Green Business

TPK-2
What is green business?

Green business, commonly

known as sustainable
business, is a fast growing
aspect of the business world
wherein a triple bottom line
is incorporated (Slaper, Hall,
2011).
Triple bottom line

Triple bottom line brings social, financial, and environmental

concerns in establishing business practice:
1. Evaluation of the financial impact of a business decision,
2. How that decision affects the society around the business, and
3. Whether or not the decision is beneficial or neutral to the
environment

Source: (http://www.tbltool.org):
Duquesne University, 2014

“Having a business founded on the triple bottom line means a

commitment not only to financial success, but to the success of
the surrounding community and the environment. The focus is
not solely on making money, but being socially and
environmentally responsible”
New green marketing paradigm (Ottman, 2011)

1. Mengembangkan produk yang memenuhi kebutuhan

kualitas, kinerja, keterjangkauan, kemudahan dengan
dampak yang serendah-rendahnya terhadap lingkungan.
New green marketing paradigm (Ottman, 2011)

2. Menciptakan permintaan dengan mengkomunikasikan nilai yang terdiri

dari manfaat produk sekaligus mendorong dan menarik partisipasi
konsumen dengan cara yang berarti akan pentingnya masalah
lingkungan dan sosial. Komunikasi tersebut menunjukkan nilai yang
perusahaan tawarkan secara fungsional dan seringkali secara positif
mendorong manufaktur (perusahaan) untuk menyediakan dan
menyimpan segala hal yang berhubungan dengan kelestarian
lingkungan (sustainability) yang pernah dilakukan.
Conventional vs Green (Ottman, 2011)

Conventional Marketing Green marketing

Corporate Secretive (tertutup) Transparent
Reactive Proactive
Independent and autonomous Interdependent/ allied with
stakeholders
Competitive Cooperative
Departmentalized Holistic
Short term-oriented/ profit- Long term-oriented/ triple bottom
maximizing line

Source: J. Ottman Consulting, Inc

The New Rules Checklist (Ottman, 2011)

• Do we strive to offer a product that balances consumers’
traditional needs with minimal impact on the
environment and addresses social considerations?
• Do our communications offer practical benefits while
empowering and engaging consumers in meaningful
ways about important issues that affect their lives?
• How do our consumers feel about our brand? Do they
• Do we have a short-and-long-term plan of environmental
and social-related improvements for our products?
• Do we view our consumers with respect as human
beings concerned about their health and the state of the
world around them?
• In what ways can we express our sensitivity to how our
customers, employees, and other stakeholders interact
with nature?
• Do we know how the production and consumption of
our products impacts human lives negatively as well as
positively? Long-term as well as short-term?
• Are we taking pains to ensure that our products are
designed for an afterlife versus a landfill? Materials are
sourced locally? Our products address regional
considerations?
• Are we taking advantage of opportunities to use eco-
innovative designs and technologies? Are we looking
at new business models?
reward us with their loyalty (pro-cott)? To what extent are
they willing to boycott?
• Are we sufficiently aware of and linked with our various
environmental and social stakeholders?
• Are we taking advantage of opportunities to engage
employees to help manage and magnify the
sustainability aspects of our brand?
• Do we have our eyes sufficiently on the longer-term
sustainability aspects of our brand?