Chapter 3 behindthe greenwavepresentation (1)
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Transcript of Chapter 3 behindthe greenwavepresentation (1)
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Who’s Behind the Green Wave?
Dave Augusto
Mike Gautier
Dr. Bresnock
Econ 441
Chapter 3
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Overview:
• Who’s Demanding that Companies Explain and Justify how They Treat the Environment?
– Rulemakers and Watchdogs• Government regulators and environmental groups.
– Idea Generators and Opinion Leaders• Think tanks and academics.
– Business Partners and Competitors• As well suppliers and business to business customers.
– Consumers and Community• Including local officials and the general public.
– Investors and Risk Assessors• Such as stock market analysts and bankers.
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Rulemakers and Watchdogs.
1. Non Governmental Organizations (NGOs).2. Government and Regulators.3. Politicians.4. The Plaintiffs Bar.
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NGOs• Examples of NGOs include:– Environmental Defense, World Wildlife Fund,
Sierra Club, Green Peace, National Wildlife Federation, Natural Resources Defense Council, Friends of the Earth, Conservation International.
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NGOs• How Do They Interact With
Businesses?
– Can utilize confrontational techniques.• EX: Shell and Green Peace
– Can form partnerships with businesses.• EX: McDonalds and
Environmental Defense.
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Government and Regulators
• Operates on a Vertical scale- city, county, state, federal, international.
– Regional legislation can have wide reaching effects.
– It makes no sense to produce things one way for a particular region, and differently everywhere else.
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Government and Regulators
• Setting Performance Standards:
– Utilizes economic incentives to curb behavior of polluting firms.
– More flexible than governmental command and control mandates.
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Politicians
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The Plantiff’s Bar
“One of the biggest environmental dangers every company faces is the risk of being sued for pollution or ecological harm.”
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Idea Generators and Opinion Leaders
1. Media.2. Think Tanks and
Research Centers.
3. Academia.
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Media
“Do nothing that might embarrass you.”
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Think Tanks and Research Centers
• Have provided many of the ideas that have framed public policy agenda and shaped the political debate.
• Resources for the Future led charge to shift command and control regulation to market based incentives.
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Academia• Creating links with universities gives firms another
place to turn to for new ideas and perspectives.
• Can be used to promote agenda.– The Koch brothers have donated millions to
various universities in exchange for being able to select professors and approve publications.*
*Fang, Lee. “Koch Fueling Far Right Academic Centers at Universities Across Country.”ThinkProgress. 11 May 2011. Web 04 April 2013
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Biz to Biz
Greening the Supply Chain
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Business Partners and Competitors
• Industry Associations
• Proactively managing relationships for a strategic advantage
• Membership Requirements: 3rd party certification of Responsible Care practices
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Business Partners and Competitors
• Competitors React
• Star-Kist’s market
• GAP’s groundbreaking Corporate Social Responsibility report
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Suppliers
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NGOs and Dell
Consumers of business solutions and products asking others to join in green movement.
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Consumers and Community
CEO / Peers exchanging stories: No CEO wants to be the one creating environmental messes.
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Consumers
Lifestyles of Health and Sustainability (LOHAS)
Ex: Restaurants offering menu items that are certified Organic
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Kids and Communities
Gap Clothing eliminating improper human conditions: Sweatshops
Alcan Canadian Aluminum: engaging the local community and NGOs before, during, and after opening or expanding operations
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Investors and Risk Assessors
Employees Shareholders
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Investors and Risk Assessors
Insurers Banks and Capital Markets
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WAVERIDERSThe Eco-Advantage Playbook
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The Eco-Advantage Playbook
Costs Risks
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The Eco-Advantage Playbook
Revenues Intangible Brand Value
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THE ENDChapter 3