Climate Change and Industrial Policy

Question: Discuss about the Climate Change and Industrial Policy. Answer: Introduction: John Elkington brought the triple bottom line framework forward in the mid-1990s, to measure corporate performance. The framework incorporates social and environmental dimensions on top of profits returns and value of shareholders. The framework outlines the organization operations and the areas, which it relies on to generate its profit as well, as for how this areas are interrelated. The framework differs from the traditional reporting frameworks due to its inclusive nature that includes environmental and social dimensions. (Bohmholdt, 2014). Triple Bottom Line or the three Ps as it is commonly known stands for, planet, people, and profit. The original focus of this framework is on business performance, which makes it an important tool for sustainability in structuring business goals. TBL measures the impact of business activities on the ecology. Business activities comprise of profit-making, capital, shareholders value and social human (Naud, 2011). However, the framework has its limitations in that; some aspects lack units of measurement. Environmental impacts created by business such endangering of species and wetlands, lack a monetary value tag that can match the impact (Halkias, 2016). The six forms of capital used by business The six forms of business capital broadly recognized in businesses, which adhere to the three Ps, include the following (Khomba, 2012). This form of capital involves monetary asset. The performance of this capital is greatly determined by the regulatory and market forces and changes in lease accounting such as relating market information to traditional strengths such as data interpretation, analysis, and tools that help to conduct these activities to provide opportunities for development and growth (Bohmholdt, 2014). Intangible assets such as brand equity, patents, and trademarks are referred to as intellectual property. These assets are capitalized on by use of license agreement, brand and line extensions that aim to increase the value of the organization. Ideas born through intellectual capital harness important insight that is applied to existing and future operations This form of capital is very useful to managers regarding decision-making. Manufactured capital is made up of distribution networks, product, and services as well as the means used to reach the customer. Analyzing the returns and expenses of the asset is fundamental for the purpose of sustainability. Investing on energy and operation efficiency with the lack of proper analysis might result to over improved and underutilized capital asset (Backhaus, 2013). Employees in every organization are viewed as the most valuable and integrated asset. Due to this reason, company management have come up with plans to leverage employees intellectual capital by ensuring that they provide a suitable work environment and proper training. This has contributed immensely to the level of efficiency, productivity and return on investment. The social and rational capital involves the involvement of social networks that contribute to the growth of a company brand. The capital has further been enhanced by organizations through the involvement of universities, think tanks and other resources of future intellectual capital. The natural form of capital pertains, putting up structures that ensure business sustainability like the construction of sustainable and environmentally friendly buildings as well as the use of alternative energy sources. The analysis of the impacts brought by this form of capital has been a key area that enabled the decision makers to build strategies (Stubbs, 2008). The six phases of business approaches to sustainability The activities carried out by the business, greatly affect the surrounding but the organization does not realize the environmental damage being caused, thus does not put measures to restructure its operations to reduce the environmental damage (Benn, 2014). The significance of the environment is not considered as relevant when making strategies and strategic decisions. Resources from the environment are taken to be subsidies, which help business activities. The organization fails to consider the opportunities, threats, and costs relating to the environment. At this stage, the company still considers the technological and profit factors to be the main agenda on their strategy. Also, the company is observing the legal framework according to the management view. However, issues that relate to the community are only addressed when the organization faces a possible prosecution or damage that could affect the publicity of the organization (Kuhlman, 2015). The efficiency stage is characterized by the attempt to reduce cost by merging the functions in the human resource department. The organization now values the employees as part of an important asset that is utilized as effectively as possible. There is considerable involvement of total quality environmental management. Environmental issues that are not increasing efficiency are not highly considered (Backhaus, 2013). Strategies relating to the environment and present an opportunity for business that can provide a competitive advantage are given priority. Businesses maintain their competitive edge by producing environmentally friendly products and processes (McNall, 2011). The observation of environmental sustainability is crucial to organizational strategy, and the organization tries to influence other key participants in both society and the business industry. Examples of businesses engaging in sustainable business Businesses that are already engaging in sustainable business include, Alcoa, Xylem, Exelon, PGE and Bank of America (Confino, 2017) References Backhaus, K., 2013. Corporate Sustainability. Organization Management Journal, 10(2), pp. 85-85. Benn, S. D. D. . G. A., 2014. Organizational change for corporate sustainability. 1st ed ed. Abingdon, Oxon: Routledge. Bohmholdt, A., 2014. Evaluating the Triple Bottom Line Using Sustainable Return on Investment. Remediation Journal, 24(4), pp. 53-64. Confino, J., 2017. Guardian. [Online] Available at: https://www.theguardian.com/sustainable-business/best-practices-sustainability-us-corporations-ceres [Accessed 2017]. Forbes Welcome. (2017). Forbes.com. Retrieved 12 April 2017, f. h., 2017. Forbes Welcome. (2017). Forbes.com. Retrieved 12 April 2017, from https://www.forbes.com/sites/jeffkauflin/2017/01/17/the-worlds-most-sustainable-companies-2017/#7fe145304e9d. worlds most sustainable companies, 12 April. Halkias, D. . T. P., 2016. Entrepreneurship and sustainability. 1st ed ed. london: routledge . Khomba, J. K., 2012. Relevance of financial reporting systems: Single-bottom line or triple-bottom line. African Journal Of Business Management, 6(9). Kuhlman, B. W. D. . B. H., 2015. Business fundamentals. 1st ed ed. La Crosse: Schweser Study Program. McNall, S. H. J. . B. G., 2011. The business of sustainability. 1st ed ed. Santa Barbara, Calif: Praeger. Naud, W., 2011. Climate Change and Industrial Policy. Sustainability, 3(12). Stubbs, W. . C. C., 2008. Conceptualizing a "Sustainability Business Model". Organization Environment, 21(2), pp. 103-127.