E6 Greening Organizations
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Transcript of E6 Greening Organizations
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Greening Organizations and SupplyChains
Do you think they are calling it agreen building
because of this nicelawn and the trees?
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Life Cycle Impacts Example of a Washing Machine
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Production Distribution Use Disposal
P e r c e n
t C o n
t r i b u t i o n o
f L i f e
C y c
l e S t a g e s o n
T o t a l
E n v
i r o n m e n
t a l I m p a c
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Life Cycle Stages of a Washing Machine
Energy Consumption
Air Pollution
Water Pollution
Solid Waste Generation
Water Consumption
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What is Greening?
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Improving Resource efficiency Cleaner and Efficient Processes / Technology /
Equipment Safer and Environmentally Benign Materials /
Products Responsible Marketing / Advertising Better teaming - participation Promoting the above in the Supply Chain
Possible Reasons why OrganizationsAdopt Greening
Organizations perceive environmental marketing to be anopportunity that can be used to access newer markets andincrease market share of its product range
Competition / Markets are forcing organizations to adoptgreener ways
Some organizations believe they have a moral obligation tobe more socially and environmentally responsible in theiroperations and also realize the business benefit
Cost factors associated with resource and waste management/ disposal force organizations to become progressive in theirbehaviour
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Green Marketing What is green marketing? Green marketing refers to the process of
selling products and/or services based on their environmentalbenefits.
Green Marketing must satisfy two objectives improvedenvironmental quality and customer satisfaction. The balance iscritical!
Being Genuine and responsible Product or service is environmentally friendly in itself or produced and/or
packaged in an environmentally friendly way Educating and influencing customers
Informing customers of your initiatives to protect and conserve the
environment and educating them why it matters Influence their choice! (CFLs, energy rated products)
Providing opportunity to customers to participate Through suggestions / programmes / award schemes / discounts (Hotel
Orchid eco-initiative, recycling, etc.) 5
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Pricing Policy and Structure
1. Is a portion of the price perceived to be going to an environmentally or sociallyworthy cause? These may be charities, further research, etc.
2. Does the price cover the real or total cost?a. Do costs actually include externalities such as environmental damageb. Is the cost excessively hiked to exploit ecofriendly approach?
3. Are suppliers perceived to receive a fair share of profits?
4. Is the seller receiving a fair margin, or is he jeopardizing his future in business?5. Is the low price an indication that the product is suspect?6. What are the hidden costs? (Maintenance, consumables / spares, service, advice
etc.)
7. If price decreases will it lead to more consumption? Is this fair for society?
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Is it environmentally friendly/safe? Is it operator/user-friendly/safe? Did the environment suffer to produce it? footprint? Indicator? Did animals or humans suffer to produce it? testing? Will its use harm the consumer directly or indirectly? exposure? Is the name green? - Philips Earthlight versus Marathon CFLs? Will its waste be damaging? Hazardous residues insecticide, chemical
cleaners? Can it be re-used/recycled after use? design? Is it 'greener' than competitors? performance benchmark indicator? Is consumption unnecessarily high? Would a price rise help? Are certain customers over-using the produce? Unfair trade or practices Are certain customers under-using the produce? Deprived? Have colorants, preservatives, additives etc. been used unnecessarily?
Green Products
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http://www.buildinggreen.com/index.cfm
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Is the packaging perceived to be environmentally safe? Is it biodegradable? Can it be reused or recycled after use? Is it safe to customer/handling operatives? Will its disposal be safe? (Plastic bags suffocate animals) Is it necessary? Is it easy to use? Does it store well? Is it 'green' at point of sale? Is it functional? Does it travel? Do pack sizes lead to waste/over-use? (Or are they perceived to do this?) Does the pack give impression of a responsible seller? Does the pack imply that 'artificials' have been used in the production (preservatives,
colorants, unnecessary additions)? Does the pack message mislead or confuse? Can the pack be used again for difference purposes? (China tea chests for removals, fertiliser
bags in construction works etc.?) Does the pack give useful advice on other uses for the packaging itself? (addresses of local
bottle banks)
Packaging
http://www.buildinggreen.com/index.cfmhttp://www.buildinggreen.com/index.cfm -
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Are claims for the product/service honest? Does promotion contain information on the supplier's positive contribution to society? Does promotion position the product as 'green'? Would the customer feel that promotions are wasteful? High impact can be achieved but
perceived to be expensive. (posting snakes, expensive parties) List all promotional tools and decide whether they're green. (Don't use match boxes,
cigarette lighters, ash trays, expensive disposable pens. Do consider T-shirts, key rings,pencils)
Make good use of public relations, especially in relation to green issues and your product. Make good use of exhibitions. They are less wasteful than sales-trips and customised
servicing. Do not overprint sales leaflets. Excessive numbers of leaflets are wasteful. Use Direct Marketing/mail in a responsible and sensible way. Customers criticise the quantity
of direct mail received. Regularly revise mailing lists. Receipt of mail by non-target audiences is wasteful.
Promotion
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Ensure your distributors are 'green' and will associate responsibility with your product. Establish what contribution your distributors make to society and help them where possible.
Are you telling everyone about these achievements? Do distributors offer child care, training, education, share of company profits etc.? Create 'green' SWOT reports on distributor networks. Plan distribution to minimise amounts of product movement. Avoid wasteful market places where customers use too much. Public relations negativity will
eat into any profits you make.
Direct selling can avoid wasted resources. Analyze all processes and decide where paper can be cut out. Avoiding unnecessary
paperwork also saves time and money. Evaluate new distribution channels which don't pollute. Bicycle couriers instead of motor
bikes, delivery, not self service. Train instead of taxi. Forgetting cost, re-think the distribution strategy to establish the most green method. Re-
insert cost, then go to suppliers and negotiate. Don't necessarily switch all deliveries, but afew. This will help green business to establish and become competitively priced.
Distribution
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Keep claims honest, truthful, decent and not misleading. Welcome opportunities to focus on green aspects (charities, ozone
friendliness) Don't use comparative advertising. Pulling down competitors will throw
doubt over your product area in general. In media selection choose 'green' media. (Radio and TV create no waste,
some magazines are printed on recycled paper) Decide which media are green for your situation. Press, TV, radio, posters,
timetables, supermarket trolley, aerial advertising, parking meters, milkbottles, packaging, sacks, waste bins, delivery trucks, sport dress, video,
matches, taxi, sandwich boards. Choose a target audience which is green, consciously refuse to promote
your offering to targets who are wasteful. Use green techniques sincerely, don't 'trick' the customer.
Advertising
Wearethe
Best
Eco-Signage
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Properties: toughness, strength, heat resistance, barrier to moisture and gas.Density: 1.35-1.38 g/ccDescription: PET, also referred to as polyester, is a popular packaging material forfood and non-food products because it is inexpensive, lightweight, resealable,shatter-resistant and recyclable. PET is clear and has good moisture and gasbarrier properties. Its color may be green. The flakes and pellets of cleanedpostconsumer recycled PET are in heavy demand for use in spinning carpet yarnsand for producing fiberfill and geotextiles.
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Eco-Signage
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Description: Bottles made from HDPE come in both pigmented and unpigmented
resins. The unpigmented resin is translucent. It also has good stiffness and barrierproperties. Thus, it is ideal for packaging products having a short shelf-life such asmilk. HDPE's good chemical resistance allows it to be used in containers holdinghousehold or industrial chemicals. The pigmented resin has even better crackresistance and chemical resistance than the unpigmented resin.
Packaging applications: Milk containers, juice bottles, water bottles, bleach, detergent,and shampoo bottles, trash bags, grocery and retail carrying bags, motor oil bottles,butter and margarine tubs, household cleaner bottles, yogurt containers, and cerealbox liners
Description: Vinyl, or polyvinylchloride, has stable electrical and physicalproperties. It has excellent chemical resistance and good weatherability. Its flowcharacteristics make it well-suited for injection molding.
Packaging applications: Window cleaner bottles, cooking oil bottles, detergentbottles, shampoo bottles, clear food packaging, wire and cable jacketing,medical tubing, with additional significant usage in household products andbuilding materials, particularly siding, piping, and windows
Recycled products: Binders, decking, paneling, mudflaps, roadway gutters,flooring, cables, speed bumps, and mats
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Is your sales team environmentally conscious? Is the team aware of green issues? Do you look after your staff? (Child care, training, education, a stake in
company). Remember that your customers want to buy from a caringcompany.
Are sales aids appropriate? Wasteful catalogues given unnecessarilydamage images.
Does the sales force knock the competition? Is the car fleet lead-free? Is verbal and written advice likely to cause over-use or mis-use of
products? Are terms of employment likely to be anti-green? (Commission on
quantity sold can lead to wasted resources) If the business operates on a 'tender' basis, is sufficient attention being
paid to explaining non-monetary considerations? Are communications green? electronic not paper, simple not
complicated.
Sales Force
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Do you operate an honest 'return' policy? Are customers aware of this? Do you educate customers to avoid wasted resources on call-outs? Attempt to repair not replace. Create a distribution network which encourages repairs, not replacements.
Negotiate with competitors to create similar standards to promote repairs. Ensure spare stocks are low but easily available. Use repair/after sales service data to help modify products.
After Sales Service
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Environmental performance of Vendors and SuppliersSourcing / Purchase PolicyVendor Development Programmes to address environmental issuesMonitoring and Tracking (2 nd party audits)
Purchasing / Procurement
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What is required for greening of organizations?
Total corporate commitment to greening processes and products,communications and services
Adopt Proactive approach with continual improvement
Mainstream environmental management in core businessfunctions
Go beyond mere legal compliance
Focus on balancing the consumers demand for quality, style,packaging and affordable pricing with the environmental impacts
Influencing and making the consumers aware of the benefits of ashift in consumption patterns or the way we think
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Greening of Retail Sector
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