Selling green: What managers and marketers need to know about consumer environmental attitudes

Research clearly shows that the environment is not going to go away as an issue of public concern. In fact, for many people, the environment is no longer simply an issue—it is a way of life. This is not likely to change. What has changed, however, is today's consumer. Today we are faced with a different type of consumer: one who is more knowledgeable on environmental issues—and more demanding. Environmental messages can be effective in reaching these potential buyers—but only if corporate managers and marketers understand public concerns and learn how to craft their environmental marketing strategies. © 1999 Integrated Marketing Services (IMS) and Environmental Research Associates, a division of IMS, Princeton, New Jersey. Reprinted with permission.     

Corporate environmental excellence and stewardship: Five critical tasks of top management

One of the most important challenges facing business is shaping the role of senior management in corporate environmental performance. In some leading companies, the CEO or chairman takes the initiative to carefully define his or her role because of a strong personal commitment, a keen grasp of the business incentives, in response to past problems, or because of a combination of these. In other companies, even where corporate policies genuinely support and promote corporate environmental, health, and safety programs, there may still be inaction or reluctance on the part of top management to participate or get involved. This management posture may work for a few more years, but no longer than that—and could quickly become a major detriment to any company's ongoing market success or viability. This article will focus on a strategy for getting top management involved in your company's programs and, where they are already involved, for sharing some insights we have gained from our work with a number of companies where top management has taken a strong role in environmental issues and has established precedence for what can work well.     

Reducing life-cycle environmental impacts: An industry survey of emerging tools and programs

Corporate environmental practices have been evolving quite rapidly in recent years, as consumers express their preferences for environmentally friendly products and practices, as manufacturers look “upstream” and inquire into their suppliers' environmental practices due to liability and marketing concerns, and as company operating costs increase as a result of new environmental regulations. New corporate efforts are made to anticipate (rather than respond to) outside environmental pressures, to internalize costs, and to find strategic opportunities or competitive advantages based on company or product environmental performance. This article describes a survey and research project designed to explore one aspect of these evolving corporate practices—the use of analytical tools and associated programs, such as life-cycle assessment and design-for-environment—by companies to account for impacts throughout a product'S life-cycle.     

A framework for assessing discretionary corporate performance towards the environment

This article reviews the existing models of corporate social responsiveness and develops a theoretical framework with which to examine corporations' discretionary performance with respect to one social issue, that of the environment. Discretionary indicators of corporate response to environmental issues are developed and tested within this framework. Twelve companies from five different sectors were selected for the survey, based on prior knowledge of their commitment to environmental concerns. Primary data was collected from personal interviews, and secondary data was obtained from company documents, annual reports, and other forms of publically disclosed information. Empirical results varied, but certain voluntary indicators, such as composition of the board of directors, the environmental affairs function, community support, and the annual report are considered to provide strong indications of discretionary corporate performance. Philanthropy and company products proved to be less satisfactory indicators of corporate commitment to the environment. The aggregated results revealed a correlation between the final rankings of firms' discretionary environmental performance and whether those companies are process or product oriented. Linkages between discretionary elements and those of economic and legal requirements were not explored.     

From a culture of fixing to a culture of preventing at arm & hammer brand

Companies with a total quality management program in place are beginning to understand the need for of a fuller integration of environmental and health and safety functions within their overall quality framework. Intense international competition, a flat global economy, and an increasingly stringent environmental and health and safety regulatory climate are forcing management to consolidate whatever gains they have made on the compliance side. At the same time, a total quality approach demands flattening of hierarchies, increased empowerment in divisions and plant floors, and much greater integration through a team approach of most management functions. Making all of this work puts a heavy premium on communication and individual responsibility. As companies that are going through the process now understand, this calls for major changes in corporate culture and a deep commitment from top management. This article describes the quality improvement process at Church & Dwight, makers of the Arm & Hammer line of products, where the TQEM challenge is orchestrated by a triumvirate representing three management functions: engineering, quality, and marketing/public relations.     

Business-oriented environmental performance metrics: Building consensus for environmental management systems

Today, environmental managers are learning new ways of adding value to their organizations. Before, the environmental department was an overhead expense—an indirect support group required for complying with burdensome regulations. Now, such departments add insights and value during strategic planning sessions, identify efficiency improvement opportunities, provide a superior return on investment, and—bottom line—improve profits. The primary approach to meeting the challenge is a new environmental management system (EMS) that identifies, measures, and manages a diverse set of internal and external customer needs. These needs include environmental cleanups, regulatory compliance, pollution prevention, and design for the environment—and each represents a potential improvement opportunity. Unfortunately, most organizations have so many such needs that all cannot be addressed at once, given the resource constraints of a competitive business climate. Thus, priority is a key concept of an effective EMS. This article describes an innovative application of consensus-building tools that quickly identify and set priorities for diverse environmental programs. The article also shows how appropriate performance measures will align these programs with corporate goals and objectives.     

Making pollution prevention part of the coors culture

This article is about Total Quality Management and its relationship to corporate environmental affairs. As the TQM movement expands, the commitment to continuous quality improvement, customer satisfaction, and collaborative, team-oriented workplaces is finding new applications. Just as the success of Federal Express, AT&T, and other winners of the Malcolm Baldrige National Quality Award shows that Total Quality Management can transform a business, we also are learning of successes companies are having applying TQM principles to environmental management. Our experience with TQM and environmental management at Coors Brewing Company is in the area of pollution prevention. In addition to our brewing operations, we also operate the country's largest aluminum can manufacturing plant, where we produce 4 billion cans a year, a separate facility that makes the can tops, a glass bottle manufacturing plant, and various support facilities. In all, we have some 7,000 employees, and building a commitment to pollution prevention in an operation of that size requires much more than just adopting quality principles. In this article we show how it also means understanding how those principles will mesh with the corporate culture. What we found is that before TQM can begin its magic, a company must review its own culture to see how problems have traditionally been solved and how challenges have been met.     

Avoiding the presumptive policy errors of intergovernmental environmental planning programmes: a case analysis of urban stormwater management planning

This social research aims to identify and examine the implementation presumptions of intergovernmental environmental planning programmes and how to improve their effectiveness in future practice. It contrasts and explains the organisational dynamics and implementation responses of municipalities that succeeded and failed in realising the objective of such a programme. The research involved a qualitative multiple-case comparison between four high- and four low-performing municipalities implementing a stormwater programme within metropolitan Sydney, Australia. These two organisational types substantially differed in corporate expertise, environmental leadership, extended relational activity, and overall disposition to learning and ownership of local environmental issues. The paper identified five presumptions underpinning the programme design which privileged the high-performing organisations, but did little to garner commitment and develop capacity among the low-performing group. These implementation insights not only provide guideposts for intergovernmental programme design, but also reveal how policy design can undermine policy intent if empathy to local organisational dynamics is lacking.     

The chemical industry's commitment to continuous improvement in environmental performance

One of the greatest challenges facing the chemical industry today is regaining the lost confidence of the public. This concern led to the Chemical Manufacturers Association's (CMA's) adoption of the Responsible Care® initiative—not a slick new promotional campaign but a commitment to continuous improvement in environmental performance. The author highlights components of the program, which is seen as an outgrowth of Total Quality Management.     

Using life-cycle assessments in large corporations: A survey of current practices

Industries presently face a challenge to maintain competitiveness while creating minimal adverse impacts on the environment. The conventional concerns of product functionality, quality, and cost are further complicated by environmental considerations. Thus, corporate environmental strategies are evolving toward a life-cycle approach by implementing life-cycle analysis (LCA), design for environment (DFE), and environmentally conscious design and manufacturing (ECDM) practices. These life-cycle concepts provide a tool for industry to identify and evaluate opportunities to minimize environmental burdens from cradle to grave. A mail survey administered by Vanderbilt University's U.S.-Japan Center for Technology Management was sent to 175 U.S. corporations from the 1994 Fortune 500 list. The results show that more than half of the 56 respondents are using life-cycle concepts for environmental assessments, with marketing and cost issues as the primary motivation factors. Hi-tech and personal care firms are more active in implementing LCAs while chemical and intermediate companies are more involved with maintaining databases and utilizing LCA tools. The survey and this article show how life-cycle thinking has not been adequately integrated throughout corporate organizations, and most environmental efforts are initiated by the environmental affairs department. However, the percentage of top management involvement has increased since 1992 and is now at moderate levels. LCA methods need to be further developed in order to expand their industrial acceptability.     

Improving corporate environmental performance through economic value added

These days, corporate annual reports are full of references to shareholder wealth creation. In today's highly competitive capital markets, most chief executives understand that unless they are seen as value creators, investors will place their scarce capital somewhere else. Clear evidence of the growing importance, even dominance, of shareholder wealth creation is the growing use of a performance measure known as economic value added (EVA®).¹ Within ten years, it is almost certain that most large, publicly traded companies in the United States will be using EVA or something like it as a primary performance evaluation tool. Recently, many non-American companies have also adopted it to better align the incentives of managers with shareholders and to signal their commitment to value creation. EVA is not widely known or understood among environmental specialists, and those who have heard about it often fear it. We find this attitude unfortunate. In this article, we discuss EVA and how its use can aid corporate environmental managers in promoting more proactive environmental investments, and in funding capital investments on environmental improvement, waste reduction, and pollution control in their companies. The use of EVA and other shareholder value measures can also improve general capital investment decisions by integrating environmental factors that affect the long-term interests of the corporation into the managerial decision-making process.     

Improving environmental management with full environmental cost accounting

Based on the most comprehensive field research ever conducted in corporate environmental management, this article reports on the integration of environmental impacts into product costing and cost management practices in organizations. It examines approaches for identifying and tracking current environmental costs related to both current and past production. It also develops the need and prospects for a complete analysis of future environmental impacts, including both costs and benefits, and the integration of these elements into a life-cycle costing or full environmental cost accounting model. The prospects for full environmental cost accounting and the related accounting issues are analyzed. Finally, the importance of full environmental cost accounting for improving corporate environmental performance, reducing corporate environmental impacts, and increasing long-term corporate profitability is discussed.     

Hot air,fast bucks,or true commitment: Strategies for transforming environmental commitment into a competitive advantage

Just saying that you are doing something is not good enough, especially when it comes to the environment. You need to document your changes and progress. In this article, (reprinted, with permission, from The Environmental Marketing Imperative) we'll show you how you can establish a true and meaningful environmental commitment for your company. We'll also show you how to effectively use this commitment as the basis for strategic marketing and communications plans.     

Do environmental management programs improve environmental performance trends? a study of standard & poors 500 companies

In this article, environmental management programs of Standard & Poors (S&P) 500 companies were evaluated using a series of industry and size-adjusted environmental trend indicators. The statistical analysis shows that a handful of corporate policy, governance, human resources, auditing, and financial parameters are highly relevant to improving corporate environmental performance. The results have implications for corporate environmental efforts as well as future government policies to foster environmental improvement.     

Total quality product design—how to integrate environmental criteria into the product realization process

Recent case studies on the financial benefits of pollution prevention programs well attest to the notion that a commitment to the environment can help profitability not only by avoiding costs and potential liabilities, but also by generating environmentally-based opportunities for competitive advantage. Achieving these benefits, however, represents a complex management challenge that requires embedding environmental concerns in the day-to-day decisions and actions of a company'S employees. This article shows how the marriage of corporate environmental stewardship and TQM, better known as TQEM, is particularly well suited to the area of product design and why environmental health and safety experts can improve a product'S environmental performance.     

The Value-Action Gap in Waste Recycling: The Case of Undergraduates in Hong Kong

The discrepancy between verbal and actual commitment in waste recycling and environmental behavior is thought to have attenuated the effectiveness of many environmental policy and measures. Studies purport to show the existence of such a value-action gap in environmental issues has been largely based on matching the verbal commitment to environmental value through self-reported environmental behavioral data. Therefore, there is a lack of direct evidence to prove that such a discrepancy exists. This study demonstrates a methodology (contrasting on-site observation with self-reported results) to measure the gap between verbal commitment and actual recycling behavior and provides an explanation on the recycling behavior of students at Hong Kong Baptist University in the hope that the lessons learnt can be generalized to a wider context. Our findings indicate that a gap between verbal recycling commitment and corresponding action does exist in waste recycling on this university campus. By using multiple linear regression analysis, we found that the self-reported recycling behavior of undergraduates cannot be meaningfully explained by most variables previously suggested in the general value-action model.     

A new health and environmental regulatory and risk scoring index

Products or product lines (portfolio items) are often ranked and classified according to their market growth and profitability potentials. Such ranking does not typically address the potential for posing health and environmental risks, nor does it formally consider the current or future regulatory climate or the customer/consumer perception of the product. This article describes a product screening procedure—Health and Environmental Regulatory (HER) Index—that addresses all of the above issues in a qualitative to semiquantitative manner. For each of the eight products addressed during the development of this procedure, we reviewed three subsystems along the product life cycle—manufacturing, distribution, and the customer/consumer. We posed a series of questions and qualitatively scored each one based on relationships among portfolio items and overall corporate, industry, and regulatory benchmarks. Using these results, we developed a product score or index. The multidisciplinary project team provided expert input and a reality check on the results. We have found the HER Index to be a potentially important tool for product risk ranking and priority setting for environmental, health, and safety resource allocation and of significant use in Responsible Care product stewardship.     

Environmental performance indicators for enhancing environmental management

Traditionally, environmental issues and concerns have been viewed as a constraint to businesses. This has resulted in environmental managers relying heavily on a reactive, compliance-based approach to justify change. Businesses are now recognizing that efficient management in the environmental arena can benefit the entire company and open new opportunities for increased profits. Managers have acknowledged that environmental issues can be integrated into daily business trends and activities. Not only does sound environmental management decrease liability, but also in current markets a “green” image can attract investors and customers. This article shows how one tool that progressive companies are focusing attention on—environmental performance indicators—is being used to convey the current status of environmental issues and improve the management of these issues for the benefit of the company as well as the environment.     

Does adding more lettuce make a hamburger truly green? A metaphor behind the green movement paradigm in designing cities

In designing cities, the label of the green movement these days is being applied to almost everything—starting from works of environmental non-governmental organizations and international as well as local conservation organizations to grass-roots resistance activism including radical environmentalism. This paper seeks to understand the motivation—the paradigm—behind the green movement initiatives and how the paradigm appears to shift from the ground reality. Conclusions suggest that, on one hand, environmental problems are far from being a matter of common sense and, on the other, the matter of intellectual and technological developments—the outcomes of rigorous academic research reflected in endless literature predominantly comprising the fields of environmental sociology, environmental anthropology, and conservation psychology—are in reality often found to be dealt with by shallow planning and policy practices without even realizing the big-picture that the paradigm is merely being used as an advertizing tool for making business profit. It is expected that, unless a shift from such negative practices towards a conscious and genuine commitment to proactive environmental stewardship is made, the situation will continue to be exacerbated.     

ISO 14001: A systems approach to managing environmental risk

The field of environmental risk management is relatively new and has developed rapidly over the past several years. There has been, however, a significant lack of integration of seemingly dissimilar disciplines into a meaningful context for top management risk decisions—until now. A new holistic approach, centered on the ISO 14001 standard for environmental management systems, addresses many of the issues that have kept environmental risk management focused on technical rather than strategic issues. This article describes the risk management process, illustrates how the ISO 14001 standard can be used by organizations to integrate and assess technical environmental information, and shows how to place this information in a strategic risk management context. It also explains how key ISO 14001 concepts such as policy implementation, operational control, and continuous improvement form the basis of a systems approach, and why the systems approach is the preferred, cost-effective structure for controlling environmental risk.