Can Firms be Clean, Green and Profitable? -Evidence from Textiles Industry of Bangladesh
DOI:
https://doi.org/10.18034/ra.v8i1.451Keywords:
Green, Textile, Profitability, Technology, EnvironmentAbstract
This study will be helpful for companies that are reluctant to adopt Eco-friendly technology. This paper shows that the profitability of companies that use green technology does not differ notably compare to companies that are not using green technology. In this paper, this study used financial performance measurement tools (ROS, ROA, ROE) to find out companies' profitability. This study has taken data of 40 listed companies of the Dhaka Stock Exchange. Then it divides the data into two groups, a group accustomed to green technology and a group unaccustomed to green technology. The independent samples test shows that there is no significant difference between the profitability of the two groups. It means the profitability of the two groups is almost similar. From studying these paper readers will be able to understand that by adopting Eco-friendly technology companies will not incur any fundamental loss or sacrifice a great amount of profit. So it will encourage companies to adopt Eco-friendly technology.
Downloads
References
Banerjee, S.; Akuli R.K. (2014), “Advantages of green technology”. Recent Research in science and technology, 6(1):97-100.
Bansal, P. and K. Roth: (2000), ‘Why Companies Go Green: A Model of Ecological Responsiveness’, Academy of Management Journal 43(4), 717–748.
Barbier, E.B., (2016). Is green growth relevant for poor economies? Resource and Energy Economics 45, 178–191.
BERNAMA, (2010), Green Technology, Green Economy: More than Meets the Eye. Accessed on July, 2019.
Bhardwaj, M.; Neelam. (2015),” The advantages and disadvantages of green technology”. Journal of Basic and ap-plied Engineering Research, pp. 1957-1960
Brown, L. R., & Mitchell, J. (1999), Building a New Economy. In W M. V. Russo, Environmental Management Readings and Cases, (1999). pp. 15-32.
Cainelli, G.; Maichi, V.; Grandinetti, R. (2015), Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms. J. Clean. Prod. 94, 211–220. [CrossRef]
Cellini, S.R., & Kee, J.E., (2010), Cost-Effectiveness and Cost-Benefit Analysis. Handbook of Practical Program Evaluation Units, 493-530
Chen, Y. S., S. B. Lai and C. T. Wen, (2006), ‘The Influence of Green Innovation Performance on Corporate Ad-vantage in Taiwan’, Journal of Business Ethics, 67(4), 331–339.
Chung, Y. and C. Tsai: (2007), ‘The Effect of Green Design Activities on New Product Strategies and Performance: An Empirical Study among High-tech Companies’, International Journal of Management 24(2), 276–288.
Dangelico, R.M.; Pontrandolfo, P. ( 2015), Being “green and competitive”: The impact of environmental actions and collaborations on firm performance. Bus. Strateg. Environ. 2015, 24, 413–430. [CrossRef]
Dechezlepretre, A., Sato, M., (2017), The Impacts of Environmental Regulations on Competitiveness. Review of Environmental Economics and Policy 11, 183–206.
Esty, Daniel C., and Andrew S. Winston. (2006), Green to Gold: How Smart Companies use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage. New Haven: Yale UP.
Feiock, R. C., & Stream, C. (2001), Environmental Protection versus Economic Development: A False Trade-Off? Public Administration Review, 61(3), 313-321. http://dx.doi.org/10.1111/0033-3352.00032
Fraj-Andre’s, E., E. Martinez-Salinas and J. Matute- Vallejo (2008), ‘A Multidimensional Approach to theInfluence of Environmental Marketing and Orientation on the Firm’s Organizational Performance’, Journal of Business Ethics,
Gonzalez-Benito, J. (2005),Environmental proactivity and business performance: An empirical analysis. Omega 33, 1–15. [CrossRef]
Hart, S. L. (1997), Beyond Greening: Strategies for a Sustainable World. Harvard Business Review,) 75(1), 66-76.
Heras-Saizarbitoria, I.; Molina-Azorin, J. (2011), ISO 14001 certification and financial performance: Selection-effect versus treatment-effect. J. Clean. Prod., 19, 1–12. [CrossRef]
Kats, Gregory. "Green Building Costs and Financial Benefits." A report for the Massachusetts Technology Collabo-rative. 2003 1-10. http://www.cape. com/ewebeditpro/items/O59F3481.pdf. Accessed on 09 February 2019
Lanoie, P.; Laurent-Lucchetti, J. (2011), Environmental policy, innovation and performance: New insights on the porter hypothesis. J. Econ. Manag. Strategy, 20, 803–842. [CrossRef]
Lin, R.J.; Tan, K.H.; Geng, Y. (2013), Market demand, green product innovation, and firm performance: Evidence from Vietnam motorcycle industry. J. Clean. Prod. 40, 101–107. [CrossRef]
Marchi, V. (2012), Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms. Res. Policy, 41, 614–623.
Menanteau, Philippe. (2003), "Prices vs. Quantities: Choosing Policies for Promoting the Development of Renewable Energy." Energy Policy 31.8: 799-812.
Miles, M. P. and J. G. Covin (2000), ‘Environmental Marketing: A Source of Reputational, Competitive, and Finan-cial Advantage’, Journal of Business Ethics 23(3), 299–311.
Mitchell, R.; Agle, B.; Wood, D. (1997), Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Acad. Manag. Rev. 22, 853–886.
Monu Bhardwaj et al. (2015), "The Advantages and Disadvantages of Green Technology" Journal of Basic and Ap-plied Engineering Research, Volume 2, Issue 22; October-December,: pp. 1957-1960.
Nishitani, K. (2011), “An empirical analysis of the effects on firm’s economic performance of implementing envi-ronmental management system”. Environ. Resour. Econ. 48, 569–586. [CrossRef]
Porter, M. and C. van der Linde (1995), ‘‘Green and Competitive: Ending the Stalemate’’, Harvard Business Review September–October, 120–133.
Rexhäuser, S.; Rammer, C. ( 2014), Environmental innovations and firm profitability: Unmasking the Porter hypoth-esis. Environ. Resour. Econ. 2014, 57, 145–167.
Richard, P.; Devinney, T.; Yip, G. (2009) Measuring organizational performance: Towards methodological best prac-tice. J. Manag. 35, 718–804. [CrossRef]
Salzmanna, O.; Ionescu-somersa, A.; Stegera, U. (2005), The business case for corporate sustainability: Literature review and research options. Eur. Manag. J., 23, 27–36. [CrossRef]
Wagner, M. (2015), The link of environmental and economic performance: Drivers and limitations of sustainability integration. J. Bus. Res., 68, 1306–1317. [CrossRef]
Walker, K.;Wan, F. (2012), The harm of symbolic actions and green-washing: Corporate actions and communica-tions on environmental performance and their financial implications. J. Bus. Ethics, 109, 227–242. [CrossRef]
Weng, H.H.R.; Chen, J.S.; Chen, P.C. (2015), Effects of green innovation on environmental and corporate perfor-mance: A stakeholder perspective. Sustainability, 7, 4997–5026. [CrossRef]
Willard, Bob. (2012), The New Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line. Gabriola Island, B.C.: New Society,
Wolff, G. (2006), “Beyond payback: A comparison of financial methods for investments in green building.” Journal of Green Building. Vol.1-No.1 80-91
World Bank, (2014), Building Competitive Green Industries: The Climate and Clean Technology Opportunity for Developing Countries. World Bank, Washington, DC.
World Green Building Trends: Business Benefits Driving New and Retrofit Market Opportunities in over 60 Coun-tries, McGraw-Hill. 2013
--0--
Downloads
Published
Issue
Section
License
ABC Research Alert is an Open Access journal. Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal the right of first publication with the work simultaneously licensed under a CC BY-NC 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of their work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal. We require authors to inform us of any instances of re-publication.
