Nations may become increasingly unwilling to allow foreign multinational companies to exploit their natural resources without accepting a clear commitment to operate in a sustainable way in the area where the trade is being carried out.
Some requirements will increase the traditional established cost of trading in these areas.
A multinational mining conglomerate was recently prevented from expanding its mine workings in a Central African state, until and unless there was in place
Clearly this will increase overall costs. These increases should not be seen simply as increases in manufacturing expense (in this case, cost of extraction), but as associated with the environmental investment cost of being a socially responsible organisation.
The playing field remains level for as long as all organisations in a particular business area are required to trade in the same sustainable manner.
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