Measuring the Role of Environmental and Quality Costs in Enhancing Product Quality

Abstract

The present study aims to identify and measure environmental and quality costs accurately in the
various stages of product life span. It also aims to explore processes, the nature and types of
environmental and quality costs, and distribution of costs across the various activities and products.
Based upon the general financial data available in the Iraq stock exchange for the period (2018-2022),
The National Company for Chemical and Plastic Industries is the case study. In order to obtain the
objectives, the present study adopts financial data analysis. The results reveal that adopting clean
production leads to reducing pollution gradually. This gradual reduction in pollution is the outcome of
compliance with the environmental criteria imposed by state units, such as fines and penalties imposed
due to pollution, in addition to improving the relationship with society and environmental authorities.
As a result, there is an increase in the profitability and competitiveness of the commercial unit. The
resulting benefits are greater than waste management costs. The present study recommends
commercial units to measure quality and environmental costs through distinguishing them from other
costs to make use of them in the field of decision-making to serve the environment of the commercial
unit operation field.