Business and the Environment

Since the “bottom line” of a successful corporate business is ultimately, the profits, does a corporate business know when to draw the line for sustainability (environmental issues) and its profits? Would a corporate business go that extra mile to reduce its environmental footprint, knowing that this strategy could potentially reduce its profits? The costs for implementing environmentally friendly technology would result in a lower net profit in the short run, and has the possibility of increasing profits only if the company can pay off its average variable costs.

In reality, many large corporations are primarily concerned about its profits (not so much about the environment). Take the oil industry for example; large corporations in the oil and petroleum industry (i.e Exxon Mobile) fully understand the extent to which their products are negatively impacting the environment. Not only is Exxon Mobile aware of its actions, the corporate giant is “Helping Write State Laws” and manipulating the same laws that were instated to protect the environment.

Profits are definitely important concerns for corporate businesses, but I feel that many corporate businesses are taking their concerns too far. These businesses may not be aware of the long-term effects of their attempts at profit maximization.

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