assignment question the environment has to be balanced against the economy. this statement portrays environmental concerns as a luxury, views measures to solve environmental problems as incurring a net cost, and considers leaving environmental problems unsolved to be a money-saving device. organizations do not fully consider the wider social costs of their business activities. the ‘private costs’ and shareholder returns are of uppermost concern to the organizations. however, if the organisation were to take stock of all of the costs involved in its activities it would have to include external costs, that is, the cost to society of the externalities caused. in light of the above statements, can organizations balance environmental concerns against economic profits, would it be judicious in the short and long run for organizations to take into consideration the wider social costs of their business activities? it is clear that negative and positive externalities arise under specific circumstances. companies do affect individuals and vice versa. examine this situation through the following aspects- (a) actions by companies which affect other companies and individuals and (b) actions by individuals which affect companies and other individuals. with regards to the above also discuss how the environmental stance of an organisation is influenced by the perceptions of its stakeholders and the relative power that each possess. http://www.fao.org/docrep/005/y4256e/y4256e04.htm#TopOfPage It contains useful information for then to prepare for the assignment. Please mention the influential factors: Social responsibility: accountability for e''mental stewardship, reflecting pressure from govts and private sector bodies Public confidence: negative public image can be offset by disclosure of e''mental performance Capital markets: disclosure of management of e''mental operating risk and contingent liabilities Regulation: Standard are tigtening Peer pressure: industry-led examples Consumer pressure: may be based more on perception than firm knowledge Litigation: Director and Officers have a duty of care