CAT / FIA FBT Syllabus A. The Business Organisation, Its Stakeholders - Physical Environment - Notes ^{1 / 3}

A country's territorial size, geographical location, natural resources, climate, rivers, lakes and forests constitute its physical environment.

Businesses are mainly concerned with either systematic change in environmental conditions such as global warning or result of sudden and unexpected natural events such as floods, storms and earthquakes.

What is important for businesses is to realise that business behavior must be adjusted to expected variations in physical conditions.

Just as companies successfully operate within an envelope of changing economic conditions (economic growth, inflation, unemployment) so they operate within an envelope of varying physical conditions.

Businesses can mainly affect or be affected by the following:

• Air pollution (emissions from industries)

• Water pollution (discharges from industries)

• Soil pollution (when waste is disposed ruthlessly it damages the soil)

• Global warning

• Ozone Depletion (the ozone layer protects the entry of harmful ultraviolet rays from corning to the earth)