Page 84 - Design for Environment A Guide to Sustainable Product Development

Business Value Drivers 63

• Globalization. Rapid economic growth in emerging econ-
omies, such as Brazil, Russia, India, and China (known as
BRIC), as well as globalization of supply chains, have forced
multinational companies to grapple with the challenges of
energy, environmental protection, human rights, poverty, and
social responsibility.
• Transparency. Public expectations for information disclo-
sure, as well as the explosive growth of electronic communi-
cation, have made it essential for global companies to increase
their level of accountability, transparency, and stakeholder
engagement.
Given all these changes, it is clear that corporate sustainability is
not just altruism. Rather, it is an enlightened response to emerging
market forces. Instead of merely listening to the voice of the individ-
ual customer, companies are beginning to listen to the collective voice
of the larger Customer, namely, human society. Because of the great
impact that multinational companies can have on society and the
environment, stakeholders expect them to do business in a socially
and environmentally responsible manner. This landscape creates op -
por tunities for companies to respond to stakeholder expectations with
new technologies, products, and services. The potential role of DFE is
evident—enabling companies to simultaneously increase shareholder
value and meet the needs of their stakeholders, thereby gaining com-
petitive advantage.
Those companies that recognized these trends and became early
adopters have established highly visible and successful sustainability
programs. Typically, there are several levels of sustainable business
practices. The most basic level involves corporate initiatives, such as
philanthropic programs aimed at solving community social problems.
The next level often involves reducing the “ecological footprint” asso-
ciated with the product life cycle, including manufacturing, use, and
end-of-life disposition. The most challenging level involves enhancing
the inherent social value created by the firm’s operations, products, and
services, which may range from assuring human health and nutrition
to stimulating consumer education and growth of new businesses.
At this level, challenging trade-offs may
arise—for example, balancing job creation
CORPORATE
and economic development against commu-
SUSTAINABILITY IS AN
nity concerns about industrial pollution and
ENLIGHTENED RESPONSE
environmental justice, i.e., equitable distri-
TO EMERGING
bution of risks and benefits.
Rather than following a “cookie-cutter” MARKET FORCES.
approach, the early adopters have explored
how they can integrate sustainability into their own business in -
novation strategy. Electronics companies have used information
technology to bridge the digital divide between haves and have-nots,