Business Must Measure its ‘Green’ Impact, or Risk Failure

Business Must Measure its ‘Green’ Impact, or Risk Failure

W. Edwards Deming once wrote, It is not necessary to change. Survival is not mandatory.
nWas this statement in reference to personal or business survival? As a human race, we are subject to extinction because of bad planet management, that is we have failed to properly manage our resources effectively to optimize our return. As a result our inventory of resources disappears or is degraded to the point of unproductive. We realize today our planet is a business struggling to survive.
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nFor small and medium sized businesses failure is generally much quicker and more transparent. Regardless of how well managed your organization is, you may awaken one day to consumers that have realized that your business is no longer aligned with their values. For example, your customers may choose to purchase products and services exclusively from businesses that can prove their commitment to environmental and societal issues. Customers may even demand these issues are properly measured and perpetually managed as consideration for supporting your business.
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nSo the best case is, businesses subscribe to some method of measuring their environmental responsibility and societal stewardship footprint in an effort to improve and align. The worst case is, business ignores this call to action, and finds itself extinct.
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nIf one were to analyze the destruction humans have caused, and continue to cause each day onto our planet and then compare the small steps toward mitigation we are taking by changing a light bulb, or separating the trash for the purpose of recycling it is clear the solution isn’t enough to solve the problem.
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nAs consumers are confronted with this information through pending legislation changes, community sentiment or education, business becomes more vulnerable to changing customer priorities.
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nAppropriate measurement of extra financial details provides for greater visibility into the business from a holistic perspective, and may give the business a cost-of capital advantage by negotiating with “green” banks for reduced rate loans based on sustainability performance. Even if a business is not involved in eco-practices today, measured improvement in the future may lead to increased revenues and lower costs.
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nMeasuring impact and understanding what areas of improvement within the business is not only possible, but necessary for survival.
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Posted Date: 2009-08-16 02:42:07