What is “Going Green”?

    Environmentalism, in some form, has been around for many years. However, it is only in recent times that the word "green" has become synonymous with sustainability on a wide scale. The desire to "go green" has manifested itself in many forms, from the soaring purchases of fuel-efficient hybrids or alternative power vehicles to the practice of buying specific "greener" brands of computers. This noted surge in environmental awareness and concern by society is commendable. In fact, based on numerous surveys, it appears "green" has reached a tipping point and is simply becoming a part of daily life, both for individuals and businesses. On the corporate side, the growth of the green industry appears inexorably linked to the newly-devised principle of "triple bottom line": People, Planet, and Profit. This business strategy emphasizes the interconnected nature of a comprehensive sustainability plan and the need for them to be stakeholders of their practices, rather than simply shareholders seeking a financial profit at any cost.

The first P represents People, the human capital of a business. Under this category falls sustainability in terms of fair practices and the proper treatment of a community in which they operate. The company serves to make these areas better than when they arrived and, in so doing, establish themselves as a part of the community rather than simply a disconnected impactor.

A green business in harmony with the community seeks to minimize their environmental impacts. This aspect of the triple bottom line is the most highly marketed when searching for the “green” consumer. To accomplish the aims of Planet, they must preserve the natural capital, by either serving to benefit the ecosystem through their operations or acting in all ways possible to reduce their harmful effects. Life cycle assessments and cradle to grave forms of analysis allow a company to view a product’s effects from design to disposal or recycling. By establishing this baseline, they can then devise strategies to reduce impacts at each step of a product’s existence. It is here that environmental, social, and financial gains often merge, as the elimination of a health and environmental hazard at one part of a product’s life serves to improve the People, help the Planet, and reduce expenses, thus improving ROI and Profit.

Ask a traditional business for a definition of profit and one is likely to receive an answer describing stock valuation, sales volumes, profit margins, earnings, and expenses. However, Profit accounts for far more than this narrow interpretation. It serves as a valuation of the company’s entire economic impact. A business which profits off the destruction of a community elsewhere does not truly have a positive effect, therefore, they are failing to promote the ideas of the triple bottom line, and are instead focusing on only their own success. These companies are promoting the concept of “greenwashing”, whereby, deliberately or accidentally, their claims of environmental or social advancements are exaggerated or untrue. This practice damages the efforts of all genuine “3P” enterprises. True Profit produces economic benefits for both the company directly and indirectly, as well as for the planet as a whole.

The effort by companies to implement a more responsible (and profitable) definition of operation has not gone unnoticed by citizens. As a group, they are intensively examining companies’ claims and practices when it comes to sustainability. Even during the height of a worldwide recession, the 2009 Cone Consumer Environmental Survey indicated that 70 percent of Americans are paying attention to what companies are doing concerning the environment today, even if they cannot buy until the future. Another, even more telling survey, the 2009 BBMG Conscious Consumer Report, found that three out of every four U.S. consumers (77%) claim they “can make a positive difference by purchasing products from socially or environmentally responsible companies,” and 72% explain they have “avoided purchasing products from companies whose practices I disagree with,” signaling significant consumer risks and rewards as a result of corporate behavior. The survey also pointed out that consumers are looking for a means to identify sustainable businesses. Presently, perception is key in the marketplace.

Companies embracing a "3P" value structure are practicing what is now commonly known as Corporate Social Responsibility (CSR). For a moment, consider your own company:

Has it embraced the principles of CSR? Does the company have a clear Sustainability Plan? How do consumers or prospective customers view the business?
Step back and take an objective view of the company, products, or services. Consider operations: is technology being embraced to minimize both expenses and environmental impacts? Now focus on marketing campaigns: print, radio, podcasts, and website. Do they uniformly communicate the company’s values? Could a reader easily identify the social responsibility concepts? If employees were surveyed, would they consider sustainability as a visible top priority of the business?

Old ideas and "business as usual" philosophies will have no place as the economy evolves towards a new green economy. It is here, at the crossroads of corporate responsibility and consumer understanding, that GreenProfit Solutions operates. The company seeks to balance business and sustainability to the benefit of maximizing member profits by reducing expenses, attracting customers, and stepwise providing a simple, yet affordable system for any company embracing the values of Corporate Social Responsibility.