"Attracting the Environmentally Conscious Consumer" by Ken Bernhardt Taylor E. Little Jr. Professor of Marketing and Special Assistant to the Dean Robinson College of Business, Georgia State University Atlanta Business Chronicle - October 2, 2009 There has been considerable research conducted recently on consumer attitudes toward the environment. The findings among both individual and business buyers typically show increased concern about environmental sustainability and an increased likelihood of taking this into account in their buying decisions. A recent Harris Interactive poll reported that 90 percent of Americans indicate they give consideration to sustainable business practices when purchasing a company's products and services. Several of the studies have found that as many as three-quarters of consumers say they would pay up to a 10 percent premium for green products as long as there is no sacrifice in quality or performance. J.D. Power and Associates Web Intelligence Division has been tracking online commentary gathered from over 2 million posts on blogs and discussion boards for the past several years. They report that whereas in 2007 the discussions about sustainability were dominated by people who were confused by conflicting evidence and "negators" who attempted to sway opinions of others, more recently the vast majority of posts are from those concerned about the environment. A near majority are saying they are doing something about it, including such things as reducing their energy usage, recycling, and buying more green products. There is much skepticism among consumers. Half of consumers in an Associated Press/Stanford University study said that 50 percent of American businesses harm the natural environment a moderate amount (31%) or a lot (19%). Given that 4 in 10 consumers go online to get information about products, they will pick up negative blogosphere chatter about companies that eco-activists are writing about. So, for many reasons both positive and defensive, companies are being forced to consider their attitudes toward the environment as part of their marketing strategy. But how should a company which hasn't focused on the environment get started? Kim Carlson, author of "Green Your Work: Boost Your Bottom Line While Reducing Your Eco-Footprint" suggests the key is the 3 "R's" - - Reduce, Reuse, and Recycle. The first step is to identify the resource that your company uses the most. For offices, this might be paper. For retailers it might be energy, and for a manufacturer it could be water. Then use the 3 R's to 1) reduce the use of that resource as much as possible, 2) reuse it in a variety of ways, and 3) recycle rather than disposing of it. Some examples: Reduce: Use natural light, compact fluorescent bulbs, and motion detecting lights in little used areas to use electricity more efficiently. Reduce paper by implementing practices such as a "no print" policy for emails, making duplex copies, turning off computers and monitors when not in use and electronic invoicing and bill paying. Reuse: Reuse one-sided discarded copy paper for rough drafts, forgo printed materials by using your website for sales brochures, and capture water to reuse for landscaping instead of sending it into the municipal waste system. Recycle: Keep recycling containers throughout the office, redesign packaging for recycling or composting rather than being destined for the landfill, and recycle old office equipment through reputable programs so they are truly recycled. In 1980 Americans recycled less than 10 percent of waste; today it is 33 percent according to the EPA, a huge change in consumer behavior. Companies need to ensure they are doing everything possible to recycle their waste. These actions can not only create pride among employees, but can also considerably reduce a company's costs. Here are some other principles regarding how to be more green: Commitment is critical: Develop a vision and a policy and get buy-in from key people in your company. It is important for senior management to set the example and walk the talk. As my old track coach used to say, "The speed of the leader is the speed of the pack." Also, don't forget your commitment to performance and value. Green attributes can break a tie, but can't make up for a second-rate product. Connect environmental product attributes with consumer value: For example, pesticide free produce is healthier and energy efficiency saves money. Consumer Education: Most consumers indicate that they have a hard time determining how green a company is. You need to be proactive in educating buyers about the company's environmental efforts including using your website to tell your story. If you have recycled content, promote it. Credibility: Tell the truth. It is important to be authentic in what you tell consumers. "Greenwashing" is the act of misleading consumers regarding the environmental or sustainability practices of a company or the environmental benefits of a product or service. This includes fibbing or exaggerating and making assertions not backed by evidence or third party certification. The eco-activists will find out and the loss of credibility can be devastating. The Federal Trade Commission's "Complying with Environmental Marketing Guides" can be very helpful and can keep you out of trouble. Certification: Third party certification organizations can help with credibility. The most visible include Energy Star, LEED for buildings, UL Environment, and Green Seal, but there are over 300 others in many different product categories. Collaboration: Engage your suppliers, employees, and customers to help you identify things you can do to be more protective of the environment. You will be surprised at the good ideas you will receive. Green business practices can create value by increasing sales, reducing costs, creating new products and markets, improving quality, decreasing risk and liability, and increasing the company's ability to attract and retain talent. Phase one in the green movement was reducing bad practices. Phase two was adopting more energy efficient and waste reducing practices. Today we are entering phase three, with green becoming a platform for new business models and growth. If you are well down this path, congratulations. If you haven't started, remember the words of Martin Luther King, "You don't have to see the whole staircase, just take the first step."