Discussion Post: Challenges and Benefits of Environmentally Conscious Companies
One element of a proactive business model includes strategies of continuous improvement and a laser focus on quality initiatives to align with their overall strategies. Both internal and external stakeholders have put pressures on companies to morph into more environmentally conscious business practices. With this shift, there are positives or benefits to these changes as well as negatives or challenges that must be evaluated.
Benefits
There are a number of benefits for companies who are focusing on environmentally conscious operations and decisions. Financial resources are at the top of this list. To operate any business, you need a revenue source. “Numerous initiatives have provided incentives for organizations to become more environmentally benign” (Sarkis, 2003, pp. 397-409). With these financial resources, companies have the ability to receive additional revenues to supplement expenses associated with their transition into a more environmentally focused business model. Additionally, the company has the ability to market their endeavors, which may provide a more positive position for the company and highlight their efforts to preserve and protect the environment.
In doing so, the company may receive a new audience or market share and provide a competitive advantage against other competitors in their space due to the fact that are marketing their environmentally conscious efforts to their customer base. For instance, international regulations impact business exports in various ways. Research shows that manufactures with a green focus have a competitive advantage and performance advantage to those who are not green focused (Leonidou et al., 2015, pp. 798-811).
Challenges
There are a number of challenges as a result of companies being more environmentally conscious. With a focus on managing the environment, there are byproducts of this management such as waste management that must be accounted for. Specifically, companies are looking at ways to dispose of their byproducts in such as fashion that has the least amount of impact on the environment and these practices and policies are making “managing the industrial waste remains a primary challenge” (Peng et al., 2018, pp. 181-189).
Furthermore, the integration of stakeholders and the overall company strategy of environmental focused operations may result in obstacles. The company has a purpose and it must make its decisions in the best interest of its consumers, stakeholders and shareholders. From the executive level, the leadership and purpose driven decision-making process can add complexity to the situation. For instance, in 2007 Tony Hayward became the CEO of BP and “the company made less effort to portray itself as environmentally conscious” (Lawrence et al., 2022, p. 478). When these parties are not aligned in a uniformed fashion, situations occur which can be extremely difficult to manage. “complexity has a negative moderating influence on the relationship between a firm’s stakeholder integration capability and its environmental strategy” (Rueda-Manzanares et al., 2007, pp. 185-203).
Summary
Companies are under many pressures and face many obstacles in regards to being environmentally conscious. This requires balancing the positives and negatives of the endeavors. In the book of Proverbs, we are reminded of our integrity, our intentions, pride and humility. “A false balance is an abomination to the Lord, but a just weigh is his delight” (English Standard Version Bible, 2016). When evaluating the benefits and challenges of anything in life, we should look to the Lord and allow Him to speak to us through the Holy Spirit and ensure we are being wise, making sound decisions to glorify His name.
References
English Standard Version Bible (2016). (original work published 2001).
Lawrence et al. (2022). Business and Society: Stakeholders, Ethics, Public Policy. Penn Plaza, New York, NY: McGraw-Hill Education .
Leonidou et al. (2015). Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance. International Business Review, 798-811. .
Peng et al. (2018). Extended Producer Responsibility and corporate performance: Effects of environmental regulation and environmental strategy. Journal of Environmental Management, 181-189. .
Rueda-Manzanares et al. (2007). The Influence of Stakeholders on the Environmental Strategy of Service Firms: The Moderating Effects of Complexity, Uncertainty and Munificence. BRITISH JOURNAL of MANAGEMENT, 185-203. .
Sarkis, J. (2003). A strategic decision framework for green supply chain management. Journal of Cleaner Production, 397-409. .
Discussion Instructions:Instructions:For your thread: You will contribute meaningful, lively discussion posts in answers to one of the assigned questions in each forum Every initial thread should be between 500–700 words and must contain real business examples from reputable business sources, include research from: 2 sch olarly sources, Incorporate major ideas from the chapter of the textbook and videos, in which the question was taken, and Integrate biblical ideas into the analysis To focus on specific points of application for corporate responsibility. You should not speak in vague terms while answering the questions. Please refer to the Read: Guidelines for Use of Sources & Citations document found with the Learn section of Module 1: Week 1 and the Discussion Grading Rubric to make sure you understand how to recognize a scholarly source
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