Ted, wanted to show you an article I enjoyed in Fast Company about Adam Werbach, former President of Sierra Club, and his firm's work for a very large retailer.

http://www.fastcompany.com/magazine/118/working-with-the-enemy.html

Even when a company tries to go green, it's not necessarily true that people will believe them...

Paul,

Thanks for the link to this article. Unfortunately, there will always be skepticism about large companies' motives when they decide to "go green". Especially when they're trying to overcome a tag like "a new breed of toxin", to cite Adam Werbach's description of Wal-Mart in the article. However, if companies truly do take steps toward becoming more green, that can be authenticated, they might silence their most vociferous critics over time. It's always a tough task to overcome negative perception as we all know.

BTW, Paul, it's too bad that Adam Werbach's decision to work with Wal-Mart would cause so much outcry among environmentalists and his former friends and colleagues at the Sierra Club. The guy has always stood for green values and still does. His choice to work with one of the largest retailers in the world to help them "green up their act" ought to be a cause for celebration, not derision, if you ask me. . .

To me, one's motivation for doing something is important. However, I think outcome is more important than motives.

For example, it is well known that everyone runs a business to make money (and, well, they likely get personal satisfaction as well) but they also do something good for those who want their services. It does not really matter if the person who sells me my nice computer did it to make money as I have benefited.

As John Locke, Adam Smith, and others have noted the sum of enlightened self interest works to the benefit of all. We all provide products and services and the net result is relative abundance and prosperity for many more people than at any other time in history.

If self-interest and entrepreneurial spirit helps us find and implement alternatives to fossil fuel then I don't much care about motives of the entrepreneur. He or she wants to make money and I suspect, in most cases, the businessperson is VERY proud of how they are doing it.

They are happy to make money and contribute to this world.

We as individuals can help by driving fuel efficient cars (e.g., hybrids) and trying to encourage progress.

This is both an environmental AND, just as importantly, a GEO POLITICAL emperative. Our oil consumption supports all the wrong people, including *VERY* hostile governments and organizations.

Very nicely said, Neil. I quite agree. It's wrong to disparage anybody's efforts when they try to do the right things. As you said: "everyone runs a business to make money", but that doesn't mean business owners can't do whatever is in their power to protect the environment or make things better in their little corner of the world. Many are taking steps that are making a difference, and for all the right reasons. Thanks for weighing in, Neil.

Green is great, all things being equal -- and assuming that your "green" initiative is actually a net positive for the environment you seek to protect. Often, green initiatives not only cost shareholders in lost margins but also fail to deliver the environmental savings promised, as gains in one area are lost many-fold in others.

The good news in all of this is that environmentally positive investment is at staggering levels and won't be slowing any time soon. Many top tier venture firms have earmarked green funds to promote this area of investment. Given more time, money and innovation, many of these will hopefully pay out.

To be clear, though, "green" isn't good enough on its own. Recycled packaging that results in higher product costs and declining margins, hybrid vehicles that leave a hundred-pound battery full of acid when they're towed to the junk yard, and other "almost" good green initiatives all result in net losses for their brands -- and their consumers. Not to mention the environment itself.

The incentive for a company going green isn't always that important. Does it really matter whether the motivation is to increase business or look like a good corporate citizen? If the end result is a better environment and employees who are proud and engaged, isn't that a good thing?

Elaine - I might be misunderstanding what you mean by "incentive," but that "good thing" you mentioned is a compelling benefit that can be properly classified as incentive, IMO.

If that's true, then it turns out that incentive is critical to increasing adoption rates. Companies, like people and like countries, can be counted on to act in what they perceive to be their own best interests (most of the time). The more incentives they have to do the right thing, the better.

You can bet they are looking for ways to make this work to their advantage. If they adopt a more environmentally friendly process at a greater financial expense, the competitive environment demands they capitalize on their "superior morality" by publicizing it and convincing others of their noble sense of responsibility.

To a skeptic (of any sort), what might be troubling from that perspective is not knowing if the company's promotion and adoption of this initiative is because they believe it to be the right course of action for the community or if they will do anything to advance just themselves, even if they believe it to be detrimental to the community in the long run.

I'm not implicating anyone specifically, mind you, just suggesting one possible angle.

In the end, it is up to us to have the willpower to hold the companies who rely on our goodwill (and patronage) to survive accountable to our standards.

Thus, it is incumbent on us to have the capacity identify the correct standards and the wherewithal to do what is right in spite of difficulties that might surround such a decision.

Stephen,

You make some good observations here. As is the case with many new environmental initiatives, there are some negatives associated with the positives. Example: the proper elimination of hybrid car batteries, lower energy consuming light bulbs, etc. The good thing about all of this is that we are working toward solutions and I am confident we have the ability to solve our problems going forward.

On the topic of recycled and environmentally sound packaging, readers may want to check out an article that I wrote this past spring titled: "Packaging for the Planet". The article first appeared in Brandweek in slightly edited form. It has since been republished in The CMO Council's "Marketing Magnified" July newsletter.
http://www.cmocouncil.org/resources/marketingmagnified/2007/july.asp

Companies that want to get some solid information on the subject of environmentally sound packaging can contact the Sustainable Packaging Coalition, www.sustainablepackaging.org.

Thanks for adding new dimension to this conversation, Stephen.

Hi Elaine,

I'm with you. Thanks for your insight here. Some of the best ideas are simply and succinctly stated. You've got a knack for that.

Cam,

I love your analytical nature. The key here continues to point to a need for authenticity and transparency. . .doesn't it? In the end, as you point out, we the consumer will vote with our wallets.

Ted - I hope so. It's virtually impossible for the community to make consistently correct judgments without authenticity and transparency, in addition to the other things I mentioned previously.

Notably, this is why fraud and misleading advertising are considered crimes... The community recognizes the importance that which you mentioned has to the stability of a functioning and free society.

Cam,

The lack of authenticity and transparency is one of the factors that has so many companies, and their brands, in trouble. The truth eventually outs about everything, so if some companies think they're going to fudge the truth to look like good corporate citizens--it might work for the short term, but it isn't the key to long-term survivability and success, is it?

I don't think it's the key, but there are examples of people who have famously succeeded in life for themselves and their prosperity by doing things society deems improper (see the rise and dynasty of Joe Kennedy, whose wealth was created by the trading of illegal goods).

You might look at long-term survivability from the perspective of the company, but I think the bigger issue is the survivability of society, without which a company's success is ultimately meaningless.

As we discussed, the key to that is invariably our capacity to tell the difference between right and wrong, (to your point) the transparency and authenticity we need to make such judgments by all entities that make up our society, and the will to act justly in accordance with those judgments.

In other words, lying is bad. ;)

prosperity -> posterity

Cam,

I like that: prosperity -> posterity. I fundamentally agree with your assessment. I would also add this--given today's climate, and it's getting harder and harder to lie or hide the truth and get away with it for very long. We live in a very different era than the one that enabled Joe Kennedy to do what he did with relative impunity, don't we?

In some ways, yes. The Internet makes it difficult to hide. But in other ways, the Internet also makes it easier to, if not outright lie, advance specious, misleading, and ultimately damaging arguments that have a color of credibility and authority, which lead to the adoption of or acquiescence to worldviews that make it difficult to pinpoint the difference between right and wrong.

"Sure he was selling barbiturates to kids, but his actions were noble because he was just trying to feed his family."

Whereas Joe Kennedy got rich selling liquor when it was illegal to do so, now charlatans peddle something different to enrich themselves, such as perpetual anger, distrust, and the promise that if the people will only offer their confidence and donations, and if they are willing to cede their own freedoms, they will be taken care of by people who just have their best interests at heart.

I could cite examples to make that last assertion clearer, but then this would become a different discussion entirely. :)

Cam,

Yes, this does become an entirely different discussion. Coming back to business, it's getting harder and harder to hide lies and deception from the public. Recent bad experiences for investors like the Enron debacle, have resulted in big business being under much closer scrutiny, for example. That's a good thing. We shouldn't let a few bad apples cast doubts on the many business owners, large and small out there, that are trying to do the right things by their employees, their customers and their communities, while carving out a niche for their companies and a living for themselves.

Ted,

Love 'em or hate 'em, Wal-Mart started something last year that is sending a huge ripple effect in consumer packaged goods. The institution of its Sustainable Packaging Scorecard in 2006 has created a lot of thought, dialogue and some action among the company's 60,000 suppliers. This past April, Wal-Mart hosted an expo to "to give packaging suppliers and Wal-Mart and Sam's Club buyers and product suppliers the unique opportunity to interact with one another, while exploring the many innovations in packaging designed around sustainability". I doubt Wal-Mart would have invested in such an expo unless the company was seriously interested in dealing with this issue. Too much expense.
http://www.packagingdigest.com/article/665.html.

Let's hope this yields more positive effects. With the plethora of consumer products out there, dwindling natural resources, energy concerns and waste issues, there is more pressure than ever to come up with solutions to the problems posed by packaging, as you know.

Yes, Claire, I did cite the approach Wal-Mart has taken on this issue in the article "Packaging for the Planet" which was published recently. The retailer is such a major force in the market that their stance on packaging ought to create a significant impact over time. Thanks for the info on the new sustainable packaging expo.

I really liked this article and especially the way Kyle Cahill councils companies to perform a comprehensive environmental audit.
I was fascinated by the discussion. I have been working with business for many years to help them initially audit their environmental impacts, then build systems to manage these. I have been told by some "green" groups that I have "gone over to the dark side" because I work with business instead of abusing them.
When business uses a systematic approach to managing their environmental impacts they actually save money as well as helping the environment. A book describing the various approaches to greening business and including case studies is available at www.itiseasytobegreen.com and some of your readers may find that this adds constructively to this debate.

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Hi Jean,

Thanks for the info on the new book. I'm sure Daily Fix readers will be interested in this. I agree with you that businesses can be taught to be more green, and experts ought to be willing to share some advice with them. Then, the concept of auditing of these efforts is also very important. Conservation and care for the environment applies to individuals, families, governments and business enterprises alike. No one should feel exempt from this. More importantly, if we can help each other in this process, what's wrong with that? Thanks for weighing in, Jean, and thanks for your efforts.

Ted,

Regarding your post on environmentally friendly packaging, I plan to read the article you liked to now so maybe you cover what I am about to say.

But it seems obvious that environmentally friendly conscious would also be cheaper and increase the profit margins of the business!

Neil,

With new technologies and materials becoming available to the marketplace every day, there are ways to use more environmentally friendly packaging that in some cases, are also more economical. Certainly the first way of saving money is for companies to refrain from using excess packaging. Less packaging is not only cheaper; it's obviously better for the environment. Companies are increasingly doing this. Using recycled materials in packaging and other compostable materials that use less energy while being manufactured, is another boon to the environment.

There is more and more press on this crucial issue, all building consumer packaged products companies' awareness. . .and creating more impetus for change.

I just found this on CNN:
http://www.cnn.com/2007/TECH/science/08/20/business.of.green.ap/index.html

The 21st Century may be about saving the earth and making money at the same time.

I trust the private sector more than governments to be the driving force but governments that provide incentives (e.g., tax incentives) will give their companies a head start in the new Great Game.

Neil

"I trust the private sector more than governments to be the driving force but governments that provide incentives (e.g., tax incentives) will give their companies a head start in the new Great Game."

Well said, Neil. And thanks for the link.

The other thing we should make mention of is that entirely new industries and companies will take root as a result of these new green ideas. For example, alternative packaging resources have given birth to new businesses. Ditto for building contractors who specialize in building environmentally friendly homes utilizing green materials. Just two examples. There will be many more. Especially with added incentives to do so.

Neil & Ted,

Speaking of environmental initiatives some businesses are capitalizing on with the help of government-initiated incentives, take a look at this story here in CT. This story unfolded just last week. . .

Pepperidge Farm partnered with both Fuel Cell Energy, Inc and the Connecticut Clean Energy Fund (started by the legislature) in just such a venture. Goes to show you what can be done when everybody works together, doesn't it?

http://www.renewableenergyaccess.com/rea/partner/story;jsessionid=327EAF7C93CD004ED2B6F18BB01264D9?id=49702.

Claire,

Yes, my personal belief is the private sector should provide incentives and enter partnerships for outcomes but not mandate solutions. For example, specifically supporting ethanol and not letting the market decide is bad policy.

Ethanol should absolutely have a chance to compete, yes, but right now it is being heavily subsidized for political not sound economic or environmental reasons. Stand on your own two feet I say to any industry.

Let the market decide.

Claire & Neil,

Good conversation here. Claire: I'll bet many other states offer incentives like CT does with its Clean Energy Fund.

Neil: Love your statement: "Yes, my personal belief is the private sector should provide incentives and enter partnerships for outcomes but not mandate solutions."

Let's hope more of this does happen.

Thanks for your observations.

Great blog!

If the economics don't work, recycling efforts won't either.
Http://LivePaths.com blogs about innovative entrepreneurs that make money selling recycled items, provide green services or help us reduce our dependency on non renewable resources.

These includes some very cool Green online ventures, great new technologies and investments opportunities

Thanks, Livepaths, for the input. There are many things businesses can do to go green, bit by bit. It's great to see so many companies, large and small, and blogs like yours can help with great suggestions. Thanks for writing.