Tracking efforts in companies like Wal-Mart, Hewlett-Packard and Clorox, authors Ram Nidumulo, C.K. Prahalad, and M.R. Rangaswami, identified a five-stage process that will benefit companies as they navigate through the adoption of green business models. In the article, the authors contend that early adopters of this process will develop competencies that will be difficult for their competitors to match. They also submit that adoption of these processes by corporate leaders will be key to real change within our economy.
1. If consumers will not pay more for eco-friendly products, where do the authors suggest that profitability will come from?
2. Give a specific example of how the authors point to redesigning operations can save money.
3. How would you define “greenwashing?” Is it a good thing or a bad thing? Explain.
Source: Nidumulo, Ram, C.K. Prahalad, and M.R. Rangaswami (2009). Why Sustainability Is Now the Key Driver of Innovation. Harvard Business Review, September, pp. 3-10 (Retrievable at http://graphics8.nytimes.com/images/blogs/greeninc/harvardstudy.pdf)