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It's Not Easy Going Green: Environmentalism May Help Your Corporate Image, but Will It Keep You in the Black?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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On February 2, a long-awaited report from the Intergovernmental Panel on Climate Change (IPCC) was released citing “unequivocal” proof of global warming caused by man-made emissions of greenhouse gases. Meanwhile, some of the biggest corporations in the world, including Wal-Mart, Ford, General Electric and BP, have adopted highly visible “green” strategies, embracing environmentalism in their marketing and core business operations. But what does “going green” mean for the bottom line? Whether motivated by desire to do what is right, or to polish their public image and fend off government regulation, companies can profit from well-designed strategies that embrace environmental goals, according to Wharton faculty and analysts. The IPCC report’s position that humans are spoiling the atmosphere — a consensus of the world’s top climate scientists — is likely to generate even more corporate interest in green business, says Wharton Marketing professor Americus Reed . “It’s really getting some traction now.…

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