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“Going Green”: Understanding the new
trend of Corporate Social
Responsibility
Monique Singh
12 April 2011
MKT 360-02
OVERVIEW
2
“Going Green”
• The federal government is enacting more and more laws to punish companies that are not
showing themselves to be socially conscious (Gomez, 2011).
• Many companies are starting to look into why they should “go green” on both an
economically profitable, and socially conscious standpoint.
• According to USA Today, 83% of consumers say that they will trust companies more if
they are socially responsible (Iwata, 2009).
• Companies that follow government guidelines to sustain the environment and also go out
of their way to do so will attract more consumers, and younger (possibly more qualified)
job applicants.
• “Going green” will reduce your overhead costs, and the company will see great return
down the line once all of the initial costs are paid for (Orlitzky, 2011).
• Going green is not a fleeting fad; it is here to stay – though the economy is in a rough
state, people still care about companies doing their part to help sustain the environment
for future generations (Iwata, 2009).
• “An overwhelming majority of corporate CEOs (93 percent) believe sustainability will be
vital to the long-term success of their companies. These same CEOs also say that within
the next ten years, we're likely to reach a tipping point; one where sustainability and core
business are woven together.” (Brown, 2011).
APPROACH
In this day and age, it is becoming extremely important for companies to take on a
responsible persona in how they handle their business. The public is finding more and more ways
of obtaining information in regards to business behaviors and can easily ruin a company’s
3
“Going Green”
reputation if consumers find that businesses partake in illegal, immoral, or environmentally
damaging behaviors (Gomez, 2011). This makes corporate social responsibility a relevant issue
in today’s society and it is almost imperative that companies have some sort of plan of action on
how to behave in an environmental conscious way.
Corporate social responsibility can be defined as how a company manages their business
practices in a way that positively impacts society (Baker, 2009). So, the question here is: how
does a company begin to implement a strategy to transform their business into a socially
responsible one?
HOW TO GO GREEN
Recycling: Companies can first start their employees on an easy recycling plan by having
various forms of disposal for each type of waste product. Aluminum, paper, plastics, and regular
trash should be separated to ensure that they do not get mixed together and that recyclable
products will not be sent to landfills where they cannot properly decompose (Orlizky, 2011).
Employees should also not be able to have trashcans under or around their desks because that
would make the separation process a bit more difficult to keep track of.
Reduce printing: Another easy way to reduce waste is by emailing documents rather
than printing them. Unless something absolutely must be on paper, offices should implement a
no printing rule. Companies can also look for recycled or tree-free paper from places such as
http://www.greenlinepaper.com/ (Morano, 2011).
Turn off the lights: Buildings that can let in a lot of sunlight should try to open their
blinds and let the natural light in, rather than turning on unnecessary bulbs. This will not only
reduce their own bills, but also conserve energy. It would also be wise to buy energy saving
4
“Going Green”
bulbs such as a compact fluorescent one, which uses about 75% less electricity than an
incandescent one (Howard, 2010).
Reduction of fossil fuels: Seeing as fossil fuels create about 90% of greenhouse gas
emissions in the U.S. (Koplow, 2001), it is important for businesses to find means of reducing
the amount they put out. Creating a carpool program can definitely reduce the use of fossil fuels
outside of company hours, but there are many other steps that businesses can take to decrease
their carbon footprint. During winter months, companies can keep their buildings at comfortable
temperatures, rather than keeping the thermometer high and making the employees feel as if they
are in a different season. Also take advantage of the government’s Cash For Caulkers program,
which pays for insulation for eligible buildings (Ryan, 2008). Companies can also trim down the
sizes of their shipping boxes to fit more products into one truck route and minimize emissions.
Renewable energy: Another thing that companies can do to reduce fossil fuels, is to find
ways to obtain renewable energy products for their building. Because many companies cannot
afford inserting solar panels on their building, they may just have to use the other ideas to reduce
their emissions. Solar energy is a great way to almost completely diminish fossil fuel releases,
and it will even help the companies economically (Buerkle, 2011). Many solar systems have a
four-year payback period to the point where the building will cost almost nothing to power, after
all the system’s components are paid for.
Eco-friendly products: Many distributors are making their products more “eco-friendly”
and some even help the environment. Sites such as http://www.greenandmore.com/ are full of
goods that will help your business become more environmentally conscious. There are even
products, such as green furniture, that are made fully from recycled materials. These products not
5
“Going Green”
only do not harm the environment, but they are made from products that have not gone to waste,
and can even be recycled into something else.
BENEFITS
In February of 2011, Steven Buerkle, co-owner of Signature Solar LLC, introduced the
basic benefits as to why a company would and should choose to “go green” with the use of
solar power:
•No Pollution, noise, or moving parts
•The Sun rises every day
•Proven, 50-year-old technology
•Highest electrical production is during peak electrical cost period of day
•No Fuel Risk (price, supply)
•Recognizable environmental commitment
•Uses local resources, reduces demand for imported fossil fuels
•Solar panels have a 25-year warranty, 35+ year life
•Warranties backed by substantial companies, e.g. BP, Shell, Sharp, Kyocera
(Buerkle, 2011)
Generally, “going green” with more than just solar power helps companies in the long run:
Consumers view these companies as more responsible: As stated earlier, 83% of consumers say
that they will trust companies more if they are socially responsible (USA Today, 2009). This not
only helps the business retain customers, but also obtain new customers through word of mouth,
or even good PR.
6
“Going Green”
Establishment of upstanding public relations: Public relations firms help company’s get
their stories into well-known and reputable publications. Public relations companies are much
more likely to endorse “green” companies because they are much easier for people to trust.
Being a “green” company makes a PR firm’s job much easier because more people are likely to
have confidence that the company’s business practices honorable, and the media will be more
receptive to allowing the company’s story in their own publications. Being a “green company,
therefore makes a business’s chances of getting more customers through a Public Relations
service, much higher (Morano, 2011).
Less money spent in the long haul: Purchasing products and services such as renewable
energy or fluorescent light bulbs are definitely more expensive at first, but their benefits will
prove to be worth it from an economical and social standpoint. Not only will having renewable
energy and the “green” mindset attract more customers – and therefore more revenue – it will
also lower energy bills once the initial costs are paid for (Buerkle, 2011).
Being a step ahead: Many companies are looking to find ways to go green, but cannot
yet afford it. Companies that have the purchasing power should definitely do so right away. Big
companies such as Walmart, Apple, and Starbucks are a few companies that are making their
way towards more sustainable and eco-friendly business practices. Grouping one’s name with
these businesses that are a bit “ahead of the pack” would greatly help a company’s business
approach and position themselves as innovators in their industry (Gomez, 2011).
COMPANIES THAT HAVE GONE GREEN
Starbucks: It is obvious that Starbucks attracts a certain type of customer. Many of their
customers are environmentally conscious, either because they care or just because they have
7
“Going Green”
enough money to do so. Starbucks has saved roughly 78,000 trees per year since 2006 with the
company’s decision to use coffee cup sleeves made of recycled paper (Ryan, 2008). Starbucks
even tries to give jobs to shops that must close down due to their presence. A representative from
Starbucks states in their company principle that “every store is part of a community, and we take
our responsibility to be good neighbors seriously. We want to be invited in wherever we do
business. We can be a force for positive action – bringing together our partners, customers, and
the community to contribute every day.” (Starbucks.com, 2011). They also partner with
environmental organizations that help the communities that they operate in, which has allowed
more consumers to see them in a positive light rather than a big business that takes away
business from local coffee shops.
Walmart: Though Walmart is completely prosperous without good PR, they have still
decided to join the green movement, and have proven to be one of the front-runners in the whole
trend. They plan to eventually power each location with renewable energy sources, and have
started with installing solar panels on various stores (Ryan, 2008). Though they do this mainly
for profit, it has still made helped to reduce their long-standing bad reputation.
Apple: The company has been working to remove harmful chemicals such as mercury
and lead from its products before disposal. They have also reduced their packaging by 53% to
make it easier to transport more products in one trip, and are able to transport 80% more boxes in
every airline-shipping container (Apple.com). Also, their facilities only contribute to 3% of their
greenhouse gas emissions, and some are even fully powered by renewable energy. As the picture
below shows, Apple has even manufactured their products so that they emit a great deal less
CO2e than a 60-watt incandescent light bulb.
8
“Going Green”
Source: (Apple.com, 2010)
CONCLUSION
Companies that decide to go green have a chance of achieving both economic and social benefits
by saving money and obtaining good public relations. Many consumers are more likely to
purchase from a company that shows themselves to be “green” as opposed to ones that are not
taking the steps to do so (Iwata, 2009). Though the initial costs may discourage a company from
purchasing green products or invest in renewable energy, they will find that in the long run, it
will greatly reduce their own energy bills and even attract new customers, while helping to retain
their current ones. Many big companies are going green and becoming environmentally
conscious, and it would be a wise decision to group one’s business with such an advanced group
of companies
Works Cited
Baker, M. (2009). Definitions of Corporate Social Responsibility. Mallen Baker's CSR
Website. Retrieved from <http://www.mallenbaker.net/csr/definition.php>.
Brown, R. (2011). Joining the mainstream. NZ Business, 25(2), 70. Retrieved from
EBSCOhost.
Environmental Stewardship. (2011, Februrary). Retrieved from http://www.starbucks.com
/responsibility
Gomez, L. M., & Chalmeta, R. (2011). Corporate responsibility in U.S. corporate
websites: A pilot study. Public Relations Review, 37(1), 93-95.
doi:10.1016/j.pubrev.2010.12.005
Howard, B. (2010, January). Turn Off Lights - Save Energy: Going Green, Fuel
Efficiency, Organic Food, and Green Living. The Daily Green. Retrieved from
<http://www.thedailygreen.com/going-green/tips/energy-conservation-turn-off-lights-
460107>.
Iwata, E. (2009, June). Corporate Social Responsibility: Collegiate Case Study. USA
Today Print, 1-3.
Koplow, D., & Dernbach J. (2001). Federal Fossil Fuel Subsidies and Greenhouse Gas
Emissions: A Case Study of Increasing Transparency for Fiscal Policy.
Rev. Energy Environ. Mindfully.org | Mindfully Green 26:361-389.
Retrieved from <http://www.mindfully.org/Energy/Fossil-Fuel-
Subsidies.htm>.
Morano, R. (2011). Green Benefit Communications Strategies. Employee Benefit
Plan Review, 65(8), 6-8. Retrieved from EBSCOhost.
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic Corporate Social Responsibility
and Environmental Sustainability. Business & Society, 50(1), 6-27.
doi:10.1177/0007650310394323
Ryan. 25 Big Companies That Are Going Green. (2008). Business Pundit:
Your Daily Dose of Smart Business Opinion. Retrieved from <http://www.
businesspundit.com/25-big-companies-that-are-going-green/>.
The Story Behind Apple’s Environmental footprint. (2010, June). Retrieved from
http://www.apple.com/environment/

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Going Green, Corporate Social Responsibility

  • 1. “Going Green”: Understanding the new trend of Corporate Social Responsibility Monique Singh 12 April 2011 MKT 360-02 OVERVIEW
  • 2. 2 “Going Green” • The federal government is enacting more and more laws to punish companies that are not showing themselves to be socially conscious (Gomez, 2011). • Many companies are starting to look into why they should “go green” on both an economically profitable, and socially conscious standpoint. • According to USA Today, 83% of consumers say that they will trust companies more if they are socially responsible (Iwata, 2009). • Companies that follow government guidelines to sustain the environment and also go out of their way to do so will attract more consumers, and younger (possibly more qualified) job applicants. • “Going green” will reduce your overhead costs, and the company will see great return down the line once all of the initial costs are paid for (Orlitzky, 2011). • Going green is not a fleeting fad; it is here to stay – though the economy is in a rough state, people still care about companies doing their part to help sustain the environment for future generations (Iwata, 2009). • “An overwhelming majority of corporate CEOs (93 percent) believe sustainability will be vital to the long-term success of their companies. These same CEOs also say that within the next ten years, we're likely to reach a tipping point; one where sustainability and core business are woven together.” (Brown, 2011). APPROACH In this day and age, it is becoming extremely important for companies to take on a responsible persona in how they handle their business. The public is finding more and more ways of obtaining information in regards to business behaviors and can easily ruin a company’s
  • 3. 3 “Going Green” reputation if consumers find that businesses partake in illegal, immoral, or environmentally damaging behaviors (Gomez, 2011). This makes corporate social responsibility a relevant issue in today’s society and it is almost imperative that companies have some sort of plan of action on how to behave in an environmental conscious way. Corporate social responsibility can be defined as how a company manages their business practices in a way that positively impacts society (Baker, 2009). So, the question here is: how does a company begin to implement a strategy to transform their business into a socially responsible one? HOW TO GO GREEN Recycling: Companies can first start their employees on an easy recycling plan by having various forms of disposal for each type of waste product. Aluminum, paper, plastics, and regular trash should be separated to ensure that they do not get mixed together and that recyclable products will not be sent to landfills where they cannot properly decompose (Orlizky, 2011). Employees should also not be able to have trashcans under or around their desks because that would make the separation process a bit more difficult to keep track of. Reduce printing: Another easy way to reduce waste is by emailing documents rather than printing them. Unless something absolutely must be on paper, offices should implement a no printing rule. Companies can also look for recycled or tree-free paper from places such as http://www.greenlinepaper.com/ (Morano, 2011). Turn off the lights: Buildings that can let in a lot of sunlight should try to open their blinds and let the natural light in, rather than turning on unnecessary bulbs. This will not only reduce their own bills, but also conserve energy. It would also be wise to buy energy saving
  • 4. 4 “Going Green” bulbs such as a compact fluorescent one, which uses about 75% less electricity than an incandescent one (Howard, 2010). Reduction of fossil fuels: Seeing as fossil fuels create about 90% of greenhouse gas emissions in the U.S. (Koplow, 2001), it is important for businesses to find means of reducing the amount they put out. Creating a carpool program can definitely reduce the use of fossil fuels outside of company hours, but there are many other steps that businesses can take to decrease their carbon footprint. During winter months, companies can keep their buildings at comfortable temperatures, rather than keeping the thermometer high and making the employees feel as if they are in a different season. Also take advantage of the government’s Cash For Caulkers program, which pays for insulation for eligible buildings (Ryan, 2008). Companies can also trim down the sizes of their shipping boxes to fit more products into one truck route and minimize emissions. Renewable energy: Another thing that companies can do to reduce fossil fuels, is to find ways to obtain renewable energy products for their building. Because many companies cannot afford inserting solar panels on their building, they may just have to use the other ideas to reduce their emissions. Solar energy is a great way to almost completely diminish fossil fuel releases, and it will even help the companies economically (Buerkle, 2011). Many solar systems have a four-year payback period to the point where the building will cost almost nothing to power, after all the system’s components are paid for. Eco-friendly products: Many distributors are making their products more “eco-friendly” and some even help the environment. Sites such as http://www.greenandmore.com/ are full of goods that will help your business become more environmentally conscious. There are even products, such as green furniture, that are made fully from recycled materials. These products not
  • 5. 5 “Going Green” only do not harm the environment, but they are made from products that have not gone to waste, and can even be recycled into something else. BENEFITS In February of 2011, Steven Buerkle, co-owner of Signature Solar LLC, introduced the basic benefits as to why a company would and should choose to “go green” with the use of solar power: •No Pollution, noise, or moving parts •The Sun rises every day •Proven, 50-year-old technology •Highest electrical production is during peak electrical cost period of day •No Fuel Risk (price, supply) •Recognizable environmental commitment •Uses local resources, reduces demand for imported fossil fuels •Solar panels have a 25-year warranty, 35+ year life •Warranties backed by substantial companies, e.g. BP, Shell, Sharp, Kyocera (Buerkle, 2011) Generally, “going green” with more than just solar power helps companies in the long run: Consumers view these companies as more responsible: As stated earlier, 83% of consumers say that they will trust companies more if they are socially responsible (USA Today, 2009). This not only helps the business retain customers, but also obtain new customers through word of mouth, or even good PR.
  • 6. 6 “Going Green” Establishment of upstanding public relations: Public relations firms help company’s get their stories into well-known and reputable publications. Public relations companies are much more likely to endorse “green” companies because they are much easier for people to trust. Being a “green” company makes a PR firm’s job much easier because more people are likely to have confidence that the company’s business practices honorable, and the media will be more receptive to allowing the company’s story in their own publications. Being a “green company, therefore makes a business’s chances of getting more customers through a Public Relations service, much higher (Morano, 2011). Less money spent in the long haul: Purchasing products and services such as renewable energy or fluorescent light bulbs are definitely more expensive at first, but their benefits will prove to be worth it from an economical and social standpoint. Not only will having renewable energy and the “green” mindset attract more customers – and therefore more revenue – it will also lower energy bills once the initial costs are paid for (Buerkle, 2011). Being a step ahead: Many companies are looking to find ways to go green, but cannot yet afford it. Companies that have the purchasing power should definitely do so right away. Big companies such as Walmart, Apple, and Starbucks are a few companies that are making their way towards more sustainable and eco-friendly business practices. Grouping one’s name with these businesses that are a bit “ahead of the pack” would greatly help a company’s business approach and position themselves as innovators in their industry (Gomez, 2011). COMPANIES THAT HAVE GONE GREEN Starbucks: It is obvious that Starbucks attracts a certain type of customer. Many of their customers are environmentally conscious, either because they care or just because they have
  • 7. 7 “Going Green” enough money to do so. Starbucks has saved roughly 78,000 trees per year since 2006 with the company’s decision to use coffee cup sleeves made of recycled paper (Ryan, 2008). Starbucks even tries to give jobs to shops that must close down due to their presence. A representative from Starbucks states in their company principle that “every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day.” (Starbucks.com, 2011). They also partner with environmental organizations that help the communities that they operate in, which has allowed more consumers to see them in a positive light rather than a big business that takes away business from local coffee shops. Walmart: Though Walmart is completely prosperous without good PR, they have still decided to join the green movement, and have proven to be one of the front-runners in the whole trend. They plan to eventually power each location with renewable energy sources, and have started with installing solar panels on various stores (Ryan, 2008). Though they do this mainly for profit, it has still made helped to reduce their long-standing bad reputation. Apple: The company has been working to remove harmful chemicals such as mercury and lead from its products before disposal. They have also reduced their packaging by 53% to make it easier to transport more products in one trip, and are able to transport 80% more boxes in every airline-shipping container (Apple.com). Also, their facilities only contribute to 3% of their greenhouse gas emissions, and some are even fully powered by renewable energy. As the picture below shows, Apple has even manufactured their products so that they emit a great deal less CO2e than a 60-watt incandescent light bulb.
  • 8. 8 “Going Green” Source: (Apple.com, 2010) CONCLUSION Companies that decide to go green have a chance of achieving both economic and social benefits by saving money and obtaining good public relations. Many consumers are more likely to purchase from a company that shows themselves to be “green” as opposed to ones that are not taking the steps to do so (Iwata, 2009). Though the initial costs may discourage a company from purchasing green products or invest in renewable energy, they will find that in the long run, it will greatly reduce their own energy bills and even attract new customers, while helping to retain their current ones. Many big companies are going green and becoming environmentally conscious, and it would be a wise decision to group one’s business with such an advanced group of companies
  • 9. Works Cited Baker, M. (2009). Definitions of Corporate Social Responsibility. Mallen Baker's CSR Website. Retrieved from <http://www.mallenbaker.net/csr/definition.php>. Brown, R. (2011). Joining the mainstream. NZ Business, 25(2), 70. Retrieved from EBSCOhost. Environmental Stewardship. (2011, Februrary). Retrieved from http://www.starbucks.com /responsibility Gomez, L. M., & Chalmeta, R. (2011). Corporate responsibility in U.S. corporate websites: A pilot study. Public Relations Review, 37(1), 93-95. doi:10.1016/j.pubrev.2010.12.005 Howard, B. (2010, January). Turn Off Lights - Save Energy: Going Green, Fuel Efficiency, Organic Food, and Green Living. The Daily Green. Retrieved from <http://www.thedailygreen.com/going-green/tips/energy-conservation-turn-off-lights- 460107>. Iwata, E. (2009, June). Corporate Social Responsibility: Collegiate Case Study. USA Today Print, 1-3. Koplow, D., & Dernbach J. (2001). Federal Fossil Fuel Subsidies and Greenhouse Gas Emissions: A Case Study of Increasing Transparency for Fiscal Policy. Rev. Energy Environ. Mindfully.org | Mindfully Green 26:361-389. Retrieved from <http://www.mindfully.org/Energy/Fossil-Fuel- Subsidies.htm>. Morano, R. (2011). Green Benefit Communications Strategies. Employee Benefit Plan Review, 65(8), 6-8. Retrieved from EBSCOhost. Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic Corporate Social Responsibility and Environmental Sustainability. Business & Society, 50(1), 6-27. doi:10.1177/0007650310394323
  • 10. Ryan. 25 Big Companies That Are Going Green. (2008). Business Pundit: Your Daily Dose of Smart Business Opinion. Retrieved from <http://www. businesspundit.com/25-big-companies-that-are-going-green/>. The Story Behind Apple’s Environmental footprint. (2010, June). Retrieved from http://www.apple.com/environment/