Environmental Responsibility of Companies and Ethical Issues about Pollution



Environmental Responsibility of Companies and Ethical Issues about Pollution

Almost all the businesses run with an objective of profit maximization, though, this is significant but it is very essential that impact of business on the environment must be taken in to consideration. Good business sense may be made with adoption of practices of environmental responsibility by businesses by lessening destructive effects of industry. The company can also get the support of its consumers by incorporating its business with environment friendly policies. It may also offer marketing tools to put in brand value, or perk up the image of corporate with the public. Every business carries the liability to the consumers, workers, and serving communities.

With the passage of time, there is a considerable shift in worldwide marketplace regarding the responsibility of organizations towards the environment. Once this responsibility was a niche business pursuit but nowadays it has turned out to be one that calls for corporations to interlace responsibility hooked on its very fabric. Environmental responsibility is considered by a Yale professor Dan Esty, as a new business “mega-trend” in his article in Harvard Business Review. According to him, this trend is rooted on rising pressure of consumers, supply chains and shareholders on businesses to operate responsibly.

Simultaneously, augmented struggle over natural resources, for instance countries, like India and China have an expansion in size and power, which has directed for identification of environmental stewardship as a foremost and main concern by governments and populations worldwide. To compete efficiently in this growing marketplace, sustainability must be a core business principle for U.S. industry.

Every business shares duty to conduct its operations in a socially and environmentally conscious manner. Varying with the scope of an organization, hundreds of thousands, even millions of people's quality of life and sustenance can be affected by a business (for instance, the case of Gulf Coast oil spillover). Commitment of a company to environmental responsibility, strengthened by visible goals and routine examination is fundamental to the profitability of an organization, both in the long- and short-run.

The environment, in recent years, has been one of the elements of greatest concern with respect to attitude of market toward CSR. (Bird et al., 2007; Wahba, 2008) According to some reports, financial performance also gets improved as an upshot of environmental performance development. (Klassen & McLaughlin, 1996) In a company's efforts towards CSR, environment is considered to be the most imperative concern for stakeholders. Kassinis and Vafeas (2006) Welford et al. (2007) The controlling effect of financial performance is explored by Wahba (2008) on the correlation between environmental responsibility of corporate and institutional investors and found that a constructive and noteworthy effect on institutional ownership had been possessed by environmental responsibility, though; this only happened when there was high financial performance. Another viewpoint of role of corporation in environmental management proposes that among others, green commitment of top management is an aspect, determining the conceptualization of various types of environmental practices of corporate (Lee and ...