Abstract
The issues relating to the environment are the main talking points in the present world. Many natural calamities like global warming, cautioned the world community to protect the globe from the environmental degradation. This situation compelled the corporates to involve themselves in responsible activities and disclose their environmental performance in their Annual Report. Many research works explain the different dimensions of environment issue. This study makes an attempt to analyse the impact of profitability on environmental performance of the firm. The analysis has made use of descriptive statistics, correlation, and regression analysis. The results found that the profitability variables like ROA, ROE, and ROS create the positive impact on energy intensity (proxy of environmental performance) of the sample firms. At the same time, one profitability variable such as ROCE recorded negative impact on EI. This paper offers useful suggestions to the corporates to reduce the level of energy intensity and to utilize the companies’ capital for sustainable performance. DOI: 10.5901/mjss.2015.v6n1p109
Highlights
Introduction of the StudyThe issues relating to environment are considered as the talking points in the modern world
Companies listed in Bombay Stock Exchange (BSE) - S&P BSE 500 Index were adopted for the study
It was found that there was negative relationship between firms’ profitability variables and environmental performance of the firm expect in the case of the variable, ROS
Summary
The issues relating to environment are considered as the talking points in the modern world. Many studies and reports show that one of the main reasons for the increasing level of pollution is industrialization and globalization of the world. To protect the world from emission, it is not possible to avoid the industrialization and economic growth In this situation, there is need for discharging responsible business by protecting the environment from the emission. Corporates take necessary steps to prevent the degradation of the global environment by controlling the level of pollution without affecting the profitability of the company. It is essential that when the company earns more profit from the operation of the business, it should spend a portion of amount towards environmental protection. This research proposes to study the profitability of company and the related problem of level of energy intensity
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