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It evaluates business unit managers not only on profitability and return on capital but also on...

It evaluates business unit managers not only on profitability and return on capital but also on success in reducing carbon dioxide emissions, the chief greenhouse gas (GHG) attributed to global warming. Do you think this initiative is good for GE's business profitability? Why?

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Answer #1

yes, it will have a positive impact on the overall profitability of GE as with reducing the carbon dioxide emissions, the chief greenhouse gas (GHG) that can result in increased global warming, the company will be seen as an organization that values the environmental sustainability and it will create a positive image in the market. This will help the company to attract the customers who value the organizations which are socially responsible.

Thus the reduction in emission will create a competitive advantage to the company and this will help it to gain a greater extent of revenue generation.

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