My topic is the reason why concerns over pollution issues become so important for management and directors. Concerns over pollution issues are related to the environmental ethics which management and directors decide to conduct their behaviors and rules when they deal with environment and the people who move within this environment. Some concerns might be various obligations to the pollution; some concerns might be various actions that could be incurred due to harming environment.
In this paper, first, I will address the attitudes about people how to treat environmental issues result in management and directors start to concern over various obligations to the pollution; and then I will explain why pollution issue is close related to the company’s reputation and profitability and the reason why pollution issues are so important to concern for management and directors.
Attitudes changed about environmental issues –various obligations to the pollution
When it comes to 1950s and 1960s, people started to realize that environment was a finite resource and that corporations could make changes to protect the environment. The general awareness of the public to environmental issues and sensitizes the public to bad practice directly put pressure to improve safety standard for corporation emissions. If a company wants to purse its long-term development, a company must build mutually beneficial interactive relationship other than just care about its own revenues. There is no denying that concerns over pollution become so important for management and directors because pressure form public individuals, government, and environmental organizations made pollution issues become a society responsibility for a company. This company’s society responsibility not only related to profit individuals, but also related to others who are involved within environmental issues. For example, Companies’ management and directors provide accounting guidance regarding display and disclosure of certain pollution remediation obligations and setting forth the methods for measuring and reporting pollution remediation liabilities.
Pollution issue is close related to the company’s reputation and profitability
In generally, management and directors became to realize that bad environmental practices would not only harm environment, but in turn would influence the reputation and profitability of the companied involved. Therefore, before the pollution issue is be addressed and affect companies’ competitive, management and directors must concern and decide which environmental ethical standard should be apply. The pollution issues of making a board impact are especially relevant to companies that operate in environmentally sensitive areas, such as oil, mining, and nuclear power station. It is becoming more apparent that public individuals, environmental groups possess different perspectives about responds and actions the companies in sensitive areas hold. The way in which a company responds to these issues influence its reputation, and at some times directly affect the profitability of the company. One recently filed case that is working itself through the Tokyo District Public Prosecutor’s office related to Tokyo Electric Power Company’s operation in Fukushima Daiichi nuclear power station. After the 2011 Tohoku earthquake and tsunami, radioactive isotopes released from reactor containment vessels as a result of venting to reduce gaseous pressure. Tohoku area and entire Pacific Ocean side has been contaminated with high concentrations of radioactive material. This resulted in Japanese authorities implementing a 20Km