Going Green

The purpose of the article is to address stakeholders’ point of view regarding companies going green to save the environment. The article discusses the need for managers to get on board. The benefits of going green and to take into account the stakeholders’ demands for better environmental performance when regarding the impact of corporate governance. (Hill and Jones (1992). Over the years organizations in the polluting industry have heard from stakeholders demanding a better performance in environmental needs. (Bansal, 2005 ;Sharma and Henriques, 2005). Eco-friendly products have a big impact among consumers and the way they shop.

Stakeholders and managers are at a constant battle whether the best thing for an organization is to go green. Managers have to take in count the resources that will be used to protect the environmental.

The problem regarding most organizations going green is managers believe it may cost a lot of resources. Stakeholder’s involvement with going green could lead to a financial strain on firms. The problems with environmental preference lies with the factor of stakeholders and managers are divided when it comes to the actual need for environmental protection. The problem managers experience is the influence corporate governance plays in the environmental protection. Mangers and stakeholders are not sharing the same interest in protecting the environment. Managers are considering the big picture concerning firms supporting an greener environment such as cost, risk , products and consumer needs, The article I read purpose a theory that the firm can be seen as a nexus of contracts between resource holders.(Hill and Jones) (1992). The paradigm would be encompasses the implicit contractual relations between stakeholders and firms-and not exclusively shareholders. (Hill and Jones) (1992). Many approaches were taken regarding what was best for firms regarding the environmental protection. There were a few flaws in the