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AMITY INTERNATIONAL BUSINESS SCHOOL
DISSERTATION REPORT ON
                  GREEN MARKETING INITIATIVES BY THE COMPANY
                             IN HEALTH CARE SECTOR.




                                 Synopsis
   Green Marketing Initiatives by the company in
               Health Care Sector.




Submitted To:   Submitted By:

Ms. Alka Maurya Atul Upadhyaya

Faculty Guide                                      A1802011228

                                                   Section-A

                                                   M.B.A-(IB& Marketing)-2011-13
INTRODUCTION



According to the American Marketing Association, green marketing is the marketing of products that are
presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities,
including product modification, changes to the production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is not a simple task where several meanings
intersect and contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term. Other similar terms used are Environmental
Marketing and Ecological Marketing.

The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR) Reports
started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater
view on the company's environmental impact.

In 1987 a document prepared by the World Commission on Environment and Development defined
sustainable development as meeting "the needs of the present without compromising the ability of
future generations to meet their own need", this became known as the Brundtland Report and was
another step towards widespread thinking on sustainability in everyday activity.

Two tangible milestones for wave of green marketing came in the form of published books, both of
which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by
Jacquelyn Ottman (1993) in the United States of America.

In the years after 2000 a second wave of Green marketing emerged. By now CSR and the Triple Bottom
Line (TBL) were widespread. Such publications as a 2005 United Nations Report, then in 2006 a book by
Al Gore and the UK Stern Report brought scientific-environmental arguments to a wide public in an easy
to understand way.
OBJECTIVES:

     To examine the need and significance of green marketing.
     To understand the level of awareness regarding green marketing among consumers.
     Awareness of green practices among Indian hospitals.
     Reasons for adopting green practices by Indian Hospitals.
     Specific green initiatives implemented in last 2 years or plan to implement in next 2 years in the
     areas of Energy, Water, Waste and Cleaning.
     The economic savings achieved in these areas due to implementation of green practices.
Research Methodology

Research Methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. The major steps involved in research process are:

        Formulating the Research Problem
        Choice of Research Design
        Sources of Data
        Processing and analyzing the data



Formulating the Research Problem:

        The problem well defined is half solved. The formulation of a general topic into a specific
        research problem constitutes the first step of specific enquiry.
        Unit of analysis: Consumers between age group of 25 to 30 yrs.
        Characteristics of Interest: Awareness of Green Marketing.



Choice of Research Design:

        Every project requires an action plan and method for conducting a study. This dissertation
        project is more prone to single cross-sectional descriptive research design.
        Consumer Awareness towards GreenMarketing




Sources of Data:

The data presented are both primary data and secondary data.



Primary Data:

The primary data are those which are collected afresh and for thefirst time, and thus happen to be
original in character. I would collect primary data during the course of doing experiments in
anexperimental research but in case I do research of the descriptivetype and performs surveys. Here the
Primary data will becollected by means of preparing a questionnaire and getting it filled by a large
sample space. These questionnaires will help in drawingconclusions about the case.
Secondary Data:

Secondarydata may either be published data or unpublished data and usually data would be taken from
Internet & magazines.




Processing and analyzing the data:

The data analysis has been done in correct form. Usage of currentinformation & graph is made in the
project so as to make it easier &appropriate to understand.
Critical Review of Literature:

It is a cause of great concern that hospitals are one of the highest energy-intensive buildings, consuming
energy almost twice as much as commercial office buildings. Critical areas like operation theaters,
intensive care units, diagnostics department are big energy guzzlers. Operating 24/7, around the year,
with 100 percent backup, multiplies the problem even more. With technology entering hospitals along
with the dependence on medical equipment (Evidence Based Medicine) the requirement of energy in
healthcare is spiraling out of control, having a direct effect on the costs of care.

There is a need to transform healthcare infrastructure from the existing standard practice to a zero
energy, toxic free, zero waste, water balanced solutions with increased focus on natural lighting,
reducing energy demand. We need rainwater harvesting. Water from showers and lavatories can be
processed for use in flushing toilets. Other clean water strategy involves converting sewage from the
hospital into energy using high anaerobic digesters. This compost system will create Bio Natural Gas
(BNG) which can be used to power the hospital systems. Water efficient toilets and lavatories can be
used throughout the facility and solar panels can provide hot water. Some of these are becoming
mandatory.

The American Society of Healthcare Engineering (ASHE) framed green building initiatives in 2002 to
safeguard health of a building's occupants, health of the neighborhood and health of the larger global
community as well as conservation of natural resources. With the introduction of the green guide for
health care and the US Green Building Council’s voluntary Leadership in Energy and Environmental
Design program (LEED) most of those who have got themselves certified have reported energy demand
reductions from 15 to 30 percent.

As per the Government of India notification, it has become mandatory for all construction projects
exceeding 20,000 sq. mtr built up area to obtain Environment Clearance (EC) from respective State
Environment Impact Assessment Authority (SEIAA) prior to starting any construction. Growing
environmental awareness and concern demands concentrated efforts in contributing to environmental
preservation.

The first step in green hospital designing process is to lay down clear environmental goals. It is
important to set specific measurable goals for energy efficiency, water conservation, rain water
harvesting, material and resource management and construction waste management. Indian Green
Building Council (IGBC) and LEED green building rating system help to review the requirements and in
setting goals and targeting elements of LEED, which are to be achieved and in laying down the criteria to
meet these. . TERI has also developed a tool called “GRIHA” (Green Rating for Integrated Habitat
Assessment) for measuring and rating a building’s environmental performance in the context of India’s
varied climate and building practices. This tool, by its qualitative and quantitative assessment criteria,
can be used to rate a building on the degree of its greenness.

Simply put, constructing a green building is creating interrelationships between the building site, site
features, the path of the sun, and the location and orientation of the building as well as placing
windows, external shading devices and optimization of natural lighting and ventilation of the building
with courtyards. There is a distinct advantage in a shallow (European) over the deep floor plate (US)
design.

The Rockland Case Study

Rockland Hospital made a firm commitment to adopt a green approach in all its projects. Our hospital at
IMT Manesar was planned ‘green’. Particular attention was given to water supply, sewage collection and
disposal, solid waste generation and disposal, power system, landscaping and green belt development.
A baseline study was done of the region to establish existing environmental status of the area including
topography, drainage pattern, water environment, geology, climate, transport system, land use, flora
and fauna, socio-economic and human resources and health.

An Environmental Impact Assessment (EIA) was also conducted and inferences drawn from this
assessment highlighted the areas of concern, which needed to be addressed. Last, for mitigation and
control measures an Environmental Management Plan (EMP) was developed for the proposed Hospital.
The environmental impact during the construction phase is mostly short-term, restricted to the site area
and not envisaged on a larger scale. In the operational phase environmental impacts are due to the
continuous working of the project. Hence, the emphasis in the EMP is to minimize such impacts. To
mitigate the impact during operation stage diesel generator set emission control measures like 37 mts-
high stacks are provided. A green belt is being developed on the periphery of the hospital and along the
internal road to act as a barrier to pollutants. Only low sulphur diesel will be used as clean fuel.

The EMP for water environment and water source development has been developed by the installation
of six scientifically designed rain water harvesting pits around the hospital. This will recharge ground
water resources. Consumption of fresh water will be minimized by installing water-efficient plumbing
fixtures like ultra flow toilets and urinals, low flow sinks. Drip irrigation system has been adopted for the
lawns and green areas. This in itself can save 15-40 percent of water. Total waste water generated in the
hospital will be treated in its 180 KLD sewage treatment plant by primary, secondary and tertiary
treatments. This treated water will be recycled and utilised for gardening, cooling of DG set and flushing.
There will be zero discharge of sewage from the hospital.

The hospital will use energy efficient lighting and ventilation. The building orientation is energy efficient,
with the towers facing directions where minimum heat is gained. The basic design shuts out excess heat
with roof overhangs, trees and landscaping. The hospital is designed with shallow floor plates with an
atrium in the middle permitting maximum natural light and air into the buildings.

Solar powered lighting is planned for open spaces and for hot water supply to the kitchen. Use of CFL is
planned in the basement and common areas. The DG sets shall be controlled to optimise their usage
based on the actual load requirements.

The hospital has been awarded the Gold Grading by the Government of Haryana for its commitment
towards conservation of the environment and a making a green building. Environmental issues are the
biggest concerns of our time. Creating a green structure is an effective step for managing environmental
sustainability. Delivering high quality healthcare need not be so energy intensive. Hospitals can become
trend setters by building and operating energy efficient buildings. And we can proclaim our commitment
to promote health without damaging ecosystems. By creating and adopting green building standards
hospitals and healthcare providers can make a clear and bold statement that they really care!
Benefits of Green Marketing:

Companies that develop new and improved products and services with environment inputs in mind give
themselves access to new markets, increase their profit sustainability, and enjoy a competitive
advantage over the companies which are not concerned for the environment.



Adoption of Green Marketing:

There are basically five reasons for which a marketer should go for the adoption of green marketing.
They are -

        Opportunities or competitive advantage
        Corporate social responsibilities (CSR)
        Government pressure
        Competitive pressure
        Cost or profit issues

Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of marketing
mix. The 4 P's of green marketing are that of a conventional marketing but the challenge before
marketers is to use 4 P's in an innovative manner.

Product

The ecological objectives in planning products are to reduce resource consumption and pollution and to
increase conservation of scarce resources (Keller man, 1978).

Price

Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to
pay additional value if there is a perception of extra product value. This value may be improved
performance, function, design, visual appeal, or taste. Green marketing should take all these facts into
consideration while charging a premium price.

Promotion

There are three types of green advertising: -

        Ads that address a relationship between a product/service and the biophysical environment.
        Those that promote a green lifestyle by highlighting a product or service.
        Ads that present a corporate image of environmental responsibility.
Place:

The choice of where and when to make a product available will have significant impact on the
customers. Very few customers will go out of their way to buy green products.



Challenges Ahead:

         Green products require renewable and recyclable material, which is costly
         Requires a technology, which requires huge investment in R & D
         Water treatment technology, which is too costly
         Majority of the people are not aware of green products and their uses
         Majority of the consumers are not willing to pay a premium for green products
Examples of Green marketing initiatives by MNCs:

Among possible areas for “green” interventions in the Operating Room of St. John Hospital & Medical
Research, Detroitare :

       Single-Use Device (SUD) Reprocessing
       Reusable vs. Disposables: Gowns, Surgical Drapes, Basins and other Reusables.
       Operating Room Kit Formulation
       Waste Anesthetic Gas Scavenging Systems
       Fluid Waste Management Systems
       Energy Use/Lighting & Thermal Comfort
       Regulated Medical Waste (RMW) Minimization/Segregation
       Substitution of Reusable Hard Cases for Blue Sterile Wrap
       Recycling of Medical Plastics
       Laser Safety/ Smoke Evacuation
       Green Cleaning/Proper Disinfection in a Surgical Setting
       Medical Equipment and Supplies DonationGreen Initiatives by Indian Hospitals.

       Initiatives by Indian Hospitals
       Hospitals worldwide are adopting measures to reduce their carbon footprints. Hospitals have
       realized the importance of “green operations”, leaving positive impact on surroundings.
        More healthcare organizations are finding tangible ways to reap savings from green operations.
       Hospitals present both a challenge and opportunity in the development and implementation of
       green practices. Issues such as 24/7 operations, energy and water use intensity, chemical use,
       infection control requirements and formidable regulatory requirements pose significant
       opportunities to the implementation of green protocols.
       India, being the 2nd most populous country in the world has scores of healthcare facilities.
       It’s imperative that Indian hospitals should extract the benefits of green practices, both
       economic and environmental. I have done research that the hospitals are adopting greener
       practices into four core areas of operations—energy, water, waste and cleaning and are
       achieving tangible benefits. Yet it is clear that return on investment is being found more often.
BIBLIOGRAPHY



    www.greenmarketing.net/stratergic.html
    www.epa.qld.gov.au/sustainable_ industries
    www.wmin.ac.uk/marketing research/marketing/greenmix.html
    www.ecomall.com
    www.greenmarketingcorner.com
    www.greenpeace.org

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Dissertation doc

  • 1. AMITY INTERNATIONAL BUSINESS SCHOOL DISSERTATION REPORT ON GREEN MARKETING INITIATIVES BY THE COMPANY IN HEALTH CARE SECTOR. Synopsis Green Marketing Initiatives by the company in Health Care Sector. Submitted To: Submitted By: Ms. Alka Maurya Atul Upadhyaya Faculty Guide A1802011228 Section-A M.B.A-(IB& Marketing)-2011-13
  • 2. INTRODUCTION According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting "the needs of the present without compromising the ability of future generations to meet their own need", this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. Two tangible milestones for wave of green marketing came in the form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. In the years after 2000 a second wave of Green marketing emerged. By now CSR and the Triple Bottom Line (TBL) were widespread. Such publications as a 2005 United Nations Report, then in 2006 a book by Al Gore and the UK Stern Report brought scientific-environmental arguments to a wide public in an easy to understand way.
  • 3. OBJECTIVES: To examine the need and significance of green marketing. To understand the level of awareness regarding green marketing among consumers. Awareness of green practices among Indian hospitals. Reasons for adopting green practices by Indian Hospitals. Specific green initiatives implemented in last 2 years or plan to implement in next 2 years in the areas of Energy, Water, Waste and Cleaning. The economic savings achieved in these areas due to implementation of green practices.
  • 4. Research Methodology Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The major steps involved in research process are: Formulating the Research Problem Choice of Research Design Sources of Data Processing and analyzing the data Formulating the Research Problem: The problem well defined is half solved. The formulation of a general topic into a specific research problem constitutes the first step of specific enquiry. Unit of analysis: Consumers between age group of 25 to 30 yrs. Characteristics of Interest: Awareness of Green Marketing. Choice of Research Design: Every project requires an action plan and method for conducting a study. This dissertation project is more prone to single cross-sectional descriptive research design. Consumer Awareness towards GreenMarketing Sources of Data: The data presented are both primary data and secondary data. Primary Data: The primary data are those which are collected afresh and for thefirst time, and thus happen to be original in character. I would collect primary data during the course of doing experiments in anexperimental research but in case I do research of the descriptivetype and performs surveys. Here the Primary data will becollected by means of preparing a questionnaire and getting it filled by a large sample space. These questionnaires will help in drawingconclusions about the case.
  • 5. Secondary Data: Secondarydata may either be published data or unpublished data and usually data would be taken from Internet & magazines. Processing and analyzing the data: The data analysis has been done in correct form. Usage of currentinformation & graph is made in the project so as to make it easier &appropriate to understand.
  • 6. Critical Review of Literature: It is a cause of great concern that hospitals are one of the highest energy-intensive buildings, consuming energy almost twice as much as commercial office buildings. Critical areas like operation theaters, intensive care units, diagnostics department are big energy guzzlers. Operating 24/7, around the year, with 100 percent backup, multiplies the problem even more. With technology entering hospitals along with the dependence on medical equipment (Evidence Based Medicine) the requirement of energy in healthcare is spiraling out of control, having a direct effect on the costs of care. There is a need to transform healthcare infrastructure from the existing standard practice to a zero energy, toxic free, zero waste, water balanced solutions with increased focus on natural lighting, reducing energy demand. We need rainwater harvesting. Water from showers and lavatories can be processed for use in flushing toilets. Other clean water strategy involves converting sewage from the hospital into energy using high anaerobic digesters. This compost system will create Bio Natural Gas (BNG) which can be used to power the hospital systems. Water efficient toilets and lavatories can be used throughout the facility and solar panels can provide hot water. Some of these are becoming mandatory. The American Society of Healthcare Engineering (ASHE) framed green building initiatives in 2002 to safeguard health of a building's occupants, health of the neighborhood and health of the larger global community as well as conservation of natural resources. With the introduction of the green guide for health care and the US Green Building Council’s voluntary Leadership in Energy and Environmental Design program (LEED) most of those who have got themselves certified have reported energy demand reductions from 15 to 30 percent. As per the Government of India notification, it has become mandatory for all construction projects exceeding 20,000 sq. mtr built up area to obtain Environment Clearance (EC) from respective State Environment Impact Assessment Authority (SEIAA) prior to starting any construction. Growing environmental awareness and concern demands concentrated efforts in contributing to environmental preservation. The first step in green hospital designing process is to lay down clear environmental goals. It is important to set specific measurable goals for energy efficiency, water conservation, rain water harvesting, material and resource management and construction waste management. Indian Green Building Council (IGBC) and LEED green building rating system help to review the requirements and in setting goals and targeting elements of LEED, which are to be achieved and in laying down the criteria to meet these. . TERI has also developed a tool called “GRIHA” (Green Rating for Integrated Habitat Assessment) for measuring and rating a building’s environmental performance in the context of India’s varied climate and building practices. This tool, by its qualitative and quantitative assessment criteria, can be used to rate a building on the degree of its greenness. Simply put, constructing a green building is creating interrelationships between the building site, site features, the path of the sun, and the location and orientation of the building as well as placing windows, external shading devices and optimization of natural lighting and ventilation of the building
  • 7. with courtyards. There is a distinct advantage in a shallow (European) over the deep floor plate (US) design. The Rockland Case Study Rockland Hospital made a firm commitment to adopt a green approach in all its projects. Our hospital at IMT Manesar was planned ‘green’. Particular attention was given to water supply, sewage collection and disposal, solid waste generation and disposal, power system, landscaping and green belt development. A baseline study was done of the region to establish existing environmental status of the area including topography, drainage pattern, water environment, geology, climate, transport system, land use, flora and fauna, socio-economic and human resources and health. An Environmental Impact Assessment (EIA) was also conducted and inferences drawn from this assessment highlighted the areas of concern, which needed to be addressed. Last, for mitigation and control measures an Environmental Management Plan (EMP) was developed for the proposed Hospital. The environmental impact during the construction phase is mostly short-term, restricted to the site area and not envisaged on a larger scale. In the operational phase environmental impacts are due to the continuous working of the project. Hence, the emphasis in the EMP is to minimize such impacts. To mitigate the impact during operation stage diesel generator set emission control measures like 37 mts- high stacks are provided. A green belt is being developed on the periphery of the hospital and along the internal road to act as a barrier to pollutants. Only low sulphur diesel will be used as clean fuel. The EMP for water environment and water source development has been developed by the installation of six scientifically designed rain water harvesting pits around the hospital. This will recharge ground water resources. Consumption of fresh water will be minimized by installing water-efficient plumbing fixtures like ultra flow toilets and urinals, low flow sinks. Drip irrigation system has been adopted for the lawns and green areas. This in itself can save 15-40 percent of water. Total waste water generated in the hospital will be treated in its 180 KLD sewage treatment plant by primary, secondary and tertiary treatments. This treated water will be recycled and utilised for gardening, cooling of DG set and flushing. There will be zero discharge of sewage from the hospital. The hospital will use energy efficient lighting and ventilation. The building orientation is energy efficient, with the towers facing directions where minimum heat is gained. The basic design shuts out excess heat with roof overhangs, trees and landscaping. The hospital is designed with shallow floor plates with an atrium in the middle permitting maximum natural light and air into the buildings. Solar powered lighting is planned for open spaces and for hot water supply to the kitchen. Use of CFL is planned in the basement and common areas. The DG sets shall be controlled to optimise their usage based on the actual load requirements. The hospital has been awarded the Gold Grading by the Government of Haryana for its commitment towards conservation of the environment and a making a green building. Environmental issues are the biggest concerns of our time. Creating a green structure is an effective step for managing environmental sustainability. Delivering high quality healthcare need not be so energy intensive. Hospitals can become
  • 8. trend setters by building and operating energy efficient buildings. And we can proclaim our commitment to promote health without damaging ecosystems. By creating and adopting green building standards hospitals and healthcare providers can make a clear and bold statement that they really care!
  • 9. Benefits of Green Marketing: Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment. Adoption of Green Marketing: There are basically five reasons for which a marketer should go for the adoption of green marketing. They are - Opportunities or competitive advantage Corporate social responsibilities (CSR) Government pressure Competitive pressure Cost or profit issues Green Marketing Mix Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge before marketers is to use 4 P's in an innovative manner. Product The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources (Keller man, 1978). Price Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to pay additional value if there is a perception of extra product value. This value may be improved performance, function, design, visual appeal, or taste. Green marketing should take all these facts into consideration while charging a premium price. Promotion There are three types of green advertising: - Ads that address a relationship between a product/service and the biophysical environment. Those that promote a green lifestyle by highlighting a product or service. Ads that present a corporate image of environmental responsibility.
  • 10. Place: The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products. Challenges Ahead: Green products require renewable and recyclable material, which is costly Requires a technology, which requires huge investment in R & D Water treatment technology, which is too costly Majority of the people are not aware of green products and their uses Majority of the consumers are not willing to pay a premium for green products
  • 11. Examples of Green marketing initiatives by MNCs: Among possible areas for “green” interventions in the Operating Room of St. John Hospital & Medical Research, Detroitare : Single-Use Device (SUD) Reprocessing Reusable vs. Disposables: Gowns, Surgical Drapes, Basins and other Reusables. Operating Room Kit Formulation Waste Anesthetic Gas Scavenging Systems Fluid Waste Management Systems Energy Use/Lighting & Thermal Comfort Regulated Medical Waste (RMW) Minimization/Segregation Substitution of Reusable Hard Cases for Blue Sterile Wrap Recycling of Medical Plastics Laser Safety/ Smoke Evacuation Green Cleaning/Proper Disinfection in a Surgical Setting Medical Equipment and Supplies DonationGreen Initiatives by Indian Hospitals. Initiatives by Indian Hospitals Hospitals worldwide are adopting measures to reduce their carbon footprints. Hospitals have realized the importance of “green operations”, leaving positive impact on surroundings. More healthcare organizations are finding tangible ways to reap savings from green operations. Hospitals present both a challenge and opportunity in the development and implementation of green practices. Issues such as 24/7 operations, energy and water use intensity, chemical use, infection control requirements and formidable regulatory requirements pose significant opportunities to the implementation of green protocols. India, being the 2nd most populous country in the world has scores of healthcare facilities. It’s imperative that Indian hospitals should extract the benefits of green practices, both economic and environmental. I have done research that the hospitals are adopting greener practices into four core areas of operations—energy, water, waste and cleaning and are achieving tangible benefits. Yet it is clear that return on investment is being found more often.
  • 12. BIBLIOGRAPHY www.greenmarketing.net/stratergic.html www.epa.qld.gov.au/sustainable_ industries www.wmin.ac.uk/marketing research/marketing/greenmix.html www.ecomall.com www.greenmarketingcorner.com www.greenpeace.org