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Question
Write short note on the following:
Relationship of business and environment.
Solution
Business units and environment are closely related to each other. They both bear and impact on each other. For example, when environmental conditions are favourable, business units undertake expansion activities; and when environmental conditions are otherwise, they have an adverse impact on business activities. Now looking at the other way round, the business activities often result in bad influence on environment. Increase in population, industrialisation and excessive use of resources degrades environment. Also, the discharge of harmful substances into the environment due to business activities contributes towards pollution.
Thus, we can say that there exists a strong relationship between business and environment. Therefore, it is important for business units to understand environment conditions and function accordingly.
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