Integrating Environmental Management and Financial Performance: Evidence from Global Corporations
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Abstract
This thesis investigates the integration of environmental management practices and financial performance within global corporations. Through correlation and regression analyses, the study uncovers significant positive associations between environmental management practices and financial performance metrics, including return on assets (ROA), return on equity (ROE), and net profit margin. The findings indicate that corporations with stronger environmental practices tend to exhibit better financial outcomes. This positive relationship persists even when controlling for industry type and company size, suggesting its universality across varied contexts. The implications of these findings for corporate practice are substantial. Global corporations that effectively integrate environmental initiatives into their strategies may not only contribute to sustainable operations but also enhance their financial performance. The results suggest that sustainable business practices need not be at odds with economic prosperity; instead, they can create synergistic outcomes that benefit both the environment and corporate bottom lines. This research contributes to the existing body of knowledge by providing empirical evidence supporting the linkage between environmental management practices and financial performance. It underscores the potential benefits of adopting a strategic approach to sustainability and offers insights into how global corporations can navigate the complex interplay between environmental responsibility and financial success. As corporations increasingly seek ways to align their operations with global sustainability goals, this study offers timely insights into achieving sustainable business practices without compromising financial objectives.
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