Why Understanding Green Business? With every new day society has become more aware of the increasing threats to the globe due to the non-environmentally friendly practices that have been occurring in the previous years. Due to the newfound awareness, people have taken greater lengths to pass laws, alter company policies and change their everyday lives to do their part in helping to preserve the environment and prevent any further damage. Rather than taking the easy route and continuing their habits, society is putting forth a consciousness effort to go out of their way to improve the environment in any way they can. As a collective force the going green movement will better the environment and allow further generations to enjoy a clean and productive world. How is Understanding Green Business structured? Dr. Tehrani and Dr. Sinha dedicate each chapter to a different aspect of "going green" in this book such as products, transportation, networking, research and energy alternatives. In addition, the authors discuss green careers and provide useful information on how to go about working at a green company. The future of the green movement and its impacts are mentioned so as to provide a potential impact of current changes in the future. It also shows a possible interpretation of how the future green movement shall be exercised. Who is this book for? This book has been created as the core textbook for Business professionals, industry practitioners, academicians and students who would like to hone their business skills, and keep up with the latest trends in Green Business. As a result, Understanding Green Business will support students pursuing a master degree in MBA, Certificate in Management or a Diploma in Management and/or Business while undergraduate students in business programs.
Understanding Green Business
By Nik Tehrani Swapna SinhaAuthorHouse
Copyright © 2011 Nik Tehrani
All right reserved.ISBN: 978-1-4634-1082-7Contents
About the Authors..........................................................................................iAcknowledgements...........................................................................................vPreface....................................................................................................viChapter 1 Introduction....................................................................................1Chapter 2 Green Business-Compelling Issues Regarding Environmental Sustainability.........................28Chapter 3 Green Energy Alternatives.......................................................................69Chapter 4 Green Research..................................................................................111Chapter 5 Green Manufacturing & Green Supply Chain Management.............................................141Chapter 6 Green Products..................................................................................171Chapter 7 IT and Networking...............................................................................202Chapter 8 Green Homes and Commercial Buildings............................................................240Chapter 9 Green Transportation............................................................................272Chapter 10 Green Consumer.................................................................................310Chapter 11 The Role of United Nations, Institutions, and Country Specific Initiatives.....................349Chapter 12 Policy Framework for Green Business............................................................382Chapter 13 Green Advertising & Eco-Labeling...............................................................419Chapter 14 Green Movement: The Future.....................................................................448Chapter 15 Managing Green Businesses......................................................................493Chapter 16 The Green Jobs.................................................................................535
Chapter One
Introduction
Chapter Contents
? Introduction 3
? A Historical Perspective 3
? Green Business-Compelling Issues Regarding 5 Environmental Sustainability
? Green Energy Alternatives 9
? Green Research 10
? Green Manufacturing & Green Supply Chain Management 11
? Green Products 12
? Green IT and Networking 15
? Green Homes and Commercial Building 16
? Green Transportation 17
? Green Consumer 18
? The Role of United Nations, Institutions, and Country 18 Specific Initiatives
? Policy Framework for Green Business 20
? Green Advertising & Eco-Labeling 20
? Green Movement: The Future 23
? Managing Green Businesses 23
? Green Jobs 24
? Chapter Summary 24
? Review Questions 25
? Appendix 26
? References 26
INTRODUCTION____________________________________
The concept of Green Movement and Green Politics began in the late 1970s when the first Green party was formed in Germany. The term 'Green' is the English translation of the German word 'Grun'. Green politics advocated issues pertaining to ecology, environment, feminism, conservation and peace. Apart from all this, the supporters of green politics were also concerned with civil liberties, non-violence and social justice. Hence, green politics came to be known for ecological and environmental goals during the 1970s. It also focused on achieving these goals through participatory democracy, consequently, parties were formed that dealt with ecological and environmental goals. These were known as 'green' parties and by the early 1980s they were active in several countries.
A HISTORICAL PERSPECTIVE_________________________
It is believed that Green politics draws its inspirations from Mahatma Gandhi, Spinoza and Uexkull who advocated and urged personal responsibility to make the right moral choices is the pillar of the green politics ideology. Further, the significance of environment seems to have been influenced by other great thinkers and philosophers such as Rousseau and Thoreau .
One of the most noteworthy facts is that green politics began as a conversation forum drawing insights and ideas from ecology, environment, feminism, social democracy, libertarian socialism, pacifism, social ecology and eco-socialism. These platforms evolved into a new philosophy to synthesize these goals, thus leading to the formation of green politics.
It is reported that the United Tasmania Group formed in Australia in 1972 was the first green party. During the same year in May, a meeting at the Victoria University at Wellington, New Zealand led to the formation of Values Party. This was a national-level party that contested for Parliament seats. The following year, UK's Ecology party was established, the first green party in Europe. Though the German Green Party was not the first in Europe, it received a lot of attention. The Party conducted a conference in 1979, during which the Four Pillars of the Green Party were identified. These Pillars formed the basis for the Party and for several green parties around the world. The Party or the Green won 27 seats in the federal election of 1983. Later, during the 1980s and 1990s, several other countries such as Canada, Finland and the US witnessed the formation and growth of green parties.
The proponents of green politics support several issues, one of the most important being Green Economics. Green economics emphasizes on the significance of the health of the environment along with the human well-being. As a result, the Greens disown capitalism, which focuses on economic growth at the cost of ecological health. The Greens consider such growth as uneconomic growth that fosters material consumption over quality of life. The supporters on green politics support economic policies that are less harmful to the environment. They denounce subsidies to certain industries and propose a green tax on these industries, thus forcing producers and consumers to make eco-friendly choices. Green economics is also anti-globalist in its approach. It considers globalization as a threat to the well-being of local cultures and natural environments.
GREEN BUSINESS-COMPELLING ISSUES REGARDING ENVIRONMENTAL SUSTAINABILITY___________________
The term 'green movement' denotes the individuals and organizations that involve in efforts to safeguard the environment. To a greater extent it was believed that the green movement originated in the US with the publishing of the book Silent Spring by Rachel Carson and legislative actions of the 1970s. However, a peep into the history reveals a different picture. The concern for environment appears to stem from the 1830s and 1840s. The well-known philosopher, Henry David Thoreau, first mentioned in his book, Maine Woods, the need for conservation and respect towards nature. George Perkins Marsh was another key supporter who proposed the preservation of the natural environment. However, such ideas and thoughts were met with stiff opposition from those who believed that it was moral to use the land economically and leaving land unutilized was wasteful and uncivilized. This conflict is still prevalent in the current times.
Later in the 1860s, the US government set aside land for parks for public use. Several parks were established, such as the Yosemite, Sequoia and the General Grant parks. Though this era was supportive to environment, especially with the implementation of the Forest Reserve Act (1891), it was also a setback when the government passed the General Mining Act of 1872. While the former, allowed the government to set aside forest reserves from the land in the public domain, the latter allows the government to authorize and govern the prospecting and mining for minerals such as gold, platinum and silver on federal public lands, which again is detrimental to the environment.
During the 1900s, two prominent supporters, Teddy Roosevelt and John Muir publicized and popularized the significance of conservation. However, the two World Wars and the Economic Depression forced environmental issues to the background, as there were other concerns for the country to battle with. The awareness about environmental issues was also limited among the Americans. Only natural disasters seemed to divert the attention to environmental concerns, which very soon faded from public memory. However, after World War II, there was a certain amount of significance on conservation of land, while other issues continued to be ignored. This continued until 1948, when death fog disaster created a stir across the nation. There was also an increased pace on industrial and technological development, which led to a gradual awareness that conservation is beyond saving forests and establishing national parks. Around the same time, Rachel Carson's bestseller further revealed the use of toxins in consumer products and the harmful outcomes of controlling nature. Other incidents such as the oil spill in Santa Barbara and prevention of damming the Grand Canyon further received media attention and created more awareness about environmental issues. Finally, in 1964, the Wilderness Act was passed which limited the construction of dams on landmarks and lands of national and ecological significance. During these years, the Environmental Protection Agency was established which was an important achievement in the history of the green movement. As a matter of fact, the late 1960s and the 1970s are considered to be the era of the modern green movement.
During the 1970s, there were several acts introduced to clean and protect the environment. The Clean Air Act, the National Environmental Policy Act and the Endangered Species Act were some of them. Other initiatives were the ban on dichlorodiphenyltrichloroethane (DDT), a popular synthetic pesticide and the beginning of the annual Earth Day also created awareness. Public was also sensitized to disasters such as the Three Mile Island disaster in 1979, the Love Canal disaster in 1978 and the oil spill of Exxon Valdez in 1989. Though there was enough public awareness about ecological issues and federal laws in place, the industry continued with its pace of growth and ignored the protests and strictures.
During the 1990s, the environmental protests took a radical transformation with the rise of groups such as People for the Ethical Treatment of Animals (PETA), Earth First! and Earth Liberation Front (ELF). The protests made by these groups received media attention. While some focused on corporate mistreatments others focused on animal rights. In total, there were several groups using various methods to attract attention and generate action to protect the environment. Though there was an increased awareness and acceptance of these groups, they also invited ridicule and were considered misguided environmental fanatics.
Later, after the 9/11 attack and a series of catastrophic natural disasters and evidence of climate change, there was a scientific consensus about the environmental concerns. There was an increased pro-active participation from the businesses to care for the environment. Many consider such initiatives as a long-term strategy to build a positive image and a gimmick to increase the profits. However, this has sped up the pace of development of eco-friendly products; consumers are thus embracing such products and this has resulted in increased sales of hybrid vehicles and organic products. With such a heightened level of awareness, companies are embracing green practices, be it in manufacturing or marketing or others processes. This book will bring out the various facets such as manufacturing, information technology, transportation and marketing and advertising that are going green and are getting labeled as "Green Organizations". Green organizations is the term given to companies that are involved in developing products that are environmentally friendly and through process and use of materials that have a low impact on the environment.
GREEN ENERGY ALTERNATIVES______________________
A green organization is concerned with the fuel shortage and thus focuses on the use of alternative energy or renewable energy such as solar energy, wind energy etc. A green organization is concerned about its product being energy efficient i.e. it should not use energy. Energy is generally generated by hydro-power, coal-power and nuclear energy. Generation of energy from the above-mentioned methods releases huge amount of toxic gas in the atmosphere affecting the global warming. Towards that purpose, Procter and Gamble (P&G) launched a product, which is a line extension of Tide Coldwater. This brand was positioned as washing detergent that would save on energy bills. The company also launched a website and allowed visitors to calculate the amount of energy that they could save personally and also together with others who participated in the Tide Coldwater Challenge. There were also ads that featured the Empire State Building and how long it could be lit if the consumers in New York City adopted cold-water washing. The company also gave energy-saving tips and urged viewers to switch to EnergyStar-certified compact florescent lighting. There also were suggestions to buy other products that saved energy. These efforts helped the company to overcome the initial disbelief about the brand and also to conserve valuable energy.
The other aspect is the use of green energy or renewable energy in the organization. It is common knowledge that the investment cost of green energy is high. However, the operational costs may vary and further, the long-term returns are highly significant and cannot be ignored. Research in renewable energy is also becoming quite popular.
GREEN RESEARCH__________________________________
Green Research describes the procedures and methods in research that consider their impact on the environment and attempt to minimize it. For instance, a laboratory might train its personnel in chemical and environmental safety, waste minimization and treatment and prevention of pollution. Another example is that a research laboratory can be set up that uses renewable sources of energy. Typically, in a laboratory or any other setup where research is done, three kinds of wastes are produced – gas emissions, solid effluents and waste water effluents.
GREEN MANUFACTURING & GREEN SUPPLY CHAIN MANAGEMENT_____________________________________
Manufacturing industry yields toxic gas emission and wastes that get dumped in the land and water, thereby polluting the land and water sources. Green manufacturing basically changes those processes during the product lifecycle where the impact on the environment will be low. Green manufacturing is also achieved through lean manufacturing, which is attained through Toyota production system and Just-in-time production concepts. The manufacturers in order to be termed green organization have to get accredited to Zero Emission Strategy, ISO 9000 and ISO 14000. Green manufacturing is further attained through hybrid technology and nanotechnology.
Sustainable plant designs help the manufacturing unit have a cleaner working environment. Sustainable plant designs also help to achieve a cleaner environment as this helps to reduce the gas emissions and toxic waste emission to the environment. The regulatory framework and the tightening of laws are forcing several companies to adopt environmentally friendly processes. Regulations such as Waste of Electrical and Electronic Equipment (WEEE), (Restriction on Hazardous wastes (RoHs), etc. are related to the wastes generated during the manufacturing of various products and hence are directly responsible for changing the process.
GREEN PRODUCTS__________________________________
The characteristics of green products are recyclability, resource efficiency, low water and energy consumption, which promote a healthy and safe environment and decrease the toxic emissions. The product lifecycle of a green product differs from traditional products where the green product requires special design criteria to make it more environmentally friendly. Some of the design principles such as durability, packaging, reuse and recycle and sustainable design standards need to be taken into account when green product are being produced.
Another characteristic of green organizations is that the end product is a green product that is manufactured using organic materials. One such area for use of organic material is the beauty care industry. The beauty care product companies, such as Tom's of Maine and The Body Shop, manufacture products that use organic materials and no chemicals in the compositions. The products are not tested on animals. Tom's of Maine lives up to the claims it makes as a green brand. For instance, its toothpaste carton displays a message from Tom and Kate stating the company's mission and signed by them. This gives accountability to the claims. Another panel on the carton lists out all the ingredients, their respective properties in relation to the toothpaste and the source of the ingredients. By listing out the ingredients, the brand tries to help cross the price barriers at the point of purchase and convinces the consumers to pay the premium price.
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