Appliance Design - March 2008 - (Page 48)

ASSOCIATION REPORT: AHAM President Association of Home Appliance Manufacturers Joseph M. McGuire S Are You Ready for Sustainability? help customers make better decisions, and to use our business model to drive out waste.” At its April meeting, AHAM members will explore ways to incorporate sustainability into their operations and benchmark other company’s efforts. AHAM will showcase sustainable practices being implemented by home appliance manufacturers, suppliers and trade partners. They will hear what the top retailers are doing in this area and what they expect from suppliers. Alan Epler, merchandise manager of small appliances, will describe what suppliers can expect to see from Wal-Mart Stores Inc., and John Kasberger, senior vice president and general merchandizing manager - Kitchen and Bath for Lowe’s Companies Inc., will offer his thoughts on greening the industry. Something important to keep in mind about this growing and powerful trend is that, while CSR is gaining global traction, it is being defined in different ways in different parts of the world. The Economist magazine made this point it its January special report on sustainability. It referenced a 2007 survey by McKinsey & Co. that ranked 16 things that matter in the U.S., U.K., Germany, China, and Brazil. The list included such topics as the environment, human-rights standards, workplace conditions, and investment in developing countries. A global ranking put the environment as the most important issue, and safer products as the second most important issue. In the midst of the uproar last year over safety concerns with toys imported into the U.S. from China, Congress took up a massive overhaul of U.S. consumer product safety laws. Certainly more funding and resources for the U.S. Consumer Product Safety Commission are in order, as well as some changes to the agency’s authority to pursue safety problems. But in testimony before both the House and Senate, I cautioned that the vast majority of consumer products sold in this country are totally safe, no matter where they are produced. Virtually all home appliances are tested to U.S. safety standards. This fact is not the result of a statutory requirement, but solid practices built up over time and incorporated by manufacturers and retailers alike. So, when assessing their triple bottom line, AHAM members and their suppliers need to put the proper value on this strong record of consumer safety. It is time for companies to show leadership and not underestimate the value they may already be providing. < www.applianceDESIGN.com ustainability and its related practices are receiving a great deal of attention by consumers, government, business and the media. What exactly does sustainability mean? An often-cited definition of sustainability, attributed to the Brundtland Commission, led by former Norwegian Prime Minister Gro Harlem Brundtland, is development that “meets the needs of the present without compromising the ability of future generations to meet their own needs.” In the private sector, sustainability is a subset of the broader idea of Corporate Social Responsibility (CSR), which embodies some commitment to the “triple bottom line” of people, planet, and profit. In a speech this year, Microsoft Chairman Bill Gates favored the description of corporate responsibility given by The Economist magazine: “…the interaction between a company’s principles and its commercial competence that shape the kind of business it will be.” Gates calls for a “creative capitalism, an approach where governments, businesses, and nonprofits work together to stretch the reach of market forces so that more people can make a profit, or gain recognition, doing work that eases the world’s inequities.” Many businesses are trying to boil these broad concepts down to tangible objectives that get at the triple bottom line. In the appliance sector, manufacturers are using innovation to develop initiatives on sustainability and CSR. And what does sustainability mean to your business? AHAM will try to help appliance manufacturers and their suppliers answer this question next month at its 2008 annual member meeting titled “Sustainability Inc., Principles, Practices and Pathways.” Sustainability can be defined in various ways. For a business, sustainability can include such things as revenue targets for products and services that improve the environment, product energy efficiency goals, the carbon footprint of a facility, corporate citizenship, and employee volunteerism. Retail giants such as Wal-Mart play a major role in defining these concepts in the appliance sector. In an address to Wal-Mart employees this year, company Chairman Lee Scott said: “Our goal is to work with suppliers to make the most energy intensive products in our stores, anywhere in the world, 25 percent more energy efficient within three years. We do not know exactly how we will get there. We do not even know if our suppliers can make items like hair dryers (that) use 25 percent less energy. But we do know that our approach works – to partner with suppliers, to 48 applianceDESIGN March 2008 http://www.appliancedesign.com

Table of Contents Feed for the Digital Edition of Appliance Design - March 2008

Appliance Design - March 2008 Contents Editorial Shipments/Forecasts News Watch A New Appliance is Set to Break into Homes Soon - the Micro CHP Unit, which Generate both Heat and Power. Thermally Enhanced Varistors Help Protect Low-Power Systems Against Damage Caused by Over-Current, Over-Temperature and Over-Voltage Faults. Hybrid Controller Reduces Standby Power Consumption and Improves Active-Mode Efficiency. Battery-Management ICs Solve Design Challenges for Cordless Appliances Using High-Voltage, Lithium-Ion Battery Technology. A Semiconductor Solution Protects the Relay in a Temperature Controller for a Cooking Appliance. New Polyurethane Foam Insulation System Optimizes both Insulation Performance and Productivity. Innovations in Decorative, Pre-Finished Metals Expand Range of Design Options for Appliance Designers. Design Marts Association Report: AHAM Advertiser's Index

Appliance Design - March 2008

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