Why Going Green Makes Good Business Sense Final


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Small businesses are increasingly going green and why it makes good business sense to do so.

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Why Going Green Makes Good Business Sense Final

  1. 1. Why Going Green Makes Good Business Sense Green could be the largest economic opportunity of the 21st century. We'll get a clean environment because entrepreneurs will make it happen." John Doerr Silicon Valley Venture Capitalist Stefan Doering BEST Coaches, Inc. June 23 rd , 2010
  2. 2. What does it mean to be Green? <ul><li>Making a best effort </li></ul><ul><li>Take responsibility for your actions </li></ul><ul><li>Know your impact on others </li></ul>BEST Coaches, Inc.
  3. 3. The Old School of Thought <ul><li>S ingle Bottom Line — “The Social Responsibility of Business is to Increase its Profits.” </li></ul><ul><li>Milton Friedman, Nobel Lauriat and chief economist, The New York Times Magazine </li></ul><ul><li>(13 September 1970) </li></ul>BEST Coaches, Inc.
  4. 4. The New School of Thought <ul><li>Triple Bottom Line (TBL) — captures an expanded spectrum of values and criteria for measuring organizational and societal success: people, planet and profit </li></ul>BEST Coaches, Inc.
  5. 5. People (Human Capital) <ul><li>Fair and beneficial business practices toward: labor, the community and region in which a corporation conducts its business. </li></ul><ul><li>Stakeholders are taken into account, not just shareholders. </li></ul><ul><ul><li>Harvard Business Review on Corporate Responsibility </li></ul></ul><ul><ul><li> by Harvard Business School Press </li></ul></ul>BEST Coaches, Inc.
  6. 6. Planet (Natural Capital) <ul><li>Sustainable environmental practices. </li></ul><ul><li>Benefiting the natural order as much as possible </li></ul><ul><li>Do no harm and curtail environmental impact </li></ul><ul><li>Harvard Business Review on Corporate Responsibility </li></ul><ul><li> by Harvard Business School Press </li></ul>BEST Coaches, Inc.
  7. 7. Profit (Economic Capital) <ul><li>The bottom line shared by all commerce, conscientious or not. </li></ul><ul><li>Lasting economic impact the organization has on its economic environment. </li></ul><ul><li>Traditional corporate accounting approach plus social and environmental impact. </li></ul><ul><li>Harvard Business Review on Corporate Responsibility </li></ul><ul><li> by Harvard Business School Press </li></ul>BEST Coaches, Inc.
  8. 8. 5 Stages of Green Business BEST Coaches, Inc.
  9. 9. Stage 1 <ul><li>The company feels no obligation beyond profits. </li></ul><ul><li>-- The Next Sustainability Wave , Bob Willard </li></ul>BEST Coaches, Inc.
  10. 10. Stage 2 <ul><li>The business manages its liabilities by obeying the law and all labor, environmental, health, and safety regulations. </li></ul><ul><li>-- The Next Sustainability Wave , Bob Willard </li></ul>BEST Coaches, Inc.
  11. 11. Stage 3 <ul><li>The company moves from defense to offense. </li></ul><ul><li>Realizes it can save expenses with proactive and eco-efficient operation , cleaner processes, and better waste management. </li></ul><ul><li>It is about incremental, continuous improvements in eco-efficiency. </li></ul><ul><li>-- The Next Sustainability Wave , Bob Willard </li></ul>BEST Coaches, Inc.
  12. 12. Stage 4 <ul><li>The firm transforms itself. </li></ul><ul><li>Re-brands itself as a company committed to sustainability and integrates sustainability with key business strategies. </li></ul><ul><li>It is about discontinuous, leapfrogging breakthroughs. (i.e. DuPont, The Body Shop and Timberland.) </li></ul><ul><li>-- The Next Sustainability Wave , Bob Willard </li></ul>BEST Coaches, Inc.
  13. 13. Stage 5 <ul><li>Driven by a passionate, values-based commitment to improving the well-being of the company, society and the environment, the company helps build a better world because it is the right thing to do. (i.e. Patagonia, Gaiam.com) </li></ul><ul><li>-- The Next Sustainability Wave , Bob Willard </li></ul>BEST Coaches, Inc.
  14. 14. Green Companies <ul><li>Patagonia – outdoor sporting catalog www.patagonia.com </li></ul><ul><li>Stonyfield Farms – dairy farm producer www.stonyfieldfarms.com </li></ul><ul><li>Ecologic Solutions – commercial chemical supply company. www.ecologicsolutions.com </li></ul><ul><li>Bright Power – alternative energy consulting company. www.brightpower.biz </li></ul><ul><li>Green Pirates – organic smoothies and juicer on wheels in NYC. www.green-pirates.com </li></ul>BEST Coaches, Inc.
  15. 15. Companies Greening Their Act <ul><li>General Electric – Ecomagination program </li></ul><ul><li>Toyota – Prius hybrid cars </li></ul><ul><li>Shore Fire Media – music PR company going paperless & recycled CD jewel cases </li></ul><ul><li>Green Fitness Studio - the first eco friendly fitness center </li></ul>BEST Coaches, Inc.
  16. 16. Advantage– Increase Sales <ul><li>Consumer demand for green </li></ul>BEST Coaches, Inc.
  17. 17. Advantage – Increase Sales Continued… <ul><li>Less price sensitive </li></ul><ul><ul><li>solid strategies to position to be quite desirable </li></ul></ul>BEST Coaches, Inc.
  18. 18. Advantage — New Verticals <ul><li>Solid Business Opportunities — </li></ul><ul><ul><li>energy, clean tech or green tech sectors, </li></ul></ul><ul><ul><li>education, training, consulting sectors </li></ul></ul><ul><ul><li>Designers for environmental / social solutions </li></ul></ul>BEST Coaches, Inc.
  19. 19. Advantage – Market Exposure <ul><li>Green is Hot — </li></ul><ul><ul><li>Is it a fad or is it here to stay? </li></ul></ul><ul><li>Media is HOT for green businesses </li></ul><ul><ul><li>Small Businesses Catch the Green Bug </li></ul></ul><ul><ul><li>LOHAS Market-Size Data Released: A $290 Billion Opportunity </li></ul></ul><ul><li>Avoid greenwashing </li></ul>BEST Coaches, Inc.
  20. 20. Greenwashing <ul><li>Is used to describe the practice of companies disingenuously spinning their products and policies as environmentally friendly. </li></ul><ul><li>It is a deceptive use of green PR or green marketing. </li></ul><ul><ul><ul><ul><li>www.Wikipedia.com </li></ul></ul></ul></ul>BEST Coaches, Inc.
  21. 21. Green Sheen <ul><li>Is a term that has similarly been used to describe organizations that attempt to show that they are adopting practices beneficial to the environment. </li></ul><ul><li>www.Wikipedia.com </li></ul>BEST Coaches, Inc.
  22. 22. Advantage – Competitive <ul><li>Easier to Compete With Non-Green— </li></ul><ul><ul><li>People looking for green solutions </li></ul></ul><ul><ul><li>Price/Quality MUST be as good or better </li></ul></ul><ul><li>Branding and positioning advantages over non-green competitors </li></ul><ul><li>First-mover or early-adopter advantage </li></ul>BEST Coaches, Inc.
  23. 23. Advantage – Customer Loyalty <ul><li>Strong Feel Good Component </li></ul><ul><ul><li>makes a difference for the planet and society </li></ul></ul><ul><ul><li>leverage in branding and marketing </li></ul></ul><ul><ul><li>people like to know their purchase is helping </li></ul></ul><ul><ul><li>if price, cost and performance are equal </li></ul></ul><ul><li>Examples: </li></ul><ul><ul><li>The Body Shop </li></ul></ul><ul><ul><li>Clif Bar & Co. – Creators of the Lunabar </li></ul></ul><ul><ul><li>Stonyfield Farms </li></ul></ul>BEST Coaches, Inc.
  24. 24. Advantage – More Stability <ul><li>improved customer loyalty </li></ul><ul><li>increased community support </li></ul><ul><li>reduced impact from changes in pricing </li></ul><ul><ul><ul><ul><li> -Sustainability a Better Brand of Business? by Gary Langenwalter. </li></ul></ul></ul></ul>BEST Coaches, Inc.
  25. 25. Ways to Green Up Your Business <ul><li>Do the basics </li></ul><ul><li>Get involved </li></ul><ul><li>Leverage your people </li></ul>BEST Coaches, Inc.
  26. 26. Do the Basics <ul><li>Reduce water use– avoid bottled water!! </li></ul><ul><li>Energy efficiency </li></ul><ul><li>Limit waste – excess packaging </li></ul><ul><li>Recycle – paper, metal, glass, plastic, electronics, etc. </li></ul>BEST Coaches, Inc.
  27. 27. Get Involved Top 10 Current Environmental Challenges <ul><li>Climate Change </li></ul><ul><li>Energy </li></ul><ul><li>Water </li></ul><ul><li>Air Pollution </li></ul><ul><li>Chemicals, Toxics, and Heavy Metals </li></ul><ul><li>Waste Management </li></ul><ul><li>Ozone Layer Depletion </li></ul><ul><li>Biodiversity and Land Use </li></ul><ul><li>Forest and Fisheries </li></ul><ul><li>Deforestation </li></ul>BEST Coaches, Inc.
  28. 28. Involve Your People <ul><ul><li>Explain to your customers </li></ul></ul><ul><ul><li>Select suppliers committed to Green </li></ul></ul><ul><ul><li>Leverage your purchasing power with your vendors </li></ul></ul><ul><ul><li>Give back to your communities </li></ul></ul><ul><ul><li>Educate and involve your employees </li></ul></ul><ul><ul><li>Partner with like-minded green businesses </li></ul></ul><ul><ul><li>Look for socially responsible / green investors </li></ul></ul>BEST Coaches, Inc.
  29. 29. Let the World Know <ul><li>Social Media </li></ul><ul><li>Powerful marketing campaigns </li></ul><ul><li>Contests for customers </li></ul><ul><li>Blogging / Newsletter </li></ul><ul><li>Leverage your age in the media </li></ul>BEST Coaches, Inc.
  30. 30. Next Steps <ul><li>Do the basics: reduce water, energy and consumption . Recycle the rest </li></ul><ul><li>Choose your environmental issue/passion </li></ul><ul><li>Mix your environmental passion with business </li></ul><ul><li>Build a campaign around what you are planning </li></ul><ul><li>Empower your people to make this happen </li></ul><ul><li>Create a buzz: pick three marketing tools you will use this month </li></ul>BEST Coaches, Inc.
  31. 31. <ul><li>Stefan Doering </li></ul><ul><li>BEST Coaches, Inc. </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><li>Phone: (646) 485-7688 </li></ul><ul><li>www.beunreasonable.com </li></ul>BEST Coaches, Inc.
  32. 32. Additional Resources <ul><li>Al Gore speech at TED: http://www.ted.com/talks/al_gore_s_new_thinking_on_the_climate_crisis.html </li></ul><ul><li>Be UnReasonable Power Booster newsletter </li></ul><ul><li>Cradle to Cradle – by William McDonough and Michael Braungar </li></ul><ul><li>Green Into Gold – by Daniel C. Esty </li></ul><ul><li>Story of Stuff – online community to end waste www.storyofstuff.com/ </li></ul><ul><li>Center for Small Business and the Environment – a support center for green entrepreneurs www.aboutcsbe.org </li></ul>BEST Coaches, Inc.