Intelligent management of social and environmental factors of businesses in order to achieve profitability

Abstract

Among the growth and development of businesses, managing financial flows and increasing its effectiveness is an important achievement that causes value stability, efficiency of systems and procedures throughout the chains of Business. Therefore, paying attention to uncontrollable and controllable variables that lead to value creation is inevitable. The purpose of this study is to study the impact of social and biological factors (production and recycling of polymer parts) of environment on the value creation of the company along the supply chain. Also the key role of financial ratios has also been considered in this regard.The present research is of quantitative and applied types and is based on mathematical modeling. It is the result of a combination of genetic algorithms and Simulated Annealing. The financial analysis parameters of the model include current ratios, debt to equity, Instantaneous ratio, net profit margin, cash ratio and rate of return.The analysis of the results shows that considering financial goals and indicators leads to improved profitability and by removing financial indicators from the model, profitability is reduced. Therefore,this is means that the environmental and social performance of the supply chain is improved.Companies can pay special attention to social issues and environmental factors along with their profitability Increase their economic value. Profitability can also be improved by exposing social responsibilities and the mission of environmental protection.

Keywords

• business development
• financial ratios
• mathematical modeling
• memetic algorithm
• profitability index