Corporate social responsibility: Make it a priority

 SUZETTE N. ALEJANDRO

Divine Word College of Laoag                                  

ABSTRACT

Corporate social responsibility is a philosophy, a priority and accountability rather than merely a policy. Effective corporate social responsibility policies typically require organizations to commit to both an internal and external approach to ethics, although they do not automatically equate to lower profitability. However, what exactly does "corporate social responsibility" mean? Who is advocating for businesses to be socially responsible, and for what reasons? This article covers the progress of the CSR concept as well as some of the attempts to define the social responsibilities of businesses. This article also discusses the benefits of CSR and how to implement it effectively.

Keywords: Corporate Social Responsibility, Stakeholders, Consumers, Community, Employees, benefits of CSR, implementing CSR              

INTRODUCTION

The business serves both economic and social purposes. It is the only activity that has an impact on all facets of society and the country. Businesses innovate, create new goods and services for people, produce goods and services for the nation and society, and create new molecules to treat human illnesses. The business also creates jobs, generates income, exports, and collects taxes to help the government run smoothly. The business also makes use of the resources of society and the nation. But this only represents one side of the story; the other side is all about the exploitation of human and natural resources, sexual harassment at work, political funding of business interests, the spread of materialism and pollution, the encouragement of terrorism to increase the sale of weapons and ammunition, the sale of tobacco and alcohol, acid rain, global warming, and numerous other human rights cases of abuse.

More so, as discussed by Byars (2018), the environment and sustainability have been the concerns responded to by the corporations to their stakeholders. Corporations and customers are becoming more and more aware that their actions can and often inflict harm to the environment. Destruction of the environment can ultimately lead to a decrease in resources, limited business prospects, as well as a lowered quality of life. Businesses that harm the environment frequently conceal their actions to avoid being discovered and suffer financial loss, legal penalties, or social consequences. The Earth itself, which is affected negatively by their hidden actions, maybe the only testimony.

Moorhead (2016) stated that smart business executives must be aware that a stable foundation is necessary for a company to build and enhance its commitment to sustainability and corporate social responsibility (CSR).

CSR DEFINED

What is CSR, one would begin to wonder. Simply defined, it is essentially giving back to society. CSR, however, is defined by the World Business Council for Sustainable Development as "the ongoing commitment made by businesses to act ethically and to contribute to economic growth while strengthening the quality of life of employees and their families as well as those in the community and society."

More so, social responsibility refers to the business decisions and actions that are at least partially made for purposes other than the organization's immediate economic or technical interest (Mittal 2008). Most CSR activities are related to sustainability, environment, safety, and gender issues (Tian et al., 2011).

Additionally, CSR also refers to an organization's efforts to address a wider range of social and environmental issues and concerns (Lindgreen et al., 2010).  Also, CSR is generally understood to be “beyond what is required by law”, i.e. beyond legal conformity (Buhmann, 2006).

Corporate social responsibility (CSR) is also known by several other names. These include corporate responsibility, corporate accountability, corporate ethics, corporate citizenship or stewardship, responsible entrepreneurship, and “triple bottom line,” to name just a few. As CSR issues become increasingly integrated into modern business practices, there is a trend towards referring to it as “responsible competitiveness” or “corporate sustainability” (Hohnen 2007).

SOCIAL RESPONSIBILITY OF BUSINESS

            No business can run its own in complete isolation. A business depends on a variety of interactions with its stakeholders, which include its shareholders, customers, employees, suppliers, communities, and others.

According to Mittal (2008), there are four significant groups that both influence and are influenced by business, and business is expected to recognize its responsibilities towards these groups. These categories are:

1.0 Responsibilities to Shareholders

Not all corporations have the luxury of not needing shareholders' cash. Many do need capital from equity investors. They frequently represent the new, expanding businesses that we all want to see more of. These businesses might stay in low gear or never even get moving without shareholders who are ready to take risks that a bank or a bondholder would not (Fox et al., 2012). Shareholders who have invested in businesses have only one interest: making money. They have invested money to make money. Thus, organizations' main duties include increasing shareholders' wealth, providing a good return on investment, paying dividends on time, protecting the interests of even small shareholders, listening to and respecting shareholders, and regularly inviting shareholders to participate in decision-making (Mittal 2008).

2.0 Responsibility to Employees

            Employees have a key role in the success of the company. Employees are no longer considered the organization's most underutilized resource. As stated by Costas, J., & Kärreman, D. (2013), CSR functions as a method of aspirational control that binds employees' ethical conscience to the organization and aspirational identities.

            Organizations have many obligations to their employees, including fair treatment, no bias based on sex, cast, or creed, equal pay, fair and performance evaluation system, a pleasant and secure working environment, establishment of equal employment standards and norms, the provision of job welfare facilities, equal chances for accomplishment and promotion, proper recognition, appreciation, and encouragement of special skills and capabilities of the worker, and provision of labour welfare facilities.

            More importantly, all employees must be given the chance to participate in managerial decisions regarding appropriate and desirable training and development programs, allowing workers to grow as individuals in response to the changing environment.

            Finally, consider family well-being. That is, if employees' home lives are less problematic, their productivity will be high (Mittal 2008).

3.0 Responsibility to Consumer

Consumers are generally aware of a company's CSR behaviour and its impact on the environment and the community (Tian et al., 2011). Consumer interest in corporate social responsibility (CSR) has increased over the past ten years (Carrigan and Attalla 2001).  Several reasons for this have been advanced: On the supply side, businesses are becoming more involved in CSR activities and place greater focus on promoting their CSR efforts while, on the demand side, consumer advocate groups are highlighting unethical corporate behaviour and encouraging boycotts (Snider et al. 2003). More so, consumers actively seek out goods from companies that conduct business ethically as they become more conscious of the value of social responsibility (Collier 2018).

            Organizations have many obligations to their customers, including the following: to offer products of known quality; to ensure that products are delivered to customers and to prevent any form of profiteering by middlemen and fraudulent individuals; to provide goods at reasonable prices; to offer necessary after-sale services and to ensure that spare parts are available on the market;  to fulfil its commitments impartially and courteously following applicable laws; to ensure that the product supplied has no negative effects on the customer; to hear and address the genuine complaints of the customer; to hear and address any type of cartel formation, and finally, to provide sufficient information about the product, including their adverse effects, risks, and care to be taken while using the products.                                                      

            More importantly, consistent research and development are essential for enhancing and innovating the offered goods and services (Mittal 2008).

            Note that companies who consistently adhere to high standards for the safety of products and services have a significant competitive edge over their rivals (Benoit, 2013).                     

4.0 Responsibility to Community

            Communities are interacting with corporations more frequently now than in the past, a development supported by the reduction of trade barriers through international trade agreements, attempts to strengthen the rights of foreign investors and broader processes of national liberalization across many developing nations (Newell 2005).

            Simply, the business has a variety of responsibilities to the community: to prevent environmental pollution and to maintain ecological balance; to increase operational efficiency; to support research and development; to promote small-scale industry; to promote the development of the region in which they operate; and, finally, to take steps to conserve limited resources and to develop alternatives, whenever possible (Mittal 2008). 

BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY

            The advantages of CSR speak effectively about how crucial it is and why you should try to implement it in an organization.

            Collier 2018 stated some clear benefits of corporate social responsibility which are:

1.0   Improved public image. This is important since customers consider your reputation when determining whether to buy from you. Simple things like employees giving an hour a week to a charity demonstrate your company's commitment to doing good. As a result, consumers will view you considerably more favourably.

2.0   Increased brand awareness and recognition. If you're dedicated to moral behaviour, this news will get around. Your brand will become more widely known as a result, of raising brand awareness.

3.0   Cost savings. Your production expenses can be reduced by making some easy modifications in the direction of sustainability, such as using less packaging.

4.0   An advantage over competitors. You distinguish yourself from rivals in your sector by embracing CSR. By taking social and environmental considerations into account, you position your organization as one that is dedicated to going above and beyond.

5.0   Increased customer engagement. You should announce your use of sustainable systems loud and clear. Create a tale out of your efforts and post it on your social media platforms. Additionally, you should showcase your work to regional media in the hopes that they will cover it. Customers will pay attention to this and interact with your brand and activities.

6.0   Greater employee engagement. Similar to consumer involvement, you should make sure your staff is aware of your CSR initiatives. It has been demonstrated that workers prefer to work for a company with a positive public image over one without. Furthermore, you'll be far more likely to attract and keep the best candidates if you demonstrate your commitment to causes like human rights.

7.0   More benefits for employees. When you embrace CSR, your employees might get a variety of advantages. By encouraging activities like volunteering, you foster both personal and professional development and make your company a more positive and productive place to work.                                                                                                               

IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY

            How is CSR implemented? Small and large enterprises alike should both invest in CSR. When we hear the term CSR, we often picture expansive, international programs that both large and small firms may find difficult to implement.

Collier (2018) cited some corporate social responsibility for small businesses and these are getting involved with local communities like participating in local events, attending fiestas, patronising and buying from local suppliers; volunteering; going green or reducing the amount of electricity used and recycling and upcycling of used materials; alternative transport methods like embracing the benefits of carpooling and taking public transport to work; and lastly to support the development of employees, ensuring that your employees feel happy, healthy, and safe whilst at work.

These are the suggested steps by Hohnen (2007) on how to implement CSR in large companies, first to develop an integrated CSR decision-making structure; prepare and implement a CSR business plan; set measurable targets and identify performance measures; engage employees and others to whom CSR commitments apply; design and conduct CSR training; establish mechanisms for addressing problematic behaviour; create internal and external communication plans; and lastly to make commitments publicly.

CONCLUSION

            Indeed, corporate social responsibility (CSR) is a philosophy, a priority and accountability. It is simply defined as essentially giving back to society. An organization must conduct itself with a sense of social responsibility. It is seen as good practice for the business to consider social and environmental issues, even though it is not required by law. CSR implies that a company cares about broader societal concerns as well as those that influence its profit margins, which will draw clients who share their beliefs. As a result, conducting business sustainably makes sense.         

Reference:

Benoit, V., (2013). Corporate social responsibility in China. 2ed. Singapore: World

Scientific Printers 

Buhmann, K. (2006). Corporate social responsibility: what role of law? Some aspects of law and CSR. Corporate Governance: The international journal of Business in Society, 6(2), 188-202.

Byars, S. M. (2018). Business Ethics. Houston Texas: OpensStax.

Carrigan, M., & Attalla, A. (2001). The myth of the ethical consumer—Do ethics matter in purchase behaviour? Journal of Consumer Marketing, 18(7), 560–577

Collier, E. (2018) How to Implement Corporate Social Responsibility in Your Small Business

Costas, J., & Kärreman, D. (2013). Conscience as a control–managing employees through CSR. Organization, 20(3), 394-415.                                                                                           

Fox, J., & Lorsch, J. W. (2012). What good are shareholders? Harvard Business Review, 90(7/8), 48-57.

Hohnen, P. (2007). Corporate Social Responsibility: An Implementation Guide for Business, International Institute for Sustainable Development

Lindgreen, A., & Swaen, V. (2010). Corporate social responsibility. International Journal of management reviews, 12(1), 1-7.

Mittal, V (2008). “Business Environment and Ethics”, Excel Books Private Limited, pp 22-29. (MBA Paper No. 2.8 Bharathiar University, Coimbatore)

Moorhead, P. (2016). “Cisco’s CSR Program under CEO Chuck Robbins Is Flourishing,” Forbes, March 9, 2016.    

Newell, P. (2005). Citizenship, accountability and community: the limits of the CSR agenda. International affairs, 81(3), 541-557.

Snider, J., Paul, R. H., & Martin, D. (2003). Corporate social responsibility in the 21st century: A view from the world’s most successful firms. Journal of Business Ethics, 48(2), 175–187.

Tian, Z., Wang, R., & Yang, W. (2011). Consumer responses to corporate social responsibility (CSR) in China. Journal of business ethics, 101, 197-212.  

WBCSD (1999), Corporate Social Responsibility, World Business Council for Sustainable Development

 

 

 

 

 

 

 

 

 

 

Ethical Concerns in Renewable Energy

 Arnulfo Almeniana: Divine Word College of Laoag, Philippines

20 May 2023  

This article explores the ethical considerations surrounding the use of renewable energy in business and management. The adoption of renewable energy sources in production and manufacturing processes has become a key strategy for businesses to reduce their carbon footprint and contribute to sustainable development goals. However, the adoption of renewable energy in business and management is not without ethical considerations. This article aims to review existing literature on the subject and provide theoretical frameworks, such as stakeholder theory, to analyze the potential impacts of renewable energy adoption on different stakeholders, including employees, customers, and local communities. While the adoption of renewable energy sources can provide significant environmental benefits, businesses face several challenges and barriers when implementing renewable energy strategies, including cost and financing issues, regulatory and policy barriers, and technical and operational challenges. The role of government and policymakers in promoting ethical practices in business and management using renewable energy will also be examined. The article will analyze policies and regulations, that incentivize and encourage businesses to adopt renewable energy sources. Ultimately, this article aims to provide a comprehensive analysis of the ethical concerns and challenges that businesses face when adopting renewable energy practices in production and manufacturing and to provide recommendations for businesses and policymakers on how to promote the ethical adoption of renewable energy in business and management.

Keywords: ethics in business, renewable energy management, production, manufacturing

Introduction

The increasing global demand for sustainable business practices has led to a growing adoption of renewable energy in production and manufacturing processes. Renewable energy sources such as wind, solar, and hydroelectric power offer an environmentally friendly alternative to traditional energy sources and can help businesses reduce their carbon footprint (Scherer & Palazzo, 2011). However, the integration of renewable energy into business operations is not without ethical concerns.

This research article aims to explore the ethical considerations associated with the use of renewable energy in business and management. The article will focus on the social and environmental impacts of renewable energy adoption, as well as the ethical implications of renewable energy production and usage. As businesses increasingly adopt renewable energy practices in their production and manufacturing processes, some significant ethical concerns and challenges need to be addressed. The transition to renewable energy sources raises questions about the responsibility of companies to mitigate their environmental impact, while also ensuring the well-being of all stakeholders. According to Collins et al. (2020), these concerns include issues related to labour rights, fair trade practices, and social justice.

One other major ethical concern associated with renewable energy is the social and environmental impact of the technology used to produce it. While renewable energy is generally considered to be more environmentally friendly than traditional sources of energy, the production of renewable energy technologies can have negative impacts such as the displacement of local communities, land-use conflicts, and habitat destruction (Kopits, 2018). For example, the production of solar panels requires the use of rare earth metals and toxic chemicals, which can lead to environmental pollution and worker exploitation (Kopits, 2018).

The goal of this research is to provide a framework for businesses to consider the ethical implications of renewable energy adoption in their operations and to promote sustainable business practices that prioritize social and environmental responsibility.

Theoretical Framework

Renewable energy is becoming increasingly popular in the business world as a way to reduce environmental impact and promote sustainability. A growing body of literature has explored the ethical implications of renewable energy adoption in business and management. This section will review some of the key findings in the literature, along with relevant theoretical frameworks.

One key framework for analyzing the ethical implications of renewable energy adoption is corporate social responsibility (CSR). CSR emphasizes the social and environmental impacts of business activities and encourages companies to take responsibility for their actions. Several studies have explored the relationship between renewable energy adoption and CSR. For example, Sánchez-Braza et al. (2020) analyzed the impact of renewable energy on CSR performance in Spanish firms, finding that companies with higher renewable energy adoption had better CSR performance. Similarly, Rahman et al. (2021) found that renewable energy adoption positively affected CSR performance in the Malaysian context.

Another important theoretical framework for analyzing the ethical implications of renewable energy adoption is stakeholder theory. Stakeholder theory emphasizes the importance of considering the interests of all stakeholders affected by business activities, including employees, customers, suppliers, and the environment. Several studies have applied stakeholder theory to the analysis of renewable energy adoption in business and management. For example, Sadiq et al. (2021) conducted a systematic review of empirical studies on renewable energy adoption and stakeholder perceptions, finding that stakeholder engagement was critical to the success of renewable energy projects. Similarly, Olsen et al. (2019) emphasized the importance of stakeholder engagement in corporate sustainability initiatives.

The triple bottom line (TBL) approach is another important framework for analyzing the ethical implications of renewable energy adoption. The TBL approach emphasizes the importance of balancing economic, social, and environmental considerations in business decision-making. Several studies have applied the TBL approach to the analysis of renewable energy adoption. For example, Parnell and Stirling (2017) argued that industrial policy could achieve a triple-win outcome by reducing inequality, mitigating climate change, and growing the economy.

Several studies have also explored the ethical considerations associated with renewable energy adoption in specific industries. For example, a study by Yadav and Yadav (2021) examined the ethical implications of renewable energy adoption in the Indian textile industry, highlighting the potential social and environmental benefits of renewable energy adoption as well as the need for ethical considerations related to stakeholder engagement and environmental impact assessments.

Review of Related Literature

There has been a growing body of literature targeted at the ethical dimensions of renewable energy in business and management over the years. These studies have expanded on earlier works, providing additional insights into the benefits and challenges of renewable energy and its implications for ethical decision-making. In this section, we review some of the more recent literature on this topic, with a particular focus on the ethical considerations associated with renewable energy in business and management.

One of the key contributions to the literature in recent years has been the concept of energy justice, which emphasizes the importance of ensuring that access to energy is equitable and sustainable for all (Sovacool et al., 2020). This approach recognizes that renewable energy has the potential to address social and environmental injustices, such as energy poverty and climate change, as well as the need to ensure that the benefits of renewable energy are distributed equally and that the potential negative impacts are reduced.

Another significant contribution to the literature is the concept of responsible innovation, which emphasizes the importance of considering the ethical, social, and environmental implications of technological innovations (Stilgoe et al., 2013). This approach has been applied to renewable energy, highlighting the need to consider the broader social and environmental impacts of renewable energy technologies and the importance of engaging with stakeholders in the development and implementation of these technologies.

Several recent studies have also focused on the ethical implications of specific renewable energy technologies, such as solar and wind energy. Breyer et al. (2020), examined the ethical implications of scaling up solar energy production and highlighted the need to consider the social and environmental impacts of large-scale solar installations. Another study by Shapira et al. (2021) examined the ethical implications of wind energy and highlighted the importance of addressing issues such as noise pollution and the impact on wildlife.

Other studies have highlighted the importance of CSR in promoting ethical and sustainable business practices in the renewable energy sector (Graafland et al., 2018). These studies have also emphasized the need for greater transparency and accountability in the renewable energy industry to ensure that CSR commitments are met and that the social and environmental impacts of renewable energy are minimized.

Ethical Concerns in implementing renewable energy

Implementing renewable energy strategies can bring about several benefits to companies, such as cost savings, reduced carbon emissions, and improved corporate social responsibility (CSR) performance. However, companies may face various challenges and barriers when trying to adopt renewable energy in their production/manufacturing processes. This section takes an in-depth review of some of these challenges and barriers.

One major ethical concern that has been associated with the adoption of renewable energy is its potential impact on employees. Businesses may need to invest in new technology and training for employees to ensure that they can effectively operate and maintain renewable energy systems. However, this may also result in job losses if employees are not retrained or if the business decides to outsource operations to third-party contractors. Therefore, businesses must consider the social and economic impact of renewable energy adoption on their employees and take steps to mitigate any negative impact. While renewable energy technologies have been improving, the initial investment required for their implementation can still be quite significant. Many companies may not have the financial resources to invest in renewable energy infrastructure, which can lead to slow adoption or abandonment of the projects altogether (Praetorius et al., 2021). Moreover, accessing financing from traditional lenders can be challenging due to the perceived high risk of renewable energy projects.

Businesses also face several technical and operational challenges when implementing renewable energy strategies. Renewable energy technologies can be complex and require specialized skills and knowledge to operate and maintain effectively. Integrating renewable energy infrastructure with existing production processes can also be challenging, leading to operational disruptions (Jouhara et al., 2020). Furthermore, the reliability and intermittency of some renewable energy sources can create difficulties in ensuring a continuous and consistent energy supply, which can affect production processes' stability. For example, renewable energy sources such as wind and solar are intermittent and require energy storage solutions to ensure a stable supply of energy. The costs associated with energy storage systems may be prohibitive for some businesses, making it challenging to fully adopt renewable energy sources. Similarly, businesses must also ensure that their existing infrastructure is compatible with renewable energy sources, which may require additional investments.

Another ethical concern is the potential impact on local communities. The adoption of renewable energy sources may require the installation of new infrastructure, such as wind turbines or solar panels, which could have visual and environmental impacts on local communities. Businesses must ensure that they engage with local stakeholders and address any concerns they may have regarding the impact of renewable energy adoption on their community.

Furthermore, businesses may face regulatory and policy barriers when adopting renewable energy sources. Policies and regulations that promote fossil fuel use or discourage renewable energy adoption can create significant hurdles for companies that want to invest in renewable energy infrastructure (Zhu et al., 2019). Additionally, the lack of standardized and transparent regulatory frameworks for renewable energy procurement can also create confusion and uncertainty for companies, making it difficult for them to plan their renewable energy strategies effectively.

Impacts of adopting ethical practices in renewable energy

Renewable energy adoption in production and manufacturing processes can have significant impacts on various stakeholders, including employees, customers, and local communities. This section discusses some of the potential impacts of renewable energy adoption on these stakeholders.

Firstly, employees can benefit from renewable energy adoption in various ways. For instance, the shift towards renewable energy can create new job opportunities in the renewable energy sector, which can contribute to job creation and economic growth (ILO, 2020). Furthermore, renewable energy adoption can improve the health and safety of employees by reducing exposure to hazardous pollutants and reducing the risk of accidents associated with traditional energy sources (Bhattacharya et al., 2020). Additionally, renewable energy adoption can enhance employees' sense of pride and engagement in the company's commitment to sustainable practices, which can lead to increased job satisfaction and retention (Ehnert et al., 2016).

Secondly, customers can also benefit from companies' adoption of renewable energy. Customers are increasingly conscious of the impact of their purchases on the environment and prefer to buy from companies that demonstrate a commitment to sustainability. Adopting renewable energy strategies can enhance a company's reputation and attract environmentally conscious customers (Kumar et al., 2016). Furthermore, renewable energy adoption can lead to lower prices for customers, as companies can pass on cost savings from reduced energy costs to their customers (Elnathan et al., 2020).

Thirdly, renewable energy adoption can also have a positive impact on local communities. For instance, renewable energy infrastructure can provide local communities with access to affordable and reliable energy, which can contribute to poverty reduction and economic development (Kibert, 2019). Additionally, renewable energy adoption can reduce air and water pollution, leading to improved health outcomes for residents (Bhattacharya et al., 2020). Moreover, renewable energy adoption can create opportunities for community engagement and partnerships between companies and local communities, leading to mutually beneficial outcomes (Levy et al., 2019).

Case studies of companies promoting ethical practices

IKEA and Unilever are among the companies that have successfully implemented renewable energy in their production/manufacturing processes while addressing ethical concerns. These companies have demonstrated that it is possible to integrate renewable energy into their operations while promoting ethical and sustainable practices.

IKEA's commitment to renewable energy is grounded in its corporate social responsibility strategy, which emphasizes sustainability and social responsibility. The company has set ambitious targets to reduce its carbon footprint and is committed to using 100% renewable energy by 2020. IKEA's efforts to integrate renewable energy into its operations have been guided by the triple bottom-line approach, which considers environmental, social, and economic factors in decision-making (Elkington, 1998). The company has also adopted a circular economy approach, which seeks to minimize waste and maximize resource efficiency (Kirchherr, Reike, & Hekkert, 2017).

Unilever's commitment to renewable energy is also grounded in its corporate social responsibility strategy, which emphasizes sustainable business practices. The company has set a goal of sourcing 100% of its energy from renewable sources by 2030 and has made significant investments in renewable energy projects. Unilever's approach to renewable energy is guided by stakeholder theory, which emphasizes the importance of considering the interests of all stakeholders in decision-making (Freeman, 1984). The company has also adopted a system thinking approach, which considers the complex relationships between different components of a system (Senge, 1990).

These companies demonstrate that it is possible to implement renewable energy in production and manufacturing processes while addressing ethical concerns. By investing in renewable energy and making efforts to ensure that their projects are ethical and sustainable, these companies have not only reduced their environmental impact but have also demonstrated their commitment to corporate social responsibility. Their efforts serve as a model for other companies looking to adopt renewable energy responsibly and ethically.

 The role of government and policymakers in promoting ethical practices in business and management

The government and policymakers have a significant role to play in promoting ethical practices in business and management using renewable energy. Renewable energy policies and regulations can incentivize and encourage businesses to adopt renewable energy sources, leading to a cleaner and more sustainable economy. One way the government can promote ethical practices is by implementing a feed-in-tariff (FIT) system. FITs are policies that provide financial incentives to businesses that produce renewable energy. This system ensures that businesses have a stable and predictable revenue stream, which reduces financial risk and encourages long-term investment in renewable energy sources (Hughes & Lipman, 2012). Additionally, the government can provide subsidies and tax credits for businesses that invest in renewable energy technologies.

Moreover, government policies can regulate the use of non-renewable energy sources, such as coal and oil, by imposing taxes and penalties on their use. This can incentivize businesses to shift towards renewable energy sources, reducing their carbon footprint, and promoting ethical practices. Policymakers can also encourage the development of renewable energy infrastructure, such as the installation of charging stations for electric vehicles, which can promote the adoption of renewable energy by businesses and individuals.

Conclusion

As the world continues to grapple with the impacts of climate change, the need for ethical business practices using renewable energy sources has become increasingly important. Adopting renewable energy practices in production and manufacturing not only reduces the carbon footprint of businesses but also demonstrates their commitment to environmental sustainability and social responsibility. While companies may face challenges and barriers in implementing renewable energy strategies, such as cost and financing issues, technical and operational challenges, and regulatory and policy barriers, there are significant benefits to be gained. Renewable energy adoption can lead to cost savings, improved stakeholder relationships, and an enhanced reputation.

In addition to the benefits for businesses, renewable energy adoption can also have positive impacts on stakeholders such as employees, customers, and local communities. Improved air and water quality, reduced health risks, and social responsibility can all be achieved through the adoption of renewable energy practices. To achieve a sustainable future, governments and policymakers play a critical role in promoting ethical practices in business and management using renewable energy. The adoption of renewable energy practices in production and manufacturing is crucial for businesses to demonstrate their commitment to environmental sustainability and social responsibility.

 

 

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