Page 71 - Design for Environment A Guide to Sustainable Product Development

50 Cha pte r F o u r

of the company and express the fundamental principles and values
by which employees are expected to conduct themselves, such as
integrity, respect, and teamwork, which become part of the corporate
identity [3]. Examples include the HP Way and the Johnson & John-
son Credo (see Chapter 14).
While values are important, the oft-repeated phrase “doing the
right thing” is merely a platitude, not a business strategy. The motiva-
tion for adopting practices such as DFE goes beyond ethics and good
citizenship—it is ultimately a strategic business decision. In simple
terms, business value is the most important driver of DFE. In fact, corpo-
rations all over the world have recognized that sustainability makes
good business sense and is essential for their survival and growth [4].
Many CEOs have asserted a belief that sustainable business practices
will improve both enterprise resource productivity and stakeholder
confidence. At the same time, corporations are beginning to consider
the interests of a broader range of stakeholders, including not only
customers and shareholders, but also employees, local communities,
regulators, lenders, suppliers, business partners, and advocacy groups
(see Table 3.1). All of these stakeholders have the power to help or
hinder the success of the business.
It is clear that U.S. corporations are eager to communicate their
sustainability commitments to their stakeholders. According to a
report by the Sustainable Investment Research Analysts Network
covering the period from mid-2005 through the end of 2007, over 50%
of America’s 100 largest publicly traded companies (the S&P 100)
report on their sustainability efforts. Over a third of those reports
integrate elements of the GRI sustainability reporting guidelines men-
tioned in Chapter 3. Moreover, 86 of the S&P companies have cor-
porate sustainability websites, a 48% increase since 2005. In recent
years, the wave of sustainability adoption has accelerated, as some
of America’s most influential companies have joined the parade,
including Procter & Gamble, General Electric, and even Wal-Mart
(see Chapter 19). Some of the factors that explain this phenomenal
growth are described below.

Evolution of Environmental Strategy
In the course of about fifty years, environmental sustainability has
migrated from an obscure fringe concept to a mainstream concern
at the highest levels of corporate governance. The emerging public
awareness of environmental sustainability challenges, beginning in
the 1960s, was the first wave that heralded a transformation of indus-
try attitudes toward environmental and social responsibility. The sec-
ond wave, beginning in the late 1980s, was the codification of principles
of conduct and best practices—a vital prerequisite to broad adoption
of corporate sustainability goals. The third wave, which boosted both
environmental awareness and codification of practices, was the sud-