Should companies be required to be more Green (environmentally Research Paper

Should companies be required to be more Green (environmentally friendly) even if it costs more - Research Paper Example In some countries such as China, the issue of environmental pollution is so serious that if not checked, it could reverse the economic gains achieved over the years. This clearly shows that environmental protection should become a priority especially for companies, which contribute significantly to environmental pollution. Accordingly, companies should be required to be environmental friendly even if it is a costly venture. One of the reasons why companies should be required to become environmental friendly is that growth which is achieved at the expense of the environment will only be short term. In degrading the environment and depleting natural resources, a company’s success can only be short term, since such resources are needed for future production. In this case, protecting the environment also protects a company’s long-term productivity. Companies should therefore ensure that their activities do not harm the environment in order to achieve sustainable development. Although environmental protection is quite costly, the cost of reversing the effects of environmental degradation may be higher for a company (EPA). Companies should also be required to become environmental friendly because it is also beneficial for them. As people’s awareness of environmental pollution rises, they look out for companies that show concern for the environment. Consequently, customers or clients will be more likely to purchase products or services from companies which are actively engaged in environmental protection. A company that is environmental friendly will therefore retain its existing customers, while acquiring new ones. In the end, this has a positive impact on a company’s productivity, which outweighs its costs in environmental protection (Scherzer). As seen from the text, environmental protection is a costly venture, thus companies maybe unwilling to become environmental friendly. In order to make this requirement a reality, policymakers

Discussion Assignment Example | Topics and Well Written Essays - 500 words - 16

Discussion - Assignment Example Real asset lower risks of portfolio and is able to guarantee better returns in the future. Real asset provide diversification opportunity in investment. According to (Brigham & Houston, 2001) the value attached to real asset is a bit stable putting it in the investment portfolio along with shares diversification on the portfolio is achieved. This help in case the value of shares dwindles then one is able to still get returns from the real assets. The cost of maintaining real assets makes it expensive. The real asset needs to have an insurance cover against possible risks. This additional expense makes it too expensive to invest in as compared to bonds and share they don’t have such additional expenses. The unit cost of any real asset is expensive thus limiting the number of people who can invest in these assets. Unit cost of share is normally lower and a good number of people can afford to invest in them. This form of investment is different from the common traditional way of investment i.e. cash, bonds and shares (Hirt & Block, 2012). This form of investment includes hedge fund, real estate, private equity, exchange funds and managed futures. This form of investment doesn’t have a fixed-income. Alternative investment is less transparent and complex this feature makes it difficult to less trained investors because of its complexity in restrictions. Alternative investment has the capability to improve the risk and return trade-off. The low correlation between the alternative investment and the conservative known form of investment enhances the diversification of the portfolio thus reducing the risk associated. Another characteristic that makes alternative investment be able to diversify the portfolio to reduce risks is the ability to be more flexible enabling an investor to invest in a set of opportunity that can give better returns. Private equity is a form of