environmental sustainability Archives - Trade Ready https://tradeready.ca/tag/environmental-sustainability/ Blog for International Trade Experts Wed, 15 Aug 2018 13:44:29 +0000 en-US hourly 1 4 ways improving your business’s social and environmental responsibility can boost profits https://tradeready.ca/2018/topics/import-export-trade-management/4-ways-improving-your-businesss-social-and-environmental-responsibility-can-boost-profits/ https://tradeready.ca/2018/topics/import-export-trade-management/4-ways-improving-your-businesss-social-and-environmental-responsibility-can-boost-profits/#respond Mon, 13 Aug 2018 20:32:19 +0000 http://test.tradeready.ca/?p=26565 Championing social and environmental causes can both save and make money. Here's how.

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The triple bottom line, or 3BL, refers to three things: people, planet and profit. In the past companies were almost entirely profit-driven enterprises where every business decision was based on economic prosperity, often at the expense of either communities and/or the environment.

Now, however, there is an increasing focus on the social and environmental impact that businesses have on their stakeholders, local communities and the world around them. This new interest in how companies measure their ‘Social and Environmental Responsibilities’ (SER) reflects the many advantages they hold for the company.

How can being more socially and environmentally responsible help your company grow?

 

1. High morale and improved productivity

The feeling of self-worth and pride that taking a moral stance can bring to the company’s employees and stakeholders can have a positive impact on productivity and morale.

2. Reducing overhead costs

The company could actually save money. Take the environmental aspect, for example – businesses do not have to begin by thinking on a global scale or changing suppliers to minimize their environmental impact.

They could start by investing in energy-saving lightbulbs, reducing water wastage, going ‘paperless’ and recycling all waste products. These small decisions will save money while reducing environmental impact.

3. Build a committed group of core, repeat customers

Companies can gain a crucial advantage by leveraging their Corporate Social Responsibility (CSR). Responsible consumers are looking for companies that adopt 3BL strategies and are willing and ready to support them – even if it means paying higher prices than competing products.

With the right branding and promotional efforts, companies that implement sustainable practises can become known as ‘green’ and socially responsible, and use this as a competitive advantage in the industry.

The brand image should reflect the company’s values. By incorporating CSR policies into the business strategies, this brand image attracts a whole new segment of consumers, thus increasing profits and allowing the company to grow.

Consider that many businesses, from small to large, are now making sustainability fundamental to their businesses. Companies that fail to keep up with the trend may find they get left behind and are unable to compete in their industries.

4. Attract top talent to grow your company

Businesses that invest in their employees (through training schemes and employee benefit packages, for example), invest in their local communities, and sponsor charities will be more enjoyable places for people to work.

Not only does that make people happier (an end goal in itself) but it will also inspire loyalty and attract talented people to the company. This will in turn benefit the company financially.

There are no true downsides to adopting a 3BL approach to business.

A common misconception might be that by considering the other two factors (people and planet), the third factor (profit) might be diminished. But as we can see, not only is there a growing market for sustainable businesses, but by adopting CSR policies businesses can actually be even more profitable and competitive.

How a “buy one, donate one” CSR model has benefitted two companies

There is an array of different CSR models companies can choose from. A “buy one, donate one” approach has been an effective one for companies in some sectors. Here’s how two companies have leveraged this focus to benefit their businesses, as well as the larger social and environmental consequences.

  1. TOMS

TOMS Shoes was founded in the U.S. in 2006 by Blake Mycoskie, who has a familiar story for companies that heavily rely on 3BL in their business model. He was travelling in Argentina and observed the hardship endured by children who had no shoes to wear. He came home with his innovative idea of starting up a shoe company where for every pair of shoes they sell, one pair of shoes is donated to a child in need.

The company didn’t stop there though, as a lack of shoes was far from the only issue the founder encountered on his global travels. Soon the company expanded to include three further collections. TOMS Eyewear addresses sight deprivation by providing a pair of glasses/eye treatment to those in need for every pair of glasses bought. TOMS Roasting Co. states that for every purchase of their coffee they will collaborate with their “giving partners” to create sustainable clean water production for deprived communities. Lastly, TOMS Bag Collection aims to provide a safe birth to vulnerable mothers and their children for every bag that is purchased.

All of these are based on their trademarked One for One® system that allows customers to easily understand exactly what their purchase can achieve and gives them positive reinforcement for their purchase.

By selling more than just shoes, TOMS linked their brand with not only a product, but with a service – the service being the “feel-good” factor their consumers purchase with their item. Their One for One® policy is their brand image, more so than the shoes, glasses or bags that they sell. This imbues their products with added value and allows them to position themselves in the market based on this added value and not just the product that they are selling. People might then buy a TOMS bag or glasses based on the feel-good factor that they got when they bought the shoes, or vice-versa.

  1. Better World Books

This company, founded by three graduates of the University of Notre Dame in 2002, specialises in selling used textbooks, which they ship worldwide for free. For every textbook bought, another is donated to a person in need.

The social aspect of this company is clear from its main policy – it promotes literacy across the globe and partners with several literacy programs to support its donations. Better World Books also considers its own environmental impact as described on their website, “And in case you’re concerned about your eco-footprint, every order shipped from Mishawaka is carbon balanced with Green-e Climate certified offsets from 3Degrees, a leading green power and carbon balancing services firm.”

Importantly, by the very nature of their business they are also reducing the number of old textbooks that might otherwise be sent to landfills.

Championing social and environmental causes can both save and make money

By embracing 3BL as a core value, companies have proven themselves successful in their industries, thus covering the “profit” part of the equation, and they also address both social and environmental concerns.

This is possibly a consequence of the public interest.

It’s easier to touch your customers’ hearts when they can clearly see their purchase easing immediate suffering (such as the “buy one, donate one” policies).

This can be more impactful than the more abstract concept of saving the planet by reducing our carbon footprints, reducing waste and using bio-degradable materials.

By winning over dedicated customers, improving employee loyalty, attracting top talent, and reducing overhead costs, this strategy could be your ticket to success.

The only question left is: what steps will your business take next to move towards this goal?

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

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]]> https://tradeready.ca/2018/topics/import-export-trade-management/4-ways-improving-your-businesss-social-and-environmental-responsibility-can-boost-profits/feed/ 0 https://tradeready.ca/wp-content/uploads/2018/08/pixabay-3BL-Cambodian-woman-picking-flowers.jpg How international businesses can become more environmentally friendly without sacrificing profitability https://tradeready.ca/2018/tradeelite-recap/how-international-businesses-can-become-more-environmentally-friendly-without-sacrificing-profitability/ https://tradeready.ca/2018/tradeelite-recap/how-international-businesses-can-become-more-environmentally-friendly-without-sacrificing-profitability/#respond Tue, 20 Feb 2018 15:30:58 +0000 http://test.tradeready.ca/?p=25740 There are many ways businesses of all sizes can change their practices to become more environmentally friendly, while also reaping other benefits along the way.

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]]> international business environmentally friendlyAs sustainability, CSR (corporate social responsibility), the triple bottom line (people, planet and profit) and other related concepts become increasingly popular, more companies are considering improving their environmental and sustainability efforts.

While it’s not always easy to start something new, there are many ways businesses of all sizes can reduce their environmental impact and reap other benefits along the way.

To help you get started, we wanted to hear from the experts what misconceptions business might face about becoming greener, how businesses can plan out new ideas, and see what options are out there for businesses to use.

This month’s #TradeElite Twitter chat provided the answers to all of these and more, so keep reading to see what the experts had to say!

Moderator:

Marissa Rosen (@MarissaR1) – Owner of Climate Social LLC in St. Louis, MO.

Panelists:

Margaret Cullen (@CullenMargaret) – Trade Commissioner at Global Affairs Canada (GAC) in Miami, FL.

Lisa Ellram (@SupplyChainLisa) – Professor of Supply Chain Management at Miami University in Oxford, OH.

Yvonne Gruenthaler (@TCS_YvonneG) – Trade Commissioner at Global Affairs Canada (GAC) in Calgary, AB.

Irina Rosca (@sustain_SCM) – owner of SustainSCM in San Diego, CA.

Lora Rigutto Vigliatore, CITP|FIBP (@CITPLora) – Marketing Manager at CircuitMeter in Ajax, ON and International Marketing Professor at Durham College.

Q1. What are some of the biggest misconceptions that need to be overcome about making businesses more sustainable or environmentally friendly?

Q2. How can you assess your business’s current sustainability levels and environmental impact?

Q3. What type of planning should businesses do before implementing a new sustainability initiative?

Q4. What do you think are some practical steps small businesses can take to become more sustainable and/or environmentally friendly?

Q5. What other options are available to larger companies to reduce their environmental impact? What are some of the best initiatives you’ve seen lately?

Q6. What are some other business benefits to becoming more sustainable and environmentally friendly?

Q7. What are some examples of sustainability programs in practice that you’re learning from or would recommend to other business leaders?

Q8. Any other advice for those looking to implement new initiatives?

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag. Stay tuned for the next #TradeElite chat in March, and if you haven’t yet, join us on Twitter at @FITTNews.

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]]> https://tradeready.ca/2018/tradeelite-recap/how-international-businesses-can-become-more-environmentally-friendly-without-sacrificing-profitability/feed/ 0 https://tradeready.ca/wp-content/uploads/2018/02/international-business-environmentally-friendly.jpg When your supply chain goes green, so does your wallet https://tradeready.ca/2017/topics/supply-chain-management/supply-chain-goes-green-wallet/ https://tradeready.ca/2017/topics/supply-chain-management/supply-chain-goes-green-wallet/#respond Tue, 10 Oct 2017 15:17:17 +0000 http://test.tradeready.ca/?p=24884 It’s time to challenge the myths about Green Supply Chain Management practices and put it to use for the planet and your profit margin.

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Going green seems to be one of the most fashionable trends these days. It gets reflected not only in the mentality of individual consumers but also in the mentality of political, economic and financial leaders and their agendas.

In the past three to five years, the concept of sustainable and environmentally friendly “green supply chain management” (or GSCM) has experienced quite a lot of turbulence, partially because business managers never agree on its true meaning and core features.

Unfortunately, negative stereotypes existing around GSCM prevent us from recognizing a true value of “going green”. The rejection of GSCM practices often goes hand-in-hand with a well-spread myth about their negative impact on organizational performance. In addition to that, a lot of companies are not willing to spend their time and money on things like sustainability that do not produce immediate, visible and concrete results.

It’s time to challenge these and many other myths about GSCM practices. First of all, Mother Nature is begging for more environmental responsibility by threatening us with climate change and other environmental risks. Doing what we can to mitigate these risks is becoming vitally important.

Another reason for battling GSCM stereotypes is the existing empirical evidence of a positive correlation between green strategies and a corporate growth.

For example, when a company faces a decline in organizational performance, implementation of GSCM practices into its distribution activities in many cases serves as the most effective solution. So, let’s go over the most important reasons to stop being afraid of GSCM and to consider adopting it.

Gain a better marketing position

First of all, the number of corporations that would not get positive attention on the market from adopting environmentally-friendly practices is incredibly low.  This trend is explained by the human nature of a consumer.

As human beings, we all care about our own safety which starts with things like clean air, water, and soil. This gets reflected in our habit to consume responsibly and to make safe choices –  popular examples include organic coffee, paper bags, and free-range chicken eggs. Thus, the greener your supply chain management goes, the more endorsement it gets from the public, and such endorsement always leads to a better position of your business on the market.

Among the companies that get a significant competitive advantage by going green and sustainable are IKEA, Johnson and Johnson, The Hershey Company, UPS, etc.

Add profitable “green” revenue streams

It is truly baffling how many pathways for creating a surplus revenue are ignored by modern businesses. GSCM alone offers dozens of them. Let’s mention a few.

One of the most extreme investments would be developing innovative solutions to sustainability issues that prevail in your industry. At the very least, you can create a better image of your business on the market by developing such solutions. But you can also make profits from selling those to your competitors.

In fact, easy and ready-to-use tools for GSCM are always in demand, since they save companies both time and money.

Be the first one to create value for your competitors and leverage from it while conducting your primary business at the same time.

What some companies do is really amazing. For example, they come up with entirely new green-focused brands that end up bringing in millions of dollars in revenue. Such brands become responsible for supporting a ‘green’ and ‘sustainable’ image of their parent companies which might be involved in destroying the planet, polluting the air and affecting animals’ natural habitats.

However, as an honest person, I am much more attracted to an ethically conducted business. That is why I am not going to spend too much time talking about deceiving practices realized through GSCM. Instead, I will point at another method of an effective surplus revenue generation by the means of fair GSCM activities. This method lies in selling waste that your business produces. As I previously mentioned, sustainability and environmental responsibility are a huge trend at the moment. As a result, we start having more companies that produce their goods and services by utilizing recycled waste. So, you could kill two birds with one stone and help those companies to obtain raw materials, while financially benefiting from it.

Lower energy costs

Power and fuel are not endless resources. It’s not rocket science to understand that the fewer resources we have on the planet, the more costly it gets to support global supply chains. Green alternatives to mainstream power sources and fuels are, surprisingly enough, way more cost effective, if not free (e.g.: recycling your own waste, using solar energy or wind power). In fact, the ability to come up with alternatives like these is the essence of business sustainability.

Thus, going green and sustainable saves your business money; and vice versa – saving money makes your business more sustainable.

The truth of the modern economy is that we stop caring about things that keep us alive unless they contribute to the process of capital accumulation. But fortunately, many of us have come to a realization that this pattern is life-threatening. One of the advantages of GSCM practices is in its power to appeal to both environment-oriented and business-oriented managers. It can be absolutely beneficial to consider green strategies from the perspective of economic gain – a perspective that modern businesses are naturally so comfortable with.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

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