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

Ernesto Eduardo Nieto Sanchez, Virginia Guadalupe Lopez Torres and Sonia Elizabeth Maldonado-Radillo

Revista Internacional Administracion & Finanzas, 2011, vol. 4, issue 4, 45-60

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.

Keywords: Sustainability; RoHS; Profitability (search for similar items in EconPapers)
JEL-codes: D23 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:riafin:v:4:y:2011:i:4:p:45-60

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