In order to be able to comprehend how being green pays off, one must concentrate on the relationship between employing environmental attitudes and economic performance at a company level. Being green is especially important in the present and there is a wide range of domains that people have addressed when concerning the concept. "Some studies have shown that students who go to green schools have higher test scores, get sick less often and are healthier and happier" (Boys' Life 12). This makes it possible for someone to understand that profits associated with being green do not only involve financial aspects, as they are also likely to reflect positively on individuals when regarding matters from a series of other perspectives.
While this concept is surely important, people should not only focus on profits when trying to devise strategies of being green. Michael Porter's theory regarding "Resource-Based View" presents an intriguing view concerning how companies can use differentiation strategies with the purpose of providing their products with unique features. Even with the fact that it might provide marketing specialists with a series of issues during the first steps of a project, the Resource-Based View does not limit the choices that companies have with regard to the industry's structure. "Rather, it considers competitive advantage as resulting from the capabilities of firms to acquire and manage resources, such as technical capabilities, ownership of intellectual property, brand leadership, financial capabilities, and organizational structure and culture -- all of which can be deployed to serve the goal of creating competitive advantage around environmental innovation" (Orsato 129). Competitive advantage is thus a direct result of employing green strategies, as companies that take on this approach are likely to develop more competitive products and are probable to influence the masses to express particular interest in their overall business.
Brand reputation is a particularly important concept when discussing how being green pays off. The Exxon Valdez Oil Spill is certainly one of the worst environmental disasters in all of history and it enabled society to understand the gravity related with failing to take proper measures with the purpose of protecting the natural world. The fact that the company did not publicly get involved in protecting the environment before this incident happened made it difficult for it to recover and significantly damaged its reputation.
In contrast to ExxonMobil, BP actually got involved in devising methods to preserve the environment prior to dealing some of the worst blows in all of history to it. Even with the fact that the company is responsible for the worst case of environmental pollution that has ever happened (the 2010 Deepwater Horizon oil spill), the incident was seen with different eyes when comparing it to the Exxon Valdez oil spill. "Thanks to its positive eco-reputation, the company was given extra leeway" (Esty & Winston 141). They understood that it would be beneficial for them to invest in being seen as environmentalists and eventually profited from the enterprise.
Brand reputation is also indirectly responsible for bringing larger profits to a company and employing an environmental attitude is thus likely to increase a firm's value. Having a higher brand value is equivalent to having market power. Companies with market power "command higher prices, sell more, and develop closer relationships with customers and employees" (Esty & Winston 141).
The meaning of getting involved
One means to increasing environmental stability is represented by the reduction of the carbon print. In other words, emphasis is placed on the reduction of the carbon consumed with the scope of decreasing the negative environmental impact onto the environment. Within Australia, this endeavor has been approached at multiple levels, one notable effort being represented by the creation and implementation of a carbon tax. At this level then, the focus falls on the assessment of the tax and its short- and long-term impacts on the tourism and hospitality industry.
The first talks about the introduction of a carbon tax in Australia commenced years ago, but it was not until 2012 that the tax was actually implemented. The introduction of the tax in the country was explained by the fact that the Australia is the highest polluter among the developed countries; this conclusion was reached through the assessment and comparison of the carbon emissions per head of inhabitant and it was found that the Australian population polluted mostly.
The measure of introducing a carbon tax forces the Australian corporations, namely 300 of the worst polluting firms, to pay a $24 levy per tone of greenhouse gas produced. This levy sum is expected to increase each year, up until 2016, when a, ETS is projected to be implemented. The emission trading scheme would be devised in full accordance with the pollution cap and standards to be enforced by that day (Clean Energy Future 2012).
The measure was well supported by the environmental institutions and green supporters in the country, yet it is highly criticized by the political opposition. In fact, the opposition argues that, if and when, they come to role in the country, one of their first measures would be represented by the elimination of the carbon tax (BBC 2012).
The Australian example concerning introducing a carbon tax in order to regulate emissions perfectly exemplifies the strategies that a country would need to take so as for it to embark on a journey to reaching carbon neutrality. It is practically as if the Australian authorities want to make people realize that pollution is largely owed to people's activities and that it is essential for them to do something about it. Although it is difficult for it to achieve carbon neutrality in the near future, it is likely that such strategies pave the road to this objective.
A series of companies have recently turned their attention toward employing green attitudes, both in an attempt to save the world and in order to have the masses appreciate their thinking. Green marketing has come to be an important tool differentiating between successful companies and companies that gradually lose terrain as a result of their failure to act in accordance with laws imposed by the rest of the world.
According to Grace Dagher and Omar Itani (2012), companies need to focus on four Ps in order for them to experience financial benefits as a result of going green.
Products are one of the most important concepts in a company and in order for society to appreciate them they have to be environmentally friendly and even to provide solutions to environmental damage.
Price can be regulated by introducing a series of products that have varied levels of environmental friendliness, so as for more people to be able to get involved in saving the environment.
Place is an important factor, as companies need to promote online selling and to concentrate on providing distribution channels that have a very low negative effect on the environment.
Promotion is also significant in assisting a company that adopts environmental attitudes experience financial benefits. "Companies must use specific green marketing tools such as eco0lable and special sales promotions anxious for their corporate social responsibility)" (Dagher & Itani, 2012).
In order to be able to earn profits while putting across environmental attitudes, a company needs to be familiarized with green consumers. A green consumer is reluctant to purchase products that are damaging for people, animals, or for the environment as a whole. Products that require too much energy and produce very little benefits or that cause excessive waste are also likely to be avoided by green consumers (Dagher & Itani, 2012).
A great deal of companies has taken advantage of the fact that government support green attitudes and have started environmental programs meant to reduce their amount of emissions. "The 2009 economic stimulus package allocated billions of dollars to energy and environmental projects" (Vernon, 2009). Many firms actually fail to understand the fact that they can basically keep their profits and make even more as the government is providing them with funds needed for them to go green. This practically works as a 'help yourself while helping others' strategy. Companies are provided with finances required for them to go green and they upgrade their status at the same time. These firms virtually have to invest little to no finances in going green, taking into account that the authorities provide them with everything they need in order to be recognized for their environmental attitudes (Vernon, 2009).
Individuals are generally inclined to express confidence with regard to companies who adopt environmental attitudes, as these firms are perceived as being 'good'. "When firms' initiatives contribute positively to society, people acquire trust, feel protected, and ultimately buy firms' products, thereby improving companies' economic results" (Giovanni 272). This makes it possible for someone to understand how environmentalism can be particularly profitable, as individuals are inclined to express interest in firms that apparently want to help the world.
3. Carbon neutrality is a significantly notable trend in recent years and it…