Question

Today, if a company spends some money to invest in a business but still carries environmental protection, it is almost impossible to get a high profit, so how do you balance those two factors? Or is it compulsory to choose 1 in 2? (About 100-120words)

Answer 1

Today's business world has become hyper aware of its responsibility towards the society and environment. It is no longer the case that a company has only a profit motive in terms of its objectives and disregards other factors. Today, the companies are not only looking for profits, but also for customer satisfaction, quality of the products , employee satisfaction and their corporate social responsibility,

Many big companies have started giving back to the environment or society in some way or the other as it has been recognized that a business is also a part of a social enterprise and cannot exist in a vaccum. It therefore becomes necessary to not only take from the surroundings, but also give back. As we move towards the age of technology, companies have started adopting sustainable practices or technologies that are environment friendly. In many countries, CSR is a big part of how the company is evaluated in the Annual Report and thus many companies have adopted better practices in order to protect the environment and limit its exploitation. Millions are being spent on CSR funded projects that not only help the environment but also help in developing environment friendly technologies etc.

All this is not at the cost of the main motive of a company, i.e., profits. Companies still work keeping in mind the profit objective however, other areas have become equally, if not more, important. Top companies have started using business intelligence for green initiatives which save on costs, reuse resources and meet compliance requirements. They also help to create brand recognition among customers and label the company as environment friendly. Examples of some big names would be:

Ford: Uses sustainable fabrics in its vehicles. Focuses on fuel efficiency. Uses geothermal cooling systems.

Hewlett-Packard: Has a great recycling program that ensures most of the manufacturing waste does not end up in landfills