Is Going Green a Business Fad?
Consumer support for sustainable products and practices is growing worldwide. “Going green” will soon be a necessary cost of doing business.
It’s no longer enough to meet minimum legal compliance for environmental standards. A true competitive advantage lies in influencing economic recovery with forward-thinking sustainability practices.
Corporate Social Responsibility vs. Bottom Line
Some executives think they must choose between the largely social benefits of developing sustainable products and processes vs. the financial costs of doing so. This is a myth.
Becoming eco-friendly lowers costs because companies end up reducing what they use. In addition, the process generates additional revenues from better products and enables companies to create new businesses.
Viewing Compliance as Opportunity
The smart response to government regulations is to go beyond the norms everyone else follows.
Of course, it’s helpful if an organization can anticipate and shape the rules. This is why consumer participation is necessary, so leaders may stay abreast of customers’ issues and environmental impact.
Leaders, managers and their staffs must have the requisite skills to work with customers, activist groups, lobbyists and other companies (including rivals) to explore and develop creative solutions.
Making Value Chains Sustainable
Pay attention to, and foresee, the redesign of operations so you can use less energy and water, produce fewer emissions and generate less waste.
Your value-chain oversight should ensure that suppliers and retailers also make their operations eco-friendly. There are groundbreaking opportunities to develop sustainable sources of raw materials and components, increasing the use of clean energy sources (wind, solar) and finding new uses for returned products.
Creating Sustainable Products and Services
You have to know which products or services are most unfriendly to the environment. Chances are, your organization hasn’t devoted enough thinking to this.
Don’t fall into the trap of “green-washing,” where companies advertise products and services that claim be to eco-friendly, yet fail to meet well-accepted environmental criteria. New skills may be required, such as biomimicry (emulating nature to solve human problems) to develop products and compact, eco-friendly packaging.
Green Engagement
When difficult economic conditions increase stress, people seek more meaning at work.
New ways of thinking challenge and engage people. Employees will work harder if they understand why going green is good for business.
Training must focus not only on what employees do, but on how they think. Going green should not be presented as an idealistic idea, but as a stark and urgent reality, regardless of individuals’ political or scientific beliefs.
Green Thinking
Green is not merely a cost center, but a profitable path to growth. People at all corporate levels must focus on the following keys:
Understand what climate change means for business (which is very different from everyone agreeing on the science). See the long-term constraints in natural resources and nonrenewable energy. View the business in the context of the full value chain, from suppliers to customers and beyond.
Some of these areas touch on people’s belief systems, so leaders must send a strong message. Throwing some basic information about the environment into internal training modules isn’t enough. Top executives must make strong statements about the harsh realities, current and future constraints and challenges, and the organization’s commitment to action.
Green Hiring
Recent research suggests three-fourths of U.S. workforce entrants regard social responsibility and environmental commitment as important criteria in selecting employers.
People who are happy about their employers’ positions on these issues also enjoy working for them. Thus, companies that try to become sustainable may well find it easier to hire and retain “green” talent.
By: Patsi Krakoff, Psy. D.
About the Author:
Patsi Krakoff, Psy. D. writes articles for business and executive coaches and consultants. She provides articles on leadership and executive development for purchase, and formatted into customized newsletters. For more details, visit http://www.writingontheweb.com
