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Winning in the Green Frenzy Assess Your Possibilities Your responses to the two sets of questions below the figure will help you choose a strategy for winning in the green frenzy. The more times you answer “yes” in column one, the farther to the right you are on the figure’s horizontal axis. The more times you answer “yes” in column two, the higher you are on the vertical axis. competitors, including Dole and Del Monte, for the environmental and social problems as- sociated with banana production. In the early 1990s RA developed sustainability standards for rain forest banana farms and shopped them to the major banana companies. Only Chiquita agreed to pilot the standards, and thus began a long collaboration to bring its farms into ac- cord with them. RA representatives worked with Chiquita to find innovative ways of achieving the standards’ goals while meeting the company’s commercial needs. The process of boosting its green credentials helped Chiq- uita in other ways as well. By incorporating op- erating discipline and other business criteria, Chiquita’s implementation of the standards in- creased farm productivity by 27% and reduced costs by 12%. The company also improved em- ployee satisfaction—and in 2004 it received the OAS Corporate Citizen of the Americas Award. Starbucks has pursued several green-stan- dards strategies, including co-option. Looking to green its retail stores, the company recog- nized that although LEED standards domi- nated the green frenzy for new buildings, they were less well developed for existing structures and failed to account for the unique challenges of greening them. So Starbucks partnered with LEED to develop and implement a certification protocol for green retrofitting. The adaptations brought Starbucks recognition for its greening efforts while advancing LEED standards in a new market segment. Define. Some companies find that their in- dustry has either no established standards or no consensus across competing standards. If it has the necessary capabilities and clout, a company may set out to create industry stan- dards. Success requires specialized knowledge, competency in dealing with sustainability is- sues, credibility among savvy stakeholders, ef- fective communication, and willing partners. Indeed, partnership with an NGO, a univer- sity, or some other reputable authority is often fundamental to an effective strategy. There are compelling reasons to try setting your own standards. For example, certification protocols are often written by activists who have particular concerns. In the coffee industry, Fair Trade certification focuses on establishing a minimum price for growers, whereas the Au- dubon Society aims to protect migratory-bird sanctuaries. From a business perspective, of DEFINE BREAK AWAY CO-OPT ADOPT THE CURRENT STATE OF INDUSTRY STANDARDS YOUR COMPANY’S ABILITY TO CREATE STANDARDS HIGH LOW HIGH INDUSTRY STANDARDS Do standard-setting forums exist in our indus- Y/N If competing standards exist, is there agree- ment on the issues they Y/N Have our competitors adopted existing Y/N Have governments proposed or supported Y/N Have the marketplace and customers accepted spe- Y/N Do we have the techni- cal expertise needed to develop credible Y/N Do we have the R&D and product-development assets for sustainability innovation? Y/N Can we influence members of our supply chain to become more sustainable? Y/N Do we have good rela- tionships with credible third-party sustainability organizations? Y/N Do we have buy-in from customers and other stakeholders? Y/N harvard business review • november 2010 page 4 COMPANY CAPABILITIESPDF Image | Winning in the Green Frenzy
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