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Contingent or intangible environmental costs



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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

 
Contingent or intangible environmental costs 

Uncertain future remediation or compensation costs

Risk posed by future regulatory changes 

Product 
quality 
BPP Tutor Toolkit Copy


PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
46
 

Employee health and safety 

Environmental 
knowledge 
assets 

Sustainability of raw material inputs 

Risk of impaired assets 

Public/customer 
perception 
Clearly failing to take sufficient account of environmental impact can have a significant impact on the 
business's accounts as well as the outside world. 
10.4 Social impacts of activities
Partly because of the publicity generated by reports, there is now significant focus on the environmental 
impact of businesses' activities. However, corporate social responsibility does not start and end with the 
environment. Organisations need to consider other aspects of corporate social responsibilities such has 
how people in developing countries are treated. 
10.4.1 Stakeholder expectations
Pressures on organisations to widen the scope of their corporate public accountability come from 
increasing expectations of stakeholders 
and knowledge about the 
consequences of ignoring such 
pressures
.
 
Stakeholders in this respect include communities (particularly where operations are based), customers 
(product safety issues), suppliers and supply chain participants and competitors. Issues such as plant 
closures, pollution, job creation, sourcing, etc can have powerful 
social effects
for good or ill on these 
stakeholders. 
10.4.2 Reputation risk 
Increasingly a business must have the reputation of being a 

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