The Role of Green Raw Materials and Product Safety in the Sustainable Enterprise: Novel Perspective
P Anbarasan*
Research Scholar, Department of Management Studies, Indian Institute of Technology Delhi, India
Submission: May 24, 2018; Published: May 31, 2018
*Corresponding author: P Anbarasan, Research Scholar, Department of Management Studies, Indian Institute of Technology Delhi, India,Tel:91-9486500360 ; Email: jeevakarunyam@gmail.com
How to cite this article: P Anbarasan. The Role of Green Raw Materials and Product Safety in the Sustainable Enterprise: Novel Perspective. Int J Environ Sci Nat Res. 2018; 11(5): 555825. DOI: 10.19080/IJESNR.2018.11.555825.
Abstract
The study bound to explain the multiple perspectives of sustainable enterprise and explained the role of green raw materials and product safety through causal loop diagram (CLD) and feedback complexity is explained. Further, the prospective analysis of sustainable enterprise and concluding remarks are discussed.
Introduction
Due to globalization and modernization process, the consumption pattern of an individual is changing, people lifestyle is in transition, everywhere they have to exhibit themselves positive and sportive. Consumers heavily rely on market goods and processed foods. Once this was a trend in developed countries but now it became very common in developing nations and catching syndrome nations. Therefore responsible consumption and responsible production become necessary from enterprise perspectives. Responsible production approach will insist on responsible selection and utilization of raw materials. Due to slow changes in consumption patterns, it is the question how to replace incumbent products with new, more environmentally friendly ones Janssen and Jager [1]. What is not sufficiently understood is how green consumption fits into people’s global sense of social responsibility and morality and affects behaviors outside the consumption domain Mazar and Zhong [2]. Current and projected household consumption patterns are influenced by a number of different driving forces, including rising per capita income, demographics and accompanying changes in lifestyles. Technology, institutions, and infrastructure also play an important role in influencing household consumption and behavior OECD [3]. Right to food needs to be re-examined as a right to harmless healthy food. When a consumer is ready to pay for genuine green products that have the advantage over other products will definitely find its place in the market. In a standard microeconomic approach, the willingness-to-pay more for a green product than for a “brown” one reflects a higher marginal utility when buying a green product rather than a brown one. It also reveals the consumer’s environmental preferences Brécard et al. [4].
Green Raw Materials and Product Safety
Green raw materials are raw materials that are extracted from plants and plant by-products. Using refined sunflower oil in fast food restaurant chains, using eco-friendly papers and cardboards for packaging’s, using edibles and edible products that are grown without using hazardous pesticides and manures. Similarly using organic products instead of using alternative raw materials. When it comes to product safety, the appropriate goal should be the maximization of the economic welfare of consumers Oi [5]. Product quality frequently has multiple dimensions. Effectiveness, durability and safety, safety and its importance attached to a product are discussed with the negative incentive Daughety and Reinganum [6]. The causal loop model of these approaches is explained in Figure 1.
![Click here to view Large Figure 1](images/IJESNR.MS.ID.555825.G001.png)
The product safety comes along with durability and how effective it is? such aspects are important. When a product meets the consumers demand such as eco-friendly, genuine ingredients and economical will definitely reach as FMCG (fast moving consumer goods). The product safety will increase the consumer’s trust over the particular enterprise. Building trust between consumer and enterprise will increase the long-term commitments. Hence the importance green raw materials and product safety play a major role in the sustainable enterprise. The positive and negative feedback of the loop model is explained in Figure 2. By following product safety and building trust the enterprise will achieve sustainability and the means are explained as certification of raw materials firm commitments to other values including respecting human rights both internally and externally.
![Click here to view Large Figure 2](images/IJESNR.MS.ID.555825.G002.png)
Sustainable Enterprise: Perspective Analysis
There are many perspectives in an organizational study domain. Whereas transforming an organization into a valuebased and responsible business-oriented organization is yet a subject to research. Narrow perspectives are widely discussed; however profit along with responsibility towards business needs a study. The complexities in multiple perspectives are unavoidable still the field of study need deeper understandings. Some of the perspectives are as follows
- The firm needs to communicate its objectives and difficulties as a report, similar to the way how a firm commits itself to providing financial statements and other achievements.
- The commitment towards local community in terms of avoiding industrial waste and other waste such as packaging and non-reusable plastics.
- Engaging employees with board capital and decision making will provide alternatives and strengthen longterm commitments. When an employee and board capital involved in long-term commitments, then internal elements disturbances will be minimized.
- The flexible approach to working time and space will increase organizational vitality
- Trust among the workforce and building trust between local communities and enterprise will result in smooth operation of an enterprise.
- Finally, a sustainable enterprise is not sacrificing profit for values, whereas it built social capital along with its financial growth.
Conclusion
The novel perspective of sustainable enterprise explained two new dimensions such as product safety by avoiding alternative raw materials and building trust through social capital. The means of achieving both perspectives are explained and emerging thoughts in a sustainable enterprise are also put forth in this study. Hence responsible business along with financial health and creating social capital is a prospect sustainable enterprise.
References
- Janssen MA, Jager W (2002) Stimulating diffusion of green products. Journal of Evolutionary Economics 12(3): 283-306.
- Mazar N, Zhong CB (2010) Do green products make us better people?. Psychological science 21(4): 494-498.
- OECD (2002) Towards Sustainable Household Consumption? Trends and Policies in OECD Countries. Paris, France.
- Brécard D, Hlaimi B, Lucas S, Perraudeau Y, Salladarré F (2009) Determinants of demand for green products: An application to the eco label demand for fish in Europe. Ecological Economics 69(1): 115-125.
- Oi WY (1973) The economics of product safety. The Bell Journal of Economics and Management Science, p. 3-28.
- Daughety AF, Reinganum JF (1995) Product safety: liability, R&D and signaling. The American Economic Review pp. 1187-1206.