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Environment as a stakeholder

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Environment as a stakeholder

A stakeholder is an individual or group s of people affected by the activities of an organization. The effects can be direct or indirect. There have been so many debates concerning whether the environment is a stakeholder or not. However, as much as there is supporting evidence, one can only put it as they argue. The paper will discuss points to support the environment as a stakeholder

The environment is the foundation of the society and businesses. One cannot exclude the environment and society while conducting business operations because it will fail. Similarly, the community cannot function without the environment. As a result, the environment remains to be the key stakeholder for any organization and society.

It contains the resources needed to run a business. Every firm has its specific inputs to produce a given output, whether it is a good or a service. Every company uses different methods to manipulate environmental resources to become their input; for instance, airlines use fuel and air as a means of transport.

It is a significant factor in decision making. Stakeholders influence the decisions that organizations make. Similarly, the environment is a significant contributor. It determines the method to exploit the resources, and in what amounts, for example, hydropower companies depend on specific volumes of water to generate electricity. A slight shortage of water can cause a menace to the industries, businesses, and society at large.

In conclusion, the environment is a crucial factor to consider in any economic endeavor. It is the mother of all resources which we manipulate and use for economic benefits. It also affects the significant decisions firms make in their operations, and it holds both the society and businesses.

 

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