Greening business in a market economy

Explains the factors that influence corporate behaviour towards the environment. There is a tendency for business to ignore environmental costs in order to reduce production costs and stay competitive. However, there is a growing trend towards “green” consumerism reflecting the increasing number of consumers who prefer to buy products that satisfy high standards of environmental protection. Consequently, it is becoming profitable to sell “green” products in both the domestic and international markets. The “pull” of the market is reinforced by the “push” resulting from environmental legislation which sets higher standards of environmental quality. A recent survey of business opinion confirms that environmental issues are of growing importance to companies and more than half go beyond the requirements of the law. This suggests that companies are becoming proactive in their management of environmental problems and are beginning to exploit the commercial opportunities that arise from raising environmental standards.