GREEN IS "IN"

This season green is in! The trend of corporate social responsibility, which have been growing more and more, is certainly green business which strives to have a positive impact on the environment and community. Doing business that way demonstrates commitment to a healthy and sustainable future, and it adopts principles, policies and practices that improve the quality of life for its customers and employees.

As this aspect of corporate social responsibility is recently becoming more valuable, it is not surprising that green is becoming more popular word in a dictionary of all the companies that are trying to be different. Saving energy and respecting the environmental impact in doing business may not yet be at the top of priority list of Croatian companies, but with time, this shift is moving in a positive direction. The reason is probably growingly accepted perception that  green is not just saving environment, but money too, and the more obvious potential benefits are, the greater emphasis companies put on sustainability. In addition, it is known that resources are becoming scarce and costly, so customers, employees and investors are becoming increasingly environmentally-conscious.

Although the main reason for green business should probably be the preservation of our planet, it is clear that in business world it is difficult for this to become the main motive. Therefore, it is important to make companies aware that there are many other reasons for green business, and why green business is good business.

Reduced Risk. Environmental degradation threatens the ecosystem that allows the economy to function and companies are beginning to take notice. PepsiCo, for example, is investing in sustainable solutions to water scarcity, while Siemens is investing in renewables that will prepare them for future. Also, the American retailer Target constructs halls and buildings in accordance with the american government's guidance on energy perservation,  U.S. Green Building Council’s Leadership in Energy and Environmental Design, so saving literaly starts from the ground. In addition, they announced that they have reduced waste by as much as 70% with an extensive recycling program.

Green Product Demand. Demand for environmentally-friendly products and services continues to grow. According to a survey conducted by Cohn & Wolfe, a majority of consumers say that it is very or somewhat important that companies are environmentally-friendly and 35% are willing to spend more for green products. Per example Wal-Mart, in cooperation with suppliers, changed packaging of certain products. Optimization enabled them to transport as much as 42% more pieces in the truck and they saved 16.3 tons of plastic packaging, but also reduced consumption of diesel fuel by 158,000 gallons per year.

Consumer Engagement. Community involvement is an important cornerstone for many companies, and green practices can enhance public image and community relations. According to a report by D S Simon Productions, media initiatives with a corporate social responsibility focus generates 35-50% more positive media coverage on television, radio, web and social media than comparable programs without the CSR hook.

Attracting Talents. Environmentally-conscious business practices help attract and retain the best employees by increasing employee satisfaction and pride in the workplace. According to a MonsterTRAK poll on green employment, 92% of young professionals would be more inclined to work for an environmentally-friendly company.

Attracting Investors. Socially and environmentally responsible assets rose more than 324% from 1995 to 2007, indicating a growing interest in sustainability among investors. Investors are also shifting from a "do no harm" approach to a "do more good" approach that will certainly benefit companies committed to the health of the communities they operate in.

Saving Money. As already mentioned, green business is not saving the environment only, but money too. EPA also concluded that in 2006, only its ENERGY STAR program reduced greenhouse gas emissions equivalent to the one that would be produced by 25 million cars, and that way American traders saved $ 14 billion on their utility bills. Besides that, there are many other examples of how companies saved money with green business: Coca-Cola's efforts to cut down on packaging saved it $100 million; after Marks & Spencer adopted environmental and ethical business guidelines, the company earned an extra £50 million in revenue; and small business owner in the UK introduced more energy efficient lighting throughout his shop, saving him £2,282 in annual energy costs.

These examples certainly show multiple benefits, but the real question is how to actually include green in a business process?

“There’s this theory that you have to pick one: economics or environmental performance. That’s nonsense. Innovation is the way you can have both. Companies that don’t get this, really risk becoming irrelevant to the marketplace.” - Mark Vachon, vice president of GE’s ecomagination

Many will say that the key to success is research and development, which are critical for innovation and thereby gaining competitive advantage over other companies. One of the competitive advantages is certainly sustainability, whereby the ecology can be incorporated into the manufacturing process and so, at certain stages, minimize negative impacts on the environment. This is of course only one possibility. What are your advices for companies that want to do green business? What are your thoughts on green business? Can it really be beneficial for the company? Do you appreciate such companies more?