HR Professional - February/March 2008 - (Page 32)

COVER STORY Changing the value proposition I n t o d ay ’s rapid ly ch a ng i ng environment, it pays to be ﬂexible and responsive to public concerns. Accenture, a global management consultancy firm, recently revealed the results from a poll of consumers around the world and found nine out of 10 would pay more for green products and energy providers if it meant a reduction in greenhouse gas emissions. Interestingly, according to the survey, Hollywood isn’t the only place with a social conscience. Consumers in China, India and Brazil are especially motivated to better customer relations, better community relations — and, of course, all the reputational stuff.” Sustainability appears to have legs, attracting investment and producing new industries even as it transforms traditional ones. American bank Morgan Stanley projects annual clean energy sales of $1 trillion within the next couple of decades; and The Social Investment Forum in the U.S. reports that ethical investing totals $2.3 trillion in the American investment marketplace as increasing numbers of investors see the potential for profit in green companies. talk about what they’re doing right, it often illuminates problems that their customers didn’t know they had. For example, Levi Strauss was reluctant to talk about the fact that it was buying two per cent organic cotton, because it played up the environmental problems associated with the 98 per cent of conventional cotton they were still buying. “The result is that companies are reluctant to talk, customers (and others) don’t know of their efforts, and the companies aren’t rewarded for making an effort, so are reluctant to make an even bigger one. The challenge is how to …companies will need to reduce their environmental footprint within their own operations, but also address the larger environmental footprint throughout the value chain. address environmental concerns emerging from their nations’ rapid industrialization. Brazil will consume more plantbased ethanol than gasoline by 2020 when flex-fuel cars (which run on both ethanol and gas) are predicted to attain majority status among drivers in the country. “Going green should be about creating business value, but that’s not always equal to ‘money,’” advises Makower. “Value in business can be measured in lots of different ways: increased sales, decreased costs, increased quality, reduced risk, increased ability to attract and retain talent, new markets, new business opportunities, ‘‘ ’’ And Investors’ Circle, founded in 1992 by a group of socially conscious venture capitalists, has invested more than $110 million in more than 180 companies. So how does business adjust its thinking to accommodate and ethically exploit such a radical shift in social, political and economic change? “One of the big challenges for both businesses and consumers is that there’s no agreement on ‘how good is good enough?’ when it comes to green business practices,” says Makower. “As a result, companies often find it challenging to communicate what they’re doing. In fact, when companies make this conversation work better—for companies and consumers to have a more effective conversation in the marketplace.” Nothing good comes easy Despite favourable social and financial markers, no one ever said it was easy being green. “There are plenty of obstacles— it’s not always easy or win-win. Sometimes companies focus on the wrong areas, not fully understanding where their biggest environmental impacts are. They also set up conf licts internally—conflicting goals for middle managers who have to hit a lot of targets, and now may be asked to ENERGY. FOSSIL FUELS: COAL, PETROLEUM AND NATURAL GAS—FUELS THAT PRODUCE CARBON DIOXIDE WHEN BURNED. ZERO WASTE: PROCESS OF CREATING LITTLE OR NO 32 F e b r u a r y / M a r c h 2 0 0 8 HR P R OF E S S I ON A L

Table of Contents Feed for the Digital Edition of HR Professional - February/March 2008

HR Professional - February/March 2008 Contents Editor's Letter Contributors Leadership Matters Boards By the Numbers Did You Know Sustainability Education News: E-Recycling Communications News: HR Study FYI Ethics World Watch News: Legislation Legal Compensation Focus Strategy The Colour of Money Sustainable Skills From Brown to Green HR Trends: From Winners to Also-Rans Branding Human Capital HR 101 Interview with David Suzuki Off the Shelf The Last Word

HR Professional - February/March 2008

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