Are There Benefits In Going Green? Comments Off on Are There Benefits In Going Green?
A political debate that has been going on for some time has made its way into the corporate world. The issue of global warming and the environment in general has caused the government to respond by increasing the responsibility of automobile manufacturers to design more fuel efficient and less polluting cars and trucks. The EPA has tightened its factory emission requirements. This is where political causes morph into business realities.
Having an Attitude
The question is whether or not business should willingly make company-wide changes to their company policies to accommodate a growing segment of the population whose concerns have less to do with becoming a customer and more to do with affecting an agenda. A business can take the position of remaining neutral about the situation if its core customer base is neutral or even opposes the political influence that it attempting to be exerted on the company.
A Bottom Line Perspective
If a business is going to be objective in seriously considering the position of an issue’s advocates, it is clear that a tangible benefit needs to be available that will contribute to the company’s bottom line and potentially create a new type of customer that is sympathetic to the efforts of the company. If scenarios like this can be found, it is a win-win-win for the company. The company’s bottom line will become healthier, while even opponents of the political agenda will sit up and take notice that the company knows how to do business, and the shareholders will benefit as well. The goodwill that is available can be significant.
Here Leaveth the Tax Man
Each company must first consider the state in which they are located. Different states have different tax advantages available for companies. Living in a business-friendly state can have enormous tax advantages when it comes to going green. If the state you are in demands you reduce emissions, going green will allow the company to meet environmental standards and be seen as an environmentally-friendly company. Many states offer tax incentives and tax credits that can offset much of the expense of converting existing plant and equipment or upgrading to less systems that pollute less.
Every company has a carbon footprint and requires a certain amount of energy to conduct normal business operations. The federal government has a series of available grants and tax incentives that will absorb as much as 30 percent of the cost of converting to solar or wind energy as the primary source of energy for the business.
There is research that shows companies “go green” actually show an increased bottom line. Beyond the obvious tax incentives, if the business that is making the move to green has the opportunity to modify or extend its existing product line to include environmentally-friendly products, the move can be used as a social media campaign to improve the company’s brand. Every company’s situation is unique when it comes to becoming a friend of the environment. Investigating the best ways to maximize profit and goodwill is a wise investment in time and resources for the company’s future.