Who says green business is not profitable?

MediaPost is reporting that “Reverse Vending Machine” maker TOMRA will be offering advertising opportunities on their automatic recycling machines.

The company says its gives advertisers a unique opportunity to communicate their green message to eco-conscious consumers nearly at the point of the sale.

So while customers are lingering at the bottle recycling machines at the entrance of a grocery store mindlessly inserting bottle after bottle into the machine, they become a captive audience for posters, videos, and coupon offerings – all in the moments directly before they go into the store to shop.

Tomra says studies have shown that consumers who return their empties before shopping generally spend more than 50% more once inside the store.

Green minded consumers are where retailers may want to focus their marketing efforts as recent study (PDF)found that consumers are budgeting for green products even in the midst of the recession.

Stimulus Package is Bricks and Mortar for Green Building Industry

The President’s new American Recovery and Reinvestment Act outlines a significant investment plan in renewable energy production, as well as, renovating public buildings to make them more energy efficient.

One of the hardest hit industries recently in the midst of this recession is the construction industry. The new housing market has dried up, money for development projects has disappeared mid-way through a build, which has led to builders hanging on to their jobs by a thread.

However a niche part of the industry, green building is growing. As companies, individuals, and now the government is realizing the economic benefits in an energy efficient building, people are seeking trained professionals for retrofitting buildings.

And the new stimulus package looks to shift the green building niche into the mainstream. It includes $20 billion aimed at green jobs to make wind turbines, solar panels and improve energy efficiency in schools and federal buildings. It also includes $6 billion in loan guarantees for renewable energy projects as well as tax breaks or direct grants covering 30% of wind and solar energy investments. Another $5 billion is marked to help low-income homeowners make energy improvements.

For a closer look at what the package has provisioned for energy efficiency look here.

While some in the know fear the bill may have trouble reaching the designated recipients due to the lack of earmarks , most see this as a positive step towards a green economy.

New Hampshire Business Hopes to Ride the Green Business Wave

While studies are popping up everywhere saying that the current economic downturn is the prime opportunity for governments to reinvest in green infrastructure and avoid a severe recession, a new local business on the coast of New Hampshire is not waiting for the green economy to come to them, The Portsmouth Herald reports.

Greenland Bioplastics and Green Option of Greenland, NH offers green products for home or office and are part of a growing number of businesses offering such products in an effort to attract the growing number of eco-shoppers in the region, as well as lowering their own carbon footprint.

Managers of the seacost's most recent green business chose the location as a strategic move in entering into a burgeoning eco-market. "We looked at the demographics of the Seacoast, and found that folks here are very educated and environmentally conscious," says Green Options manager Mark Loomis. "They want these choices and they understand the importance of reducing their environmental impact on all fronts."

Greenland Bioplastics/Green Options, is offering 100% biodegradable and compostable packaging for its industrial customers, but is also offering unique green products for independent consumers. "We know that businesses and manufacturers need this sustainable packaging, but we also wanted to make sure our store was useful for individuals," Loomis said. "That is why we offer many innovative green items that can be found nowhere else — like shoelaces made from recycled bottle caps, pencils and ice scrappers from recycled currency and disposable plates from recycled paper that can be washed again and again."

A recent study about the state's Green economy, by the University of New Hampshire, found there is a promising green business sector in the region."About 3% of jobs in New Hampshire could be qualified as being 'green jobs,' and while this is not largely under the national average, it does show incredible economic potential," the report says"(The state) needs to encourage and stimulate the growth of more sustainable industries."

Green Business Bringing New Jobs to MA

Lowell based Konarka Technologies announced recently the opening of the largest flexible thin film solar manufacturing facility in the world.

Located in New Bedford, the 250,000 square foot building was previously the location for Polaroid Corporation’s advanced printing technologies which makes useful equipment and knowledge available to Konarka.

“This facility has state-of-the-art printing capabilities that are ready for full operation, with the future potential to produce over a gigawatt of flexible plastic solar modules per year,” says Howard Berke, executive chairman and co-founder of Konarka.

Not only has the company been able to utilize the equipment, but it has also been able to leverage skilled workers as well. The company has hired the leading technology and process engineering teams from Polaroid, and has plans to hire over 100 additional employees as production increases toward capacity over the next two to three years.

In addition to global and national interest, the project has been assisted by various Massachusetts departments and quasi-public agencies, including the Massachusetts Governor’s Office, the Executive Office of Housing and Economic Development, the Executive Office of Energy and Environmental Affairs, MassDevelopment and the Massachusetts Technology Collaborative’s Renewable Energy Trust Fund and Green Energy Fund.

One Year on...

Well almost one year to the day I am back writing about trends I see on Corporate Responsibility. Excuse me for my absence but I've taken this year to move to another country, have a baby, and reflect on CSR in the US as opposed to CSR in the UK.

When I first moved I noticed a huge gap between the commitment of companies in the US and the UK on tackling CSR issues: community relations, energy efficiency, labor practices, etc. The UK takes it very seriously and uses CSR work effectively in attracting customers as well as talent. It is common to see vacancies for CSR Officer or Corporate Responsibility Manager advertised on an job board. Whereas companies in the US had not reached the point of full committment in hiring someone solely dedicated to helping the company do good. The US, as believed by many around the world, was focused money, money, money, and could not see the profit in CSR.

Or so I thought.

True, companies in the UK have followed identifying efforts under the Corporate Social Responsibility umbrella, but this doesn't mean the US is as far behind as one might think. Many companies in the US are just as committed to going green, supporting the communities in which they operate, and encouraging their employees to do so as well. The difference is companies in the US do not identify their efforts as Corporate Social Responsibility. Many companies have corporate giving programs, employee volunteer programs, many even have serious initiatives working to lower their emissions and source ethically. The difference is that these programs are hidden within larger business initiatives. Though unfortunate that these programs are not publicized as CSR, this could be a tactical way of doing good, while avoiding fear from investors that the company is veering away from their main goal of making money. Who knows I'm just speculating.

The point is, is that if you look hard enough you can find US corporate efforts at doing good. It's evident US corporations are recognizing their part in improving our society. Hopefully in the year to come we wont have to look as hard.

The Importance of Measurement in CSR

Having met with the Director of Corporate Giving at C&S Wholesale Grocers in Keene, NH last week(http://www.cswg.com/pages/comunty1.htm), I have been thinking a lot about the challenge of measuring the impact a CSR program has on its stakeholders and more importantly, quantitatively marking the value added to the company. How do you convince the board that there is an ROI in community affairs programs, or in factory evaluation processes?

Every CEO wants to make a difference in people’s lives and I’m sure they all would love to donate thousands or millions of dollars to worthy causes, but the buck stops at the name of their game: business. These people are in the business of making money for their investors. Understandably they would be a little hesitant in dishing out a lot of money without being confident that it will have beneficial affects for the company.

Green initiatives and supply chain ethics monitoring processes, though not without their opportunities for debate, seem more straightforward. A company wants to lower their Co2 emissions over the course of five years. The company gets an initial estimate of their current emissions rating, implements green programs and measures emissions annually. But what if your CSR focus is on corporate giving? This could be a very important aspect especially for larger companies with a high community exposure. How do you measure the increase (or decrease) of social capital to your stakeholders?

This question has been bouncing around the CSR world since probably the term CSR began. Many consultants have developed high tech matrices for reporting and accounting for community impact. But with more and more guidelines for measuring and reporting there is a risk that companies will report for reporting sake and then call it a day.

Each company has their own strengths which it can give back to the community. The secret to a strong corporate giving program is to understand those strengths and philanthropically exploit them with all of your stakeholders.

Though difficult to quantify the impact a donation to a local charitable group will have on the community, there are systems that can be put in place to show a planned, thought out program has been put in place, and to show that a company can seriously integrate CSR into their overall business plan.

1.Identify you corporate giving stakeholders. They may be similar to the company’s business stakeholders and will definitely include staff and clients, but this list of stakeholders will also include members of the community where the company operates.
Align corporate giving aims within the company’s mission, and develop a corporate giving mission.

2.Develop a Corporate Giving Strategy which clearly outlines the company’s goals in developing the program. Goals can and should be not only to give back to the community, but also to empower staff to feel as part of a community leader, to increase public awareness of the company’s dedication to the community, etc.

3.Outline areas of focus for the company. No one expects one firm to fix the world. By concentrating on a few areas to which you know the company can contribute, it can make a much stronger impact.

4.Include all internal stakeholders! Staff, Management, Directors, etc. The more people involved the stronger the message will become.

The biggest factor in developing a strong corporate giving program is dedicated leadership. Most firms that are known for their CSR are companies that have CEOs who set out in business to improve social capital. It is embedded in their corporate culture. Though you may not have the ability to change that, by setting out a serious plan for developing a program, you have more of a chance to create change in your company.

You are What you Eat

I had a bowl of cereal this morning and I could tell you exactly how much of each nutritional element I consumed - how many calories, grams of sodium, carbohydrates, etc. But ask me what’s gone into the clothes I’m wearing, I’d need to phone a friend on that one.

What is even more frustrating to me is I consider myself a quasi-ethical consumer. I buy fairtrade whenever I can, I have a compost bin in my back yard, I’m looking to invest in a hybrid, and all of my lights are equipped with energy saving bulbs.

New Hampshire based shoe and clothing manufacturer, Timberland, http://www.timberland.com/, must have realised that I am not the only consumer struggling to avoid purchasing items which leave a heavy footprint on the environment and the communities in which the items are produced. The company has stepped up to the CSR plate to be one of the first to provide a nutrition label on every shoebox.

Now when I purchase a pair of Timberland shoes I will know the impact the production had on the environment and the community. I will also know where the shoes were manufactured.

To find out more about Timberland's Nutrition Lable click on the image above.

Admittedly, the environment information is much more quantitative than the community information (reporting that over 119,000 hours of community service were served directly relates to the manufacturing of the shoes seems like a stretch), but it’s a very clever way of getting the information to the consumer.

The nutrition label on clothing could be a great way of empowering consumers to make their own informed choices on purchases, if only a standardized labelling system could be agreed. When used independently, confusion around reporting techniques is inevitable.

It is important to include that this is not by far the crux of Timberland’s CSR program. The company is clearly passionate about inviting all stakeholders to become involved in their communities. With a volunteer ‘classifieds’ section on their website, and helpful guides on how visitors to the website can organise they’re own voluntary event, it’s clearly not about bragging about what employees do, for Timberland.

Timberland have clearly taken they’re role as a community leader seriously, which is obviously why the company continues to be at the top of lists highlighting good employers and also why global sales aren’t slouching either.