R. Edward Freeman

Environmentalism and the New Logic of Business R. Edward Freeman

The Exxon Valdez incident in 1989 sparked a firestorm of public debate over the role of business in ensuring a safe, healthy environment for ourselves and our children. Today, consumers, employees, shareholders, politicians, and interest groups all demand more environmental awareness from business. To help executives meet the challenge of being profitable, doing the right thing, and helping save the Earth, Environmentalism and the New Logic of Business outlines a program for change that firms can use to maximize their profits and minimize their impact on the environment. Drawing on examples from corporations large (DuPont, McDonald's) and small (Johnsonville Sausage), the authors demonstrate how companies around the world are putting values and a concern for the environment to work to motivate employees, improve service levels, and respond to the constant pressure for innovation, competitive advantage, and care for the bottom line. A highlight of the book is the author's discussion of "the four shades of green" which can be used to gauge of firm's environmental policy and highlight where it might be improved.
"Light green" or legal green logic relies on the public policy process to drive its strategy; "market green" logic focuses on customers' demand for better, cheaper, faster; "stakeholder green," similar to the logic of quality processes, includes suppliers, employees, communities, and shareholders; and "dark green" commits a company to being a leader in making environmental principles a fundamental basis of doing business. Challenging the conventional wisdom that green thinking leads to red ink, the authors show how executives can add environmental awareness to the strategic mix and still compete successfully.