Question

Discuss factors affecting the adoption of environmentally friendly technological innovation among firms.

From your perspective what is the most important factor?

Support your answer with realistic examples.

Answer 1

answer-

The factors that affects many firms to adopt environmental friendly technological innovation are-

Political and legal factors- This is the factor in which laws of country like environnmental protection laws, safety laws, air pollution laws etc lead firms to adopt technology which is beneficial for their business as well as for environment. if they violate these laws then legal issues will be at their door which can bring millions of dollars lawsuit and fines.

Customer's perspective- Today's customers are becoming more aware about firm's activities and their products. Customers as member of society can take part in movements where they can boycott products of those frims which are not environment friendly and affecting society and community.

Investors or shareholders- These are internal factors which focused on making profit so these can hinder the adoption of environmental friendly technological innovation in order to reduce business cost and maximize profit. They can decieve public by showing that firms are green and environmental friendly but in reality they are not doing anything to protect environment.

From my prespective, The power of customer is very important factor because customers are the end goal of every firm. if customers will boycott thier products then sales will be less and loss will be high.

The great example of starbucks which implemented clear energy source in its restaurant to reduce its carbon footprints also initiate online payment more secure and fast so that use of paper is less and environment is protected.

Amazon also using green packaging system which can be recycled and packed with ease with less carbon footprints to environment.

Tesla is the company which based on customer demand and need focused on making electric cars more innovative so that electric can replace fuel based cars and chances of pollution and depletion in ozone layer can be lower.