Environment & Leadership Essay

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Institutional Investors & Corporate Environmental Management
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Introduction
Early researches on the connection between the environmental concern and economic globalization show an interconnection. Improved flexibility of capital and support for FDI had led companies to find pollution-intensive actions in the nations having poor environmental control. In a somewhat different presentation, Porter (1999) suggested that low environmental and ecological regulatory requirements have negative effect on financial growth. International environmental requirements were required to avoid the development of contaminated havens within a financial system looking to entice increased international financial commitment. Harmonization of ecological requirements would also help to remove disturbances in styles of trading. The international requirements that policymakers had in mind were not firm-based requirements but international state-based regulatory requirements, such as the Montreal protocol on ozone-depleting ingredients, or ecological conditions within the General Agreement on Tariffs and Trade or the WTO. Unquestioningly, these state-based international ecological requirements assumed that companies would try to manipulate inter-country variations a way of decreasing development costs (Amin A, Thrift N, 1994).
Considering the positive correlation between environmental management and commercial benefit of the same, many organizations have started taking initiatives towards environmental management. They are not only making their products more environmental friendly but at the same time they are helping governments and authorities with huge donations to combat environmental challenges. While attempting to make eco-friendly products, the organizations are even able to restructure their processes to make them even more efficient and cost-effective.
Globalization & Environment
The functions of production of MNCs are increasingly arranged...

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