Who’s Behind the Green Wave?

Dave Augusto

Mike Gautier

Dr. Bresnock

Econ 441

Chapter 3

Overview:

• Who’s Demanding that Companies Explain and Justify how They Treat the Environment?

– Rulemakers and Watchdogs• Government regulators and environmental groups.

– Idea Generators and Opinion Leaders• Think tanks and academics.

– Business Partners and Competitors• As well suppliers and business to business customers.

– Consumers and Community• Including local officials and the general public.

– Investors and Risk Assessors• Such as stock market analysts and bankers.

Rulemakers and Watchdogs.

1. Non Governmental Organizations (NGOs).2. Government and Regulators.3. Politicians.4. The Plaintiffs Bar.

NGOs• Examples of NGOs include:– Environmental Defense, World Wildlife Fund,

Sierra Club, Green Peace, National Wildlife Federation, Natural Resources Defense Council, Friends of the Earth, Conservation International.

NGOs• How Do They Interact With

Businesses?

– Can utilize confrontational techniques.• EX: Shell and Green Peace

– Can form partnerships with businesses.• EX: McDonalds and

Environmental Defense.

Government and Regulators

• Operates on a Vertical scale- city, county, state, federal, international.

– Regional legislation can have wide reaching effects.

– It makes no sense to produce things one way for a particular region, and differently everywhere else.

Government and Regulators

• Setting Performance Standards:

– Utilizes economic incentives to curb behavior of polluting firms.

– More flexible than governmental command and control mandates.

Politicians

The Plantiff’s Bar

“One of the biggest environmental dangers every company faces is the risk of being sued for pollution or ecological harm.”

Idea Generators and Opinion Leaders

1. Media.2. Think Tanks and

Research Centers.

3. Academia.

Media

“Do nothing that might embarrass you.”

Think Tanks and Research Centers

• Have provided many of the ideas that have framed public policy agenda and shaped the political debate.

• Resources for the Future led charge to shift command and control regulation to market based incentives.

Academia• Creating links with universities gives firms another

place to turn to for new ideas and perspectives.

• Can be used to promote agenda.– The Koch brothers have donated millions to

various universities in exchange for being able to select professors and approve publications.*

*Fang, Lee. “Koch Fueling Far Right Academic Centers at Universities Across Country.”ThinkProgress. 11 May 2011. Web 04 April 2013

Biz to Biz

Greening the Supply Chain

Business Partners and Competitors

• Industry Associations

• Proactively managing relationships for a strategic advantage

• Membership Requirements: 3rd party certification of Responsible Care practices

Business Partners and Competitors

• Competitors React

• Star-Kist’s market

• GAP’s groundbreaking Corporate Social Responsibility report

Suppliers

NGOs and Dell

Consumers of business solutions and products asking others to join in green movement.

Consumers and Community

CEO / Peers exchanging stories: No CEO wants to be the one creating environmental messes.

Consumers

Lifestyles of Health and Sustainability (LOHAS)

Ex: Restaurants offering menu items that are certified Organic

Kids and Communities

Gap Clothing eliminating improper human conditions: Sweatshops

Alcan Canadian Aluminum: engaging the local community and NGOs before, during, and after opening or expanding operations

Investors and Risk Assessors

Employees Shareholders

Investors and Risk Assessors

Insurers Banks and Capital Markets

WAVERIDERSThe Eco-Advantage Playbook

The Eco-Advantage Playbook

Costs Risks

The Eco-Advantage Playbook

Revenues Intangible Brand Value

THE ENDChapter 3