In Business, Creating Sustainable Enterprises & Communities

EDITORIAL

In Business, May-June, Vol. 29, No. 3, p. 4

BIG AND BIGGER POTENTIAL IN GOING GREEN

IN THE last issue of In Business, we wrote on this page about the rapidly increasing changes taking place in green development. “What once were viewed as hopeful wishes are now turning into solid change - in product development, in sustainable agriculture, in ecobuilding and residuals reuse. Our wish list has become reality.”
In this issue, let's continue on this same theme. The Wall Street Journal in its June 12, 2007 column stressed consumer concerns and the desire to buy locally. “For entrepreneurs, it's never been a better time to go green. Prompted by fears of global warming and other environmental ills, consumers have started seeking out more ecofriendly products - giving a boost to small businesses that serve the niche.” Cited are statistics from the Organic Trade Association which show that organic foods and beverages reached $16.9 billion last year, a 22 percent increase from $13.8 billion in 2005. And small, local enterprises are seen as naturally more environmentally sound than a sprawling multinational.
Adds The New York Times in its Sunday Business account titled: “Make Money, Save The World - How Businesses and Nonprofits Are Spawning Corporate Hybrids,” resulting in the “fourth sector.” This is composed of organizations driven by both social purpose and financial promise - derived from participants who are creating hybrid organizations sometimes known as “for-benefit corporations.”
“Young MBA students are not satisfied with going to work for a normal corporation because they are passionate to do good in the world and do it in business,” explains a California attorney. Notes the Times: These desires are reflected in the growth of sustainable enterprise programs at business schools, in corporate marketing campaigns, and new investment approaches like Good Capital, Investors's Circle, Underdog Ventures and the Social Venture Network.
As an example, the Farmers Diner in Quechee, Vermont founded by Tod Murphy is cited as a company that shows the impact of new food sourcing and distribution. About 65 percent of its budget for food ingredients is spent within 70 miles of the restaurant, and it tries to educate local farmers about new growth practices. Aided by an angel investor, Cathy Berry, Murphy says the restaurant is now on track to have more than $1 million in revenues this year.
Vermont Governor Jim Douglas has begun a program to bring environmental engineering firms to the state and help others to expand. His goal along with other state officials is to transform Vermont into a place where growth is driven by green business. The goal is to develop a niche that builds on sustainable technology - one that uses a strong environmental ethic. The hope is to change its business profile which was once dominated by the insurance industry. - J.G.