Business Obligations With Respect to Environment

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Table of Contents

Introduction
Synopsis
Statement of the view
Justification of the argument
Personal experience
Conclusion
Works Cited

Introduction

Most governments have always taken principal responsibility in ensuring that the environment is protected and managed well for the safety of the people. Private business sectors have always been encouraged to adopt processes and behaviors that appear friendly to the environment. These are ensured through various rules and regulations, incentives, and sanctions. In many cases, it is the public sector that always suffers the responsibility of preventing environmental damage on behalf of the private sector (Nelson and Trevino).

Extreme use of natural resources has hurt human development and the world as a whole. This has led to global warming and the effects felt in various sectors of development within different economies including biodiversity. Corporate Social Responsibility has helped in the coverage of environmental implications brought about by operations within business companies. These activities include the elimination of wastes and maximization of the use of resources with present and future generations in mind. The analysis focuses on the ethical concerns faced by Virgin Blue Holdings which is one of the major airline companys in Australia, and how the management deals with these issues within the environmental setup (Wagner and Schaltegger 95-108).

Synopsis

Virgin Blue Holdings is one of the largest airlines in Australia; it provides air transport services domestically and internationally to travelers. The company started its operations in the year 2001 and since has offered travelers convenient means of traveling owing to their excellent services from experienced staff (Wagner and Schaltegger 95-108). The company regarded by most passengers as high profile recorded average profits in recent years; through the companys website, the financial performance has not been stable with net profits after tax being as low as 2%. Virgin blue enjoys a well-recognized brand and excellent management, at the same time its financial records show that it operates on low debt hence has high-profit growth annually (Richardson 12).

However, the company is faced with the issue of operating on high costs due to charges imposed by the environmental regulatory authorities on the level of carbon emissions. The company currently operates several flights to various destinations all over the world. The several trips the aircraft make, contribute to a fairly large percentage of greenhouse gas emissions which is considered a potential source of damage to the environment. Virgin Blue has to strategize on how to develop energy-efficient low carbon fuels to concur with the Carbon Pollution Reduction Scheme (Virgin Blue Holdings Limited).

Statement of the view

Concerning environmental issues, many business companies have the problem of identifying their responsibility on global environmental issues and the strategies they need to implement to cope with the level of impact caused. The difficulty results from poor objectives derived from values the company stands for, which ultimately affects both the internal and external environment. The reality is that there is a rise in gas emissions brought by an increase in services provided by big companies, this is attributed to a lack of strict laid down principles on environmental safety followed by business companies.

The recent years have recorded an increase in environmental destruction leading to regulations that required limits to be placed on carbon emissions. There is also the issue of employing experienced and skilled staff who understands issues concerning leadership responsibilities geared towards the common good of their surroundings (Richardson 12).

To minimize the impact of the changes in climate and share prices on economic performance, companies should upgrade their services. Each business company that stands for ethical principles and at the same time contributes a considerable percentage of waste to the environment should plan to buy more assets and separate businesses which value higher than their total market value. The increase in asset base provides huge security to shareholders (Wagner and Schaltegger 95-108). Lots of greenhouse gas emissions and wastes come direct from operational activities, these contribute some percentage to global warming. Failure by leadership within companies to mitigate these emissions could lead to a reduction in the Gross domestic product of major countries.

Justification of the argument

The airline industry poses some impact on both social and environmental fields. A good source of leadership will, first of all, consider the impact of the companys activities and the response of the people. Virgin Blue measures the social impact through the market share it commands, currently, its domestic customer base stands at 30%. To cater to the costs of carbon emissions, the business tries to project the impact on costs to consumers by charging fair prices on their services. Restrictions imposed by countries on waste and emissions management, lead to loss of market share by some companies who may be large emitters of carbon gases. These are some of the impacts of poor values, principles, and leadership. However, it is for the benefit of the general environment which needs to be protected from the effects of global warming.

Due to concern on climatic changes, and focus on the efficiency of operational activities employed, companies should give priority to the social and environmental impact of their activities. This calls for the use of alternative sources of energy that are environmentally friendly such as bio-fuels. Various management, need to put in place some environmental responsibilities and initiatives that cater to the impact of their operations on biodiversity. They should have the ability to determine their environmental bottom line by checking on the number of wastes and emissions they contribute to the environment (Virgin Blue Holdings Limited).

Virgin Blue can comply with the governments Carbon Pollution Reduction scheme policy by reducing the level of its greenhouse gas emissions. The company has personal responsibility towards social and environmental set-up. The management could initiate the use of electricity and bio-fuels which are environmentally safe. The management could also look at ways of reducing the weight capacity of their planes. This kind of action reduces the amount of fuel burnt hence reduction in greenhouse gas emissions (Wagner and Schaltegger 95-108).

The rate at which the world climate is changing maybe a big threat to global businesses and companies. It is believed that companies will be affected by weather changes and the policies on climate that are geared towards mitigating emissions. To cater to the costs of wastes and emissions, businesses should try to project the impact of their actions on consumers. The restrictions imposed by some countries lead to loss of market share by some companies who may be large emitters of carbon gases (Wagner and Schaltegger 95-108). The level of emissions and wastes on the environment can be cut down by using more efficient leadership principles (Richardson 12).

In my view, the company may try to research environmentally friendly alternative fuels. This will make the company easily avoid restrictions imposed by the emissions trading scheme policy, hence operating its businesses freely. The other alternative that the company can utilize is to cut down on the level of fuel consumption by reducing the number of flights which will reduce sales. This will ensure that less fuel is used on the ground before take-off. The amount of weight carried should also be minimized to cut down on the fuel burnt in the air hence lowering the level of carbon emissions. For the safety of the shareholders, it should consider investing in other fields to win investors confidence

It is believed that integral human actions are directly linked to his/her relationship with the environment. In an article on conservation of the environment by Pope Benedict If You Want to Cultivate Peace, Protect Creation, the argument is that leaders within business organizations should come to realize the importance of environmental conservation. Peace with the creation through conservation and protection means peace with God.

The article calls for respect for creation amongst all business and non-business entities, all activities should be aimed at protecting and conservation of the environment. Prudent leadership results from following laid down ethics aimed at protecting both human and ecological health. Good business entities focus on rules and values that work for the common good since ecological crises cannot be separated from human development. Harming the environment creates chaos that will never bring peace to humankind; it is like an abuse to the creator whose sole purpose for creating man was to become a good manager of the environment. Moral crisis due to human actions on the environment has been experienced in every part of the world.

In the parable of Sadhu, the article highlights the importance of personal and corporate values as a means of propagating business goals. The parable highlights the consequences as a result of the break up between individual and corporate ethics. Good moral values lead to concern about our fellows hence preventing any form of danger contribution which might negatively affect their lives. Good leaders often assume ultimate responsibility for others who might be in danger of extinction. Taking valuable responsibilities beyond personal convenience are true marks of leadership within a diverse environment. Almost everybody within the trial contributed towards the well-being of the Sadhu ensuring his general safety this shows power in solidarity and corporate ethics (Richardson 118-123).

In an article on ethical leadership enlightened self-interest within businesses, most businesses believe that their role is always to make a profit. This is extensive in the case of corporations where the role of the business serves the interests of the shareholders. However, the concept of the business exists to serve the common good of the people. Business companies lose a lot when they resort to serving their interests. Given ethical leadership, Individual needs should be utilized to serve the need of the community as a whole; this is because benefits to the community are the same as benefits to an individual. In the article on Rethinking the Social Responsibility of Business, the concept of good leadership based on ethics is known for identifying responsibilities and obligations for a business based on the fact that concern for others and the environment means concern for you (Richardson).

Personal experience

One of my personal experiences was at Queensland ranch lands in Australia which bears no responsibility for their actions to the environment. The meat industry forms part of the agricultural sector from which biological production system occurs resulting in greenhouse gas emissions. The beef industry is one of the largest agricultural industries in Australia making it contribute a high percentage of greenhouse gas emissions because of ruminant emissions. These emissions are attributed to fermentation in cattle, clearing of vegetation through burning, and use of fuel energy within the beef farm premises (Meat and Livestock Australia).

The management faces the problem of choosing the grazing system that would not interfere with soil carbon. There is also the problem with the management of operations that would ensure the minimization of greenhouse gas emissions to the atmosphere. The beef industry uses a scientific approach to assess carbon emission, this makes it difficult for the industry to comply with government standards since the approach does not cater to international policies on regulations (Nelson and Trevino).

The variation in climatic conditions causes great changes in the amount of litter biomass. This is dependent on the amount of vegetation cover which is affected by the amount of available rainfall. In drought seasons the industry experiences a high amount of litter relative to forage biomass. The clearing of vegetation to create an avenue for ranch lands provides a potential source of carbon emissions, this is since the vegetation is either burnt or left to decompose.

The industry faces the problem of variation in carbon stock which depends on the condition of climatic changes and the management of grazing fields and the use of fire. Climatic changes make it difficult for re-growth to be experienced in cleared woodlands, this affects the feeding habits of the animals since forage is unavailable. The carbon in all the vegetation cleared is ultimately emitted to the atmosphere and presents a potential source of greenhouse gases (Meat and Livestock Australia).

The beef industry has to strategize on how to develop energy flow-carbon carbon fuels and also reduce the rate of vegetation clearing to concur with the governments Carbon Pollution Reduction Scheme (CPRS). This is only possible through reinforcement of good leadership, and putting in place workable sustainability concepts. Less grazing activities can be practiced through the application of zero grazing. The other alternative that the industry can utilize is to cut down on the level of vegetation clearing activities and the use of fuel energy within the ranch lands (Richardson 122).

Conclusion

There is a need for deep understanding concerning the impact of waste emissions on the environment. Every business company should realize the importance of individual and corporate ethics which acts as a good moral base for environmental concern. Business industries should improve their means of managing production processes to minimize emissions. The article has successfully established main ideas giving the basis for business roles and ethics based on basic moral values.

The examples discussed show many shortcomings that always tend to distort the perfect translation from ethical business practices to a successful business. However, when business companies use appropriate ideas and models to govern their decisions concerning social and environmental responsibilities, then they will have no difficulties in engaging their professionals in the processes of making accurate, profitable ethical principles.

Works Cited

Meat and Livestock Australia (MLA). Minimizing the beef industrys impact on Climate Change. Financial review case studies, 2009. Web.

Nelson, Katherine & Linda, Trevino. Managing business ethics: Straight talk about how To do it right. New York: John Wiley & Sons, 1999. Print.

Richardson, John. Annual Editions: Business Ethics 10/11. McGraw-Hill/Dushkin, 2010.

Virgin Blue Holdings Limited. Virgin Blue Holdings Limited Annual Report. 2005. Web.

Wagner, Marcus & Stefan, Schaltegger. The Relationship between The Environmental and Economic Performance of Firms. Greener Management International, 34 (2001): 95-108.

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