Measuring Economic and Social Impact
Measuring Economic and Social Impact
Measuring Economic and Social Impact
SOCIAL IMPACT
PREPARED BY:
No Name Student ID
KIM
KIMKIM
KIMRIVER’S
RIVER’S
1. Amyra binti Ameran 2017639072
POLLUTION
POLLUTION
2. Nik Nor Najwa binti Nik Zainuddin 2017638998
3. Nor Salwani binti Samsudin 2017639284
4. Nurul Farhana binti Zulkifli 2017668544
5. Siti Nurul Ain Sofea binti Mohd Nawi 2017639006
They may face difficulties to carry on their They do not follow the regulations and
business as usual in future because they have restrictions, it shows their ineffectiveness
breach the restrictions which can affect their and inefficient in handling their chemical
operation. wastage.
GOVERNMENT
Shareholders: Shareholders will refuse to invest in their company and will
resulting in reduction of capital. It is because the shareholders income and
interest will be impacted due to the problems. The company may face any
legal action that can involve the shareholders. To avoid from it, the
shareholders will invest in other company which is more secure. The company
will have financial problems when the shareholders withdraw their
investments.
Customers : Due to their action, it shows that they are not aware with the public
health and safety. Customer will boycott their product to show their support
toward the community and this will affect the income of the company. The main
goal of businesses is to make a profit but by ignoring the community will be a loss
to company.
Government : A legal action has been taken by government where the
company need to be closed for temporary, the directors and company
has been charged to pay fine. It has caused a bad reputation and may
impact the economy stability and growth of Malaysia.
Creditors: Company will have problems to pay for the loan or to apply for
financial assistance because the financial performance of the company is
not good. Creditors feel risky that the company may not able to pay the
loan. The same goes for suppliers to provide raw materials.
ECONOMIC IMPACT (INTERNAL)
LOGISTIC
COST OF
INVESTOR LEGAL
MATTERS
LOGISTIC
• When the case of Sungai Kim Kim toxic pollution was cover almost on the electronic platform and
social media, the image of the said to be company was damaged. The company no longer gain the
trust from the public. This can lead to the closure of the factory. When the factory is close, the
owner need to find new places far away from the residency place and from the public in order to
minimize the risk of toxic pollution.
• Logistics can increased costs attached. Since most citizens don't want landfills, incinerators,
recycling yards or other trash facilities right next door - the "Not in my back yard," sentiment -
waste companies often have to site landfills a long distance from the areas they serve, which can
translate into sharply higher fuel costs when oil prices rise as they have lately.
• Some communities even refuse to allow waste companies to build landfills, meaning they have to
haul their trash to landfills owned by other cities or companies and pay so-called "tipping fees" to
dump there.
INVESTOR
• A crisis in investor confidence means that the very people who support the
corporate system become disillusioned with the system. These attitudes are bad
news for the company economy because the wealthy are likely to reduce their
spending as a response to their drop in wealth and mistrust of the corporate
system.
• Company that said to be the caused of toxic pollution will face with stock prices
falls that can impact their existed investor decisions and finally will effect
company’s financial performance.
COST OF LEGAL MATTERS
• As we know, victims of the Sungai Kim Kim toxic pollution, which include
fisherman and Pasir Gudang residents, have filed civil suits to seek compensation
amounting to RM30mil against 12 parties which includes the company accused of
causing the pollution and two of its director, Yap Yoke Liang and Singaporean
Wang Jing Choa, as well as a lorry driver of the company, N Maridass who was
charged with illegally disposing scheduled waste into Sungai Kim Kim.
• Since pollution are incurred by the firms who disposed the toxic waste and the
victims had to bare with the consequences. Company need to be ready to bare
with all the legal fees and court fees to encounter toward defendants that file the
lawsuits. At this rate, the cashflow of the company will decrease that will affect
company’s financial performance.
WHAT IS SOCIAL IMPACT?
●
Social impact can includes wages, adherence to employment laws, safety, training and
numerous labor practices.
●
The employees of P Tech Resources will be affected because the company will have
Employees financial crisis due to this issue and will have problem in paying employees wages.
●
Employees safety also will be affected as they are more exposed to the chemical due
to company ineffectiveness in managing the chemical wastage.
Social Impact (External)
• The affected society could be
• Taking Kim Kim River’s case as a reference, the
organization’s activity has impacted the health one of the firm’s product
consumers and the immoral
Consumers
Community
of society negatively.
• For example, students and the residents nearby
the river had breathing difficulties and some activities done will tarnish
were even admitted into the emergency unit. their image as a whole.
• The second wave of air poisoning was aided by
hot weather combined with strong wind has • Consumers will feel devastated
made more people become sick and admitted
to the hospital. and betrayed by the firm’s
• People have to limit or even cease their daily action and thus stopped
activities due to the polluted air and water supporting their products.
resources.
Conclusion
By adopting the Environmental Cost Management, it can help the
organization in:
• Identifying the cost-reduction model and to preserve or only launch
the product that is beneficial to the environment
• Determining the production cost that is related to the environmental
aspects
• Offering competitive advantages