Environmental Issues Can Be Handled Without Compromising on Profits Research Paper

Environmental Issues Can Be Handled Without Compromising on Profits - Research Paper Example The strategic avoidance or minimal compliance with the regulations pertaining to environmental management has led the corporations to environmental pollution or degradation of the environment. The managers are usually faced with difficult situations when they have to trade-off between economic profitability and concern for the environment. However, firms can address the environmental concerns while remaining sustainable although different firms may follow a different path to achieve the objectives. Managers’ commitment to sustainable development can be a source of competitive advantage but they view strategic environmental issues as threats (Là ³pez-Gamero, Claver-Cortà ©s & Molina-Azorà ­n, 2007). It has also been found that the number of resources available to the organization as well as the size of the firm determines the firm’s orientation towards appropriate environmental initiatives. This is evident from the case of the Body Shop and its take over by L’Oreal. Body Shop is known for its ethical stand on animal testing, human rights, community trade and the environment (Glasgow, 2006). The Body Shop had been positioned as an ethical and green-conscious business, believing in fair-trade practices (Alarcon, 2008). Body Shop had been seeking financial support and when the takeover was decided, it was also agreed that Body Shop would continue to operate as an independent unit. L’Oreal is 25% owned by Nestle and is a brand in itself. While Body Sh op was dead against testing its cosmetics on animals, L’Oreal has always been doing this. L’Oreal’ has refused to sign the Compact for Safe Cosmetics – a Code of practice – that requires the removal of potential carcinogens and other toxins from beauty products (Russell, 2007).