PESTLE Analysis

PESTLE Analysis Q 1.1 Political and Legal Analysis The South African Government is an active participant in the global f

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PESTLE Analysis Q 1.1 Political and Legal Analysis The South African Government is an active participant in the global fight against marine pollution and in November 2017 joined the UN Environments’ Cleanseas campaign against marine litter and ocean pollution. South Africa has pledged to step up its beach cleanup campaign and to prioritise legislation to hold producers of plastic packaging responsible for the pollution that their products cause. In addition this campaign also calls on consumers to change their throwaway habits which require governments to educate their citizens in this regard. Some signatories to this campaign have taken bold steps, e.g. Sri Lanka has implemented a ban on single use plastics and Chile has implemented laws that hold the producers of plastic bags responsible for the damage their products may cause. South Africa has not gone as far as the other signatories although they have committed to such laws. In South Africa there are many pieces of legislation aimed at curbing pollution, some of which contradict one another and a lot of consolidation of these laws is required. Examples of laws governing pollution in South Africa can be found in the Constitution, which gives everyone the right to live in a safe and harmless environment for their own benefit as well as for the benefit of future generations, and the National Environmental Waste Management: Waste Act which gives effect to the Constitution by setting out laws that are designed to prevent pollution and promote conservation. The Waste Act allows the Minister to declare any waste a priority waste and to decide what to do with it, which includes banning the material, introducing a minimum recycling level or requiring a deposit on the packaging. In May 2018 the Minister of Environmental Affairs announced that following the Clenseas campaign the government will be implementing the Source to Sea Initiative which is a “strategy to investigate, combat pollution, in particular plastic pollution which threatens both freshwater and marine ecosystems” 2 . The influence of the above will have a positive influence on our brand if we assist the government by educating our target market on recycling our packaging,, and by complying with the relevant legislation and by acting as a responsible corporate citizen, showing concern for our environment, we will be looked on in a favourable light by our target market which will have a positive influence on our brand Q 1 2 Economic Analysis One of the best methods to overcome plastic pollution is to recycle existing plastic into new packaging products as this not only makes use of existing products that are currently polluting the environment but also reduces the usage of other raw materials that will be transformed into plastic through a manufacturing process. The National Plastics Recycling Survey 20173 estimates that that there are around 210 recyclers in South Africa, which employ 6 000 in the formal sector and around 48 000 people are in the informal sector working as waste pickers and collectors.. It is estimated that only 43% of all plastics are recycled which implies that there is the potential for growth in the industry and that this can be achieved through educating consumers and companies,

providing more collection points and improving signage on packaging as to whether the packaging is recyclable or not. Plastics SA points out in the survey that in South Africa the recycling industry is based on economic principles i.e. it must make money, while in other countries, notably in Europe, recycling is done because it is the right thing to do. Pollution as a whole does have a negative impact on the economy as it impacts on industries such as tourism and fishing. Plastic pollution in the oceans has also been shown to be ingested by fish where it stays as small micro plastic particles which are then ingested by people causing various medical complications. In supporting recycled packaging for our brand and providing education to our target market, we can demonstrate economic benefits as our recycled packaging not only creates and sustains jobs but it’s also the right thing to do, and by extending our message we will also be assisting other industries affected by pollution. Q.1.3 Socio-cultural analysis Nahman, Wise and De Lange 4 argue that in South Africa, decision makers prioritised social and economic development at the expense of environmental integrity The Accelerated Shared Growth Initiative for South Africa, which was the overarching macroeconomic strategy for South Africa until 2014, explicitly subordinated environmental goals in favour of economic goals and employment goals, with the result that pollution and waste was not properly managed. Jenna Rambeck and others 5. have ranked South Africa as the 11th worst offender in terms of mismanaged plastic waste and the reasons for this dovetail with the arguments of Nahman 4 . It is only recently that South Africa has turned its attention to prioritising waste management, and specifically plastic waste and its impact on the ocean, and this message needs to be conveyed to the people of South Africa as it can have significant adverse effects on the economy as a whole, and specifically on the fishing and tourism industries which could lead to job losses and poverty in certain areas.

Less than 5% of people in the South Africa separate their waste at household level. This is despite the fact that recycling, re-use, and composting can create a value chain which can have additional job opportunities which are much needed while is also saves an average 60% of energy used to make them.

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https://www.unenvironment.org https://www.news24.com/Green/News/sa-to-send-plastic-pollution-packing-20180516 https://www.plasticrecyclingsa.co.za/wp-content/uploads/2019/03/Executivesummary-1.pdf Environmental and resource economics in South Africa: status quo and lessons for developing countries https://www.iswa.org/fileadmin/user_upload/Calendar_2011_03_AMERICANA/Science2015-Jambeck-768-71__2_.pdf