Green Blog

Economic Survival: Customers Demanding Green Business Practices

Some simple indicators from environmental issues that you may already be aware of are environmental laws and regulations, challenges from Non-Government Organizations (NGOs), large customers putting pressure on suppliers to be green and the speed of developing and holding market share in business today.
One of the fastest growing and most immediate business threats related to the environment comes from investors and stakeholders, who in growing numbers are watching the indicators and asking hard questions about environmental responsibility. Business leaders who ignore these stakeholders can be subject to a public relations scandal, a destroyed market, ended careers and millions to billions of dollars lost.

Recently, a leading soft drink company learned this the hard way when its bottled water was pulled from the British market for failing European Union water quality tests, Esty and Winston noted in their book. The same company has been targeted by activists in India for water consumption in drought-prone areas. And in January 2006, a major U.S. university suspended the purchase of this company’s products, in part because of concerns over environmental issues. While it is difficult to measure the full financial impact of these actions, the company has suffered irreparable brand damage in the second most populated country in the world. That is disruptive change.

Apple Computer has also received this message loud and clear, and responded quickly. In 2006, Greenpeace targeted Apple “iWaste” with a “Green my Apple campaign.” Then in spring of 2007, Greenpeace issued a guide to electronics that ranked major corporations on their reduction of toxic chemicals and electronic waste, with Apple ranked last. This coincided with the release of the iPhone and stockholders took notice. America’s most innovative brand cannot afford an environmental attack. Quickly Steve Jobs, the company’s CEO, issued a letter that promised a “greener Apple.”

Further evidence of the importance of this issue was found in a more unlikely spot the same year. Sports Illustrated published a cover story on climate change that discussed its impact on sports. While many readers were irritated by coverage of the highly charged environmental issue and the magazine’s take on the topic, the article made an interesting point about climate change — it will change the games that we play.

Many companies with well known brands and multinational operations are finding that customers and shareholders have become vocal about business practices. Your customers and your bottom line are what are driving climate initiatives and business innovation. That’s exactly what makes it so disruptive.

NOTE: This article was originally written by Brandi McManus and published by Greenbiz.com. Click here to read the full article.

This entry was posted on Monday, May 11th, 2009 at 9:58 am by admin and is filed under Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply




Message: