CHARACTERISTICS OF ENVIRONMENTALLY SUSTAINABLE BUSINESS The business that

CHARACTERISTICS OF ENVIRONMENTALLY SUSTAINABLE BUSINESS

The business that learns how to reduce emissions before its competitors do and before emissions levels are controlled by government regulation develops a valuable competitive advantage. • There are three characteristics of the rapidly envolving sustainable business: 1. Limits 2. Interdependence 3. Equity

• Limits: address the reality that environmental resources are exhaustible. • Interdependence: Describes relationships among ecological, social and economic sistems. One sistem affects other two. • Equity in distribution: Suggest that for the system interdependence to work, there cannot be great differences in distribution of gains. All stakeholders have to benefit to someone degree from the value added by the basiness activities. Inequialities may lead to unrest and violence

Shell has been forced to cut production by 25 %. -The companies will need to make decisions about setting limits on how their operations affect the environment. -When there is equity in distribution , such interdependence can work to the benefit of the firm and its stakeholders. -In the distribution equity requires a business model that allocates gain from the business´s value creation to a wide array of stakeholders.

IMPORTANT AREAS OF THE SUSTAINABLE BUSINESS *Waste reduction. *Transportation alternatives. *Ecotourism. *Pollution prevention *Energy conservation. *Social investing. *Ecological development. *Sustainable technology. *Green building design. *Alternative fuels.

CONTEXT OF SUSTAINABILITY ustainability context, then, consists of norms, standards or thresholds for what an organization’s impacts on vital resources in the world would have to be, or not be, in order to be sustainable. It is determined by defining levels of such resources required to ensure stakeholder well-being; what their current status is; and the extent to which an organization is responsible for preserving, producing and/or maintaining them.

Alma Aída Mejía Escamilla – A 01271560 Andrea Torres Meza- A 01273920 Montserrat Soto Zamorano - A 01274091 Chapter 5 Topic 7 • A. Ball. (2012). International Business. UK: Mc-Graw Hill.