular control on the corporations especially over the built up
processes over time. The excess level of uncertainty which the corporation will seek to avoid at
the costs. The different form of the changes that will be surprising for the mental preparation of
the different employees. The other restriction lies on the loss of the face and the maintenance of
the reputation of the status quo pattern in the business corporation (Leipziger 2017).The business
corporation also results in the concerns about the competence level that it will associate with the
given environment scenario.
The examples of the different barriers to the entry can be the different forms of the
government regulations of the host country where the corporations will operate. The government
will act as the barrier to enter into the new market structure through the restrictive form of the
license requirements that will limit the ability to obtain the new form of the raw materials. The
business of the individuals in the corporation will however be conducted in a particular field
(Kolk 2016).
The second form of the restriction will be the nature of the startup costs that will keep the
new firms in the business domain from entering into the new industrial domain. The capital will
be needed in order to purchase the buildings, the machinery and the different levels of the
workforce that will serve to be the barriers to the entry of the new firms in the corporation of any
particular business (Grayson and Hodges 2017).

ADVANTAGES AND DISADVANTAGES OF BUSINESS
Conclusion
The social responsibility and the environmental responsibility of the business firms will
refer to the different individuals and the other companies in the business domain will serve to the
best of its responsibility in the context of the environment or the society as a whole. The social
responsibility patterns will be applied to the different business domains which will be the
significant part of the environmental and the social responsibility.

ADVANTAGES AND DISADVANTAGES OF BUSINESS
References
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.
Leipziger, D., 2017. The corporate responsibility code book. Routledge.
Plambeck, E.L. and Taylor, T.A., 2016. Supplier evasion of a buyer’s audit: Implications for
motivating supplier social and environmental responsibility. Manufacturing & Service
Operations Management, 18(2), pp.184-197.
Schaltegger, S. and Wagner, M. eds., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Shaukat, A., Qiu, Y. and Trojanowski, G., 2016. Board attributes, corporate social responsibility
strategy, and corporate environmental and social performance. Journal of Business Ethics,
135(3), pp.569-585.
Zahra, S.A. and Wright, M., 2016. Understanding the social role of entrepreneurship. Journal of
Management Studies, 53(4), pp.610-629.
Zhulavskyi, A.Y., Smolennikov, D.O. and Kostyuchenko, N.M., 2017. Social and environmental
responsibility strategies of business. Науковий вісник Національного гірничого університету,
Bhattacharyya, A., 2016. Corporate social and environmental responsibility in an emerging

ADVANTAGES AND DISADVANTAGES OF BUSINESS
economy: Through the lens of legitimacy theory. Australasian Accounting, Business and
Finance Journal, 9(2), p.2015.