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Natural Environmental Factors That Affect Business

by Jacquelyn Jeanty, Demand Media

Companies in the industrial or manufacturing industry often work with different kinds of equipment,

machinery and chemical-producing agents. In effect, a business' day-to-day operations can pose an

ongoing threat to the natural environment. To reduce the likelihood of damage to the environment,

federal and state regulations require businesses consider certain natural environmental factors in

their overall operations plans.

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Environmental Regulations

Regulating business activities is one way government agencies protect the environment. Businesses

must meet certain standards that help to reduce any adverse effects a company's activities have on

the environment. As a result, natural environmental factors, such as clean water and clean air,

dictate how companies conduct their day-to-day operations.

Permit Requirements

Companies involved in activities that impact their surrounding environment typically have to file foroperating permits through a local, state or federal government agency. Business permit

requirements allow government agencies to regulate and keep track of business activities. These

permits serve different purposes, some of which include setting minimal standards for any air

emissions, dictating certain procedures for handling waste and hazardous materials and regulating

how a company's day-to-day operations interact with nearby water supplies. In effect, natural

environmental factors determine the types of operations a company can engage in within a

particular locale or region.

Compliance (conformity)Requirements

Natural environmental factors affect a business' operations as well as its ability to expand or take on

new operations. In effect, companies must obey with environmental regulations in all stages of a

business' development. Companies considering purchasing a building should ensure the building

conforms to environmental regulations or risk paying penalties for noncompliance. Building

expansions must also meet regulatory requirements. Companies that have a record of

noncompliance may risk having their operations shut down on a permanent basis. Ultimately,

natural environmental factors affect a company's overall costs in terms of ensuring equipment and

procedures meet regulatory requirements.

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Environmental Contaminants

Businesses that work with hazardous materials on a regular basis have certain responsibilities when

it comes to ensuring contaminants don't reach or affect the natural environment. The

Comprehensive Environmental Response, Compensation and Liability Act holds business owners

liable for activities that contaminate surrounding air, soil or water supplies. This law even applies for

new business owners who unknowingly purchase a contaminated site or purchase an operation that

fails to meet compliance standards. Ultimately, owners, both old and new, must cover clean up costs

as well as the costs of restoring a property to required environmental standards.

introduction

Environmental issues include global warming , air and water pollution acid rain , hazardous waste ,

solid wastes , deforestation , and continued loss of many species of plants and animals . These have

impact on people 's lives - their daily routines , business operations , community interactions , and

international dealings

Environmental issues impact on business either directly or indirectly Its direct impact maybe through

(1 ) changes in consumers ' preferences toward green products

(2 ) changes in costs and availability of resources , and /or

(3 ) effect on power play between or among competitors in a market .

Its indirect impact may be through

(1 ) legislations or regulation - any change may affect business operations , and /or

(2 pressures from environmentalists , or customers who are concern over environmental problems

This discusses briefly the environmental issues concerning global warming , plastic wastes , and air

pollution and their impact on business operations

Impact of Environmental Issues on Business

Issue 1 : Global Warming Offers Business Opportunities

Global warming refers to an increase in the average global temperatures This is caused primarily by

increases in greenhouse ' gases , such as carbon dioxide (National Oceanic and Atmospheric

Administration , 2008 Carbon dioxide constitutes about 80 percent of all greenhouse gases , and

more than a quarter of it comes from electrical power plants (Kahihla 2007 . That is why

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environmentalists , in their campaign against global warming , strongly call for the replacement of

power plants that run on fossil fuels like coal , oil and natural gas with renewable power sources

(Kahihla , 2007

This , on the one hand , offers business opportunities to existing wind producers and new investors

in ventures on wind turbines to generate energy efficiently while emitting zero carbon dioxide , and ,

at the same time , earn sufficient profits . On the other hand , however , these business

opportunities on wind turbines denote loss in some industries particularly , the power plants relying

on fossil fuels

Existing wind developers include Airtricity . Since its inception in 1997 ,Airtricity has grown from the

ground up to become a world leading renewable electricity company (Airtricity . It currently

operates more than 14 wind farms across Europe , and plans to establish partnerships or joint

ventures with other wind developers throughout Europe and Asia to take advantage of the

opportunities of the increasing demand for renewables (Airtricity

Issue 2 : Harmful Effect of Plastics Boosts Efficient Production of Alternative Packaging

Some solid wastes are plastic packages . Plastic packages are generally manufactured using fossil

fuels , both as a raw material and as energy for production - about 4 percent of the world 's annual

oil production is used as raw material and another 3-4 percent for manufacture (Ho 2005 . The

production of plastics requires a huge amount of water releases waste and greenhouse gas

emissions (including heavy metals polycyclic aromatic hydrocarbons , chlorofluorocarbons , sulfur

oxides volatile organic compounds , and dust , and involves the use of harmful chemicals , like

polyvinylchloride (Ho , 2005 O 'Neill , 2003 . These emissions have environmental...