Chapter one of Esty and Winston’s research novel, “Green to Gold”, introduced the text’s central theme of the analysis of several businesses and their levels of sustainability, which is defined as the avoidance of the depletion of natural resources. In the past, companies were viewed as simple money-making enterprises; their only purpose was to provide goods and services to the masses. They were held to virtually no responsibilities to the public outside of that goal. In recent year, however, the viewpoint on a company’s duty to both local and global community has immensely shifted. Enterprises, big and small, are now held to higher standards: they can no longer just produce. Government and consumers alike are demanding more from …show more content…
The researchers of “Green to Gold” have put together three viable reasons for, as they say, “adding the environmental lens” to business practices (Esty and Winston 11):
1. Upside benefits: Using Toyota as a primary example, Esty and Winston argued that a company’s decision to “go green” will more likely pique the interest of the public and influence them to buy. Toyota’s successful hybrid Prius, named Motor Trend’s 2004’s Car of the Year, is define this argument (Esty and Winston 11). Toyota’s intentional deviation from the advertisement ploys used by competitors (focusing on size, speed, performance, ect.) and emphasizes on “green” delivered them record breaking profits. Toyota saw the beginnings of a change in wants in their consumers and took full advantage. Toyota’s, along with BP, willingness to adapt and “go green” put them above their competitors, making them appear more innovative and entrepreneurial.
2. Downside Risks: In this section, the research of “Green to Gold” illustrate the potential to cut business costs by producing more environmentally friendly products: redesigning a process to use less energy can lead to lower oil and gas costs (Esty and Winston 13). They also speak of certain companies’ recognitions of themselves as “prisoner(s) of the market” (Esty and Winston 12). Both Shell’s head executive Albert Bressand and Wal-Mart’s CEO Lee Scott understand that they must abide to
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assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
Businesses who participate in environmentally friendly practices will become more profitable. There are difficulties and costs that a business will face and profit takes time but is proven to positively impact a business. “The reluctance to address the forces that are polluting the planet always comes down to money (Smith, “6 Reasons Nations Don't Go Green.”). Implementing environmentally friendly practices within a company “will win them customers, and increase profits” (McDonald, “Why Do (or Don’t) Companies Go Green?”). Many global companies today carry out environmental management tools to adapt to environmentally friendly practices, which helps gain customers, and in turn becomes more profitable. In this paper, I will go into further detail explaining why businesses should be more environmentally friendly, the benefits to be gained, costs that come with being environmentally friendly, and management ways that help a company become environmentally friendly.
Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of
DesJardins, (2007) discusses that a new paradigm is needed to re-conceptualize how businesses practice. He further states that a large a large portion of the world lacks the basic rights of clean waters,
A strong ecological awareness may threaten Ford Motor Company, because if Ford cannot offer more environmentally friendly products to meet consumers’ demands/needs than their competitors, there is a possibility that consumers might consider switching to a competitor’s product.
The rise of green products and the want of consumers to become more environmentally friendly has been increasing. In 10 Green Marketing Milestones, the reading mentioned how the “rise of the Toyota Prius: It may not have saved the world, but at 1 million cumulative vehicle sales the Prius became the predominant fuel-efficient hybrid vehicle” (Neff 2). This is an example of how companies are actually wanting to go green in order to make more profit and rise above their competitors. Going off the Prius example, it was also mentioned how Hummer cars, which use an excess amount of fuel, sales have plummeted. This was because this model no longer appealed to the consumers and General Motor’s had to discontinue the model and even went bankrupt. This sale tactic works and is so successful because the consumer’s mindset have evolved to seek things that are better for the environment. Many would prefer Toyota over General Motor because of their company’s reputation with being green. Although this might not work for all companies, but for some, they have become more successful than their competitors by going green and so, convincing more and more to
As we have seen an increase in awareness around sustainability and climate change, with the help of Al Gore’s Inconvenient Truth documentary in 2006, we see organizations moving towards mitigating the effects of climate change in various ways (Al Gore, n.d). As this corporate social responsibility has become more prevalent, organizations are now pushing their green agenda by publishing sustainability reports, doing mass marketing and implementing sustainable business practices to portray the image that they too are working towards protecting the earth’s natural environment all the while focusing on their underlying goal of selling their products and
Sustainability has achieved a more ecological tone in the past few decades in terms of a business model, but it originally derives from the concept that a business is successful due to the interconnected areas of economics, culture and ecology. Sustainability is now becoming a somewhat fad and thus it is understandable that it could be misconstrued by some as a form of “greenwashing”. Greenwashing is the idea that a company markets their “green” or environmentally friendly changes in policy and values, despite no actual concrete changes in these areas, for example some argue that Fiji Water greenwasher in terms of their marketing as an environmentally friendly water company despite their little effort to actually go carbon-neutral. Many companies are seeing the
To a regular person, the global concern about ‘going green’ might appear as a result of speculation from nervous politicians and alarmed citizens. But the reality is totally different. In recent years, businesses have gained much knowledge about the impact of their activities on environment and in turns their customers. Businesses are successively venturing to earn greater revenues. In this process, they are trying out every best possibility to entice their contributors- from customers to investors. Regardless to say, stakeholders these days are more socially responsible than ever. So to keep up to their expectations, businesses are also trying to expand or limit their activities to save the environment- from doing relentless research on lowering waste to lean management and even trying out various eco-friendly activities. Despite of all these, the ultimate question remains unanswered if it is financially beneficial to adapt those initiatives that is going to serve the
In the article “Are You Being Green Washed?” Robbins (2008) states the image of “greenwashing” which is that numerous number of companies promote their services and their products as environmentally friendly but in reality it is harmful for the environment. The author illustrates that by giving some example of companies that claim they are eco- friendly such as Palm oil and Rayon. He states the impacts of such claim on the environment and consumers in some ways. However, in order to protect the environment form the negative impacts of globalization and consumerism, government and individual must make a joint effort by enact laws and educate people and companies about the impacts of such problem.
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
One positive implication capitalism has to the natural environment is industrial ecology, a system of chain production and consumption, serving to the lowest environmental impacts in a most environmentally sustainable economy as the main goal of operation (Richards & Pearson, 1998). The Companies in a like to operate in such way because of four major reasons. The most important factor is known as the corporate well-being, for it is determined by higher profits and growth provided by innovations in an industry. Profits are increased from recognizing the production ineffiency costs that comes from wasted inputs and energy losses; this allowing cost savings to increase and ineffiency to decrease. compliance with cleaner technology alternatives such as ones that produce less waste and less energy will provide long term savings which are both beneficial to the environment and the business at hand. A real world example freight company changes their salvaged driving equipment to hybrid vehicles. Money is temporarily lost, but the gasoline and maintenances cost savings will compensate in a long run period of time.
On your weekly trip to the supermarket it’s easy to find a number of products, from coffee to dishwashing soap, that flaunt their green attributes” (American Psychological Association, 2010). With such rumors of greenwashing, consumers are more confused than ever. However, some consumers know the tricks and are coming to find that there are companies whose marketing practices are legit, not exaggerated or deceiving. APA also found that, “people are willing to spend more of their hard-earned green on green products, according to a 2008 survey of 9,000 adults performed by the global business firm Boston Consulting Group” (American Psychological Association, 2010). Consumers who are willing to pay more for a product or service are assuming that they are purchasing a healthier, safer, and better quality product or service for the environment.
In a culture based on consumption and consumerism businesses are the forefront of society providing every good and service imaginable. Although, in today’s society there has been an increase in significant issues concerning the ecology of our planet that have come along with this consumer culture. With issues such a lack of clean water, lack of food, lack of energy and a rapid decline in biodiversity. This rapid decline in natural resources is due to mostly to the over consumption and alteration of the planet and its resources. Where do we start though in the process to protect and preserve our resources? It starts with the very businesses that we all buy from; a major part of our everyday lives and the largest consumers of resources businesses can play a large role in sustainability and climate action. Increasing pressure is being put on businesses to create a more sustainable society, this is being done through many business sustainable business efforts.
One major problem as far as companies using green marketing and why it isn’t working is that the relatively vague definition of green marketing leaves a lot of room for loopholes. Green marketing, by simply being defined as “the marketing of products that are assumed to be environmentally safe,” allows companies to take advantage of this idea even if their products are not the best example of green ones (McClendon 1). Most companies also don’t practice what they preach in such