William Riordan

Word Count – 1,567 / PIN - 10415

Companies with a Conscience – A Foundation of Sustainability

“You must be the Change You Wish to see in the World”

-Mahatma Ghandi GREEN, sustainable, recyclable, freecyclable, greenhouse effect, global warming, global cooling,

peak oil, natural foods, biodegradable, organic, endangered… even localvore (those who grow their

own food or eat locally farmed food.)

Even as the current economic crisis deepens, these buzzwords are bandied about on a daily basis.

One can hear them spewing forth from politicians, large corporations, and the students of the most

of the developed world. However, is any of this talk making a difference?

It is undeniable that the world is now rapidly coming to an ecological crisis point, and that if current levels of pollution continue there will be severe consequences within the current century. Therefore, buzzwords are important simply because they focus people’s attention; they play a considerable role in increasing awareness among the general populace. However, to make an effective and positive contribution to the pressing issues currently facing the environment, these buzzwords must be brought to life through action. The quickest and most reliable way for this action to occur on a large scale is to make the “green” economy economically viable. The increase in awareness on many levels of society has already made this possible in a large number of westernized countries. Unfortunately, the majority of corporations who do capitalize on the profitability of these words merely engage in “greenwashing” campaigns to increase their bottom line. Two of the most pervasive campaigns currently occurring are BP’s $200 million US “rebranding exercise,” as coined by the New York Times, and Wal-Mart’s “Acres for America” promotion. However, even though millions are spent on these campaigns, BP remains an oil company and Wal-Mart remains a consumer conglomerate, and both continue to contribute more to the problem than the solution. However, the fact that corporations have recognized the profitability of the green economy is a first step, even if the immediate effect is that the majority of these corporations are only contributing to the buzz instead of actually changing their behaviour. Nevertheless, if these words can be transformed into actions and pursued with honest intent, then a transformation for the better can be achieved. The closer global sustainability approaches critical mass, and the more that the citizens around the world become aware, the more profitable a green company can be. However, it is far more difficult for a mature corporation to change than for a start-up to incorporate environmental sustainability into its statement of purpose. The average tenure of a multinational corporation only lasts between 40 and 50 years.1 BusinessWeek based this estimate on surveys of corporate births and deaths. For example, the study points out that one-third of the companies listed in the 1970 Fortune 500 no longer existed by 1983. Therefore, it is imperative that corporations that are born of this current generation take responsibility for the environmental impact they will inevitably make.

1 http://www.businessweek.com/chapter/degeus.htm

William Riordan

Global Initiatives Symposium in Taiwan 2009

William Riordan

By using the cachet of green to inspire the entrepreneurs responsible for starting the corporations of this generation, it is possible to implement business strategies that from their inception embrace both environmentalism and profitability. This is clearly evidenced by UniMaid Ltd., a company started by the author in the autumn of 2007. UniMaid is attempting to incorporate environmental sustainability on the ground level in a company that will be profitable, and at the same time show its primary market of 18-25 year old students that sustainability and profitability can be partners in this new era. UniMaid is a simple student concierge service designed to combat the sub-standard living conditions prevalent in the majority of university residential halls across the United Kingdom. For many of the students living in the halls, unhealthy living conditions will lead to sickness in a variety of forms, most commonly asthma and insomnia, or for the unlucky few NoroViris (the winter vomiting disease) or even Meningitis as seen at Cambridge University in November of 2007. For others, living in an unclean environment will simply be detrimental to their academic performance and social life. UniMaid is designed to solve these problems. With the tagline of UniMaid – Cleaner Living, the company will initially offer cleaning, laundry, and dry cleaning services. The cleaning services will be offered on a weekly, biweekly, and monthly basis and laundry will be offered as a weekly plan. Additionally, UniMaid will offer dry-cleaning on a one off basis. However, an integral part of the raison d’etre of UniMaid is to take its stand in the ranks of environmentally conscious companies, dedicated to preserving the already ravaged earth. As such, the tagline, UniMaid – Cleaner Living, has a second meaning in that the services offered will not impact the environment. Although UniMaid is only one small company, its clear statement of purpose is a voice in a growing chorus of companies with a conscience. To be able to do this, UniMaid will provide a plan for sustainability in the workplace. This is particularly important because the services that UniMaid provides are traditionally services that are extremely damaging to the environment. For example, UniMaid uses a fleet of vans to operate the business, an action that would normally lead to carbon dioxide pollution. However, UniMaid has addressed this issue by stipulating that all vans operated by the company are powered by BioFuels, a fuel that is not that difficult to come by, particularly in urban areas, and at the same time is reasonably cheap, especially in this era of skyrocketing petrol prices. Traditionally, commercial laundry services use bags made of Gingham, a fabric made of artificially dyed cotton yarn and plastic. However, the laundry bags that UniMaid uses are made from recycled organic matter. The bags also use only a small necessary amount of printing, so that use of artificial dye is limited and the least impact will be made on the environment. A bit of colour may have been sacrificed in this endeavour, but it is certainly worth it as customers are attracted to this image, and in that the earth is also therefore a slightly cleaner place. Furthermore, the actual water service will employ EnergyStar™ rated washing machines along with environmentally friendly detergents. One of the lesser-known impacts to the environment are the strong cleaning fluids used in the majority of households. To combat this pollution, UniMaid will only use certified organic cleaning materials, which is especially important as a large portion of cleaning materials, particularly soaps, are washed into the water system and eventually the oceans. Unfortunately, as of today, there is no regulator for green phraseology in non-edible products, i.e. there is no restriction in either the U.K. or the U.S or most of the rest of the developed world. This means that many suppliers can claim to be green, whether they actually are or not, with little legal

Rethinking of Corporate Social Responsibility (CSR) and Social Entrepreneurship

consequence. Therefore, it is imperative for every business to research potential products to assess their effect on the environment. Altogether, these measures are not particularly expensive to implement, and also give the company an advantage among competitors. Furthermore, UniMaid will not stop at simply using these products, but will also use its access to the 18-25 year old market to educate and encourage. Admittedly, educating a group that has already chosen an environmentally friendly company is substantially easier than a more diverse group, although the effect may not be as large. However, the majority of students that use UniMaid’s services do so not because it is environmentally friendly, but because there is a demand for the service to begin with in the industry. Therefore, it is possible to encourage environmentally conscious behaviour among students, both those who are aware, and those who are unaware of the consequences of their actions on the environment. UniMaid is only one example of what can be done in a small segment of the service industry. Any additional costs that the company incurs are more than compensated for by the additional business that is attracted to the company due to the green policies. Although it can be argued that if this policy is so successful, all companies will become green ending any advantage. However, if this becomes the case, then the effort certainly will have been extremely successful.

Furthermore, if more companies do take up this policy, the increase in demand will simply necessitate an increase in supply of green companies, or cause previously ambivalent companies to change their policies. This has a knock-on effect that can be witnessed as UniMaid grows and gains more clients. With this additional clout in the industry, the company will be able to negotiate more effectively with suppliers, and force change in operators who wish to be part of the chain of supply. These green start-ups are going to become even more important in the years coming as developing nations increase their standards of living and reach the threshold of consumer culture. New markets of people interested in the preservation of the earth are opening every day, and throughout the next half century, the number of people able to afford such services will increase greatly if the world economy continues on its projected path. It is also imperative that existing corporations are not ignored. Even in the current recession, as the green movement grows in size, the more mature corporations will have little choice but to join in the march. Essentially, by making green the only viable economic option, this movement will naturally create a better world.

Global Initiatives Symposium in Taiwan 2009

William Riordan