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Sustainability And Norms Compliance, An Opportunity To Increase Corporate Profitability: The Case Of An Electronic Manufacturing Plant In Baja California, La Sustentabilidad Y El Cumplimiento De Normas, Una Oportunidad Para Elevar La Rentabilidad Operativa De Las Empresas: El Caso De Una Planta De Manufactura Electronica En Baja California

Author

Listed:
  • Ernesto Eduardo Nieto Sanchez
  • Virginia Guadalupe Lopez Torres
  • Sonia Elizabeth Maldonado-Radillo

Abstract

There is increased pressured for corporations to be socially responsible and environmentally friendly. This study analyzes sustainability challenges faced by enterprises in the XXI century after the enactment of Directive 2002/95/EC. Directive 2002/95/EC, restrictions and regulation on handling and production of hazardous substances (RoHS), issued by the European Parliament and the Council of the European Union in 2006. This Directive requires countries to use electronic and mechanical equipment with low levels of heavy metals, corrosion inhibitors and retardants. The study shows the financial benefits generated by compliance with 2002/95/EC in the transition to lead-free molten on an electronics plant in Ensenada, Baja California, Mexico. This study analyzes costs and benefits of the transition to lead-free molten and demonstrates overall manufacturing gains of more than nine dollars in revenue per dollar invested.

Suggested Citation

  • Ernesto Eduardo Nieto Sanchez & Virginia Guadalupe Lopez Torres & Sonia Elizabeth Maldonado-Radillo, 2011. "Sustainability And Norms Compliance, An Opportunity To Increase Corporate Profitability: The Case Of An Electronic Manufacturing Plant In Baja California, La Sustentabilidad Y El Cumplimiento De Norma," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 4(4), pages 45-60.
    • Handle: RePEc:ibf:riafin:v:4:y:2011:i:4:p:45-60
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    References listed on IDEAS

    as
    1. Emèrit Bono, 2008. "Cambio climático y sustentabilidad económica y social: implicaciones sobre el bienestar social," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 61, pages 51-72, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sustainability; RoHS; Profitability;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    Statistics

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