Social Benefits/Costs are beneficial or detrimental impacts on people resulting from a company’s activities. For instance, purchasing some automated machines generates a social benefit in terms of occupation at the supplier but it will reduce the number of employees needed at the buyer.
Environmental Benefits/Costs are beneficial or detrimental impacts on the natural environment resulting from a company’s activities. For instance, deciding to generate electricity using solar energy has environmental benefits compared to other sources but still has a cost in terms of producing and transporting the materials.
Ethical businesses are careful to minimize the impact of their behaviour on society and the environment.
Some questions that are useful to understand the content of this block are
– What are the direct costs and benefits that can be directly linked to the company?
– What are the indirect costs and benefits that are passed outside the market?
– What are the External costs and benefits that cannot be passed on to any existing markets because they relate to issues like the environment, safety and nature?
SOCIAL & ENVIRONMENTAL COST-BENEFIT ANALYSIS
A Social&Environmental Cost-Benefit Analysis (SCBA) is a framework to evaluate the impacts caused by an urban development project as well as by a company’s activities.
It makes a balance between
– Financial Components
– Social and Environmental Consequences
Financial Components are for instance:
– Investment Costs
– Taxes and Fees
Social and Environment Consequences are an increase/reduction for instance in the level of:
– Visual blight
– Travel Times
– Spatial Quality
– Market Impacts
– Legal Aspects
The balance between Financial Components and Social and Environment Consequences helps the company to make informed decisions reflecting the value attached to the caused effects of its activities.
Learn more about the SCBA by following this link.
Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc
I am driven by my personal growth and of people/contexts that surround me.
I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.
These organizations have exploited my ability to mediate and translate needs/constraints into practice, assigning me to Project Management roles.
Luxottica relied on my ability to analyze, to anticipate things and to imagine/implement solutions by appointing me in Supply Chain Management department and assigning me to the Product Management of IoT solutions for Anti-counterfeiting and Retail digitalization.
During this professional path, I also developed my leadership by managing teams to build Processes, Organizations, Systems and Governance Tools.