1. Every company can be green and social
In this thesis, I have analyzed four companies that are different in terms of industry, size, age, country, turnover and growth rate, but that are yet socially and environmentally friendly. There can be many reasons behind the creation of a green and social business, but the most important thing is that there is always a good reason to use business as a source for good. A way for customers to know whether a company is socially and environmentally friendly and for companies to attest their performance is possible with the B Corporation label. Once a company is labelled, it can enjoy side benefits such as monthly meetings with all B Corporation-labelled companies. Those meetings enable firms to gain insights of what they could improve by comparing themselves to the other B Corporations, get new ideas for their business but also brainstorm and help other firms be more sustainable. It might be sometimes difficult to keep being motivated to do the good when feeling alone in the process of being green and social, so regularly meeting with people who are as passionate as one can certainly boost one’s motivation.
However, as we saw with O’Right and Pocheco, this label is not mandatory: companies can still be green and social without being certified. When looking deeper into these two companies and comparing them with DA.AI and Ming Yung that do have the label, the differences are not striking: should the label be free so that every business could apply? Could there be sub-certifications that would enable companies to have the label even when they are only focusing on either social matters or environmental ones? Further analysis is required to answer these questions and could contribute to the expansion of the label.
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The four companies integrate the environment and society into their core values. These values have been propelled by the management, but have been supported by the employees without whom the firm’s impact would be much minor. Indeed, employees at Pocheco plant trees in the Northern region of France as part of the AGORA program, and are participating in a skill-based sponsorship when offering their services to organizations that need help with their projects.
O’Right’s employees and their families are also demonstrating eco-friendly values when collecting trash during the International Coastal Cleanup. Ming Yung’s employees have initiated about 100 charity programs that all have educational purposes, and DA.AI counts many Tzu Chi volunteers as their employees. Moreover, the four companies at stake use a democratic style of leadership. This empowers employees and in turn increases the impact of the firm. Giving employees a voice and ensuring their safety at work also contributes to the social-friendliness of a firm, but with an internal perspective.
3. Systems
In order to ensure the good implementation of such sustainable strategies, the systems a firm puts in place have a major role to play. Indeed, Ming Yung implemented a good ERP and POS system that enables the firm to be paperless and efficient. DA.AI calculates the CO2 emissions it saves, and O’Right benefits from three cutting-edge research laboratories that enable the firm to enjoy a sustainable advantage in terms of innovation. Finally, Pocheco opted for the QSE (Quality, Security, Environment) that simplifies the company’s procedures and ensures the firm’s efficiency.
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4. Benefits of being green and social
Three of the four companies studied see a real benefit in being socially and environmentally friendly, may they communicate or not about it. For the three of them, the major benefits are the money they save thanks to their green buildings. While Pocheco and O’Right greatly communicate about their eco-friendliness and integrate it in their brand image, Ming Yung decided not to communicate about neither their social nor environmental strategy so as not to label their employees and put them in a difficult position. However, Ming Yung still recognizes the benefits of being green and social. DA.AI is the only firm that is more cautious about claiming the benefits of such strategies, as they believe they are only appealing to the part of the population that sees them as important. As proved by the four cases analyzed, being green and taking care of people is not necessarily costly in financial terms and it brings a lot of value to the firm’s stakeholders. Indeed, employees who contribute to doing the good around them make an impact and find a reason to work where they do – this increases employee responsibility and loyalty. Moreover, customers are now more and more aware of the positive impacts they can have through their purchasing decisions and are expecting companies to diversify their offers towards more sustainable goods, produced through sustainable practices.
Finally, the positive value sustainable companies have on the Earth are non-negligible: the planet offers us resources without which businesses could not run. These resources are coal, oil or water, but also Humans who could not go to work if the air was so polluted it made them sick.
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Finally, after writing this thesis, I have some recommendations to make. First of all, I believe governments should encourage corporations to be green. They could provide them with subsidies to install solar panels on their roof for instance, as well as a rainwater harvesting system that would enable companies to be self-sufficient in energy. Governments could also offer incentives for companies to get local (and if possible organic) raw materials, so as to support local producers and sell eco-friendly end-products. Moreover, there should not be any cases of companies being punished in front of the law for following an eco-friendly behavior that does not maximize shareholders’ profits (as it is the case in the United States). Such a change could be made possible by changing the role of corporations: maybe not switching them all to B Corporations, but at least taking into consideration the Earth and people as much as stakeholder’s value in the strategy of the firm. According to the results of the analysis, companies should all invest in renewable energies which would allow them to be energy independent, and even provide energy to the grid if they produce more than they consume.
Nowadays, the cost of such installations might still be too high for some companies, but I believe experts are working on developing new cost-effective ways of using renewable energies for one’s individual consumption, and this could in turn allow every company (and even people) to have access to them. In terms of logistics and procurement, I conclude every company should be green: it is now relatively feasible for companies to use green delivery systems to distribute their products to their customers. Indeed, they can use DHL’s electric vehicles as part of the firm’s GoGreen program, or public transportation and bikes if the firm delivers products within a city. Every company has different requirements, but I believe there are solutions for every one of them. As for procurement, companies should use local and organic raw materials as much as possible (may they receive government subsidies or not). This would support local economy and tremendously reduce CO2 emissions necessary for the transportation of products. The last
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(but not least) aspect firms should consider is people: they should take care of them, even though it is not the core of their business. Corporations should ensure their employees are safe and that they flourish in the job they perform every day. Companies should adopt a benevolent and caring culture that puts the well-being of their employees at the core of their business. Finally, individuals also have a role in the game being played. They have the power to see what they want in the shelves by purchasing eco-friendly and local products, or at least products delivered by sustainable and benevolent companies, and boycotting other products coming from companies that do not demonstrate these values (such as Lafarge for instance, that participated in the tender process to construct the Mexican wall ordered by Trump). Individuals also have the power to impulse changes at their own scope. They can initiate the creation of public green spaces (such as the ones in England), local currencies (like in Alsace and Le Havre, France).
These initiatives support local producers and create a sense of trustworthiness in the community.
Moreover, as individuals, we should stop consuming as much as we currently do. We always want more, such as new clothes for the new season coming, or the new iPhone even though ours still works perfectly well. Consuming so much gives a reason for firms to produce as much as they do, and hence use more resources than the Earth has. We should adopt a responsible way of consumption and not follow blindly what companies suggest us to buy. I also encourage individuals to spend some of their free time helping local associations. Help migrants learn their host country’s language, or assist elderly find a job certainly is a rewarding experience that puts Humans at the center and brings people together. The role of companies is now, more than ever, being discussed. Would businesses survive if people reduce their consumption for apparel or electronic devices? Would they endure if people grow their own food and develop their own local network? Some economic research should be done to elaborate scenarios about the part corporations should take in tomorrow’s world.
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Appendix
Appendix A – Ming Yung
Appendix A1 –
Photos of Ming Yung’s CEO at their headquarters in Taipei
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Appendix A2 – Ping Song, Fanny (me), and Viola Cheng at Ming Yung’s headquarters
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Appendix B – DA.AI
Appendix B1 – Photo of the Masters Cheng Yen at DA.AI’s headquarters in Taipei
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Appendix B2 – Meeting room at DA.AI’s headquarters
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Appendix C – O’Right
Appendix C1 – Certifications received by O’Right, on the main entrance door at their headquarters in LongTan, Taipei
Appendix C2 – Green wall in the lobby of O’Right headquarters
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Appendix C3 – Historical timeline of O’Right
Appendix C4 –Packaging of various products of O’Right
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Appendix C5 – Lab at O’Right
Appendix C6 – Various stages of coffee beans in the lab of O’Right
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Appendix C7 – Chemical formulas in the lab of O’Right
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Appendix C9 – Different stages of coffee beans necessary for the production of the products at O’Right
Appendix C10 – Chemical formulas on the walls of the lab at O’Right
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Appendix C11 – TV showing the energy saved by O’Right
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Appendix C12 – The quarterly newspapers featuring O’Right’s initiatives.
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Interview Questions for Min Yung– certified B Corporation in March 2016
Introduction- Why create a social business?
- How many employees do you have?
- What is the annual growth rate?
Buildings
- The buildings are eco-friendly: was it difficult to build them compared to normal non-eco-friendly buildings? Was the cost higher?
Strategy
- What is the future strategy in terms of growth? (create other chains, expend in new markets?
- What is the social strategy? Other initiatives will be put in place? (already free meals for poor etc…)
B-Corporation
- Why become a B-Corporation?
- What does it bring?
- Does it constitute a competitive advantage compared to restaurants that don’t have the label?
- How long was the procedure to get the label?
- Did the certification bring a sense of belonging to the B-Corp family and increase your will to do the good around you?
- What are the advantages and drawbacks of being a B Corporation?
- When putting in place social programs, did you have to implement rules for them to work? (for instance, check the people are really poor before offering them a free meal) - Is there an economical advantage of being socially and eco-friendly?
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Interview Questions for DA.AI - certified B Corporation in May 2016
Introduction- Where does the idea of creating a social business come from?
- What is the turnover of DA.AI?
- What is the growth rate of sales?
- What kind of customers do you target?
- Do you have regular customers that often buy your products to support your business and that share your values? (loyal customers thanks to your green and social business).
- What salaries do you pay employees (minimum wage or higher)?
Buildings
- Do you have green buildings to make the eco-products?
Strategy
- What is your strategy in terms of growth? Do you plan to open new branches abroad, or do you want to keep steady sales?
- What is your strategy in social terms? Do you take part of other programs to help the underprivileged?
B-Corporation
- How did you hear about B-Corporations?
- Why become a B-Corporation?
- What advantages do you get from it?
- Is it a competitive advantage over other brands in your industry?
- How much time did it take to become a B-Corp?
- Does being part of the B-Corp movement bring a sense of belonging and make you want to do more things to help the people and the Earth?
- Are there disadvantages of becoming B Corp?
- Is there an economic benefit of being eco-friendly?
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- Where does the idea of creating a social business come from?
- How many employees do you have?
- What are your sales/turnover?
- What is your growth rate of sales?
- What salaries does the firm pay?
Strategy
- What is the strategy for the future? Continue to enjoy a steady growth, create subsidiaries abroad to implement the product in foreign markets…?
- Do you think having a green brand constitutes a competitive advantage over your competitors?
Buildings
- With whom did you do the plans for the buildings?
B-Corporations
- Have you heard about B Corporations? (Firms that put the environment and social matters at the center of their business).
- Do you want to be more social to fit the B-Corp criteria?
- Other initiatives?
- What are the pros and cons of being a social enterprise? Are their any needed
- What are the pros and cons of being a social enterprise? Are their any needed