Greater Transparency
Demand for openness about where products come from and
what's in everything is still growing. No recession will put the genie back in
that bottle. Companies like HP put a list of all its suppliers on the web and then announced the
total carbon footprint for the supply chain. How long will it be before
companies share data on every company's specific climate contribution in the
value chain? Transparency will become a lever to improve operations (what gets
measured gets managed) and a source of competitive advantage over time. As
business customers and consumers want to know more, they will trust those with
data. In 2009, collect information, build systems, and get ready to be open.
Greener Supply Chains
The evolution will be toward more partnering and less
demanding, as companies increasingly realize the benefits of working together
with the suppliers across the value chain.
It is about better prices, decent working conditions, local
sustainability, and fair terms of trade for the suppliers of raw materials and
intermediary products. By requiring companies to pay sustainable prices; which
must never fall lower than the market price, Fair trade addresses the
injustices of conventional trade, which traditionally discriminates against the
poorest and the weakest producers. It enables them to improve their position
and have more control over their lives. Your clients and customers would want
to see that happen.
Growing Market for Smarter Green Products
The recession slows the green consumer movement that was
brewing. Throughout 2008, consumers indicated a real interest in greener
products. And while tight wallets will cause some retreating on this front, a
fundamental shift is underway. While 2009 may not be the time to sell
premium-priced green products, the demands of "conflicted" or "conscious"
consumers who want more sustainable options, but at the same price and quality,
will continue.
Beyond developing new products, companies can win over
confused customers by helping them navigate all the green claims out there.
Consumers will reward the businesses that produce lower-carbon products and
services. Those companies will weather the downturn much better than others.
Employee Engagement
Recessions shift priorities - people are happy to be working
at all. The younger generations coming into the workforce care a great deal about green and surveys show that employees want more training on
sustainability.
In many companies, employees are forming their own "green teams" (see
stories from tech companies such as Wipro and Yahoo and eBay. While these self-directed groups
may not always focus on the most strategic issues they do lay the groundwork
for larger conversations about greening the operations, products, and services
of the company.
So the critical story during this downturn may be the role
of green engagement in keeping morale up. Greening the business will keep
everyone from top management to entry level employees interested and excited.
With employees on board, the proverbial "flywheel" will start
spinning toward greater enterprise. Engaged employees will innovate around
operations, products, and supply chains, creating stronger companies that will
not only survive this economic climate, but also thrive.
About the Author
Ms. Shalini
Sheth Amin is the Founder and CEO of Moral Fibre.
