How Big Business Can Help Save the Earth- and increase profits too
12.28.09 10:08 AMI came across an interesting article in the New York Times titled “Will Big Business Save the Earth?” In the article, author Jared Diamond discusses his theory that “[m]ajor U.S. corporations are now a force for environmental progress” instead of the more traditional view that corporations do nothing but destroy the environment.
Diamond explains that, economically speaking, sustainable practices help a corporation’s bottom line. In the short run, he says, lower consumption of environmental resources saves money. In addition, the maintenance of sustainable resource levels, the avoidance of penalties for pollution, and a clean image save money in the long run.
He goes on to discuss the sustainable practices of market giants Wal-Mart, Coca Cola, and Chevron, and how and why they work. He mentions that:
- Wal-Mart cut carbon dioxide emissions and saved $26 million per year
- Coca Cola recycles plastic bottles and replaced petroleum based plastic in bottles with organic materials
- Chevron recognizes that 1) "it is cheaper to to prevent [oil spills] than it is to clean them up," 2) clean practices reduce lawsuits, 3) building sustainably reduces the amount spent on future retrofitting of buildings, 4) clean operations give benefits that span across borders, and 5) environmentally sound practices improve the morale of employees.
In closing, Diamond gives a nod to the power, discipline, and determination of corporations by stating that “American businesses are going to play as much or more of a role in [environmental] progress as the government.” What do you think?
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