One of the challenges that is facing firms in the current market environment is the rising cost of goods and materials. Concisely, for firms to remain competitive in the market, they are obliged to ensure that focus on sustainability. Sustainability is not focused only on the environmental impact of the business’s operations but should also be concerned with the cost of the materials it uses. On this note, a firm has a number of incentives for reducing, reusing, and recycling the materials used in its operations. The incentives includes complying with government regulations and reducing the operational costs of a corporation.
Contravening government regulations can be very costly to a business. Succinctly, different jurisdictions have enacted some waste regulations that can ensure that firms are responsible for environmental preservation. In this regard, businesses are facing heightened legal obligations for their waste management. In addition, there are some industries where the producers face some regal responsibilities on the means of the disposing their products. For example packaging in some industries requires a firm to ensure that the buyers are capable of reducing the effects of the products to the environment (Ding, Yi, Tam, & Huang, 2016). Therefore, one of the incentives of reducing, reusing, and recycling operational materials is ensuring that the firm can protect itself from the fines and punitive measures instituted by the government and safeguard itself from deteriorating its reputation in the industry.
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One the incentive is the financial gain associated with reducing, reusing, and recycling. For instance, an organization can reduce its costs of handling and managing its used materials. In addition, a firm has the opportunity of reducing the amount of materials bought for its management (Castellani, Sala, & Mirabella, 2015). Furthermore, government regulations in many jurisdictions have instituted a landfill tax that is costly to many firms.
References
Castellani, V., Sala, S., & Mirabella, N. (2015). Beyond the throwaway society: A life cycle‐based assessment of the environmental benefit of reuse. Integrated environmental assessment and management , 11 (3), 373-382.
Ding, Z., Yi, G., Tam, V. W., & Huang, T. (2016). A system dynamics-based environmental performance simulation of construction waste reduction management in China. Waste Management , 51 , 130-141.
