Wailing and Gnashing of Teeth

A friend of mine from Paris sent me an article that recently appeared in the Los Angeles Times (no, I normally don’t receive my U.S. news from France… just another indicator that the world is flat!): “Flat-screen TVs to Face Energy-Efficiency Rules” (http://www.latimes.com/business/la-fi-tv3-2009jan03,0,2869589.story). The article describes the reaction of the consumer electronics industry to the proposed regulations to limit the TVs retailers are able to sell: only those sets consuming power under a certain limit will be allowed to be stocked. While these regulations have not been adopted by the state of California, it is very likely that they will be before mid-year. The industry is opposed… it will lead to higher consumer costs, it will lead to lower sales, it will lead to fewer jobs, it will lead to lower sales tax revenue for the state.  Sounds like a familiar argument? They go on to say that consumer demand will drive the innovations anyway, so why regulate it? Anyone remember the gas crisis of the 70’s? 

Another example is the movement toward green building concepts. Buildings are one of the largest consumers of power in this country, and rank above the automobile on the amount of CO2 added to the atmosphere. Yet, there are still many builders today that build to the building codes and nothing more. Some of the excuses are the same ones given by the consumer electronics industry, or the auto industry or the energy industry.

This energy crisis is real. It doesn’t matter if you are a disciple of Al Gore or a follower of T. Boone Pickens. The problem is here to stay and business strategies should address it. Your business may be strictly a consumer of energy or your product may consume energy throughout its lifecycle. In both cases, you or your customers will be looking for ways to reduce that consumption.  Whether the changes are legally mandated or consumer driven the impact to your business is the same.

This does point out a very valuable lesson, and underscores the importance of a sustainable approach to business. A truly sustainable business operates on not just the financial bottom line but at the confluence of the triple bottom lines of people, planet AND profit. People meaning all of your company’s stakeholders, including your customers, your employees, your stockholders, your community and in this case government agencies and regulators. If you are like most businesses, incorporating these strategies into your business will be much less disruptive than waiting until it is legally required of you to do so.

The point is that these are complicated issues that are not going to be solved by only looking to the financial bottom line. It has to be an integrated approach that uses input from all stakeholders. In this difficult financial economy, looking out beyond the next payroll feels like science fiction. But we have to continually project ourselves 3, 5, 7, 30, even 50 years ahead as we plan strategy. We need to continue to evolve our businesses. Those that can and do will sustain. Those that don’t will simply cease to exist.

Comments

  1. Timothy Holtz says

    I think that companies who WANT to build/produce/operate in a sustainable manner should realize they have to put forth the effort to educate consumers on why that makes sense! And not just make sense – why it is superior to the short-cut alternatives. This might involve an aggressive marketing strategy to promote the benefits of certain product types, or certain company practices… either way, if an organization matured enough to perform like this, educated consumers will help to make it successful!

    Naturally, people will want to know “what’s in it for me”… that’s not bad – that’s great! That means you have their attention. But they’ll want answers.

    By the way – credit for your Paris source?

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