1. No category

Sustainability
Ethics March 14th
Sustainability
 Economics
The Dismal
Science
Population growth is
exponential
Resource growth is
linear at best,
diminishing or finite at
worst
The Natural Step
Sustainable (Business) Systems:
 Keep the earth’s natural resources in the
earth as long as possible.
 Manage the production of toxic
substances.
 Not displace, over harvest or otherwise
degrade our natural ecosystem.
 Use the earth’s resources fairly and
efficiently to meet basic human needs
worldwide.
References: Robèrt Karl-Henrik. 2002. The Natural Step Story: Seeding a Quiet Revolution
(Gabriola Island, BC: New Society Publishers) (2002), available at www.newsociety.com; The
Natural Step, at www.naturalstep.org (Natural Step system conditions, also called principles of
sustainability, define basic conditions that need to be met in a sustainable society).
Ford
 “As
we endeavor to become a
leading contributor to a more
sustainable world, corporate
citizenship has become an
integral part of every decision
and action we take.”
McDonald’s
 “Yes,
McDonald's is committed to
social responsibility. We are
committed to doing the right thing.
We want to make a positive
difference to the world.” - Jack
Greenburg, Chairman and CEO,
McDonald’s
Nike
 “As
a citizen of the world , Nike
must Do the Right Thing - try to be
transparent about what we are
doing right, and about what we are
doing wrong; embrace diversity;
drive sustainability.” - Phil Knight Chairman and CEO, Nike.
The Macroenvironment

The Natural Environment

Concern for the natural
environment has grown
steadily, increasing the
importance of these trends:
 Shortage of raw materials
 Increased pollution
 Increased governmental
intervention
China Looming
 China
second largest consumer of
oil (after the U.S.) Currently at 8%
 China has been responsible for
nearly two-fifths of the increase in
global consumption since 2000.
 China's surge in energy demand is
also the main reason for the
doubling in the world price of coal
over the past year. Last year China
consumed 40% of all the coal and
30% of all the steel in the world.
The Macroenvironment
Many companies use recycling to help protect
natural resources
The Political Environment

EPA
“This growing, changing product stream
presents new challenges and responsibilities in
designing and managing electronic products to
reduce their life-cycle environmental impacts.
By applying the principles of product
stewardship, electronic equipment can be made
with fewer toxic constituents and designed with
upgradeability, durability, and recyclability in
mind, making these product systems more
sustainable.”
Carpet

. “The disposal issues surrounding used
carpet are of concern because of carpet's
relatively significant contribution to the
nation's waste stream and the inherent
difficulties with its recycling. According to
carpet industry estimates, approximately 4.7
billion pounds of carpet were discarded in the
United States in 2002. Most years, carpet
accounts for over 1 percent of all municipal
solid waste by weight or about 2 percent by
volume.”

“Only 3.8 percent of total carpet discards
were recycled in the United States in
2002. Under the National Carpet
Recycling Agreement, industry has set a
goal of achieving a 20 to 25 percent
recycling rate by 2012.”
Packaging Laws

“In most parts of the developed world,
packaging constitutes as much as onethird of the non-industrial solid waste
stream. At least 28 countries currently
have laws designed to encourage
reduced packaging and greater recycling
of packaging discards. Many of these
countries require manufacturers to take
back packaging discards or pay for their
recycling.”

In green packaging, corn replaces
petroleum

Organic farming is practiced in approximately 100
countries throughout the world, with more than 24
million hectares (59 million acres) now under
organic management. Australia leads with
approximately 10 million hectares (24.6 million
acres), followed by Argentina, with approximately 3
million hectares (7.4 million acres); both have
extensive grazing land. Latin America has
approximately 5.8 million hectares (14.3 million
acres) under organic management, Europe has more
than 5.5 million hectares (13.5 million acres), and
North America has nearly 1.5 million hectares (3.7
million acres).
—The World of Organic Agriculture 2004-Statistics
and Future Prospects, February 2004.
www.soel.de/inahlte/publikationen/s/s_74.pdf.

"Organic is a niche, but a very profitable niche. Give
consumers what they truly want/need and they will dig
deeply into their pockets. Organic dairy is mainstream.
Two-thirds of the organic milk and cream is delivered to
consumers via conventional supermarkets, not the 'health
food stores' frequently associated with the organic of
days gone by. Half of the organic cheese and yogurt sold
in this country passes through a conventional
supermarket. Organic is here to stay, not a fad marching
by in the night. Several dairy companies have their arms
around the organic segment of the business. Others will
likely get involved. Whether you opt in or not, it certainly
is a category worth watching. It gives us one more
window into the minds of consumers."
—Jerry Dryer, J/D/G Consulting, in "Organic Lessons,"
Prepared Foods, January 2003
www.preparedfoods.com/archives/2003/2003_1/0103org
anic.htm.
Consumer Behavior

Here's a pop quiz: Two products are
sitting next to each other in a store.
They're practically identical, but one is
environmentally better -- let’s say it's
recycled, recyclable, biodegradable, less
toxic, or contains less packaging. Both
are priced about the same.

So, given that public-opinion surveys
report that roughly three Americans in
four call themselves "environmentalists,"
and that marketing studies tell us that
roughly 7 in 10 consumers would gladly
choose the greener product over its lessgreen counterpart, why has green
consumerism remained a largely
marginal aspect of shopping?
According to the Business for
Social responsibility
1. There's no mandate.
 2. The public is dazed and confused.
 3. People lack perspective.
 4. Companies making greener products
are afraid to speak up.
 5. Green benefits aren't always evident.

Some more sources





http://www.greenmarketing.com/Green_Marke
ting_Book/Chapter06.html
http://eartheasy.com/article_green_consumers
.htm
http://www.pmmag.com/CDA/ArticleInformati
on/features/BNP__Features__Item/0,2379,403
4,00.html
http://www.greenmoneyjournal.com/article.m
pl?newsletterid=27&articleid=277
http://www.life.ca/nl/94/LOHAS.html
Segmenting, Targeting,
Positioning
The Green Team




Measure for measure Starbucks philosophy is to continuously
seek ways to reduce waste from our system in the first place,
whenever possible.
Waste Audit Results from the study indicated that five
materials dominate Starbucks retail waste by volume:
cardboard, milk jugs, paper cups, pastry boxes and milk
cartons. Based on the findings, Starbucks is exploring additional
ways to divert waste through packaging reduction, reuse and
recycling.
Commuter Mug Discount One way Starbucks reduces waste
is by encouraging customers and partners (employees) to use
reusable mugs. Customers who use their own mugs receive a
$0.10 discount. In 2003, customers used commuter mugs more
than 13.5 million times, keeping an estimated 586,800 pounds
of paper from landfills.
Grounds for Your Garden Coffee grounds make up the
heaviest portion of the waste stream in Starbucks stores.
Through the Grounds for Your Garden program, Starbucks
encourages reuse of spent coffee grounds by giving them to
customers and parks as nitrogen-rich soil amendment.
Recycling

In 2003, Starbucks managed the waste
and recycling at 1,544 of our stores, of
which 61% have a recycling program.

Environmental impact Starbucks measures
the environmental performance of our store
design and operations by the amount of
electricity, gas and water consumption per
square foot of retail space. Additionally,
Starbucks looks at recycling rates and our
customers’ use of commuter mugs as indicators
of environmental performance. Information
about these areas for a sample of stores where
data is available is represented in the
accompanying graphs. Starbucks is exploring
innovative solutions to improve performance in
all of these areas.
NIKE’S Corporate Responsibility
Nike’s corporate responsibility (CR) mission is simple
and straightforward. It is clear acknowledgement that
CR work should not be separate from the business –
but should instead be fully integrated into it.
CR mission:
 We must help the company achieve profitable and
sustainable growth.
 We must protect and enhance the brand and
company.
 “Sustainable” can have many meanings, all of which
apply here. Sustainable growth suggests that Nike will
be around for generations, that Nike is planning for
the long haul. Sustainable growth also requires us to
find ways of generating profit while minimizing our
potentially negative impact on communities or nature.

Sustainable Product Innovation

Nike’s two environmental long-term
aspirations: eliminating waste and eliminating
toxics

Nike’s footwear teams use a Sustainability
Index to assess each footwear category’s
progress toward reaching their sustainability
goals. They currently use the Index to
measure the five best-selling shoes per
category, as a way of focusing on where we
might have the greatest impact.
Nike’s Top Sellers of 2000

The top-selling shoes, based on units sold, for
the week ending Sept. 3, 2000, are as follows:
1. Nike Jr. Tiempo youth soccer cleat
2. Nike Land Shark 3/4 football cleat
3. Nike Twitch Shark 3/4 high football cleat
4. Nike Air Jordan Retro 6 basketball shoe
5. Nike Air Amenity cross trainer
gray/obsidian/white
What is the real reason??

The real reason why the famous shoe
company is so sustainable and doing so
well is not only because of its great sales
in apparel and shoes and not because of
the different product designs to fit the
needs of the consumers, but its employee
benefits and diversity programs and
environmental initiatives and community
investment.
Those Key Elements
*Employee benefits
*Diversity programs
*Environmental initiatives and
community investment

Those key elements are how companies of today
are growing and can remain in today’s markets.
Nike has done a wonderful job of growing into a
successful business and remains a sustainable and
profitable company that it is.
Treat Your Employees Right!!!





In recent years, Nike has focused on refining our skills
at
(a) identifying risk of code compliance
(b) uncovering issues
(c) implementing strategies that can be used to drive
performance and enable change within Nike internally
and on a broader level.
Nike has evolved from a focus on a Code of Conduct
to advocating common standards across the industry.
We’ve evolved from outsourcing labor monitoring to
relying on a trained team of internal monitors and
support for common monitoring platforms such as the
Fair Labor Association.
Employees Make a Difference

If a U.S. based employee contributes to a qualified
non-profit organization, we match the contribution,
dollar-for-dollar, up to $5,000 per employee per year.
When a U.S. based employee volunteers for a qualified
non-profit organization, we donate $10 for every
qualifying hour of volunteer work.

In Europe, employee activism is encouraged through
our Sport4ACause Fund. When employees engage in
charitable sporting events, Nike matches the funds
they raise. In the UK, our “EXTRA TIME” program
gives employees six days per year for volunteer
activities.
Nike is Diverse

In 2004, for the third year in a row, Nike received a
perfect score on the Human Rights Campaign
Foundation’s Corporate Equality Index. The Index
rates corporate America’s treatment of gay, lesbian,
bisexual and transgender employees.

Nike established its Global Women’s Leadership
Council (GWLC) to promote and support the career
advancement of women within the company; it is
focused on advocacy, building connections, catalyzing
action, and measuring results. Advisory Teams,
involving 155 men and women from across Nike, were
created to support the Council.
Reuse- A-Shoe

Reuse-A-Shoe is a key component of Nike's
long-term commitment to waste elimination by
helping to close the loop on the life cycle of
literally millions of pairs of old, worn-out or
otherwise unusable athletic shoe material.
Reuse-A-Shoe also plays an important role in
Nike's long-term commitment to help increase
the physical activity of young people to
improve their lives by reusing this old athletic
shoe material in new places for kids to play
and be active.
Philanthropy

Nike is donating half of its proceeds to
various Tsunami Aid Relief organizations
from sales in all of its stores nation wide.

Nike also has a foundation in which it
helps less fortunate children get an
education in public schools.
Product Development
Hybrids
Branding Oregon Forest Products

The lumber industry in Oregon is in
desperate need of change. Hundreds of
lumber mills have closed and over
20,000 jobs have been lost since 1990 in
spite of a decade with the highest
number of housing starts and lumber
consumption on record. One of the
major reasons for the decline in demand
of Oregon lumber has been an increase
in imported lumber.

Because Oregon lumber companies
cannot compete with the imported
lumber on price and still maintain a
profit, they have to find new ways to
differentiate themselves from their
competitors. One of the main strengths,
according to the Oregon Department of
Forestry, is the environmental
friendliness of the harvesting techniques
and the sustainability of Oregon forests.
According to Rick Fletcher, an Oregon
State University extension forester, “It’s
not being driven by regulation; it’s being
driven by the marketplace” (KOIN 6)

Companies such as Timber Pro UV have
had a great deal of success in recent
years because of their environmentally
safe wood stains. Consumers are willing
to pay a premium price for
environmentally friendly products

It shouldn’t be hard to receive the
environmental approval seal since Oregon
already has strict laws governing harvest
practices. Most Oregon businesses’ lumber
already follows the reforestation provisions of
the Oregon Forest Practices Act since it has
99 percent compliance according to the
Oregon Department of Forestry.

In 2003, Home Depot experienced a sixtyfive percent growth in the sales of FCS
wood. Home Depot is one of the 500 U.S.
retailers who participate in the chain-ofcustody certification—lumber that is
guaranteed to have come from an FSC
certified forest
Will Oregon be able to brand its forests?
 Does branding a commodity work?

Sunkist oranges
 California Cheese
 Got milk


Will it provide a strategic competitive to
Oregon?












http://www.promotewood.com/branding-newproduct/productbranding.htm
http://www.energy.state.or.us/industry/lumber.htm
http://www.odf.state.or.us/DIVISIONS/management/asset_mana
gement/logppage.asp
http://www.globalwood.org/market/market_prices_america.htm
Brand Oregon. April 30, 2004.
http://www.oregon.gov/BRANDOREGON/news.shtml
Geist, Wendy. Telling their Oregon stories. Gazette-Times.
January 31, 2005.
Milstein, Michael. Oregon might brand lumber with green seal of
approval. The
Oregonian. April 25, 2005.
Oregon Considers Branding 'Green' Lumber. KOIN 6 News. April
26, 2005.
http://www.koin.com/news.asp?RECORD_KEY%5Bnews%5D=ID
&ID%5Bnews%5D=2294
http://egov.oregon.gov/ODF/STATE_FORESTS/docs/management
/resource_policy/FAQ/TFA-Oregons_Facts_Figures.pdf
http://oregon.gov/ODF/STATE_FORESTS/state_forest_manageme
nt.shtml
Quick Facts
Started in November of 1993
 Milk Sales for the previous 15 years had
been going down; and at an increasing
rate.
 $2 billion annually spent to advertise
beverages (had to do something
different to stand out)
 $23 million budget for milk

Results of Campaign
Exceeded expectations
 60% ad recall awareness in 3 months,
70% in 6
 Improved consumption in California from
an $18 million decline the previous year to
a $13 million increase
 Became part of the pop culture landscape


Jury still out on the cheese campaign