BOOK REVIEW: GREEN TO GOLD

Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build Competitive Advantage

by Daniel C. Esty and Andrew S. Winston

"No executive can afford to ignore the Green Wave sweeping the business world. This book shows how to make sustainability a core element of strategy - and profit from it." ~ Chad Holliday, CEO, DuPont

Environmental issues are no longer just the concern of government, NGOs and eco-minded individuals. Societal knowledge, and awareness of these issues has led to an increase in corporate accountability. This book offers a structured guide on how to become a part of the Green Wave and achieve Eco-Advantage for your business. To do this, authors Esty and Winston provide examples of corporate losses and gains, strategies to achieve Eco-Advantage, and tools needed for eco-tracking, redesign and culture-building. This book builds an organized argument for the importance of proactive environmental planning and decision-making that even the most conservative, profit-minded businessman cannot refute. 

The argument begins with background case study examples from  Sony and BP to compare the downside costs and upside gains that can result from ignoring or managing for environmental risks. The authors then follow with background information on the top 10 environmental issues, important stakeholders, and the top 50 Green Wave corporations doing the best to address these issues. The book then addresses how to get started on obtaining your Eco-Advantage.

The authors offer an organized Eco-Advantage toolkit. This includes how to: cultivate an Eco-Advantage mindset; develop eco-tracking through AUDIO and Life Cycle Assessment tools; redesign and drive innovation; and create a business culture that incorporates Eco-Advantage decision-making as part of everyday actions. Their green-to-gold plays address eight important areas to help reduce downside costs and risks and maximize revenues and intangible gain. This includes managing for things such as eco-efficiency, eco-risk control, eco-sales and marketing, and intangible value. The book has a very positive outlook on the value of joining the Green Wave, but it does not ignore the fact that some environmental initiatives will fall short or fail. To address this the book explains thirteen actions that lead to failure along with solutions and tools to avoid them.

The examples and strategies in Green to Gold are best geared towards medium to large businesses or corporations, however, as the authors point out environmental accountability is also becoming more and more important for smaller businesses as well. This book offers an interesting read with numerous examples, summary tables, and key highlighted points that make the information and strategies very accessible and easy to follow. For this reason, SSC recommends this book to any business owner or manager concerned with their bottom line and how to deal with environmental issues that affect it. 

BOOK REVIEW: Values-Driven Business

Values-Driven Business: How to Change the World, Make Money and Have Fun
Authors: Ben Cohen and Mal Warwick

What is the definition of Corporate Social Responsibility (CSR)? Ask 5 people and you will likely get 5 different answers. Mal Warwick and Ben Cohen’s book does not offer us a specific definition, but openly describes the unlimited options that businesses have to incorporate the various CSR values each finds uniquely important.

Perhaps your business would like to make a priority of giving back to the community or working on creating a supply chain that has minimal negative social and environmental effects, but you do not know how to get started. Maybe you are a business owner that desires to generously reward your employees, but fears it could affect your “bottom line.” Values-Driven Business inspires and encourages companies to pursue their own individual choices for CSR by sharing a number of stories from existing successful companies.

For instance, Juniper Communities, an assisted living company, built a 95-unit facility following nationally recognized building standards, resulting in a LEED certified building and revealing its commitment to a lighter footprint. Immaculate Baking not only buys the rights for the art used on its packaging for its organic goods, but was inspired to create a foundation that supports many of these artists that were more than just “struggling”, but barely surviving. Eileen Fisher, a women’s clothing company, offers a generous benefits package to its employees that includes profit sharing and $1000 per year, per employee for wellness classes and treatments.

Just as important as its stories, this book becomes an invaluable resource providing suggestions and tools a business can use to take the first step in implementing values unique to the goals of each enterprise. The authors decide to use the term Value-Driven Business in their book rather than CSR, but as explained in the preface it is a personal preference and along with a number of other common terms, can be used interchangeably.

The authors focus on the Small and Medium Based Businesses out there that are either curious about this concept or are ready to jump head first into this emerging and exciting facet of business. Whatever the goal of the reader, this book takes a step-by- step approach to encouraging enterprises to make decisions based on social, environmental and economic principles. It asks the reader critical questions such as “why are you in business?”, “are you ready to take the plunge?” and “can you make money in a values-based business?” The authors provide the guidance and tools for each individual business to answer the questions for itself.

NEWS: Women and the Environment

We're always intrigued by the interplay between social issues and environmental sustainability, and so we were especially interested in recent posts from Grist.org and Trendwatching.com about women, purchasing power, and the environment.

Consider these facts:

¨ Consulting firm A.T. Kearney estimates that women determine 80 percent of consumption, purchase 60 percent of all cars, and own 40 percent of all stocks.

¨ Women are up to 15 percent more likely than men to rate the environment a high priority.

¨ Women comprise up to two-thirds of voters who cast their ballots around environmental issues.

¨ Women are more likely than men to volunteer for and give money to environmental causes, especially related to public health.

¨ Women report both more support for environmental activists and more concern that government isn't doing enough.

¨ Women support increased government spending for the environment, while men favor spending cuts.

According to Grist (which sites all of the following survey data), polls also show that about 68 percent of American consumers have gone green, preferring health-conscious and environmentally responsible products. "Since 90 percent of women identify themselves as the primary shoppers for their households, and women sign 80 percent of all personal checks, it's safe to say that women are leading a quiet revolution in green consumerism."

What does this mean for you? If you employ women or sell to women (and we know you do!), then looking at ways to be more environmentally responsible can pay dividends—not just in reduced energy costs and less waste, but also in terms of improved customer loyalty, a strong reputation, and happier employees.

News: Can sustainability and globalization co-exist?

In a report released by Shell, Ford, Novo Nordisk, Vodafone, The Skoll Foundation and others, globalization and sustainability are assessed within the frame of 21^st century business. The conclusion: “there is no more business as usual.” The report, entitled Raising Our Game: Can We Sustain Globalization, was released by consulting firm SustainAbility. The report illustrates four different scenarios for 2027, titling each scenarios after a card suit. The best scenario, “Hearts,” depicts a neo-renaissance of politics, economics, and sustainability coalescing homogenously.” Diamonds,” the worst scenario, depicts democratic lifestyles sweeping the globe, and destroying ecosystems and disabling decision makers and inhibiting society’s ability to respond.

The report outlines seven recommendations:

• Plan for the unexpected
• Focus efforts in areas of developing needs and booming populations.
• Over time, a blended value bundle will be the norm in future business.
• Work to increase Earth’s “immune system” through market intelligence and creation. Be a source for help.
• Find opportunity in social and environmental issues
• Step outside the comfort zone to find new innovations, technologies, and solutions.
• Get involved in the politics, and find the vision, courage, and innovation to lead your company into the next business sphere.

If your organization needs help thinking through these issues, why not contact SSC for a consultation?

NEWS: Business owners are willing to go green

Wells Fargo/Gallup polled 600 small-business owners and found that two-thirds would pay more for environmentally friendly goods and services. They also found that 43% of business owners polled “believed their customers would be willing to share the added cost of being environmentally-friendly.” However, 49% of owners were worried customers would not be willing to pay more for greener products and services. Still 47% of owners surveyed have already implemented greener practices/products into their business.

ArmorLite Roofing created a roofing material that was, “lightweight, durable, and used the least amount of natural resources.” Their product has been well received by clients, including state and federal governments. ArmorLite creator Frank Lane has been pleasantly surprised at the reception his product has received from consumers: “"I knew what I was doing would be important, but I didn't realize the magnitude of importance it would have in the community and the response that we would receive."

As consumers get more aware of their purchasing power, and the mainstream becomes more and more sustainable, don’t let your business get left behind. SSC can help your business become a sustainable enterprise.

VIEWS: Measuring CSR

How do we measure corporate social responsibility? Sir Andrew Likierman, Professor of Management Practice in Accounting and Acting Dean at London Business School, recently wrote about the topic. Titled, “Acting ethically - and being able to prove it,” Likierman argues that since companies set the CSR tone, there is no agreed upon definition. Likierman believes that in order to measure success, company CSR goals must be matched against their relative successes.

Likierman has four ways to approach such measurement:

• First, companies must link CSR goals to tangible objectives that can be met, such as the amount of money invested in internal or social programs, or by financial performance.
  
• Second, measures must be actionable and linked to outcomes. They should be broken down into informative levels that can be measured against external, established measures and successes.
  
• Third, measurements should be based on credible data. Measures should be clear, and based over a long period of time to ensure transparency.
  
• Fourth, recognition of measurement limitations. A good measurement framework is essential for credible measurements, but it isn't always sufficient to capture the intangible value of CSR.
  

We couldn't agree more.

NEWS: More Proof That Corporate Social Responsibility (CSR) Pays

At Strategic Sustainability Consulting, we know that corporate social responsibility (CSR) is an important component of business operations. Not only do socially and environmentally responsible practices cut costs, they also increase brand awareness and customer loyalty. The proof?

Last week Golin/Harris International released its fourth national survey, Corporate Citizenship Gets Down to Business: Doing Well by Doing Good 2006.

Conducted by Change, GolinHarris’ corporate citizenship and social responsibility practice, the study reveals respondents recognize progress is being made as a growing number of companies embrace corporate citizenship as a business asset, although business still has a long way to go to meet Americans’ rising expectations for good corporate citizenship.

Change interviewed 5,000 Americans, who rated 152 brands for the GolinHarris Corporate Citizenship Index (CCI) in September, 2006. Top performers included Ben & Jerry's, Target Corporation, Patagonia, and SC Johnson.

And even more interesting, an overwhelming two-thirds of Americans interviewed said:

-- "'Doing well by doing good' is a savvy business strategy. Good corporate citizenship should be approached as an investment, asset and competitive advantage for business that contributes to the company's success.” (67%)

-- “Business should invest significantly more money, time, attention and resources in corporate citizenship than it does today.” (68%)

-- “Corporate citizenship should be considered an essential, high priority compared to other priorities companies face and manage in running a profitable, competitive and successful business.” (68%)

The survey "reveals that good corporate citizenship can impact business results by stimulating Americans to be loyal, passionate and frequent business advocates and committed customers to brands that have earned their trust and support."

But HOW do these companies incorporate good CSR into their day-to-day operations? The survey found:

Another common characteristic of the top performing companies on the GolinHarris CCI is their balanced, holistic approach to corporate citizenship as central to and aligned with the companies’ business goals and mainstream business activities. They’ve learned that how the organization runs its business is just as important as how much money it gives away. Authentic corporate citizenship must permeate all facets of how companies do business.

If your business hasn't recently reviewed its CSR strategy, consider doing it now! Strategic Sustainability Consulting offers introductory sustainability assessments to review what you're doing right and what needs a little work. Get CSR to work for you—contact me at Jennifer@sustainabilityconsulting.com today for a complimentary consultation.

RESOURCE: Helpful Websites for Small Business CSR

It's time for another list of helpful resources for small business. Enoy!

Intangibles and CSR
Source: Business for Social Responsibility (via GreenBiz)

Understanding how value is created through assets like knowledge, expertise, and operating systems -- the "intangibles" -- is integral to understanding how long-term wealth can be created and enhanced through strong CSR (corporate social responsibility) performance. Published in April 2006, this business brief explores the multifaceted link between a company's "intangible assets" and CSR. The brief provides a framework for better understanding the business case for CSR.

Sustainability Engagement Boosts Financial Performance
Source: Ethical Corporation (via Greenbiz)

The research arm of a leading sustainable investment fund has produced a new report grading more than 1200 companies by their preparedness in terms of environmental and other CR issues, providing more evidence for a link between non-financial and financial performance. The research, published jointly with consultants PricewaterhouseCoopers, represents one of the most complete efforts so far to compare companies, and sectors, based on their non-financial performance.

Zero Footprint

Zerofootprint’s goal is to connect people who care about the environment for the purpose of reducing ecological footprint. The organization aims to be the world’s foremost content hub for green, linking millions of people from across the globe engaged in sustainable commerce, and helping to inform people, who want to strive toward a more sustainable lifestyle. Of particular note is the Green Events section, where readers can find environmental events in their local area.