These days it is tough to find a major company that is not promoting its social and environmental responsibility efforts. However, many of their claims ring hollow, like TV commercials that depict emotion but leave viewers unmoved. But as I hope I have demonstrated in my prior posts, now might be a good time for companies to get serious about their responsibility agenda.
The good news for Mother Earth is that more big business leaders genuinely appear committed to changing the way their organizations operate. The question is whether that commitment is as deep-seated as that of Yves Chouinard, the founder of Patagonia, and whether it will meet with Wall Street’s approbation.
A profile of Paul Polman, chief executive of Unilever, in the UK’s Sunday Telegraph a couple of weeks ago reflects the new stance taken by many company leaders. (Click here to read the story.) After discussing Polman’s early desire to be a priest and a doctor, writer Andrew Cave states:
At Unilever, he seems convinced that he can combine a social conscience with sound business economics to create a better society as well as satisfying shareholders by creating value. He cites action to mitigate climate change, support sustainable farming and work with Unilever’s African suppliers as evidence of this.
As I have mentioned before, making a profitable business out of more sustainable products requires a company to focus on delivering a good quality product at the right price as well as doing good. And Unilever does seem to be investing in some projects to help support Polman’s convictions.
For instance, in an effort to reduce the 400 million tons of carbon emitted each year by its ice cream operations, the company has invested in an R&D initiative aimed to produce ambient ice cream that would be sold at room temperature and then frozen at home. (Click here to read the full story.) If successful, the product would save massive amounts of energy and help reduce greenhouse gas emissions, but Gary Neath, the senior vice-president for sustainability, admits that the proof is in the pudding. He is quoted as saying, “The key question which has yet to be fully answered is how do you ensure that when the ambient ice cream is frozen at home, it will have the right microstructure to produce a fantastic consumer experience?”
Backing up good intentions with a great product experience is a critical challenge that must be overcome if leaders are to successfully transform their companies to be more sustainable and responsible. Perhaps the biggest challenge is to inculcate the new philosophy across a large organization. But the effort should prove worthwhile. Consumers are demonstrating a growing desire for real change—not just platitudes—and there is a competitive advantage in terms of cost savings and increased brand value to be gained by taking the lead. There are also internal benefits. Knowing that senior management is committed to making a difference can motivate employees to seek new and innovative solutions.
What companies can you think of that demonstrate their commitment to doing the right thing in a tangible manner? What other barriers to change do you see at big organizations? Please share your thoughts.
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