Ecological factors concern broad environmental issues such as the natural environment,
global warming, and sustainable economic growth. Organizations and the natural environment
coexist in an interdependent relationship. Managing these relationships in a responsible
and sustainable way directly influences the continued existence of human societies and
the organizations we create. Managers can no longer separate the natural and the business
worlds; they are inextricably linked. 14
Business organizations have contributed to the pollution of air, water, and land, as well
as depletion of the world’s natural resources. BP’s infamous oil spill in the Gulf of Mexico
destroyed fauna and flora along the U.S. shoreline from Texas to Florida. This disaster led
to a decrease in fish and wildlife populations, triggered a decline in the fishery and tourism
industries, and threatened the livelihood of thousands of people. It also cost BP more than
$40 billion and one half of its market value (see Strategy Highlight 1.2).
The relationship between organizations and the natural environment does not necessarily
need to be in conflict, however. Ecological factors can also provide business opportunities.
As we saw in ChapterCase 3, Tesla Motors is addressing environmental concerns
regarding the carbon emissions of gasoline-powered cars by building zero-emission
battery-powered vehicles. The question of how to generate the power needed to charge the
batteries in a sustainable way, however, still needs to be addressed.