You are on page 1of 50


Ethics March 14th

 Economics

Science Population growth is exponential Resource growth is linear at best, diminishing or finite at worst

The Dismal

The Natural Step
Sustainable (Business) Systems:  Keep the earth’s natural resources in the earth as long as possible.  Manage the production of toxic substances.  Not displace, over harvest or otherwise degrade our natural ecosystem.  Use the earth’s resources fairly and efficiently to meet basic human needs worldwide.
References: Robèrt Karl-Henrik. 2002. The Natural Step Story: Seeding a Quiet Revolution (Gabriola Island, BC: New Society Publishers) (2002), available at; The Natural Step, at (Natural Step system conditions, also called principles of sustainability, define basic conditions that need to be met in a sustainable society).

 ―As

we endeavor to become a leading contributor to a more sustainable world, corporate citizenship has become an integral part of every decision and action we take.‖

 ―Yes,

McDonald's is committed to social responsibility. We are committed to doing the right thing. We want to make a positive difference to the world.‖ - Jack Greenburg, Chairman and CEO, McDonald’s

Phil Knight Chairman and CEO. embrace diversity. and about what we are doing wrong.try to be transparent about what we are doing right. Nike.Nike  ―As a citizen of the world . .‖ . drive sustainability. Nike must Do the Right Thing .

The Macroenvironment  The Natural Environment  Concern for the natural environment has grown steadily. increasing the importance of these trends:  Shortage of raw materials  Increased pollution  Increased governmental intervention .

 China's surge in energy demand is also the main reason for the doubling in the world price of coal over the past year.) Currently at 8%  China has been responsible for nearly two-fifths of the increase in global consumption since 2000.S.China Looming  China second largest consumer of oil (after the U. . Last year China consumed 40% of all the coal and 30% of all the steel in the world.

The Macroenvironment Many companies use recycling to help protect natural resources .

‖ .The Political Environment  EPA ―This growing. durability. By applying the principles of product stewardship. and recyclability in mind. making these product systems more sustainable. changing product stream presents new challenges and responsibilities in designing and managing electronic products to reduce their life-cycle environmental impacts. electronic equipment can be made with fewer toxic constituents and designed with upgradeability.

Most years. According to carpet industry estimates.7 billion pounds of carpet were discarded in the United States in 2002. ―The disposal issues surrounding used carpet are of concern because of carpet's relatively significant contribution to the nation's waste stream and the inherent difficulties with its recycling.Carpet  . approximately 4.‖ . carpet accounts for over 1 percent of all municipal solid waste by weight or about 2 percent by volume.

industry has set a goal of achieving a 20 to 25 percent recycling rate by 2012. Under the National Carpet Recycling Agreement. ―Only 3.‖ .8 percent of total carpet discards were recycled in the United States in 2002.

At least 28 countries currently have laws designed to encourage reduced packaging and greater recycling of packaging discards.Packaging Laws  ―In most parts of the developed world.‖ . Many of these countries require manufacturers to take back packaging discards or pay for their recycling. packaging constitutes as much as onethird of the non-industrial solid waste stream.

 In green packaging. corn replaces petroleum .


both have extensive grazing land.4 million acres). www. .5 million acres). with approximately 3 million hectares (7. Organic farming is practiced in approximately 100 countries throughout the world. with more than 24 million hectares (59 million acres) now under organic management. —The World of Organic Agriculture 2004-Statistics and Future Prospects. and North America has nearly 1.7 million acres). Europe has more than 5. February 2004.5 million hectares (3. Latin America has approximately 5.pdf.5 million hectares ( million acres) under organic management.6 million acres).8 million hectares (14. Australia leads with approximately 10 million hectares (24. followed by Argentina.

com/archives/2003/2003_1/0103org anic. J/D/G Consulting." Prepared Foods. in "Organic Lessons. not a fad marching by in the night." —Jerry Dryer.htm. Organic dairy is mainstream. Half of the organic cheese and yogurt sold in this country passes through a conventional supermarket. "Organic is a niche. it certainly is a category worth watching. January 2003 www. Organic is here to stay. Others will likely get involved. It gives us one more window into the minds of consumers. but a very profitable niche.preparedfoods. Whether you opt in or not. Two-thirds of the organic milk and cream is delivered to consumers via conventional supermarkets. Several dairy companies have their arms around the organic segment of the business. not the 'health food stores' frequently associated with the organic of days gone by. Give consumers what they truly want/need and they will dig deeply into their pockets. .

or contains less packaging. . Both are priced about the same. less toxic.Consumer Behavior  Here's a pop quiz: Two products are sitting next to each other in a store. recyclable. They're practically identical.let’s say it's recycled. but one is environmentally better -. biodegradable.

given that public-opinion surveys report that roughly three Americans in four call themselves "environmentalists. So. why has green consumerism remained a largely marginal aspect of shopping? ." and that marketing studies tell us that roughly 7 in 10 consumers would gladly choose the greener product over its lessgreen counterpart.

 5.  . The public is dazed and confused. There's no mandate. Green benefits aren't always evident.  2. People lack perspective. Companies making greener products are afraid to speak up.According to the Business for Social responsibility 1.  3.  4.

com/article_green_consumers .greenmarketing.html .ca/nl/94/ ting_Book/Chapter06.403 4.pmmag.htm http://www.html http://eartheasy.greenmoneyjournal.00.html more sources      pl?newsletterid=27&articleid=277 on/features/BNP__Features__Item/0.

Positioning .Segmenting. Targeting.

Through the Grounds for Your Garden program. paper cups. Commuter Mug Discount One way Starbucks reduces waste is by encouraging customers and partners (employees) to use reusable mugs. whenever possible. The Green Team .800 pounds of paper from landfills. Customers who use their own mugs receive a $0. Based on the findings. Waste Audit Results from the study indicated that five materials dominate Starbucks retail waste by volume: cardboard. keeping an estimated 586.10 discount. Starbucks encourages reuse of spent coffee grounds by giving them to customers and parks as nitrogen-rich soil amendment. Starbucks is exploring additional ways to divert waste through packaging reduction.    Measure for measure Starbucks philosophy is to continuously seek ways to reduce waste from our system in the first place. In 2003. reuse and recycling. pastry boxes and milk cartons.5 million times. Grounds for Your Garden Coffee grounds make up the heaviest portion of the waste stream in Starbucks stores. milk jugs. customers used commuter mugs more than 13.

Starbucks managed the waste and recycling at 1.544 of our stores. .Recycling  In 2003. of which 61% have a recycling program.

Information about these areas for a sample of stores where data is available is represented in the accompanying graphs. . gas and water consumption per square foot of retail space. Starbucks is exploring innovative solutions to improve performance in all of these areas. Environmental impact Starbucks measures the environmental performance of our store design and operations by the amount of electricity. Starbucks looks at recycling rates and our customers’ use of commuter mugs as indicators of environmental performance. Additionally.



that Nike is planning for the long haul.  . Sustainable growth suggests that Nike will be around for generations. all of which apply here. Sustainable growth also requires us to find ways of generating profit while minimizing our potentially negative impact on communities or nature.  We must protect and enhance the brand and company. CR mission:  We must help the company achieve profitable and sustainable growth.NIKE’S Corporate Responsibility Nike’s corporate responsibility (CR) mission is simple and straightforward.  ―Sustainable‖ can have many meanings. It is clear acknowledgement that CR work should not be separate from the business – but should instead be fully integrated into it.

 .Sustainable Product Innovation  Nike’s two environmental long-term aspirations: eliminating waste and eliminating toxics Nike’s footwear teams use a Sustainability Index to assess each footwear category’s progress toward reaching their sustainability goals. They currently use the Index to measure the five best-selling shoes per category. as a way of focusing on where we might have the greatest impact.

3.Nike’s Top Sellers of 2000  The top-selling shoes. Nike Air Amenity cross trainer gray/obsidian/white . for the week ending Sept. Nike Land Shark 3/4 football cleat 3. Nike Jr. 2000. Tiempo youth soccer cleat 2. Nike Twitch Shark 3/4 high football cleat 4. based on units sold. are as follows: 1. Nike Air Jordan Retro 6 basketball shoe 5.

.What is the real reason??  The real reason why the famous shoe company is so sustainable and doing so well is not only because of its great sales in apparel and shoes and not because of the different product designs to fit the needs of the consumers. but its employee benefits and diversity programs and environmental initiatives and community investment.

Those Key Elements *Employee benefits *Diversity programs *Environmental initiatives and community investment  Those key elements are how companies of today are growing and can remain in today’s markets. . Nike has done a wonderful job of growing into a successful business and remains a sustainable and profitable company that it is.

Treat Your Employees Right!!!      In recent years. Nike has evolved from a focus on a Code of Conduct to advocating common standards across the industry. We’ve evolved from outsourcing labor monitoring to relying on a trained team of internal monitors and support for common monitoring platforms such as the Fair Labor Association. Nike has focused on refining our skills at (a) identifying risk of code compliance (b) uncovering issues (c) implementing strategies that can be used to drive performance and enable change within Nike internally and on a broader level. .

Employees Make a Difference  If a U.  .S.000 per employee per year. Nike matches the funds they raise. we match the contribution.S. When employees engage in charitable sporting events. based employee contributes to a qualified non-profit organization. up to $5. In the UK. based employee volunteers for a qualified non-profit organization. we donate $10 for every qualifying hour of volunteer work. When a U. employee activism is encouraged through our Sport4ACause Fund. dollar-for-dollar. our ―EXTRA TIME‖ program gives employees six days per year for volunteer activities. In Europe.

lesbian. involving 155 men and women from across Nike. bisexual and transgender employees. catalyzing action. were created to support the Council. The Index rates corporate America’s treatment of gay.  Nike established its Global Women’s Leadership Council (GWLC) to promote and support the career advancement of women within the company. for the third year in a row. and measuring results. it is focused on advocacy. Nike received a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index. building connections.Nike is Diverse  In 2004. Advisory Teams. .

Reuse-A-Shoe also plays an important role in Nike's long-term commitment to help increase the physical activity of young people to improve their lives by reusing this old athletic shoe material in new places for kids to play and be active. worn-out or otherwise unusable athletic shoe material.Reuse. .A-Shoe  Reuse-A-Shoe is a key component of Nike's long-term commitment to waste elimination by helping to close the loop on the life cycle of literally millions of pairs of old.

 Nike also has a foundation in which it helps less fortunate children get an education in public schools.Philanthropy  Nike is donating half of its proceeds to various Tsunami Aid Relief organizations from sales in all of its stores nation wide. .

Product Development .

Hybrids .

Hundreds of lumber mills have closed and over 20.Branding Oregon Forest Products  The lumber industry in Oregon is in desperate need of change.000 jobs have been lost since 1990 in spite of a decade with the highest number of housing starts and lumber consumption on record. . One of the major reasons for the decline in demand of Oregon lumber has been an increase in imported lumber.

an Oregon State University extension forester. is the environmental friendliness of the harvesting techniques and the sustainability of Oregon forests. according to the Oregon Department of Forestry. Because Oregon lumber companies cannot compete with the imported lumber on price and still maintain a profit. ―It’s not being driven by regulation. One of the main strengths. they have to find new ways to differentiate themselves from their competitors. According to Rick Fletcher. it’s being driven by the marketplace‖ (KOIN 6) .

Consumers are willing to pay a premium price for environmentally friendly products . Companies such as Timber Pro UV have had a great deal of success in recent years because of their environmentally safe wood stains.

 It shouldn’t be hard to receive the environmental approval seal since Oregon already has strict laws governing harvest practices. . Most Oregon businesses’ lumber already follows the reforestation provisions of the Oregon Forest Practices Act since it has 99 percent compliance according to the Oregon Department of Forestry.

Home Depot is one of the 500 U. Home Depot experienced a sixtyfive percent growth in the sales of FCS wood. retailers who participate in the chain-ofcustody certification—lumber that is guaranteed to have come from an FSC certified forest . In 2003.S.

Will Oregon be able to brand its forests?  Does branding a commodity work?  Sunkist oranges  California Cheese  Got milk   Will it provide a strategic competitive to Oregon? .

Telling their Oregon stories. 2005.promotewood. KOIN 6 http://www. http://www.or. Gazette-Times.shtml Geist. Milstein.odf.htm April gement/logppage.asp?RECORD_KEY%5Bnews%5D=ID &ID%5Bnews%5D=2294 http://egov. 2005.            http://www. Oregon Considers Branding 'Green' Lumber.htm Brand Oregon.or. January 31. Michael.htm http://www.pdf http://oregon.shtml . The Oregonian.globalwood. Oregon might brand lumber with green seal of /resource_policy/FAQ/TFA-Oregons_Facts_Figures. Wendy. nt. April 26. April 25.oregon.


Quick Facts Started in November of 1993  Milk Sales for the previous 15 years had been going down.  $2 billion annually spent to advertise beverages (had to do something different to stand out)  $23 million budget for milk  . and at an increasing rate.

70% in 6  Improved consumption in California from an $18 million decline the previous year to a $13 million increase  Became part of the pop culture landscape  .Results of Campaign Exceeded expectations  60% ad recall awareness in 3 months.

 Jury still out on the cheese campaign .