When you purchase a product, do you actively seek out companies that positively impact the environment? Do you consider buying one pair of shoes over another because the company supports human rights, sustainable employment, or their dedication to the communities that we live in?
Environmental sustainability is explained as an organization's responsible interaction with the environment. So what makes a company environmentally sustainable? Three words - triple bottom line. Triple Bottom Line (TBL) is a theory that suggests companies should measure their impact on community, environmental performance, and sustainable business practices over time. The elements that create the TBL include profit, people, and planet. The theory is to urge companies to not only measure their profits, but also measure their impact on their employees and the environmental impact of the business on the planet. (Kenton, TBL, 2020).
The company which I believe does a great job at environmental sustainability is New Balance. As an avid runner, I have numerous pairs of New Balance shoes. Not only are these shoes good for my feet and joints, but they are also good for the environment. New Balance's triple bottom line consists of the following environmentally sustainable practices:
Profit:
New Balance is dedicated to fair and ethical business practices around the world
Holding themselves to the highest ethical and moral standards
Adhering suppliers to a strict code of conduct
Anti-corruption and anti-bribery standards
Since 1981, New Balance Foundation has invested in research, and clinical, educational and community programs which promote healthy lifestyles, children's fitness, and community wellness. The foundation gives back to the Boston Children's Hospital, 100 Mile Club, Boys & Girls Club, Harlem Lacrosse, American Red Cross, Rising New York Road Runners)
New Balance Fitness Challenge, 1 for you/1 for youth, Run to Home Base, Cycle for Survival, and Pan Mass Challenge are some of the community programs New Balance has established to give back
People:
Fair compensation is provided to workers all around the world
Maintaining a OSHA friendly work environment to ensure safety for all employees
Zero tolerance for child labor at any facility in the New Balance supply chain
Continued work with the Fair Labor Association (FLA) regarding a fair compensation project
Planet:
Minimize or eliminating the use of hazardous materials in plants
Moving to a 'low carbon' future by reducing energy use, water consumption, and investing in renewable energy resources
Actively working with supply chain to reduce energy consumption throughout the shoe manufacturing process
Branding environmentally friendly items with a green leaf icon (which means the product is made of 50% or more of recycled materials)
Implementing the use of recycled polyester, organic cotton, and preferred leather in New Balance footwear
New Balance has done it's best to minimize issues with environmental sustainability and ethics. A few years ago, they asked a supplier to comply with safety and human rights standards with no response. New Balance quickly ended the relationship with the supplier and distanced themselves. Understanding how the company dealt with this issue helps me to understand they are 'green' for the environment, not 'green' for profit.
So how does environmental sustainability affect consumer behavior? Companies who disclose their dedication to the Triple Bottom Line are able to be transparent, with stockholders and customers. Environmental sustainability helps build a brand. Customers will begin to identify the brand with efforts to positively impact the environment, which can influence purchasing decisions. The Natural Marketing Institute surveyed over 50,000 individuals on their perspective of environmental sustainability. Results from the survey revealed "that 58% of consumers consider a company’s impact on the environment in considering where to purchase goods and services and are more likely to purchase from companies that practice sustainable habits." (Rogers, 2016).
If you are interested in learning how your business can implement more sustainable and responsible practices, please contact KLG Designs for a complimentary consultation.
References:
Kenton, W. (2020, January 31). Investopedia. Triple Bottom Line (TBL). https://www.investopedia.com/terms/t/triple-bottom-line.asp
Rogers, M. (2016, March 29). Environment and Energy Leader. 6 Benefits of Becoming a Sustainable Business. https://www.environmentalleader.com/2016/03/6-benefits-of-becoming-a-sustainable-business/
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