Profit as a predictor variable for environmental sustainability practices (ESPs) of manufacturing companies for achieving green manufacturing in contemporary Ghana

Abstract

The complex relationship between profit margins and environmental sustainability practices (ESPs) in Ghana’s manufacturing industry is examined in this study. Utilizing information gathered from six manufacturing firms, the study uses regression analysis to examine how different ESPs affect profit margins. The hypothetical statements were tested using analysis of variance (ANOVA). ANOVA was used to ascertain the variability between the dependent and independent variables. The result from the model summary showed a significant relationship between the MCs’ profit margins and their ESPs. The results show that although certain ESPs, like using conventional pollution protection techniques, may only slightly raise profit margins, others, like putting modern pollution control technology into practice, may drastically lower profitability. Furthermore, the study emphasizes how waste management and environmental regulations have a favorable impact on profit margins, indicating that businesses that have strong environmental strategies typically have better financial results. However, the study also reveals the possible downsides of programs like eco-awards and environmental socialization, which have expenses but little return on investment. Overall, the study highlights the intricate relationship between economic performance and environmental sustainability in Ghanaian manufacturing, providing useful information for industry stakeholders and policymakers who want to support sustainable development practices without sacrificing profitability. By providing empirical evidence of the connection between ESPs and profit margins, the study advances academic knowledge and improves corporate economics and environmental management knowledge. The design of incentive programs and regulatory frameworks to support sustainable behaviors can be informed by findings, that balance environmental responsibility and financial feasibility.