Question

(2) Most notably, the manufacturers were aware of the effects of the product on the environment through its total life-cycle and innovate their products accordingly. These efforts are not intended for immediate profit maximization and they were ahead of consumers’ concerns. Explain why this strategy is good for the manufacturer.

Answer 1

Hi,

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Introduction-

Every company is the part of society and its work for the society, work within the society and use the natural resources for production. So, companies have some moral, legal and social responsibilities towards the society. Welfare of the society is a part of CSR and business ethics.

Now come on the questions-

Why should a manufacturing company produce environment friendly products?:-

The company who is working in the society and producing the product for the customers who are living in that society. So well being the health of the customers and enviornment is the core social and moral responsibilities of the manufacturers. the producing a sustainable product(Sustainable products are those products that provide environmental, social and economic benefits while protecting public health and environment over their whole life cycle, from the extraction of raw materials until the final disposal).Sustainability makes products whose life is complete and with zero impact on the environment. Everything in them is respectful. From the collection of the raw materials, the treaty of the same, the manufacture of the products, its distribution, the use until the elimination of the product.

There are many reasons of manufacturing the eco- friendly product whereas these efforts are not intended for immediate profit maximization and they were ahead of consumers’ concerns.

1) CSR- Corporate social responsibility (CSR) is how companies manage their business processes to produce an overall positive impact on society. It covers sustainability, social impact and ethics.The purpose of corporate social responsibility is to give back to the community, take part in philanthropic causes, and provide positive social value. Businesses are increasingly turning to CSR to make a difference and build a positive brand around their company.

2) Brand Building- Through the producing or manufacturing of eco-friendly products companies creat a good brand image and building a strong brand in the market to differentiate theirself in competitive market. It is very helpful to increasing sales and profit in the long-run.

3) To follow Law- This time government is very strict with regard to environment and public health. Government has issued guidelines for  the same and providing subsidies to those companies that are following the guidelines and charging extra taxes on those companies who are are not following the same. Governments are also charging environment cess with personal income tax in India and other nations doing the same also.

Thank You.