Why Companies Are Going Green

Green business policies can be good for the bottom line.

Concerns about the health of the planet are becoming important to many people. As businesses recognize this and realize that customers are basing buying decisions on a company's sustainability, business leaders are beginning to become more interested. Green business initiatives can help to increase the profits and decrease the environmental impact of business.

Profitable Innovation

Innovative, forward-thinking and creative businesses are gaining an advantage over their slower-moving competitors and gaining the support of the public. Public interest in things such as alternative energy and nontoxic materials is growing along with government moves toward legislating the use of these things around the world, according to a poll conducted by Studies.me. These two factors herald the arrival of an enormous green gold rush, and the businesses that are the most prepared when it truly hits will be the ones to rake in the greatest profits, according to the Christian Science Monitor.

Reduced Cost

Wasteful practices have always cost businesses money, but for many years these losses were not large enough to stimulate action because of the low cost of energy and materials. With fluctuating oil costs upon them and the threat of penalties for carbon releases looming, businesses have more motivation to cut down on the amount of waste they produce. Green initiatives are good for the planet as well as for the bottom line of a business.

Corporate Reputation

Business owners put effort into maintaining a positive public image of their brands. Large corporations spend millions of dollars every year strategically placing their logos in the public eye and training the public to see them in a benevolent light. People who are worried about the environment want to support businesses that they see as environmentally responsible. Businesses are happy to comply by undertaking environmental initiatives to maintain an image that is appealing to the public.

Environmental Concern

Some business owners are trying to make their businesses greener out of a genuine concern for environmental health and sustainability. While it is true that corporations are responsible to providing their shareholders with maximum returns, individuals within those companies have consciences, and these individuals can sometimes have an impact on the behavior of the corporation.

References

• CNN: Business Sees Green in Going Green
• "Time"; Going Green at the Office
• More Business: Green Business Benefits: Energy Efficient Small Business
• Studies.Me: GreenWise Poll: Will 2011 Be Significant for Green Business?
• "Christian Science Monitor": Business Begins to See Profit in Going Green
• Gallup: Small Business Owners Struggling to Become More "Green"