Research Korner: Global Warming

Contemporary Management Issues

Contemporary Management Issues   The major challenges that managers must overcome in order to become competitive includes (1) globalizing the firm (2) leading a diverse workforce and (3) encouraging positive business ethics. Other issues include the ageism of the workforce and the growing demand for a corporate social responsibility. This paper will discuss the above issues citing the example of Coca Cola and Johnson and Johnson. Ageing Population Employment opportunities for individuals are influenced by age. Factors both from inside and outside the organization contributes greatly in the decisions of employers to hire employees. Ageism is one of the factors that lead to discriminatory practices in terms of job employment. Due to the prejudices to an age group particularly of the older workforce, employers tend to refuse hiring them. Indeed, age can be considered as a powerful form of discrimination in the modern society. Age discrimination in the employment are discriminatory practices in personnel decisions which includes, hiring, firing, promotion and mandatory retirement (2006). Thus the assumed characteristics of older workers affect the employer’s decision of employing them. This results to discriminating them on the basis of their age and disregarding their potential and merit. The importance of experience offered by older employees is undermined by the preoccupation with the youthfulness. The older workers are thus faced with the problem of career progression especially in the time of technological advancements where they are seen as less trainable. With the age norms among companies, older workers are likely to be disadvantaged as compared to their younger counterparts. This can be attributed with the stereotyping of older workers as less productive, less flexible, lacking in physical strength and harder to train ( 2005).  The perception held by employers about older workers hinder the career progression at a certain Other evidences of discrimination against older workers include the fact that older workers stay unemployed longer than younger ones. Eventually, they just give up looking for a job after a layoff. On the other hand, those who find a subsequent job suffer great earnings loss. Such discrimination arises from stereotypes that older workers are incapable of producing as much as the younger ones do. Moreover, they are stereotyped as resistant to change and untrainable (1999). Because of this, age diversity in the workplace is encouraged among employers to combat the discrimination on the grounds of age. A mixed-age workforce at all level will allow a wider range of skills and experience that will benefit companies. The experience of older workers along with those starting out will draw greater skills and will bring out the best from them. Lastly, this will have a great impact in promoting economic growth because of the expansion of the labor supply (2006). Social justice will also be fostered as the regulation attacks ageist attitudes and recognizes the individual’s merit rather than focusing on the age prejudices. Part of Coca Cola’s corporate responsibility to the workplace is its principle of eliminating discrimination in respect of employment and occupation. The company’s policy and statement expressed its commitment to the principles of the United Nations Global compact. This voluntary agreement challenges the business to advance human rights and labor standards of which diversity in the workplace is acknowledged (2007). The key to the success of Coca Cola is its commitment to diversity. Its system’s work force is as diverse as the consumer it serves. Diversity is found in terms of talent and strategic thinking of its 26,000 associates worldwide as reflected throughout the global business system of the company. The support of the company of opportunities for individuals of every background be it age or race reflects the ongoing commitment to develop its employees, business partners and communities it serves all over the world (1997). Multi cultural Workforce             Valuing the diversity of the workforce is a value expected of today’s managers. This in part springs from the process of globalization. Top companies all over the world are composed of ethnic and racial make up in their workforce. They are realizing the importance of creating a workforce as a broad and diversified as the customers they have. The globalization of diverse populations requires the intercultural dialogue from the top management tot manage diverse workforce in all areas of the business. Diversity management is a business strategy that emphasized the productivity, creativity and commitment of the workforce while satisfying the needs of its diverse consumers. Some of the global companies that recognize the diversity in their workforce include Coca Cola and Johnson and Johnson.             Johnson & Johnson is one of the companies with trust equity. As with many of its company’s shared values, diversity is included throughout Johnson & Johnson’s culture; not only because of it is fair and ethical but because it adds value to customers and employees. the company recognize that diversity is much more than public relations but it has a big impact in the company’s ability tot innovate and deliver products that meets the needs of the diverse and multicultural public.             The decentralized organization of Johnson & Johnson is diverse in its own right. With 190 autonomous operating units in 51 countries, the company is maintaining a local culture in every workplace. The result is that the environment feels more like of a small company with big impacts and resources that people expects from Johnson & Johnson. It works hard to reflect the broad cultural mix in its hiring practices. Aside from its extensive community programs that support minority education, Johnson & Johnson also supports numerous minority-based professional organizations such as the National Security of Black Engineers, the National Association of Black Accountants, the National Urban League and Able to Work (for individuals with disabilities). Whenever possible, the company lists its career opportunities on association websites it promote employment application from the members.             Coca Cola’s business system and brands reach about 200 countries, thousands of communities and billions of people all over the world. Because of the extent of its operation, the company understands the value of diversity and makes it the top priority of its business. The key to the company’s success is to make Coca Cola and other brands relevant and desirable to each community. This means having a worldwide team that will represent the consumers and are rich in their diversity of thinking, perspectives, background and culture.             Diversity is such a fundamental business imperative and the management compensation is linked to the achievement of diversity objectives. The commitment of the company to diversity is manifested throughout the business system. In fact, it has committed $1 billion over the five years to an Empowerment and Entrepreneurship program that is aimed at increasing the employment opportunities for minority and women-owned businesses to become valuable Coca Cola business partners. Part of the empowerment program is also the establishment of a strong corporate social responsibility with a $50 million commitment to support non profit organizations focusing on scholarships for minority youth, neighborhood revitalization programs and community advocacy which provides educational, social and economic opportunities to all people (2001).             Another unique example of Coca Cola’s commitment to lead diversity management is its Diversity Leadership Development Academy in Atlanta. The program is established with a $1.5 million grant to the American Institute to manage diversity. The academy was created to provide leaders with the skills and capabilities to advance diversity within their organizations and in the larger community. Finally, Coca cola has been committed to build an organizational culture where each individual is respected and valued for their contributions and are offered the opportunities to grow, develop and make a difference(2001). The key to the success of the organization is the special something contributed by each and every individual. Globalization One of the assumptions held about globalization is that the world is becoming a global economy in which the rapid development of transportation and communication makes the territorial frontiers less important. The growing cultural homogeneity is characterized by the major differences between the ‘international’ economy and the ‘global’ economy (1998). According to (1983), technology is one of the powerful forces that drive the homogenization of the market. It allows people even those in isolated places to become attracted with the features of modernity. Consider the case of Coca Cola which is a globally standardized product sold and welcomed by people everywhere. It has successfully crossed a multitude of national and regional taste preferences but is able to be sold well. Almost everyone everywhere else wants the things they have seen or heard through new technologies. This resulted to the emergence of global market that offers standardized customer products (Levitt, 1983). Another factor is the increasing market demand which encourages the producers to go international.             Globalization has led to the emergence of a global village in the economy. As a global macroeconomic village, all firms large and small must become competitive across national boundaries. Coca Cola along with McDonald’s is considered to be primary agents of globalization. Yet only Coca Cola is a truly global MNE. It ranked 129th in the Fortune 500 list and has over 205 of its sales across the three parts of the triad: 38.4% in North America, 22.4% in Europe and 24.95 in Asia. Of its sales in Asia, 745 are in Japan but the company attempts to increase its market in Asia (2004).  The creation of the multinational market raised the issues of coordination in business activities across national markets as well as the issues of integration and the allocation of authority between the home base and its units in other countries. To deal with these complexities, international businesses made each of their national market a separate competitive target that can be handled by their subsidiaries and domestic companies that are familiar with the specificity of each domestic market (1999).             A number of companies including Johnson and Johnson and Coca Cola have their own ‘bibles’ that outline how their products will be distributed and promoted in the local markets (1999). The strengths of these firms depend on their ability to transfer technology and management skills cross boundaries. The subsidiaries enjoy a high level of autonomy but their competitive advantage is derived from the transfer of technology, know-how and brand equity from the parent company. Also, the competition for the limited pool of managerial talent grows as more firms pursue their global strategies. Global organizations must compete for the most important asset-talent ( 1995).             Globalization has widespread social, political, economic and environmental consequences. Critics of globalization assert that it widens the gap between the rich and the poor people. It allows companies to exploit the developing countries while it damages the environment through pollution and global warming. Many global companies are charged with acting outside existing laws using their power and market dominance to the disadvantage of global suppliers, customers and competitors (). In Johnson and Johnson, continuous improvement is the basis of their operations. The company does not settle for maintaining the status quo. Each employee has the responsibility to identify and where possible eliminate hazards to the environment and to the people (2003). In areas where such cannot be eliminated, employees are expected to become aware of hazards and safeguard themselves and the people surrounding them.             As with the safety programs of other companies, Johnson and Johnson management believed that safety is the responsibility of everyone. Employees are expected to become concerned not only with their own safety but as well as of their fellow employees, families, customers, contractors, visitors and the communities from which the company operates. Business Ethics             The issues of company and personal conduct in businesses have seemed to become higher in the public agenda. There are number of reasons for this. First of all businesses are becoming more international. There are strong local pressures to provide instant feedbacks on the actions and decisions of the family. A second reason is the occurrence of disasters. Another is the interest shown by the shareholder groups and by the government in ethical and environmental issues. Fourth are the increasing expectations of the public to the businesses and the growing media interests (2002). All of which pushes the questions of conduct, be it personal or company.             Inherent with business ethics is the challenge for the managers to continuously balance the needs of the organization and its stockholders with the needs of other stakeholders. Managers must also be able to balance their personal needs and desires against those of the organization. To address ethical problems, managers must have to recognize that conflicts of interests exist. One of the most common sources of pressure that compromises ethics is the need to follow the directives of the boss. Other pressures may include the need to meet aggressive business objectives and helping the organization to survive (2005).               Given the ethical problems such as those above, the challenge for the manger is knowing how to resolve them. Developing a business ethics is essential for any manager. For some time now, the ethical behaviors have become the forefront of public consciousness. Creating a company culture that rewards ethical behavior is essential for today’s businesses. Equally important is for managers to exercise good judgments whenever ethical conflicts arise (2003). There are several ways to develop global ethical perspectives among managers. First, managers must help the employees to become ethical in difficult conditions by providing a good corporate ethics program. In addition to this, the employee training programs must be devoted to ethics. At a minimum, this should include the study of the code, review of the company’s procedures in dealing with ethical problems and discussion of the employer and employees responsibilities (2004). For example, Johnson and Johnson values good character, ethical behavior and personal integrity. The company’s credo guides all the employees to do the appropriate things in tough situations ().             The company credits its sixty year old one page statement of values, known as the Credo, in enabling to create the employees’ trust necessary to maintain the corporate value system of the company. The Credo acknowledges the need of the company to make a sound profit while taking into consideration its obligations of providing quality products, treating its employees fairly and with respect, being good corporate citizens and supporting the community where it belongs. The company regards the Credo as the most important thing they have. However, the creation and maintenance of a morally sound corporate culture is an ongoing task at  (2004). The corporate culture plays a major role in allowing conflicts of interest to paralyze ethical decision making. An environment with ethical cynicism convinces the employees that the resistance to bad behavior is at best useless and at worst dangerous. Formal codes of conduct may have little impact if the business practices contradict them. Creating an ethical corporate environment requires more than the creation of new standards and mission statements. It means busting the cynicism that pervades the corporate culture (Vickers, 2005, p. 26). This is an opportunity of the HR in the organization but the environment is mostly influenced by the actions and the attitudes of the business leaders. Also, managers must exercise moral imagination. This means resolving tensions in a responsible and creative way. Coca cola, for example, has consistently turned down requests for bribes from Egyptian officials but has managed to acquire political support and public trust through sponsoring a project for planting fruit trees (2003). Corporate Social Responsibility Corporate social responsibility (CSR) can be defined as the instances where the company goes beyond compliance and engages in actions that appear to promote social cause. These activities may include adding social features to a product, modifying production processes or working closely to the community to ameliorate homelessness and indigence (2006). It has emerged due to numerous demands for corporations to play an active role in the overall welfare of the society.  In recent years, many businesses have given considerable attention to the social impacts of their economic activities. This has led organizations to introduce code of ethics and accommodate the interest of different groups in the society by engaging in social endeavors (1993). CSR includes four kinds of responsibilities or dimensions: economic, legal, ethical and philanthropic. In this model, each dimension of CSR can be examined in relation to the various stakeholders of the organization including owners, customers, employees and the larger community (2001). Generally, managers can undertake environmental initiatives beyond the requirement of regulations. They have the discretion to use the resources of the corporation in means they deem necessary. The practice of environmental responsibility may lead to a good sense of business by reducing the effects of the industry before the restrictive legislations are introduced. Additionally, they may be used to add value to the products and services or improve the image of the corporation in the public. Most companies have their corporate social responsibility (CSR) in which they voluntarily adopt environmental initiatives intended to enhance their image (2005). At best, these initiatives provide a starting point for businesses towards sustainable development. Among the challenges for companies operating under the concept of CSR is the ability to balance environmental responsibilities to its economic responsibility to gain profit. It is therefore important for companies to recognize that the cost of being environmentally responsible often outweigh the benefits. With this, firms will be less willing to implement initiatives. Fortunately, companies are starting to perceive the strategic value of CSR more than a public relations effort (2005). Waste reduction and the improvement of environmental performance are examples of CSR which may cost the company in the short term but will also make it competitive in the long term. Johnson and Johnson Family of Companies is committed to environment excellence through their policies. The company instills high environmental values to all of its employees, utilizes the best environmental practices in all of its products and contributes to global sustainable development. As one of the largest health care companies in the world, the company recognizes the critical interdependence between the human health and the health of the planet. Johnson and Johnson understand the short and long term threats of environmental degradation to human health. Thus, it holds special responsibility for environment protection (2007). Another example of a corporation working towards the environmental sustainability is Coca Cola. Its business depends on the health and sustainability of the natural resources. As a beverage company, Coca Cola focus its environmental efforts in three areas which it has great impacts and thus can do the most good: water use, packaging and energy use and climate protection. In addition to this, the company works towards maximizing recycling and reducing solid wastes throughout its processes. A number of specific initiatives and programs have been developed by the company to align its actions to its aspirations (2007). Coca Cola Company’s corporate commitment involves the responsibility to market their products responsibly, treat people fairly, make a difference in communities where it does its business and protect the environment.  The company invests in local economies through substantive and locally relevant community programs. Wherever it operates, the company works with leaders, businesses and governments to identify the needs of the community. Their partnerships and programs is an important part in contributing to the well being of the communities where Coca Cola operates (2007).

Contemporary Management Issues

Contemporary Management Issues The major challenges that managers must overcome in order to become competitive includes (1) globalizi...

How Global Warming will affect Business Organizations around the World

How Global Warming will affect Business Organizations around the World   I. Executive Summary             Investigating how global warming will affect business organisations around the world involves meeting technical and content requirements. Technical requirements covers methodology and data analysis strategies and other aspects of the data gathering plan while content requirements involves meeting the theoretical and empirical data requirements. Methodology appropriate to the study is the triangulation of the qualitative and quantitative methods by using the survey method to achieve descriptive statistics. Data analysis involves the tabulation of data to derive generalisations and implications that answer the research topic. Theoretical data comes from a review of literature while empirical data emerges from the results of the survey.             Addressing the research question involves determination of primary and secondary data to support conclusions on the research question especially amidst varying perceptions of businesses on the effect of global warming to business firms with some parties arguing that there is little impact while others advocate the need to prepare for the significant impact of this phenomenon. The resolution of the argument lies in the common recognition that global warming affects businesses around the world but the extent of impact depends upon industry or business context so that businesses need to assess global warming based on their specific business context together with industry standards.   II. Introduction             Global warming is an inevitable and irreversible phenomenon highly caused by the emission of gases trapped into the atmosphere together with the depletion of natural resources. The widely felt effect of global warming is drastic climate change such as shifts in weather patterns. Radical changes in weather patterns finds direct links to adverse effects on the health and well-being of people in different countries. Changes in weather patterns no matter how minute have adverse effects on human health and the environment. Within this decade, different parts of the world experienced the La Nino and El Nina phenomenon reported as heat waves, drought, tsunamis, hurricanes and storms in different parts of the world exemplifying the extent of damage that global warming could cause. Ice caps in the northern and southern hemisphere slowly start to melt because of the warmer temperature causing unprecedented floods in Western Europe such as Switzerland and even the UK.             According to the UN Environment Program Report in 2003, common conception of climate change is that the greatest effect of global warming are felt by the poor countries in the form of incessant flooding during the rainy season and drought in the dry season and richer countries experiencing lesser brunt of the climate change. However, the report provides that this is not true since global warming is a worldwide phenomenon experienced by poor and rich countries alike although poor countries have lesser capability or resource to address sufficiently the adverse effects of global warming. ( 2003)             The great impact of global warming even on rich countries is supported by the UNEP report that ski resorts, mostly situated in rich countries such as Switzerland, Austria and France will close due to global warming. The report provide that the warmer temperature will continuously drive the snowline to higher altitudes causing many resorts to experience thinner snow, which is unable to support its various sports and recreational activities. In the case of Austria, the snowline could rise to 300 metres in the succeeding decades and result to the closure of all ski resorts by 2070. In Switzerland, ski resorts experience the pressure from the thinning snow with increasing visitor traffic. ( 2003) Global warming should also have great negative effects on the agricultural industry and other industries reliant on a stable weather pattern to survive.             Drastic climate change constitutes a global reality as well as a challenge to individuals and business organizations. With this recognition, business organizations started to engage in policies and activities to support efforts in minimising or slowing down the effects of global warming. Corporations develop separate environmental management policies or incorporate environmental issues in the corporate social responsibility they assume. These efforts find link to the understanding of global warming as a business risk needing due management. As a risk, the realization of the expected future impact of global warming to business firms would greatly affect viability and profitability. This means that business firms should take an active step in preventing the actualization of this risk.             The research seeks to investigate the manner that tourism businesses are affected by global warming. This would help clarify global warming as an important risk issue requiring risk management strategies amidst the difference in opinion over the extent that global warming affects the tourism industry, particularly ski resorts. Results of the study would fill knowledge gap on how global warming affects a particular global industry. To have a manageable research scope, data gathering will be limited to ski resorts in Western Europe as respondents in terms of research participants and demand, competitiveness and risk management as measures of the effect of global warming on ski resorts based on the literature reviewed.   III. Methodology             The research applies the survey method in order to gain primary information from ski resorts. Purposive sampling is the means of selecting the research sample because the targeted participants involve a small group with unique characteristics. Participants are ski resorts situated in Western Europe requiring a particular level of snow reliability to provide recreational and sports activities to tourists. These resorts will be contacted through telephone and electronic communications to coordinate the survey. The survey questionnaire will be sent to the research participants and returned to the researcher electronically.                A triangulation of the quantitative and qualitative serves as the research approach applied through the survey method. A combination of both approaches appropriately applies in the research in order to obtain comprehensive data to be analysed to answer the research question. This also allows the researcher to obtain accurate and reliable information. (2002; 2003) The triangulation will be achieved by using both closed and open-ended questions in the survey with the closed questions subjected to statistical analysis as quantitative data and the open-ended questions becoming the source of descriptive information constituting qualitative data. Both qualitative and quantitative data should complement each other in providing accurate answers to the research question. (2005;2006) The survey method will be accomplished by electronically distributing the survey questionnaires to purposively selected ski resorts in Western Europe. After coordination with key informants from these businesses including the explanation of the purpose of the survey, their participation in the study, and information sharing issues, the survey questionnaire will be sent to respondents and returned through email. Using the survey method allows the researcher to obtain information from as many respondents as possible (2003). This strengthens rigor of the data collected that allows the generation of valid conclusions and recommendations. IV. Data Analysis and Presentation             Results of the survey will be tabulated and organised into quantitative and qualitative data. Answers to the close questions will be organised according to similarities or differences in answers to determine variances in the answers of the respondents. Applying analysis of variance (ANOVA) would show the degrees of variance between the answers given by the respondents and indicate the significance of the answers in meeting the research question (2003). Answers to the open-ended questions would be classified into the categories emerging from the frequency of answers and ranked to determine aspects, factors or elements that express the effect of global warming to ski resorts.             Research findings would provide answers on the manner that global warming affect ski resorts in terms of the experiences of ski resorts in Western Europe in terms of shifts in market and competitiveness as well as the consideration of global warming as risks and the specific risk management strategies developed by these tourism businesses. V. Review of Literature A. Emergence of Global Warming             An essential requisite to the management of global warming as a risk, involves an in-depth understanding of global warming including its development, cause and effects for the business organization to develop appropriate policies in support of worldwide efforts in slowing down global warming and activities it can do to support this cause.             Despite the varying opinions on the extent of impact of global warming, it cannot be denied that the earth has grown warmer compared to the previous century. This is explained by the greenhouse effect or the warming of the earth due to the accumulation of carbon dioxide in the atmosphere that traps the sun’s heat. Normally, heat is constantly trapped before being released to space so that the earth is always warm. The greenhouse effect maintains warmth on earth. However, excessive emission of greenhouse gases constitutes a thicker atmospheric barrier that traps more heat and makes it harder for heat to be released in space.             According to  (2000), the earth’s temperature has increased by .5 °C degrees Celsius since 1975 constituting the highest increase when compared to the previous millenniums. The U (2000) adds that the earth’s temperature increases at an average of 1°F in the past century with the warmer temperature measured in both the northern and southern hemispheres and the oceans with some areas having higher temperature reading when compared to the other areas. Based on previous records, the warmest years commenced in 1983 and continued until the 1990s with warmer years in the 1990s. Moreover, records also show that the 20th century constitutes the warmest century when compared to the past 1000 years. The 1990s comprise the warmest decade with 1998 as the warmest year in the previous millennium. The increasing trend of warmer temperature is expected to further increase in succeeding decades.             Global warming is caused both by natural occurrences as well as by human activities. This means that beyond the naturally occurring greenhouse gases causing global warming, humans are attributed with the unnatural causes of global warming. A number of greenhouse gases naturally exist in the earth’s atmosphere. Water vapour constitutes the most profuse greenhouse gas that naturally occurs and causes two-thirds of the greenhouse effect. Carbon dioxide, methane, nitrous oxide, hydofluorocarbons, perfluorocarbons and sulphur hexafluorides are the other greenhouse gases naturally and artificially released in the atmosphere. The burning of coal, oil and gas by households, motor vehicles and factories causes artificial release of these greenhouse gases in the atmosphere. However, even with the emissions of greenhouse gases, trees and vegetation are able to recycle these to make oxygen but with illegal logging and environmental de-greening, these gases are not recycled and accumulate in the atmosphere. With the excessive accumulation of excessive gases and the depletion of natural resources, more greenhouse gases are trapped in the earth’s atmosphere making it difficult for heat generated by activities on earth and from the sun to escape into space. The result is gradually increasing warm temperature.               Factories and motor vehicles are attributed with the increasing burning of greenhouse gases this means that with increasing industrial activities and widespread engagement in the use of motor vehicles, more and more greenhouse gases are trapped in the atmosphere and the earth becomes warmer and warmer. Global warming emerged as an issue with the industrial revolution and continues until the present. Since greenhouse gases remain in the earth’s atmosphere for long periods from decades and even centuries depending upon the type of greenhouse gas, individuals and businesses expect to experience greater effects in the succeeding decades. As industrial activities intensify and large countries refuse to show their support for efforts to cut back on greenhouse gas emissions such as the Kyoto Protocol, the world expects to have an increasingly warm earth.             According to the (2001), drastic changes in climate have long-term and wide-ranging effects on human health and natural resources. This is because only slight increases in temperature could cause heat waves and aggravate air pollution that could cause sickness and deaths as well as damage to vegetation and wildlife. Climate change also upsets the hydrological cycle of the earth with precipitation increasing in different levels in various regions resulting to extreme weather conditions. In some regions, there would be excessive droughts while other regions are plagued with prolonged flooding. Global warming would also cause glaciers to melt increasing the sea water level resulting to flooding of areas below the water level affecting both households and business establishments. B. Tourism Industry Effects of Global Warming             Global warming has affected many industries as expressed in changes in policy and activity. In the tourism industry, ski resorts feel the greatest effect of global warming because of the melting or thinning of snow vital to their leisure and sports activities. Without snow, the industry would collapse. In addition, other areas of tourism also experience changes due to global warming as shown by various studies. In understanding the impact of global warming on the tourism industry, demand and competitiveness are measures in determining the industry impact of global warming. 1. Demand in the Tourism Industry             A number of factors that influence the decision of individuals to visit a particular tourism destination determine demand in the tourism industry including economic and non-economic factors. Most studies consider the economic determinants of demand. In terms of non-economic factors such as natural resource attractiveness of the tourist destination, there are varying perceptions on the relationship of this variable to demand.             On one hand, there are studies considering natural resource characteristics as insignificant determinants of demand.  (2000) conducted a study on the pattern of demand of British citizens but it did not include natural resource attractiveness as a determinant of demand. A later study conducted by  (2003) studied the tourism demand patterns of thirteen member countries of OECD and natural resources factors were again not included as important determinants of demand.             On the surface, these studies indicate that natural resource characteristics do not constitute significant determinants of demand or natural resource characteristics were excluded because this does not fit the economic model. Nonetheless, these studies hold the perspective that natural resources characteristics do not constitute imposing determinants of the tourism demand patterns.             On the other hand, a study done by  (2001) developed a demand function that incorporates welfare factors that include scenarios covered by climate change as determinants of tourism demand. The study showed that tourists decide on a particular destination based on a consideration of the welfare they expect to receive in preferring a particular tourist destination. British tourists in deciding on a particular destination consider natural scenario factors such as precipitation and temperature. The study also used projections of possible changes in demand corresponding to changes in precipitation and climate. Results showed that changes in these factors affect tourism demand because although tourisms prefer warm weather destinations especially in areas experiencing harsh winter, tourists are repelled by tourist destinations with overly high precipitation and temperature especially with the increase in concern for skin cancer and other heat related health concerns.             The study shows that natural resource characteristics such as climate have an influence on tourism demand. In the case of tourists preferring tourist destinations with warm weather, tourists are repelled with excessively humid weather while in the case of tourists preferring destinations with cold weather, the presence of snow influences consumer decision-making.             Although there are differing opinions on whether tourists consider the natural characteristics of tourist destinations in deciding on a tourist destination, reconciling the different results involves the consideration of natural characteristics as important non-measurable determinants of demand. This is supported by the use of quantitative measures in the two studies that do not encompass non-quantifiable determinants of demand while the single study supporting the importance of natural characteristics as determinants of demand was completed as a qualitative study. It cannot be denied that natural characteristics also determine demand. Since natural characteristics are directly affected by climate change, there is an undeniable link between global warming and demand in the tourism industry. This relationship is negative since warmer temperature leads to a decline in tourist demand. In the case of warm weather tourist destinations, constantly increasing temperature would draw more and more tourists to sites with cooler weather. With regard to tourist destinations with cold weather, tourists would prefer tourist destinations such as ski resorts with snow that supports sports and recreational activities but with warming weather driving snow line to higher altitudes, demand would decrease with the inability of ski resorts to meet this expectations. This means that there is need for businesses belonging to the tourism industry to act on the issue of global warming because they belong to an industry affected by the manifestations of global warming such as climate change and extreme weather conditions that affect demand. 2. Competitiveness in the Tourism Industry             Competitiveness is another factor determining the impact of global warming on the tourism industry. This factor refers to the shifts in tourist traffic from one destination to another, direct or indirect, competitor due to changes in climate or weather and other natural characteristics of the site.             (2005) conducted a study on the effect of climate change on international tourism using 1995 data on international tourism traffic, inbound and outbound of 207 countries. Results showed that climate change has these effects. In the case of warm weather tourist destinations, these are able to draw more tourists due to the calming and relaxing benefits of warm weather but as temperature increases, there would be less tourists due to the stressful effect of overly warm weather. The simulation showed that the change in tourist arrivals happens as the temperature reaches 14°C. In the same way, a tourist destination with cold temperature attracts lesser tourists but as the temperature increases, more tourists are generated, with the change in tourist traffic happening at 18°C. However, tourist destinations catering to activities best engaged in cold temperatures such as ski resorts and high altitude destinations experience a decrease in tourist traffic with increases in temperature that melts or thins snow.             The study has several implications on the competitiveness of tourist businesses with climate change. Since most tourists are attracted to warm temperature, tourist destinations need to maintain a certain minimum and maximum temperature to maintain and attract tourists. However, since outdoor temperature is difficult to regulate, tourist destinations need to cooperate in worldwide efforts to minimize the adverse effects of global warming in order to maintain or increase tourist attractions. Another important implication is the need for tourist businesses to consider alternative activities or offers as an adjustment to climate change in order to maintain tourist arrivals. An extreme alternative includes improvements in technological innovations resulting to simulated natural environments have been conceptualizes such as indoor man made beach and other simulated environments. Still another implication is the relative competitiveness of international tourist destinations. With increasing weather temperature, more tourists prefer highland tourism that benefits Zambia and Zimbabwe primarily offering this form of tourism destination relative to lowland tourist destinations. In the case of ski resorts, increases in temperature would affect snow reliability. Ski resorts with lower snow reliability would loose to other ski resorts in the same country or in another countries with the acceptable snow reliability for snow recreational and sports activities.              These studies support the assumption that global warming affects the tourism industry in terms of tourist demand and tourism business competitiveness. There are the factors that tourism businesses need to consider in management decisions. Key to the consideration of global warming in management decision is understanding of the effects of this phenomenon as business risk involving the appropriate risk management strategy. C. Global Warming as Business Risk             Global warming has negative effects on industries. This means that this phenomenon should be considered as forming part of the social and environmental risks that business firms needs to consider in developing their business strategies. If not, businesses would find themselves unprepared for the possible effects of global warming on their operations, profitability and even viability. In the case of the tourism industry, tourism businesses would not be prepared to address the actualisation of problems caused by global warming if these firms do not understand the impact of this phenomenon and include preventive plans and alternative solutions in case these effects are actualised. This is to ensure the viability of tourism businesses or if not the shift in business strategy of these firms to adjust to the market and industry changes brought about by the manifestations of global warming.             Risk is “the probability that a particular adverse event occurs during a stated period of time, or results from a particular challenge” (1995, ). This could also be understood as the probability of a person to experience harm, danger or loss. Individuals and business firms meet and experience various types and degrees of risk in their daily activities. Individuals engaging in the purchase of goods and services face the risks of being conned into buying a particular brand or product that does not provide the value advertised or at a higher price than in other retail stores. Businesses face the risks of incurring losses from un-accosted shoplifters or losing potential profit from suppliers offering higher prices. Moreover, taking risk also involves businesses exposing themselves to the probability of experiencing danger or loss. However, the anticipated or unanticipated exposure requires a sufficient price or incentive to motivate business firms to take the risk despite the possibility of incurring the negative outcomes. New business ventures are riddled with risks arising from the various situations they cannot control but the potential rewards if the business succeeds should weigh more than the potential effects of risk actualisation. Apart from the general goal of ensuring business viability, other strong incentives include expected profit and an environment conducive to new investments because of the existence of security nets such as tax holidays or relaxed regulatory policies. These incentives influence the decision to invest and commence operation of the new business despite possible risks. Continuing business firms also take risks such as incurring losses or even bankruptcy in deciding to expand or with the entry of new competitors. Other risks could also include negative changes in the business environment that affects the market of these businesses that in turn influences profitability or even the viability of the business.            This means that regardless of the status, position or stability of the business, there should be a sufficient understanding of the risks that the business or industry could potentially experience in order for the company to develop or place preventive measures or implement alternative modes of addressing these risks. Although the understanding of risk is relative to the business context of particular firms, the consideration of what risks the business could experience, the valuation of these risks and the alternative solutions should be done with good business judgment.               Global warming is an important business risk in the tourism industry because business firms could face the risk of incurring losses or business closures from heat waves, drought, hurricanes, floods, and storms that affect domestic and international outbound and inbound tourist traffic. When these manifestations of global warming occur, tourism businesses expect a decline in customers that in turn causes significant decreases in profitability.              According to the study conducted by  (2007) on the impact of climate change on world heritage sites, which are locations where many tourism businesses operate, climate change as a manifestation of global warming has adversely affected the condition of all heritage sites. When these world heritage sites diminish in attractiveness, visitors would decrease and the tourism industry also loose potential customers.             The study classifies world heritage sites into five categories including: 1) glaciers; 2) marine biodiversity; 3) terrestrial biodiversity; 4) archaeological sites; and 5) historic cities and settlements. With increasing temperature, the condition of these sites diminishes.             Glaciers have been reported to be melting due to the higher earth temperature. In this instance, glaciers and the mountainous forms naturally created would lose their attractive form and aesthetic beauty so that there would be no view to visit in the northernmost and southernmost hemispheres. This would decrease the number of tourists in these areas and possibly close a number of tourism businesses.             With the increase in sea temperature, sea plants and animals could die and the migration patterns of sea creatures disrupted by changes in sea temperature. If sea creatures will not be able to adjust to these significant changes, they might become instinct. Moreover, the over saturation of sea water with carbon dioxide would make it difficult to sustain coral reefs that provide home and sanctuary to many sea plants and animals. Without sea plants and animals, seawater related tourism activities such as cruises, diving and snorkelling would decline because there is no underwater view to visit. If this happens, many tourism businesses would be adversely affected.             In the case of terrestrial heritage sites, climate change would cause changes in the migratory patterns of many land animal species because most animals survive in specific climates or temperatures conducive to their reproduction such as when growth and development is fostered by a specific temperature and survival such as when their food grows abundantly in a particular climate. When terrestrial animals fail to adapt to changes in temperature, they migrate to look for a suitable place. Heritage sites lose their natural attractions and it would also make it difficult to protect these animals for purposes of conservation. When this happens, tourists would shift to other sites that would affect many tourism businesses relying upon the heritage sites to attract visitors.             The attractiveness of archaeological heritage sites lies in the historical evidences easily visible above ground and buried underground. With extreme changes in weather such as excessive flooding and prolonged storms, these speeds-up the natural wear and tear of these historical evidences. Archaeological evidences located above ground would diminish in attractiveness that diminishes their integrity as tourist sites while evidences underground could be lost with changes in the integrity of the soil. This means that tourism businesses relying upon the integrity and attractiveness of archaeological sites would lose the view that draws people to engage in their products and services.             In the case of cultural cities and settlements, especially those built near the coastal areas might be lost during floods or this built in mountainous areas might give way to soil erosion. Extreme weather conditions brought about by global warming would make it difficult or even impossible to conserve these sites. This means that important historical cities and settlements drawing the interest of tourists could be ruined by the manifestations of global warming and negatively affects the tourism businesses whose operations primarily revolve around these sites.             The negative impact of climate change on world heritage sites implies the concurrent negative effect of global warming on tourism businesses relying upon these sites to draw tourists. Other tourism destinations could also be affected in the same manner as these heritage sites. Since the risk of experiencing the adverse effects of global warming could be experienced by tourism businesses, they should assume responsibility in addressing the causation of global warming.      D. Industry Responsibility in Addressing Global Warming             Industry responsibility in addressing global warming is expressed through the support that business firms offer to international laws and policies directed towards the concerted dealing with the issue of global warming. One important statute seeking to address global warming is the Kyoto Protocol that mandates the ratifying countries to set greenhouse gas emission goals. With more countries ratifying this protocol, setting greenhouse gas emission goals, and enforcing national laws or policies to achieve this goal the amount of greenhouse gases that trap excessive heat in the atmosphere would decrease so that the negative effects of climate change would also be minimised if not averted. The decision of state leaders to ratify or not to ratify the Kyoto Protocol relies upon the response of the business sector. If the business sector that controls the economy in a particular state adamantly rallies against the ratification of the protocol, then state leaders would be compelled not to ratify. This then diminishes the strength and impact of the concerted effort to reduce the excessive emissions of greenhouse gases that causes global warming.                Kyoto Protocol developed as an aftermath of the UN Convention tackling Climate Change. This convention in turn expressed the response of the international organ to the intensifying concern over global warming coupled with the realisation that the excessive accumulation of greenhouse gases in the atmosphere and the thinning ozone layer are preventable through human intervention. Kyoto Protocol constitutes the admission of global warming as significantly attributable to human activities. Greenhouse gas emissions greatly contribute to global warming.             Changing the environmental policy of states to prove more active and directed strategies in solving the issue of global warning comprise the rationale for the protocol. The Kyoto Protocol served as the core expression of the support of states in this concerted program to decrease greenhouse gas emitted by the industries operating in this states. Since reducing the emissions of greenhouse gases involves changing reliance on carbon emitting components as sources of energy. The effort should be spearheaded by industrialized countries since it is these countries that have been reported to emit the greatest amount of greenhouse gases into the atmosphere.  Achieving the shift requires state governments to integrate the protocol into their national economic policies. Such policies necessarily include the implementation of means that discourage businesses to depend on carbon-based sources of energy and the concurrent motivation of these firms to shift to non-greenhouse gases as source of energy. (2001)  Kyoto Protocol suggests the cancellation of incentives extended to industries that are highly dependent on carbon-emitting energy sources together with the issuance of certificates of compliance. It is also important for the government to inform business firms of the purpose of the Kyoto Protocol and the contribution expected from industries in meeting the objectives of the agreement. Assessment of the success of the Kyoto Protocol will be made through the meeting of the parties to the conference to determine the extent of goal achievement.             Since ratification of the protocol involves the cooperation of all sectors of society, there are a number of key players in the achievement of the goals of the Kyoto Protocol. In terms of the ratifying parties, the key actors are all the member states of the United Nations so that the responsibility of complying with the rights and responsibilities covered by the protocol would fall upon the ratifying parties. Highly industrialised countries are expected to be the primary ratifying parties because of the weight of their contribution to excessive greenhouse gas emissions. Within the state, the key actors include the government and the business sector. The government is charged with the integration of the protocol provisions into state policies while the business sector is expected to comply with these policies in support of the success of the protocol.             The importance of the cooperation of the key actors in the Kyoto Protocol determines not only its success but also its effectiveness as a regulatory policy. The protocol takes effect only if 55 countries, with the number including all the industrialised countries identified as contributing 55 percent of excessive greenhouse gas emissions ratifies the Kyoto Protocol. Eight years after the creation of the Kyoto Protocol, this requirement was achieved in February 2005. (2005)              In the face of the real manifestations of climate change requiring human effort to minimise greenhouse gas emissions, the Kyoto convention faced protests from industries expecting to be impacted by the changes in gas utilisation and the need to use environment friendly gasses. Concerted effort poses a challenge to governments because of difficulties in effecting changes such as on gas consumption. This challenge was faced by the United States resulting to its failure to ratify the protocol. The rationale for the US non-ratification of the Kyoto Protocol is the economic loss amounting to $400 billion and unemployment of 149 million people expected to occur when the US commits to cut back on greenhouse gas consumption. (2005) This means that achievement of the objectives of the Kyoto Protocol also involves incurred costs on the part of governments as well as industries in changing their source or energy. This also implies that industries could influence the decision of governments to engage in efforts intended to address the issue of global warming so that the voluntary willingness of industries to cooperate in actions to address global warming is necessary to achieve change. Overall, the challenge overshadowing the success of the Kyoto Protocol revolves around the dilemma of governments in balancing environmental interests with economic concerns. The balance covers intra and inter- governmental relationships in ushering the massive ratification of the Kyoto Protocol and realising the commitments made by the governments to reduce greenhouse gas emissions. The problem of balance becomes an issue of policy. States need to find the balance between economic interests and environmental issues necessitating changes in economic policies. Business firms need to realise that global warming is an actual risk that involves costs and radical changes but these sacrifices lead to positive long-term benefits to these firms. The tourism industry that expects to experience the direct adverse effects of global warming should be at the forefront of efforts to address climate change. Business firms belonging to the industry should take an active position in the international effort to minimise greenhouse gas emissions and replenish the earth’s natural resources to help recycle carbon dioxide emissions in the atmosphere. In the case of the Kyoto Protocol, the tourism industry should hold the stand opposite to the industries against the ratification of this policy. This is necessary in order for the government to have support from the business sector. However, the tourism industry should also draw the other industries as allies in dealing with the difficulties, which are consequences of the ratification. Thus, the tourism industry should find the balance between business interests and social/environmental interests. E. Risk Management Planning for Sustainable Development             Apart from the advocacy to cutback greenhouse gas emissions tourism businesses should also engage in risk management in preparation for the actualisation of the possible effects of global warming as well as in averting the effects of the manifestations of global warming. Risk management pertains to the “organized, systematic decision-making process that efficiently identifies risks, assesses or analyzes risks, and effectively reduces or eliminates risks to achieving the program goals" (1998). This process encourages decision-makers to gain comprehensive understanding of specific risks arising from the global warming phenomenon and develop appropriate strategies in minimising risk to achieve viability and performance objectives of the industry.   The process involves four stages that tourism businesses need to go through. First stage is risk management plan formulation based on the understanding of the firm of the global warming risks it could face. Second stage is plan approval through consensus building on all stakeholders of the business. All key decision-makers in the business need representation and participation in the planning and plan approval. Third stage is plan implementation through coordinated action of the members of the organisation in utilising and maximising available resources. Fourth stage is plan implementation evaluation of the various stages to have comprehensive and accurate assessment the plan’s effectiveness. (1998) During the entire process, shifts and adjustments necessarily happen but which should always be subjected to the approval of key decision-makers.             In dealing with global warming, risk management is exercised and implemented by business organisations through express advocacy of activities addressing the impact of global warming. Advocacy could include lobbying in parliament, media channels and business advertisements to gain the passage of result-oriented and pro-active laws, participating in public awareness programs of the tourism boards and the industry, or airing advertisements encouraging support for non-carbon alternative sources of energy, natural resource conservation, and excessive emission of greenhouse gases by other segments of the business sector. Actions of tourism businesses against climate change involve the development of their environmental or corporate social responsibility founded upon the principle of sustainable development.             Sustainable development refers to the type of “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” (2006) However, different perceptions arose covering different ways of achieving this long-term goal. An important concern of policy makers is the development of sustainability measures needed in evaluating the achievement of goals. Commencing in the 1940s, consistent with the strengthened role of the UN and fundamental rights, advocate groups came up with the perception that sustainable development is achieved through the collective consideration of economic, social and environmental aspects of policy-making of various sectors of society. Because of this perspective, the United Nations introduced eco-development programs. During the 1970s, the UN increased its dedication to sustainable development through the enhanced integration of environmental and developmental issues in the policies of UN state members. (1995) In the succeeding decades, corporate social responsibility emerged as the expression of the commitment of business firms to sustainable development, which also forms part of the risk management plan of business firms.  World Business Council for Sustainable Development (WBCSD) explained corporate social responsibility as “the commitment of business to contribute to sustainable development, working with employees, their families, the local community and society at large to improve their quality of life” (2001). The definition finds consistency with the sustainable development concept so that three dimensions to corporate social responsibility emerge, which are economic, social and environmental. Business context gives rise to two conceptions of corporate social responsibility. First perception of corporate social responsibility is as a “defensive and business focused” strategy (2001) that links the strategy to improving performance and business operations. Second perception is corporate social responsibility as “positive and broadly focused” (2001) concept that relates the strategy to the role of the business firm as community leader engaged in environmental issues. In relation to the tourism industry, it should again find balance between these different corporate social responsibility focus since it needs to secure its business interests but part of the insurance that it would achieve its business objectives requires the active engagement in the environmental issue of global warming.               By engaging in corporate social responsibility, tourism business expect to achieve all or any of these benefits: 1) improved manageability of risks; 2) enhanced coping mechanisms for change; 3) accrual of social permit from the community; 4) enhanced capital accessibility; 5) improved relations with regulatory organisations; 6) improved firm reputation; 7) enhanced organisational recruitment, retention and development of staff; 8) improved competitiveness; 9) enhanced cost-saving capabilities; and 10) improved ability to develop relations with other complementary industry players. (2001) Tourism businesses engaging in corporate social responsibility as part of their risk management strategy expect to experience these benefits. VI. Recommendations & Conclusion             Although there are differences in perception over the extent of impact of global warming on businesses particularly the global tourism industry and the manner that global warming affects businesses relevant literature on global warming has an impact on businesses around the world but the impact and the characteristic of the impact depends upon specific business contexts.             In considering the tourism industry, literature shows that global warming affects tourism businesses by changing demand measured through tourist flow and the competitiveness dynamics with some tourism businesses gaining advantage over their competitors when climate change makes some tourism businesses more favourable over others with climate change. Global warming also changes tourism businesses by providing a motivation to develop risk management strategies depending upon their context-based understanding and consideration of global warming as social and environmental business risk.        Since, there are limited studies on the impact of global warming on ski resorts as a specific business context literature supports the viability of the research. Through the utilisation of the methods and data analysis discussed, the research should be able to contribute to knowledge gap on the comprehensive impact of global warming on ski resorts and support or reject previous information on the topic.

How Global Warming will affect Business Organizations around the World

How Global Warming will affect Business Organizations around the World I. Executive Summary Investigating how global ...