Finance executives recognize the benefits of method's green efficiencies - Assignment Example

8th April Finance executives recognize the benefits of Methods green efficiencies Question In the contemporary business environment, companies have been advised to adopt green ways of production or transportation of finished products. This has not only been treated as a legal requirement but it has been used as a means of improving the financial position of the companies. By use of greener operations, Method will be in a position to improve its financial performance. First, the company may acquire eco-friendly cars or households products that are cheaper.

In this way, Method will save the cash in the bank which is current assets. The current assets will therefore increase. The funds may be used to invest in other areas for example in research or advertising. Once the carbon acquires the greener products that do not release carbon in the atmosphere, it can enjoy the benefit of carbon offsetting. This implies that its tax liability would be reduced, thus making the total liabilities to reduce resulting to higher profits.Question 2Companies in various industries have embarked on investing in greener brands in a short run even though it is expensive.

The collaboration between finance and operations departments at Method may result to the Method pursuing greener activities that are costly in the short run. It is vital to note that businesses should have long terms perspectives such as increased customers, going global and product diversification among others. Such perspectives can be attained by looking at the current situation. For example, Method can introduce greener household brand that is expensive. Once it starts to advertise the brand and the government as well as customers notice that such product does not cause harm to the environment, it may be highly demanded in the international market in the next few years.

This will definitely increase the company sales and improve its image in the global market where competition is very stiff. The same way, a greener car may be expensive for example if Method decides to acquire around 10 cars. However, the government may after some time offset the company corporate tax with the Method’s carbon footprint (Gillenwater 16). This will result to low liability and high profit for Method.Question 3The increased demand for household products has resulted to stiff competition among the firms in the industry.

The companies have come up with different strategies in addition reducing prices. I think also other household companies just like Method are beginning to realize how green products can improve their financial conditions. For example, some companies have introduced initiatives such as green home whose objective is to save the customer’s money by up to 43%. United States market leaders in the household supplies industry have also adopted application of greener brands. Similarly, governments in various countries have initiated campaigns that educate the public on the benefits of protecting the environment.

This implies that household companies have no option but to produce brands that meet the needs of the government as well those of the customers. Works CitedGillenwater, M. Redefining RECs (Part 2): Untangling certificates and emission markets. Energy Policy 36 (6): 2120.