Benefits of Going Green. Improving the Environmental and Ethical Image of a Restaurant - Essay Example

?Introduction The environmental benefits of going green cannot be emphasized further, with most governments, s and individuals around the world practicing and encouraging strategies geared towards protecting the environment. In businesses however, adoption of green technologies had initially lagged with several big organizations having to be pressurized and petitioned to go green. Recent developments point to a scenario in which businesses have taken up the initiative of green strategies and technologies and are in fact leading the way on the issue. It is practically one of the biggest business trends of the last quarter of a century alongside adoption of computers and the internet. This then begs the question; what has prompted organizations to take up green ways? Investigations into the issue point to the fact that going green is not just empty trend, but a powerful strategy to gain competitive advantage for organizations in modern times. It enables a company to create a good corporate image and reduce costs thus maximizing profitability. Although there is evidence to support this, several companies have still not found going green a strategy worth pursuing. Hence, this part of the paper explores what going green entails and the benefits it accrues to businesses especially in the automobile industry, the food industry and the accounting/audit industry, which can be extrapolated to any other businesses. What is “Going Green?” Going green in a business is usually defined as the practice of monitoring, reducing and measuring the environmental and social costs of conducting business (Polimeni et al. 2010). Going green generally involves reducing wastes, decreasing use of energy and adoption of recycling techniques. Depending on the industry, strategies for going green include cutting on paper work, encouraging employees to car-pool, giving incentives to employees to adopt green technologies such as buying hybrid vehicles, reusable water bottles and using alternative sources of energy among others. A company that wishes to go green needs to make it a policy and communicate this to its employees. The policy should contain the company’s commitment to go green and the proposed strategies of doing this as appropriate to the company. The management should be committed to adopt these strategies in order to make employees follow suit. Benefits of Going Green The benefits of adopting green strategies are wide and varied across all industries, especially with the recent global economic melt-down. Case examples of industries that have adopted these strategies and the benefits they have accrued are studied and general benefits accrued discussed at the end. One of the biggest sectors that is directly affected and directly influences all other organizations in terms of the environment is the automobile industry. Vehicle manufacturers are at the forefront of adoption of green technologies, and thus the increasing emphasis on hybrid and electric vehicle. Robinson’s and Schroelder’s (2009) study of Subaru Indiana Automotive Inc. illustrates that through green principles and efficiency improves not only environmental conservation but also profits plus competitive advantages. Employees at every level in the company continuously pursue strategies to increase efficiency, reduce production of wastes and also reduce energy consumption. The strategies have resulted in 14% reduction of electricity consumption since the year 2000, plus the company has not taken any wastes to the depository since 2004 as of 2009. The company has saved on costs in both long term and short term basis, with habits such as dimming lights when workers are on a break reaping immediate savings on costs. Other strategies such as redesigning processes initially increased costs but they have over time resulted in cost-saving. The two authors also found out that going green in the company involves detailed scrutiny of operations and new perspectives, which lead to innovations that create competitive advantages. On an issue closely related to vehicle manufacturers and going green, several companies have developed strategies to encourage their employees to purchase hybrid vehicles. Tyler (2006) found out that through incentives such as moderate loans, businesses are able to persuade their staff to purchase the more expensive but environment-friendly hybrid vehicles. Tyler studied several service companies such as Hyperion and Google which offer forgivable loans or bonuses to their employees to enable them buy these vehicles and as a benefit, they gain employee commitment and motivation. In the mobile phone industry, Siemens has demonstrated that green policies can be converted into massive profits (Sherman, 2008). Its share prices have tripled over the first half a decade due to increased sales growth from energy saving lights and wind turbines Industries that traditionally use a great deal of paper work are also a mainstay of targets to go green. These especially include businesses in the audit and accounting industry where numerous records are kept in files and pamphlets or other forms. Polimeni et al. reckon that the modern day audit services are nearly paperless, although some firms have still been reluctant to adopt green strategies (2010). Companies such as Delloite, one of the biggest audit firms, have taken up green technologies including choosing electronic over paper documents and are reaping huge benefits in savings. It has increased their efficiency and productivity resulting in saving costs on the part of the firm and customers thereby making the company much more profitable and competitive against their competitors. Another major advantage is the attraction and retention of young employees who have been observed to prefer working in an environmental conscious and technologically able accounting company. The so called “Generation Y” accountants are searching for not only good jobs but also socially conscious and environmental friendly companies, and usually enquire about these issues in interviews. Paperless audit firms also allow employees to work remotely, thus cutting costs and increasing efficiency which in turn improves customer service and ultimately the corporate image of the company. Similarly, the importance of going green has not been lost on law firms (Mucalov, 2008); another sector that does massive paper work. They have been encouraged to go “paperless” and use e-offices in a bid to take advantage of reduced costs and corporate image that accompanies this direction. Another industry that can give valuable information on the benefits of going green is the restaurant industry. Restaurants are able to gain competitive edge over their rivals by adopting green strategies, which result in fresher and tastier meals for their customers. Roth (2008), suggesting that the restaurant model of going green could be used by other companies to gain the same advantages suggests that reduction in costs and competitive advantages in compliant restaurants are the main benefits to be accrued by going green. Such restaurants align themselves with consumer wishes and expectations. Pizza Fusion is a restaurant that has adopted green strategies to save on energy and water while reduce wastes at the same time. This has resulted in massive reduction of costs, as much as 30% less energy costs. The company also uses hybrid vehicles for deliveries and recycles pizza boxes, besides other numerous green strategies, and as result attracting customers from far places and thus outdo competitors. In conclusion, going green comes with several benefits as has been demonstrated across various industries above. Generally, it increases revenue by placing emphasis on the green nature of products or services to the customers (it can be used as a marketing tool). This way, the company can gain a competitive edge over its rivals and maintain. Going green also leads to enhanced corporate reputation, making a given product a brand and giving it value in the market. As a result positive reviews by customers, regulators, investors, partners and environmental activists, a company that has adopted green strategies can maintain or improve its market share while at the same time becoming more valuable consequently leading to higher prices of its stocks. It also reduces production costs of a business organization through minimizing wastage by decreasing the amount of energy, water, and other input materials. This has the effect of saving money in the long and short term perspectives, hence increasing the profit margin of a business. Reduced costs can also be used to offer products in the market at lower prices and thus gain a cutting edge over competitors. The scrutiny in details of production that accompanies green technologies results in innovations and fresher ways of looking at things. The other main benefit of going green concerns human resource, where it has been shown that environment conscious employers tend to attract employees to their firms and motivate and retain them. Current day employees are attracted to firms that have policies to mitigate environmental degradation by their products while offer a clean and harmless working environment (Janowski, 2008). Going green is not just a pointless strategy as it accrues benefits to a business organization. The traditional view that while it definitely does create a good image of the company in the eyes of prospective clients, the costs of doing it is prohibitive is just a myth, with a lot of evidence showing that it indeed leads to both long term and short term savings on costs of running a business. The business organizations that have adopted going green bear witness to this, hence those which have been left behind are encouraged to be part of the green revolution. Improving the Environmental and Ethical Image of a Restaurant Introduction For any business, the image portrayed to the public or to prospective customers is important in maintaining or increasing its market share. This is especially so with regards to the environmental and ethics policies that a business pursues. In the case of a restaurant business, a poor public image can result in rapid lose of customers and as a result force it to close down. The perception of the public with regards to a restaurant is very important, and customer goodwill and positive reviews should be sought at all times. Several best practices can contribute to a good corporate image, while negligence of the same can result in loss of public trust and support. For a restaurant that finds itself marred in negative publicity and criticism, several strategies can be put in place to check and reverse the situation. This entails recognizing the reasons that have resulted in a negative public image with regards to environmental and ethical issues, the effects of this poor public image, followed by formulating a policy which when implemented will enable the restaurant to improve its ethical and environmental stance to the public. The Causes of Ethical and Environmental Negative Publicity In this age of ethical and environmental consumerism, a restaurant may find itself in the wrong side of public perception due to several factors. Before a solution can be found to counter a poor public image, the causes of it must be identified as they prove useful in reversing the situation. Some of the causes of bad publicity stemming from ethical issues include declining to use local suppliers when procuring for restaurant supplies. The public may also develop a perception that the management is receiving excess and undeserved pay. A restaurant that deals with suppliers known for poor human and animal rights reputation may also receive criticism. Another cause of bad publicity may be as a result of harmful ingredients in food (food safety concerns), and finally failing to adopt green strategies in operations. Effects of a Poor Ethical and Environmental Image A good public image may result in gaining a competitive edge over rivals, increased market share and sales which explains the amount of money invested by not only restaurants but other companies in advertising. The impact of negative publicity cannot be understated as it has been shown to significantly influence the beliefs and attitudes of consumers. Especially considering the fact that negative reviews cause much more of an impact than positive ones (Richins, 1983, 69-78), a bad public image can lead to losing customers and their trust. Some of the effects may be irreparable if not properly checked in time, also considering the fact that an inappropriate response by the restaurant may deteriorate the situation. How to redeem a broken Public Image This part will study some of the best practices by leading businesses in the industry, then focus on the general approach to addressing a public image crisis, before narrowing down to what the restaurant should do basing on the reasons for its poor image in the eyes of the public. Best Practice in the Industry According to Fieser, business ethics require that one practices one or all of three things; avoid breaking the law of the land while doing their business activities, endeavor not to be involved in issues that may lead to law suits against the business, and finally avoid actions that could damage the image of the company alongside its reputations. This involves practicing morality when undertaking the activities of the company, which involves ensuring the products are safe, taking measures to protect the environment, honest advertising and ensuring they take care of their employees (n.d). On the part of environmental concerns, businesses should try to adopt green technologies and strategies in their operations. For a restaurant, going green involves recycling and reusing where necessary, using clean sources of energy, encouraging employees to car-pool or purchase hybrid vehicles. According to Centre for Retail Research, several businesses in this industry have already taken the initiative to adopt green technologies: Sainsbury’s has continuously made efforts on the part of ethical and environmental commitments over the years and has a long track record on the same. Mark & Spencer (M&S) on the other hand has won public polls as being the most environmental friendly supermarket in Britain. M&S has also promised to ban petrol-fuelled cars in their company, increase recycling and give more room for its chicken to roam. Tesco has not been left behind, opening two “eco-stores”, planning to let customers recycle paper food packages and implement energy saving practices (n.d). Such ethical and environmental best practices can result in building a good corporate image that may enable the businesses to withstand or manage future occurrences of negative publicity. Recommendations The first steps that should be taken should address the causes of the broken public image with respect to ethics and environmental concerns. The management of the restaurant should also be keen on preventing further breakdown of public image due to ineffective reactionary measures. The situation should be regarded as a crisis, and efforts put in place to address the concerns of the public. The basics involve first correcting the problem, followed by communicating to the public that the cause of their criticism has been addressed, especially considering that through the crisis, they have become some kind of stakeholders in the restaurant. The reaction of the restaurant will be gauged by where the emphasis is placed, whether on the victim or on the company. A reaction that will be seen as denial, self defense, passing the blame, or attacking the accuser will result in the deterioration of the situation (Coombs & Holladay, 2007). During a public image crisis, care should be taken when pursuing corporate social responsibility that was previously non-existent since it is bound to look suspect in the eyes of the public. In the case of this restaurant, the causes of the public criticism should be addressed, and then steps that have been taken continuously communicated to the public. The restaurant should cease dealing with suppliers whose handling of human or animal rights is questionable. Such suppliers already have a poor public image, and should not be allowed to drag the restaurant into eventual failure and closing down with them. This issue can be tackled together with the issue of not contracting local suppliers. The company should take the necessary steps to reach out to reach out to local suppliers whose integrity is known to the local community, as a result creating customer trust and goodwill. The issue of excess executive salaries and bonuses should be addressed carefully, while considering whether the pay is actually excessive or not. This is because it may result in negative consequences on employee motivation and commitment if handled haphazardly. The public usually comes to this conclusion by observing the disparity between the salaries of the top management and the junior employees. A large difference will result in perceptions that the executive employees are receiving excess pay, hence public criticism. To correct this, the junior staff’s salaries can be raised, or in cases where there is evidence of excessive benefits given to top managers, actions should be taken to check this accordingly. The issue of food safety is particularly important for the restaurant because some consumers and relevant watchdogs may bring lawsuits against the restaurant. Extensive investigations should be undertaken to check whether there are harmful ingredients in the food sold by the restaurant. It will not be enough to claim that the food is safe without first investigating, and an independent examination by a relevant quality control authority will prove useful in winning back the public trust. In the case that the concerns of the public are largely due to misinformation or malicious rumors spread by detractors, investigations should be undertaken followed by communication and clarification on the fears impressed upon the public. The restaurant should realize that environmental consciousness is a matter of importance to most individuals today, and as such should undertake to implement “green” strategies which have the added advantage of saving on costs and increasing efficiency. A “go green” policy should be formulated and implemented in the restaurant including strategies such as adoption of the “3R” (reduce, re-use and recycle) principle where appropriate, reducing energy consumption through pursuing clean energy and energy saving technologies, encouraging the restaurant’s employees to purchase environment friendly vehicles such as hybrid vehicles, reducing waste production by the restaurant, reducing paperwork as much as possible by adopting electronic documentation among other strategies practiced by members of the industry. Conclusion Negative publicity has serious consequences on a business and should be addressed effectively and promptly. The best practices in the industry should be pursued earnestly because they have the double advantage of creating a good corporate image and increasing profitability by reducing costs and increasing the market share. The recommendations suggested should be implemented as soon as possible to prevent deterioration of the situation. The strategies taken should be aimed at addressing the criticism leveled against the restaurant. The restaurant should actually conduct the recommendations as opposed to just acting in a bid to fool the customers. All the branches of the restaurant should take up the recommendations in order to prevent future occurrences. References Centre for Retail Research, (n.d), Retail ethics and green retailing. Available at www.retailresearch,org/retailethics.php Coombs, TW & Holladay, SJ 2007, The negative communication dynamic exploring the impact of stakeholders affect on behavioral intentions. Journal of Communication Studies, 11 (4) Fieser, J n.d, Approaches to business ethics. Business Ethics. Available at www.utm.edu/staff/jfieser/vita/research/businessbook.html Janowski, K 2008, The business benefits of “going green”. Sustainable Businesses. Available at www.ecostrategygroup.com/2008/09/the-business-benefits-of-going-green Mucalov, J 2008, Greening your law firm: A practical guide to creating an environment friendly law office, CBA. Available at www.cba.org/cba/practicelink/bsky/greeningyourfirm Polimeni, RS, Burke, JA & Benyaminy, D 2010, CPA firms going green, CPA Journal. Available at www.finarticles.com/p/articles/mi_qa5346/is_201011/ai_n56445065 Richins, ML 1983, Negative word-of-mouth by dissatisfied consumers: A pilot study. Journal of Marketing, vol. 47, pp. 69-78. Robinson, AG & Schroeder, DM 2009, Greener and cheaper, Business Insight, Available at www.online.wsj.com/article/SB123739309941072501.HTML Roth, B 2008, Restaurants produce green profits, Young Entrepreneurs. Available at www.entrepreneur.com/management/greencolumnistbillroth/article194882.html Sherman, G 2008, Saving the earth? Available at www.wired.com/techbiz/it/magazine/16-04/bz_green Tyler, K 2006, Going Green, Business Network, USA. 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