Business economics Essay Example | Topics and Well Written Essays - 3000 words

Business economics - Essay Example rgy resources, cause inundations, heat-related deaths and the fast spread of infectious diseases, as well as create serious damage to all industry sectors. Therefore, climate change is regarded nowadays as the negative outcome of the modern economic system, along with the process behind its making. It is a problem that addresses all the major players in both local and global economies: the operational factors, such as businesses, the regulatory factors, such as governments, the intellectual factors, such as foundations and universities (Echegaray, et al., 2008), as well as the citizens or the consumers, which, at their turn, establish the connections between the factors mentioned above. All of these entities have at least something to say about climate change, and while some of the discussions are focused on finding the guilty parties, on throwing the blame on someone for what has been already done, others are trying to find the appropriate solutions. I believe that businesses should understand that environmental awareness is crucial for their long-term sustainability. Companies should recognize climate change as a risk and establish special risk-assessment teams to indentify its impact on the company’s costs, supply chains, work practices and outputs. For example, if the winters will become warmer, energy costs will be lowered; however, at the same time, the summers will become hotter, which will increase the demand for air-conditioning. This way, a company’s costs distribution is changed based on environmental issues. Still, businesses should see climate change as an opportunity and a challenge to find new markets, develop new technologies as well as improve their image among average consumers. Studies have demonstrated that customers are most likely to absolve their guilt about their environmental footprint by buying products from a â€Å"greener† company. In other words, consuming trends will shift accord ing to which companies take the lead in using green