Environment is, in term of an organization, part of its surroundings. The environment determines both the possibility of the organization operations (soil and geological conditions, hydrological conditions, weather, climate, etc.) and partly it is influenced by the organization itself - see externalities.
Environment in practice: Since the twentieth century it develops intensively an environmental protection, which is solved in the context of national and international legislation. Protecting the environment poses to the organizations more and more demands, which when challenged might otherwise face sanctions both by the state and also the negative impact of public opinion. Environment is also an important source of risks (e. g. disaster).