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The Greening of Corporate America: Is it Profitable or Just the Right Thing to Do? by Anne Fiedler, Ph.D. Overview Setting the Stage: Questions to Think About For decades, corporate America has contributed to the pollution of the environment. The stockholders, the employees, and even the customers, were either unaware of the practices which damaged the environment, or they just did not care so long as their stocks earned dividends or the company provided jobs or the products they wanted. This module addresses the following questions: Should corporations only adopt environmentally sound policies if it is profitable for the corporation to do so? Should corporations be willing to forgo some of the profit so that humanity will benefit in the long run? Introduction For decades, corporate America has contributed to the pollution of the environment. Often the stakeholders, i.e., the community, the stockholders, the employees, the suppliers, and the customers, either were unaware of the practices which damaged the environment, or they just did not care so long as their stocks earned dividends or the company provided jobs for the community. Some American companies have embraced environmental principles for decades and still made a profit. Patagonia followed its own contrarian path to success since the 1970s by putting the Earth first, questioning growth, ignoring fashion, making goods that do not break or wear out, telling customers to buy less, discontinuing its own profitable but environmentally unfriendly products, and giving away chunks of earnings to environmental causes. Both government and customers are beginning to demand both more green products and more environmentally friendly business practices. Some of these new products and practices will positively contribute to profit of the company. Some companies, such as Wal-Mart, will choose this path to improve their corporate image, and this may even help to increase their stock prices. Other practices may be undetected by the general public, but will be beneficial to the society and future generations. This module will allow the students to discuss whether corporations should only adopt environmentally sound policies if it is profitable for the corporation to do so, or if they should be willing to forgo some of the profit so that humanity will benefit in the long run.

The Greening of Corporate America: Is it Profitable or Just the Right Thing to Do?

by Anne Fiedler, Ph.D.

Overview

Setting the Stage: Questions to Think About

For decades, corporate America has contributed to the pollution of the environment. The stockholders, the employees, and even the customers, were either unaware of the practices which damaged the environment, or they just did not care so long as their stocks earned dividends or the company provided jobs or the products they wanted. This module addresses the following questions:

Should corporations only adopt environmentally sound policies if it is profitable for the corporation to do so?

Should corporations be willing to forgo some of the profit so that humanity will benefit in the long run?

Introduction

For decades, corporate America has contributed to the pollution of the environment. Often the stakeholders, i.e., the community, the stockholders, the employees, the suppliers, and the customers, either were unaware of the practices which damaged the environment, or they just did not care so long as their stocks earned dividends or the company provided jobs for the community.

Some American companies have embraced environmental principles for decades and still made a profit. Patagonia followed its own contrarian path to success since the 1970s by putting the Earth first, questioning growth, ignoring fashion, making goods that do not break or wear out, telling customers to buy less, discontinuing its own profitable but environmentally unfriendly products, and giving away chunks of earnings to environmental causes.

Both government and customers are beginning to demand both more green products and more environmentally friendly business practices. Some of these new products and practices will positively contribute to profit of the company. Some companies, such as Wal-Mart, will choose this path to improve their corporate image, and this may even help to increase their stock prices. Other practices may be undetected by the general public, but will be beneficial to the society and future generations.

This module will allow the students to discuss whether corporations should only adopt environmentally sound policies if it is profitable for the corporation to do so, or if they should be willing to forgo some of the profit so that humanity will benefit in the long run.