Issues facing Global Businesses
WASTE
Businesses use resources in production, the factors of production of land, labour, capital and
enterprise. Manufacturers rely on the use of land and the many different materials used in
business products. In the production of goods and services some materials are wasted. Waste
is any material which is no longer useful and has to be disposed of. Waste can be classified
as: Businesses use resources in production, the factors of production of land, labour, capital
and enterprise. Manufacturers rely on the use of land and the many different materials used in
business products. In the production goods and services some materials are wasted. Waste is
any material which is no longer useful and has to be disposed of. Waste can be classified as:



Inert ~ this includes materials which will not cause environmental polution and will not
have physical, chemical or biological reactions. Examples include stone, brick and subsoil
from road widening schemes.
Biodegradeable ~ this rots away through the action of living micro-organisms. This can
lead to unpleasant smells. Biological reaction can take place. This can rsult in landfill
gases containing methane and carbon dioxide.
Hazardous waste ~ this can damage health. Examples are clinical waste from hospitals
which may be contaminated with blood, toxic materials such as lead and rat poison,
corrosive materials such as acid, and flammable wastes such as gas cylinders.
Waste Management
Waste management describes how businesses deal with waste material. For a large service
business it may just involve making sure waste material is collected regularly by the local
council. In a plastics factory where chemical waste is produced the material must be treated
then disposed of safely. This process might use up a great deal of resources and need
continuous monitoring.
Methods of dealing with waste
1. Waste minimisation
Increasingly businesses are considering the impact of waste when
2. Re-use
designing products and processes. JIT and kaizen production methods
have helped to reduce waste in production. Firms are using less packaging.
3. Recycling
Manufacturers are designing cars that use less fuel. In the electronics
4. Landfill
industry designers are continually trying to reduce the size of many
5. Composting
products such as phones and TVs. Smaller versions use fewer resources.
6. Design
Factors affecting waste management
 Conflicting needs of stakeholders ~ Shareholders will be keen to maximise returns, which
may mean spending less on waste management. However the local community may want
a business to devote more resources in order to improve the environment. Employees
could also be concerned about the health and safety hazards of waste.
 Higher waste management costs may lead to an increase in the prices of products to
consumers. This may be a problem if the business is trying to sell goods in overseas
markets where foreign laws regarding waste disposal are less restrictive.
Page 1


Ethics ~ as the importance of image and social responsibility grows, businesses are likely
to pay more consideration to waste management.
Local initiatives ~ many communities establish schemes which encourage businesses to
adopt waste minimisation programmes. These might appeal to businesses for their good
public relations value.
EXPLOITATION OF ETHNO-BOTANIC RESOURCES
Ethno-botanic resources are resources or products that are derived from
plants and natural sources.
How can these be exploited?








Overuse/plundering
Genetic modification
Use of non-sustainable practices
Poisoning and the use of toxic materials
Excess use of materials within production
Damage to existing natural habitats affecting other wildlife, resources and eco-systems
Lack of respect for laws, boundaries, licences etc
Non-adherence to the tikanga of the tangata whenua
The following large businesses are commited to the protection of ethno-botanical resources.

















SEALORD
Anti-plundering
Adhere to Quota Management System set up by NZ government
Use sustainable farming methods
Has the philosophy: “carefully monitor health of fisheries and act sustainably’
Work to fullest extent of the law
Less C02 used than land-based farming methods
Active approach to sustainability
Work with scientists to monitor fish stocks
Fishing industry invests $20m into research on sustainable practices
THE BODY SHOP
Committed to reducing their impact on the environment
Try to find innovative solutions to environmental problems
Use green energy and have policies on reducing energy use
Publish their performance against their own targets regularly (ethical audits) and engage
with stakeholders
Clear communication (transparency) with stakeholders
500 stores fun on green energy
Have schemes to create/maintain resources that support eco-systems, e.g.
beehives
Try to source all wood products from sustainably grown forests
Page 2
BREACH OF INTELLECTUAL PROPERTY
AGREEMENTS
In today’s highly-globalised society, operating in offshore
markets is almost a necessity in order to grow a business.
Protecting intellectual property (IP) is one of the key issues
faced by a New Zealand business seeking to expand overseas. There are perceived dangers in
releasing IP into other markets, but these dangers can be offset by the use of appropriate IP
safeguards. Some of these safeguards are as follows.
Original Works
Original creations are automatically protected by copyright, which grants exclusive protection
to the owner of the copyright. All original works should be marked with the copyright symbol
©, the name of the copyright owner and the year that the work was created. In New Zealand,
there is no copyright registration system. However, some overseas jurisdictions allow
registration of copyright ownership.
Branding
Trade marks protect branding ~ symbols, marks, brands or logos used to distinguish goods or
services. A registered trade mark gives the holder the exclusive right to use that trade mark in
relation to specified goods and/or services. Registration of a company generally does not
grant the registrant any IP rights in the company name, and does not constitute registration of
a trade mark. Businesses should plan to register their trade mark in each market that they plan
to enter. A failure to do so could result in a business being unable to use its own brand name
in key offshore markets!
New Zealand has adopted the Trade Marks Amendment Act 2011, which will enable New
Zealand to join the Madrid Protocol, a system for international trade mark registrations. This
will allow applicants to file trade mark applications in New Zealand and overseas countries at
the same time, by filing one application in New Zealand.
Confidentiality agreements
In order to engage with other parties in overseas markets, businesses will inevitably be
required to disclose confidential and/or commercially sensitive information. This information
must be protected from unauthorised use or disclosure. In the absence of any agreement
between the parties, common law obligations of confidentiality will apply in commonwealth
countries and most developed countries. The best approach for ensuring that confidential
information is legally protected is to have the recipient sign a confidentiality agreement and
ensure that the confidentiality agreement is not superseded by any subsequent contracts with
the recipient.
A confidentiality agreement should accurately describe the confidential information to be
disclosed, set out the permitted uses of the information, include an obligation to keep the
information strictly confidential, deal with consequences of a breach of the agreement and
prescribe the "appropriate" governing law.
Page 3
CYBER CRIME
New Zealand enterprises now face a real threat to their reputations,
profits and futures – cyber crime.
This country - previously considered a relatively safe haven - has
seen an unprecedented rise in the number of crimes committed
using computers and the internet.
Well-planned and co-ordinated attacks have embarrassed governments and a range of
companies from financial institutions to defence contractors and large corporations. Highprofile security breaches have alerted New Zealand business leaders to the issues, and with
growing computer awareness and dependency they're finally connecting risk to their reliance
on technology.
Computer Forensics NZ helps a range of organisations get evidence of inappropriate use of
their company computers. The following scenarios are actual examples of the problems some
NZ businesses have faced.
Page 4
While the rapid change in technology is making it difficult for organisations to keep pace, in
reality the technology is the least of the challenge. The primary issue for under-attack
organisations is figuring out how technology can affect business risk profiles, such as damage
to reputation or revenue.
Measuring and quantifying loss after an attack, or simply tracking what has been
compromised, is a long and costly exercise - assuming an organisation even notices a security
breach.
Remember, cyber criminals can lurk anywhere, inside or outside an organisation, in the
building next door or even overseas. Detection risks are low and rewards high for tech-savvy
criminals.
Page 5