Sustainability and The Invisible Hand
Posted on | June 12, 2009 | No Comments
While we’ve often stated that our companies aren’t “going green” because we started that way, it is my pleasure to announce that our companies have formally adopted sustainability as a strategic focus.
The Background…
Since the dawn of the industrial age, there has been a proliferation of technological advances that have given mankind an apparent “edge” over nature. For many, life is no longer “nasty, brutish and short” as Thomas Hobbes described in his work, “Leviathan,” and as a result of the organization of societies and technological advances the simple fact of leisure time has become a reality for many more than just two centuries ago. While life has generally become easier, more comfortable and less survival-based for many, the impact of these so-called advances on the environment and on the natural resources that sustain humankind has not been well understood.
With mounting evidence of global warming, of shrinking fresh water supplies, of the impending “peak oil” issue and numerous other serious environmental challenges, the question in my mind is: what can we do and where do we start?
While recently in out West visiting friends in a remote and absolutely gorgeous part of North America I had the good fortune to read a book written by Gary Hirshberg, CEO of Stonyfield Farm, called “Stirring it Up.” In this evocative book, Mr. Hirshberg made the simple assertion that “Business is the most powerful force on the planet; it got us into this mess and is the only force strong enough to get us out.” His deliberateness and persistence in cultivating not only theoretical understanding of but actual evidence of the effects of sustainable business practices provides timely inspiration and proof that businesses – big and small – can and must make a difference.
The Opportunity…
In my view, the environment and human progress needn’t be at odds and I am convinced that companies can parlay a planet-friendly bias into profits and growth. In fact, the more businesses around the world investigate and incorporate environmentally-friendly practices, the more evidence there is that environmentally-sound decisions can also be economically-sound decisions! According to a PriceWaterhouseCoopers survey of 1,000 CEOs from 43 countries, 79% of these executives agreed that “sustainability is vital to the profitability of any company.” Some of the largest companies in the world (e.g. IBM, Dupont, News Corporation) are making bold strides in curbing their emissions and even Wal-Mart – the world’s largest company – has made a strong commitment to sustainable business practices.
I also believe that being environmentally conscious needn’t require sacrifice of the comforts we’ve grown accustomed to over the last two centuries. In fact, it is my belief that by applying the same rigorous economic analysis to “green ideas” that we do to any other decision made in our companies, we will find that there are both short and long-term economic benefits to sustainable business practices and that the quality of life both within our company and in the lives of those we serve will continue to improve.
Finally, I am certain that investing in eco-friendly products and technologies needn’t necessitate a sacrifice in quality. Green products are subject to the same market forces – the invisible hand – that govern every other product in a market economy. The money and support of new green technologies must be wisely invested in those that provide both environmental and quality advantages over other competing non-green products.
I’d love to hear your comments on sustainability efforts that make good financial sense for small business and health care.
Tags: sustainability
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