- Green marketing
- Greenwashing
- Recycling initiatives
- Stakeholder assessment
- Risk analysis
- The strategic environmental audit


[SLIDE 1]

Green marketing is something that many companies are doing to improve their public image. Green marketing is a corporate strategy to strengthen relationships with stakeholders by focusing on being good stewards of the natural environment. Ways that companies can embrace green marketing include installing solar panels on their buildings, using natural lighting in buildings, and cutting back on water and chemical use in manufacturing. 

There are many organizational benefits of being viewed as a leader in sustainability by stakeholders. For example, customers typically view companies that embrace green initiatives more favorably than those that do not and are often willing to pay a premium to buy products from these companies. To be viewed as a leader in sustainability, an organization should incorporate sustainability into its norms, beliefs, and values. In other words, sustainability should become part of the corporate culture. 

One way a company can market its products as being environmentally friendly is by having them certified as being "green" through environmental organizations. Green Seal is one such organization that does this. Products the organization certifies can display a special logo that identifies them as being green. In Europe, companies can voluntarily apply for the Eco-Label Program. 


[SLIDE 2]

Since many consumers prefer to buy products from companies that are environmentally friendly, some companies have engaged in the practice of greenwashing to make themselves appear more green. Greenwashing is the practice of misleading people into believing that a product is more environmentally friendly than it actually is. Greenwashing has become an ethical issue in recent years. Examples of greenwashing include making vague or misleading product claims such as "nonpolluting" or "environmentally friendly." 

Unfortunately, many people do not find out about false product claims until after they have purchased a product. While the practice of greenwashing can increase sales in the short-term, it can cause a company a great deal of harm over the long-term after the misleading claims are discovered, thus changing consumers' perception of the company and its products. 

Greenwashing is not always intentional. Companies do not always do it with the intent of deceiving consumers. Rather, it can sometimes be difficult to define what constitutes a "green" product as opposed to one that is not. Companies sometimes use terms like "green" and "sustainability" when marketing their products when the degree of environmental friendliness is questionable. 


[SLIDE 3]

Recycling involves the reprocessing of materials used to make products. Items that are commonly recycled include aluminum, steel, paper, glass, plastic, and rubber. Many companies now recycle to reduce waste and help the environment. For example, many companies now recycle the boxes their products are shipped in. Paper, in fact, is one of the most commonly recycled products. Currently, over 50 percent of all new products sold are packaged in cardboard that has been recycled.

The recycling industry continues to evolve, and new ways to recycle are continually being discovered. For example, Researchers at the University of Illinois have discovered a way to make diesel fuel and other petroleum products from used plastic grocery bags. A researcher in India found a way to mix plastic products from landfills with asphalt to pave roads. These new roads have been found to wear better and last longer than traditional roads. And another company recently developed a type of composite decking material that is made from sawdust from reclaimed wood and recycled plastic. 

Many companies that use water and chemicals in the production process are implementing ways to decrease their use. This results in less waste water and reduces harmful chemicals being released into the environment. Coca-Cola is an example of a company that has taken steps to reduce its water use.  


[SLIDE 4]

Companies must regularly conduct stakeholder assessments to make sure they are meeting their concerns about environmental issues. To do this, managers must conduct research, assess risks, and communicate with stakeholders. After identifying stakeholders' concerns, the company must then evaluate each one to determine the best way to address it. In some cases, it may not be possible to address every issue. 

One reason why companies may not always be able to address stakeholders' concerns is when a special interest group takes an extreme position on an issue. In this case, the company may actually offend a large percentage of its customer base by appeasing the special interest group and caving in to their demands. When evaluating each stakeholder concern, an organization must carefully consider the percentage of stakeholders who share that concern and whether it makes sense to address it. 

It is not enough for companies to address stakeholders' environmental concerns, companies must all communicate the steps they have taken to address those concerns to stakeholders. If few people know about a company's environmental initiatives, it will not have the desired impact on the company's reputation. 


[SLIDE 5]

After conducting a stakeholder assessment, a company must then assess the environmental risks of business decisions. Environmental issues can be identified that impact a company's marketing, manufacturing, supply chain, and other areas. A cost versus benefits analysis can then be done to determine the actions the company should take that will have the greatest impact. 

Tradeoffs are often involved when many companies make environmental decisions. For example, a company may have to make a tradeoff between the investment the company will have to make to reduce risk and the amount of risk in stakeholder relationships that is acceptable. If a proper balance is not achieved, it could negatively affect the organization. 


[SLIDE 6]

As previously mentioned, an organization must communicate its environmental efforts to stakeholders. One way it can do this is by conducting a strategic environmental audit. After this is completed, the organization can then communicate the findings to stakeholders. This can be done in the company's annual report or informally through marketing campaigns. 

When conducting a strategic environmental audit, an organization may choose to use ISO 14000 as a benchmark. ISO 14000 is a comprehensive set of environmental standards that companies can use in managing how their operations affect the environment. Because environmental laws and regulations vary greatly throughout the world, ISO 14000 was created to be an international standard for environmental management.