Question

MainLine Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit, its methods of obtaining gas have at times broken down, thereby causing environmental problems. As a result, the company's value creation has suffered. This scenario supports Michael Porter's warning that ________.

1) companies should prioritize profit over environmental concerns
2) companies should prioritize environmental concerns over profit
3) companies should find a balance between profit and environmental concerns
4) companies should not be concerned about environmental problems

Answer 1

The MainLine Inc. case illustrates Michael Porter's caution that companies need to strike a balance between profitability and environmental stewardship to ensure sustainable long-term value creation.

Step-by-step explanation:

The scenario involving MainLine Inc. supports Michael Porter's warning that companies should find a balance between profit and environmental concerns.

Porter's analysis suggests that while economic growth is important, it should not come at the cost of environmental degradation. It is essential for companies like MainLine to consider the long-term impact of their operations on the environment, as neglecting this can lead to diminished corporate value and potential harm to the company's reputation and profitability. Aligning business practices with environmental sustainability is not only beneficial for the planet but can also be advantageous for the company's bottom line in the long term.