Why Do Corporations Go Green?

Nowadays, all companies in a race with each other to adopt environmental practices in their operations. In the past, nobody has cared much about but now no one can run away from it.

Why is this shift?

• All of a sudden, did the leaders of the industry and the business understand the importance of the environment?
• All of a sudden, is the technology advanced in a way that environment wouldn't be harmed much?
• All of a sudden, did the people realize that the environment is more important than the bottomline?

I think not.

Maybe all of these have triggered the mind shift, but, in my opinion, overall their effect is minimal.

I think the major reason is the policies and regulations. Governments now more aware of the public health and adverse environmental impacts of the heavy industries. Therefore, one after another, governments worldwide are trying adopt regulations and policies to minimize the affects. Although, still deeply influenced by lobbies, industries, still most countries have laws the protect their environment.

Another major reason that the corporates go green is the cost saving aspect. Most green initiatives are returning as a cost saving in way or another. Energy and water conservation, reducing paper consumption, recycling etc are just to name a few.

Public is now more aware about environmental friendly corporates and brands, more and more customers base their choices on this criteria. Public image of a company is very important to increase its market share. Knowing this, corporates, now, investing more on environmental friendly practices as a PR investment.
When competitors adopt more and more environmental friendly practices and shine their images on public's eyes, others feel the pressure to go to the same direction. Peer pressure leads corporations to go green.

People feel good when contributing to environmental friendly practices, I think the feel good factor should not be overlooked. Not only devotion of the customers but also employee loyalty is promoted by adopting such practices. People tend to devote themselves to good causes.

No matter what the reason is, it is extremely crucial that we keep this direction and lead the way for future generations to come. Regardless of the motives, the outcome is of utmost importance.

Vedat YOZKAT