For businesses, going green is no longer
just a good PR move. With regional and
state mandates for LEED certified building practices, endless research on the
cost savings of renewable energy sources
and proof that sustainable workplaces
make for happy and healthy work forces,
there’s more to green workplaces than just
their effects on the environment.
The business world has taken note and
realized the benefits not only to the planet
but to their bottom lines.
More and more consumers want to
patronize environmentally friendly businesses, says Eugenia P. Ferrero, associate at
Baker, Donelson, Bearman, Caldwell &
Berkowitz, PC, Atlanta office. And businesses realize that going green is a good way to
retain sales and attract new revenue.
Smart Business spoke with Ferrero on
the strengthening green movement and
what’s at stake for businesses.
What is a ‘green’ business?
Some define a ‘green’ business as one that
is socially responsible and uses environmentally sustainable, renewable resources.
It’s all about how a business purchases,
develops, produces and provides products
and services to consumers while having a
positive impact on the environment.
What is the green movement all about?
Initially, the green movement was about
preserving the natural bounty of the past.
However, it emerged into regulating the
problems of the industrial present. Now, the
green movement has changed, and it’s about
investing in solutions for the future, such as
solar power, hybrid technology, biofuels,
wind turbines, tidal power, fuel cells, etc.
The green business movement has developed over decades and is not a fad recently
created by enormous media attention.
Awareness of pollution was initially raised
in the 1960s, followed by the creation of the
U.S. Environmental Protection Agency in
1970. In the 1980s, some businesses realized
that pollution prevention, not pollution control, should be emphasized so that a business could reduce its pollution and also still
make a profit.
In the 1990s, management started to play a
significant role in the greening of business,
and this led to the creation of an environmental management system in 1992. This
system devised a set of guidelines, the ISO
14000, to govern how companies could
organize in an environmentally conscious
manner.
The end result is that, today, it’s not
enough to say that one’s business is green
but rather that it’s sustainable. That means
that the business continues to make a profit, does not negatively impact the planet and
people benefit from its products or services.
Consumers are choosing to support green
business, and if a business isn’t green, it
could potentially lose some of its customers
and, eventually, considerable amounts of
money.
Should businesses be proactive or reactive
about going green?
Being proactive rather than reactive will
help a business’s corporate image, and it is a
better overall strategic move. Long-term
planning provides stability to the business
practices and allows a business to avoid
constantly reacting and changing its business practices based on new regulations
passed by the federal government.
A proactive approach also encourages
consumers to continue to support that company and purchase its products and services.
One danger to avoid is ‘greenwashing’
campaigns. This is when a business claims
it’s going green with certain initiatives and
then doesn’t follow through. Once consumers learn that they’ve been misled, the
backlash against that business could be
severe and result in significant loss of profits.
What benefits can a business achieve by
going green?
- Innovation of new products and services
- Expansion into new markets
- Creation of new jobs
- Reduction in the costs of health care
from healthier employees - Lower landfill fees and less production
of air pollution, waste and toxic chemicals - Improvement of community health and
opportunities in struggling communities - Education of not only employees but
consumers, retailers and others with whom
a business has developed relationships - Earning of the title of role model and/or
pioneer within its particular industry
Who should businesses seek out for help in
executing their green strategy?
A business should turn to outside consultants who have the expertise and
knowledge as it pertains to its particular
industry. A consultant can help a business
develop more sustainable practices in providing its products or services. A consultant can also serve as an educator, teaching
the business about the negative impact of
its current practices and how to move in
the direction of more sustainable practices.
This can be done gradually if a drastic
change to the entire business immediately
is not desirable.
EUGENIA P. FERRERO is an associate in Baker, Donelson, Bearman, Caldwell & Berkowitz, PC’s Atlanta office. She is a member of the
real estate group, where she focuses on commercial real estate and real estate development as well as corporate and mergers and acquisitions matters. Reach her at (404) 223-2216 or [email protected].
