Profitability of Environmentally Friendly Companies
- Pages: 6
- Word count: 1489
- Category: Environment Recycling
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A.Background of the Study
A “green” business strives to have a positive impact on the environment and community. It develops and practices business strategies that go beyond regulation and demonstrate commitment to a healthy and sustainable future. A green business adopts principles, policies, and practices that improve the quality of life for its customers and employees. Our environmental and ethical plan not only makes us a more efficient business, it contributed a net benefit. For years, companies have wrestled with the question of whether environmentally friendly business practices created enough financial value to justify investing in them. Those questions remain for many organizations as a fragile world economy demands prudent stewardship of company currency.
From a business point of view going green might not always appear to be economically efficient, but in many cases companies will have no option since government policy and subsequent legislation will compel them to follow certain lines of action. There will obviously be costs involved. Buying eco-friendly equipment, packaging and materials can be expensive. Initial costs can be higher, even if the variable costs work out cheaper in the long run. Light bulbs are a good example. Environmentally friendly bulbs can cost three times as much as conventional bulbs, but they last much longer. The initial cost can be offset by long-term savings, provided the company stays in business for long enough to reap the benefit.
Local and small businesses have also seen a boon in business from choosing the “green” route. They choose greener office spaces and fixtures and then boast about those choices in their marketing materials to help bring in foot traffic. The facts are clear: going green increases profits. If you haven’t yet chosen environmentally friendly measures for your business, now is the time to get with the program. Here are a few things you can do within the next two weeks to increase your company’s “green score”. Switch to LED light bulbs and install motion sensors for spaces like bathrooms and storage
rooms that aren’t used very often to help save on electric costs. Contact one of the major tablet manufacturers about supplying your work force with tablets so that you can take steps to make your office a paper-less office. Switch from disposable break room supplies to reusable (ceramic mugs instead of paper cups for example) and set up a kitchen cleaning schedule.
B.Significance of the Study
Companies have strengthened their commitment to sustainability as the benefits become more apparent (and the alternatives more untenable). Just as natural resources are becoming scarce and costly; customers, employees and investors are increasingly environmentally-conscious. Championing sustainability allows businesses to align deeply with their missions and engage customers on a more meaningful level. Promoting your environmentally friendly methods can set your business apart from your competitors and attract new customers who want to buy products and services from an environmentally friendly business.
This study guides you to make your business environmentally friendly. This is also giving tips that will help your business go green. Running an environmentally friendly business helps you reduce your impact on the environment and preserves natural resources. Your business can help the environment in many ways. For example, you can. Use products that reduce your reliance on natural resources (e.g. rainwater tanks, solar hot water systems). Use products that are made from recycled material (e.g. office supplies made from recycled plastic, furniture made from recycled rubber). Look at all your business activities to see if you can do anything differently (e.g. reducing air travel by holding conference calls instead of interstate meetings). Making your business environmentally friendly not only benefits the environment but can also save you money.
C.Statement of the Problem
The environment can pose many risks to your business. Here are some problems that faces go green business. 1.What are the environmental risks to your business?
2.Why you should be concerned about environmental issues?
3.What are the actions you need to take to improve your performance?
4.What are the benefits of using environmentally friendly business?
5.Is eco-friendly business is more profitable?
D. Definition of Outline
The Environment and your Business
Your business depends on and affects the environment in many ways. Being environmentally friendly can save you money, give you good publicity and even attract new customers. There are many ways that you can help protect the environment while reducing your own costs. For example, you could recycle products instead of buying new ones or save power by turning off machines that are not in use. An environmentally friendly business that uses resources efficiently is more sustainable and more likely to minimize the impact of environmental risks. This guide will help you put your business on track for environmental sustainability.
The benefits of an environmentally friendly business Recycling reduces your costs. Avoiding, reducing, reusing and recycling can lower your costs. For example, a few simple changes to how you deal with paper can involve your staff in environmentally friendly processes while saving you money: avoid using materials unnecessarily, reduce your paper needs by asking staff to print double-sided, reuse by encouraging staff to use scrap paper for message-taking instead of purchasing message pads and recycle by shredding excess paper – you could recycle this commercially or invite staff to take it home for their compost or Good practice can attract new customers.
Promoting your environmentally friendly methods can set your business apart from your competitors and attract new customers who want to buy products and services from an environmentally friendly business. Improves sustainability. Reducing the environmental impact of your business will improve the sustainability of your business. If you are less dependent on natural resources than your competitors and have ways to deal with rising costs due to climate change, your business will have a greater chance of long-term success. Making your business environmentally friendly should save you money on electricity, paper and other resources – money that you can reinvest in your business. Assess your impact, Make green purchasing decisions and Spread the word can make your business profitable. All benefits that discuss help you to maintain and make your business more profitable.
Support to help your business go green
What we do, what we buy, and how we use and dispose of things makes us all responsible for the environment. As long as climate change continues to affect our lives, there will be environmental regulation for businesses. Many government and support programs are available to help you understand what these regulations mean for your business, as well as how your business can cope with climate change. Go and build environmentally friendly business it makes your business more profitability.
Most consumers claim to be really environmentally conscious, with a genuine belief in the need to reduce their carbon footprint, but product cost is often uppermost in their minds. If for instance, they have a choice of an organic all-natural bar of soap that costs twice as much as a standard bar, many will instinctively opt for the cheaper one. Businesses must consider very carefully how much of their market research represents genuine consumer willingness and how much is simply lip service. Consumers can be very fickle, having different standards for different products. Someone who would only buy organic food might not be at all concerned that their car was not eco-friendly. Effective marketing is very important if a company wishes to sell green products. Well informed sales staff is also necessary because customers are not always equipped to recognize what makes a product green.
When we prevent physical waste, increase energy efficiency or improve resource productivity, we save money, improve profitability and enhance competitiveness. In fact, there are often huge “quick win” opportunities, thanks to years of neglect. Environmental waste is the best proxy for identifying and eliminating economic waste. That’s the secret of these companies. However, there is a considerable gap between leading edge companies and the rest of the pack when it comes to the adoption of lean and green ideas. There are far too many companies still delaying creating a lean and green business system, arguing that it will cost money or require hefty capital investments. They remain stuck in the “environment is cost” mentality. Being environmentally friendly does not have to cost money. In fact going beyond compliance saves cost at the same time that it generates cash, provided that management adopts the new lean and green paradigm.
Environmental friendliness, firms’ competitiveness and firms’ corporate performance/profitability are found to be positively related. This in effect meant that, when firms are environmentally friendly they enjoy competitive advantage which subsequently results in high corporate performance/profitability. When environmentally friendly firms disclose sufficient environmental related information, they enjoy competitive advantage, high liquidity and reduced environmental cost in the long run. Business that use eco-friendly materials or environmentally friendly business is more profitable.
Michael Evans (2011) – “Environmental Business” , http://www.earthtimes.org/encyclopaedia/environmental-issues/environmental-business/ Keivan Zokaei (2013) – “Environmentally-friendly business is profitable business” , http://www.theguardian.com/sustainable-business/environmentally-friendly-sustainable-business-profitable