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How Does a Multinational Corporation Use Sustainable Businesses?

Original post by Michael Wolfe of Demand Media

Many companies choose to use environmentally sustainable businesses, sometimes referred to as sustainable businesses, to fill a number of corporate needs. These sustainable businesses are characterized by a minimization of harm on the environment, and a reliance on practices that won't harm the environment. The way a multinational company will use these businesses will depends on the company and the kind of business it is in.

Investment

Many multinational corporations invest in sustainable businesses for the simple fact that they are profitable. For example, a corporation may choose to invest in a company that manufactures wind turbines based on the belief that the market for such turbines will increased due to increased concerns about climate change. In addition, oil companies will choose to develop their own sustainable divisions as a future source of revenue.

Supplies

There are a number of sustainable businesses that can be used by multinational corporations to provide them with products and services that would not otherwise be available to them. For example, a multinational may choose to purchase capital equipment from a sustainable company due to advantages in costs, or in keeping with the multinational's commitment to sourcing environmentally friendly supplies.

Energy

In many cases, a multinational can benefit financially from choosing to purchase energy from environmentally friendly companies. For example, a multinational may find that purchasing solar panels for its buildings is economically efficient. In addition, buying electricity from alternative energy providers can in some cases be economical.

Public Relations

In some cases, a multinational may choose to do business with a sustainable company because forming a relationship with an environmentally friendly company is good for their image. Consumers tend to have better impressions of companies that they perceive as environmentally friend. When multinational join forces with green companies, this can lead to the multinational as appearing more green, too.

                   

References

  • "Environmentally Sustainable Business"; Peter Roberts; 1995

About the Author

Michael Wolfe has been writing and editing since 2005, with a background including both business and creative writing. He has worked as a reporter for a community newspaper in New York City and a federal policy newsletter in Washington, D.C. Wolfe holds a B.A. in art history and is a resident of Brooklyn, N.Y.

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