Guest Post by Stephanie Wolcott
In a recent NYT article, Will Big Business Save the Earth?, Jared Diamond, prominent scientist and author, posits that multinational corporations can be important forces for positive environmental practices. He cites solid examples from Chevron, Wal-Mart and Coca-Cola as they improve their environmental performance.
Indeed, companies around the world are making an important mental shift, realizing that good environmental practices can:
- Reduce operating costs
- Prepare for tougher environmental laws
- Prevent more costly accidents and retrofits
- Ensure access to raw materials
- Enhance a company’s license to operate
- Improve employee performance
Diamond’s article covers primarily internal operational changes. However, companies who widen their scope find even greater benefit can be realized when a company uses its influence to change the way business is done in its ecosystem—both for the advantage of the company and the world.
Perhaps the best example of greening an ecosystem is Walmart’s Sustainability Index, announced in July 2009. According to this new policy, Walmart suppliers must complete a sustainability survey. Walmart gives preferential treatment to suppliers who perform well and also passes along product environmental impact information to consumers. Critics may question how accuracy will be monitored and what consequences there may be for underperformance. However, no matter how one looks at it, Walmart has sent a clear signal to 100,000 companies that they need to start their own environmental plan, and fast.
This can’t help but make a difference. Some speculate that this index could have more impact than cap and trade legislation. With 100,000 suppliers involved, they could be right.
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Ms. Wolcott makes excellent points underscoring that major companies can be pro-active in changing business procedures regarding the environment. I would further argue that by doing so the larger companies then have equity in posturing themselves as front-runners and leaders in an area of growing concern to the public.
Furthermore, the above it is yet another reminder that changes that take place organically in the market place ( ie companies realizing they can benefit from putting forth changes in business practices), as opposed to regulations that are handed down by government, will have a faster and wider spread impact.
I am looking forward to reading “Grow From Within” and enjoying more posts such as these.