"Despite all the green reassurances of recent years, this report confirms that for most firms, environmental policy is driven by fear of paying out compensation for the damage they cause or because of threats to their public relations. These incentives are insufficient to ensure that the environment is protected.

The key message from the survey is quite clear; if companies cannot be trusted to deliver on their environmental responsibilities voluntarily, then they must be given better incentives to do so. These incentives should include tougher environmental laws, new ecological taxes and new economic indicators tat take account of the environmental damage companies cause.

Because the market does not value the environment, it is not surprising that companies are tempted to subsidise their profits by damaging habitats, polluting the air or plundering resources. Rules that require all companies to operate to the highest environmental standards are needed. Businesses that are serious about environmental protection should call on governments to establish those rules right away."

ENDS

Notes

[1]The Institute of Management press office can be contacted.

Copyright © Friends of the Earth | Contact Us |
Support Friends of the Earth