Negative Potential of Unsustainable Business Practices

Negative Potential of Unsustainable Business Practices

Let's look from this angle: Smithfield Foods, Inc. is the world’s largest pork producer and processor with revenues exceeding 12 billion dollars.

Just over ten years ago, 4.7 million gallons of hog fecal matter were released into the state's rivers. Workers and residents near Smithfield plants have reported health problems, and have complained about constant, overpowering stenches of hog feces.

After paying 70 cents a liter of "this" in fines, Sustainable practices are the same place they were before the incident - in the red-brown ponds.

There is a slight consideration, that these "lagoons" might be a perfect sprawling area for bacteria and viruses such as Influenza A (H1N1), which coincidentially was labeled "swine flu" by World Health Organisation. Close to 50 deaths and billions in lost revenues for people, like Mexican tour operators, weathering a $2.2bn impact with $1bn help from their government.

There is an excellent chance for an enterprise to convert this liability into an asset utilising latest in Biomass conversion technologies, be it for fuel or for fertiliser conversion. Not to mention a wide range of novel industrial filtration systems on the market, however, applying "Dinosaur" mentality - it can harm short term share price, therefore it can be forgotten about and left sloshing somewhere in Mexico.

Negative Potential of Unsustainable Business Practices is like a time bomb. Potential of shovelling things alike under the carpet is that when they eventually surface; the cost of dealing with an issue, not only for the owner of the problem, but for people globally can grow in geometrical progression, far outweighing cost of dealing with the situation directly, on the spot. If dealt correctly, the solution can not only cut that future expense, but as mentioned - generate revenue and goodwill which undoubtedly will be reflected in share price and company valuations.

Ivan Goloborodko, BintB, SSEE of blog.cfree.com.au