Lesson 2 Benefits and Challenges of a green orientation

When getting into an endeavour is fundamental to consider both the pros and cons in order to make an informed decision.

Benefits will get you to invest your time knowledge and resources, while challenges will help you be prepared.

Positive social impact:

  • Going green has several benefits for companies. It can cut costs, improve efficiency, and create healthier workplaces. Less tangible benefits include improving brand reputation and customer loyalty, as well as staff morale
  • There is no doubt that the main benefit of going green is that it will reduce its impact on the planet. Especially young entrepreneurs who pay more attention to the way their business affects the environment. Therefore, the business reputation will increase significantly which can mean a significant increase in sales. 
  • need for responsible business models has become evident in recent years
  • overwhelming importance of financing. Firms in less developed countries face difficulties in developing green products and services, so support programs are needed to build green entrepreneurship in some regions. Many entrepreneurs in less developed countries are highly educated, creative, and innovative, so they can successfully run sustainable business models if the transfer of good practices is accompanied by an infusion of capital.

Green-washing

In an oversaturated competitive labour market, enterprises will do anything to stand out.

It is therefore a common practice among companies to try to get in touch with what the people want.

On the other hand, there is more access to information than ever before, which leads to an additional “demand” from the public from the businesses the support and invest in to be environmentally conscious.

So when does it become green-washing?

What is this? “the intersection of two firm behaviors: poor environmental performance and positive communication about environmental performance”

What to look out for: Disinformation disseminated by an organization so as to present an environmentally responsible public image; a public image of environmental responsibility promulgated by or for an organization, but perceived as being unfounded or intentionally misleading.

In other words, if it’s more about being perceived as environmentally friendly and less about actually taking steps to achieve environmental responsibility, it’s probably green washing.