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Business Unusual

With big biz jumping on the green bandwagon, should activists cheer or jeer?

By Jason Mark and Kevin Danaher
15 Feb 2007
Read more about: business
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"The test of a first-rate intelligence," F. Scott Fitzgerald once wrote, "is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function."

It's time for greens to co-opt corporations.
Photo: iStockphoto
If so, then the growth of the green economy -- embraced by corporations, heralded by politicians -- marks something of an IQ test for the progressive movement. How can we at once celebrate companies that move toward better practices while acknowledging how much farther they need to go?

The signs of change are everywhere. General Electric and BP are ramping up their renewable energy as wind becomes price competitive with coal power. Prominent architects are using recycled and reused materials, and the market for non-residential green building is at $43 billion a year. More than $2 trillion in assets are invested in socially responsible funds. Sales of organically grown food are skyrocketing at 20 percent a year growth. Sustainable living has gone from granola fringe to glossy fashion.

This poses a real dilemma for those of us who have long advocated for a cleaner, more humane way of doing business. Of course, it's a tangible benefit to reduce the amount of toxic substances in the air we breathe, the food we eat, the clothes we wear, and the homes that surround us. But are megacorporations -- the same companies that sold us the toxics in the first place -- really the best vehicles for lasting reform?

As this quandary proves, victories are rarely ever clean-cut. Success almost always comes with compromises and contradictions. Progress is, in a word, messy.

Is it a victory when Wal-Mart is the No. 1 seller of organic milk and organic cotton? Should we applaud when Ford offers a hybrid SUV? In short: What does success look like? How will an ecologically sustainable and socially responsible economy take shape?

After careful consideration, our response is a cagey "Yes, but." Yes, it's progress when big companies take steps to lessen their environmental impact. But it's not quite victory yet.

There are real advantages to the Fortune 500's adoption of more environmentally sound business practices. More organic food and clothing means less poisons in our soil and water. More solar energy means less greenhouse-gas emissions. More hybrid vehicles mean fewer gallons of gas burned.

At its most basic, the green economy movement -- which has been spearheaded by small entrepreneurs and is only now being embraced by giant corporations -- is merely the takeover of the very simple act of buying and selling. We all need some stuff, after all: food, clothing, shelter, and maybe an iPod for kicks. The trick is how to produce that stuff in a way that doesn't destroy the planet or abuse workers.

For too long we've allowed corporations to co-opt our social movements through greenwashing and phony charities. It's about time that we started co-opting the corporations. Let's use what businesses are good at -- marketing, distribution, retail sales -- and make it work for us. This is the idea of the "triple bottom line" economy: balancing financial sustainability, social justice, and environmental restoration. It's an idea that's increasingly popular, as the 3,000 green enterprises that are members of the Co-op America's Business Network prove.

Yet the dangers of a big-business takeover of the local, green economy movement are equally real. Will transnational corporations use green practices to more effectively wipe out their mom-and-pop competitors? Will organic standards be weakened by the power of large corporations? Will Americans retain their bad habits of overconsumption but simply switch to earth-friendly products?

In truth, we are not going to spend our way out of a social and ecological crisis 500 years in the making. The revolution does not take American Express.

The inherent contradictions in the trend toward more green business need not be overwhelming. Instead of succumbing to an either/or thinking that says we can either have Safeway organic broccoli or we can have local farmers' markets, we should adopt a both/and mentality that makes room for each path. Our movement for a local, green economy must mimic the wisdom of nature, which always bends toward unity of diversity. Nature abhors a monocrop, and so should we, recognizing that there isn't just a single way forward. There are many roads to the future, and while some get there by bike, others may choose to carpool or take a biodiesel bus.

In practice we encourage people to take whatever actions they are capable of. Call it smorgasbord politics. For the pioneers and the early adapters, there will continue to be community-supported agriculture (CSA) programs, off-the-grid energy, bike lanes, and co-ops. For the newcomers just beginning to think about the impacts of their purchasing decisions, buying organic frozen dinners at Whole Foods is at least a step in the right direction. By all means, buy local. But keep in mind that your neighbor might still need some convincing that the green economy is not a fringe movement anymore.

The idea is to construct a green economy broad enough to accommodate a range of interests, niches for both the deeply committed and the newly curious -- while of course at all times pushing farther and constantly redefining "mainstream" and "normal" and "acceptable."

No, we can't buy the change we wish to see, not when buying too much has gotten us in this pinch in the first place. But we can put a down payment on a future that will have no clear-cut forests, no starving children, no sweatshops, and no endangered species.

Now that's smart business.

Read more about: business
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Kevin Danaher is a cofounder of the human-rights group Global Exchange. Jason Mark sits on the organization's board of directors. They are the coauthors of Insurrection: Citizen Challenges to Corporate Power. This article originally appeared in the group's winter newsletter.
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Comments: (13 comments)

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better, but still torn

Although this article assuaged some of my frustrations with (what I consider) weak approaches to reducing personal impact on the environment (say for example, buying organic but living in a ginormous home and keeping it either heated or cooled all year) I can't help but worry that if we aren't careful about the momentum of the movement, tough to reverse habits will form.

alas.

resistance before revolution

celebrate the small victories while constantly working to enact the long-term vision. only way to stay sane.

United for A Healthy Gulf, check out www.healthygulf.org.
corporate takeover

Nice synthesis, Kevin and Jason. Greens need to engineer a corporate takeover of business, gov't, the press, and all of the institutions that have key roles in how society runs. It's the next best thing to do. The more of us there are in these places, the better!  

The Orion Grassroots Network: supporting grassroots groups working for conservation, justice, & more
Well said!

What a terrifically lucid and balanced point of view.

There are corporations that deserve to be villified ... like TXU in Texas. There are corporations whose behavior should be applauded ... like the ten majors that just coalesced with WRI and Environmental Defense in USCAP on global warming. And there are corporations we should be busting our chops to steer in more socially responsible directions ... like Wal-Mart.

Corporate power is real; it ain't going away. Some of us can choose lifestyles that minimize contact with it. But others need to engage and harness it. Room for many strategies!

Tom Belford TheAgitator.net

buy more green gew-gaws of course

I think we should support businesses that truly go green- and give them our hard won moolah.  There is a synergistic win:win effect, and hey, we can feel good when we want just one more thing!

Nice, balanced presentation

Having labored in the corporate vineyards for many years, I can attest that there is a consciousness rising among the many talented people there about the importance of balancing economic pursuits with environmental sensibilities and commitment to our communities.  Unfortunately, public corporation executives and their Boards are insulated and almost always the last parties to the awakening.  Wall Street and institutional shareholders further the reinforcement of short-term actions.  Trust me, there won't be a revolution in large corporations.  They will simply be supplanted by a new generation of socially responsible start-ups that understand the imperatives of feeding local economy, protecting our land, air, and water for the next generations, and providing products that minimize their environmental footprint.  In the end, the consumers in our capitalist economy will vote with their pocketbooks, their intelligence, and their hearts.

Mea culpa

SNV, we are all sinners. But we adjust gradually. And our past decisions should not stop us from wanting to have a future.

Better that from now, big energy business be a tidal power or windpower company cleanly supplying electricity to a world that actually survives.

So I welcome the CEOs who see the light. And as a CEO, don't actually find it that surprising that some do.

I see the battle as between those energy companies that made a living by digging stuff out of the ground, and all the other companies that use brains to make a living.

John McCain already vetoes every eco bill

Climate Simplifies

The simple and terrible clarity imposed by climate change does not really leave room for the "balance" several posters find agreeable in Kevin & Mark's analysis. Abrupt climate change threatens continuity of civilization and extinction of half of all species within the lifetime of our children now in grade school. The world has a simple and unambiguous global standard that must be met and a short, <10 year timeframe of action.

Total carbon emissions traceable to policies, operations products and business of any given company is now the only relevant standard for evaluating corporate behavior. How corporations choose to meet this single standard, in choosing between emissions-neutral alternatives, will still engage questions of equity, public health, and environmental issues other than climate.

The tricky question is how to apply a global standard to any given sector or corporation and BP and Walmart are useful case studies on the question. Both companies have offered us a climate deal.

BP's deal was to join environmentalists in spirit, put its weight behind mandatory emissions limits, and define corporate climate policy in terms of achieving emissions reductions in operations and substantial, by past standards, investments in renewables. In exchange, BP is able to pursue an aggressive drive to expand oil and gas operations, absorbing 96% of its capital investment. It is a terrible deal and we took it. BP just received top score in the first CERES ranking of corporate climate policies, applying BP's own criteria.

WalMart's is a much more interesting deal. The company promises to set and take seriously a goal of 100% reliance on renewable energy in its internal operations and to use its monstrous market power to force carbon emissions reductions from its suppliers. In exchange, Walmart will continue its aggressive drive to expand and dominate a global, mass consumer culture. This is clearly more complicated, but at least offers something of substance.

Ken Ward ken[at]brightlines.org

RE Walmart ...

What is interesting in Walmart is seeing their business case ... They are starting to drive their suppliers to be more energy efficient which will cut GHG emissions. And, Walmart will seek to get some of the money saved due to energy efficiency back in reduced prices.

They are pushing CFL bulbs -- which will save their customers electricity payments, which means more money they can spend in Walmart. (see: http://www.dailykos.com/storyonly/2007/1/5/3593/39370)

And, so on ..

Blogging regularly at Get Energy Smart. NOW!!! to Energize America .

Momentum

The pace of change and its philosophical soundness may not be quite what we all would hope, yet, but at least it has begun.

That corporations are spending money calling for legislation instead of fighting it is definitely progress.  That many of them are making changes in their construction and energy sources is even better.  

That said, reducing consumption, and not just the impact of consumption is, and will almost certainly remain, counter-cultural.  There is no incentive to any corporate entity for leading such a movement, so, if we want it to happen, we'll need to build up social structures that encourage it.  Churches would be natural partners in this, but non-church-goers may be able to formulate novel community structures to encourage and inform.  

But it is such a relief to begin to see movement, and, as with our community structures, a variety of pathways will probably be necessary to fit the vast variety of humankind. Restricting participation to the pure in heart is not a recipe for success.

Every day is an opportunity to choose again and do better.

WalMart

It doesn't matter how 'green' & orgainc WalMart makes their stores or products, as long as they continue to pay their employees poverty-level wages and don't provide any benefits, they're still the same old WalMart . . . making big bucks at the expense of their employees and the rest of us who pay for the MedicAid and food stamps that their employees are forced to use.

Current changes are the result of consumer muscle

The only way to effect global change is to change yourself. People have been changing for ages and are now asking for greener products, greener politicians, greener policies and so on. In a market economy, the producers and suppliers who respond best to what the consumer wants will have more success than those who are locked in the past.
We are seeing here the power of many individuals. People are not doing nothing if they are making concious decisions about what they buy. They are actively changing their world. People are active when they are talking with their friends, when they are reading newspapers, teaching their children, voting for the best politicians, asking questions at stockholders meetings, choosing their forms of transports, housing, clothes and food.
Don't fret about whether we should support corporations in their 'greening'. Corporations will change or shrink. We will look at and judge their individual actions, and we will decide directly on their fate when we decide whether to support them financially by buying their products or services.
We, the people of this planet, make the decisions every day. We choose. So keep in perspective the whole issue of the greening of business and government. We are deciding the issue.

Show me the Green

Consumers have very little muscle and to believe we do is to live in a fantasy world.  GE is promoting nuclear power as a cure for climate change while BP spends more on public relations about their "greenness" than they do on renewable energy investments. Believing consumers have more power than shareholders takes us down the false path of sustainability that maintains things as they are--profits before people and planet.

Just because something says "organic" doesn't mean it is sustainable.  Pesticides are still pesticides even though some may be made from natural occuring chemicals while others are man-made.  They still kill insects and other organisms.  Poor farm practices, both conventional or organic, are still poor farm practices.  

What we need is transparancy of information with all products.  Remember Adam Smith's conditions for a free market include total information disclosure on all transactions between the producer and the purchaser.  Our economy has very little environmental information on any transaction except when companies want to showcase their minor accomplishments.

If companies really wanted to be "green" and sustainable they would work on take-back packaging and products that could be repaired cheaply instead of having to be replaced. For example, why are all printers defaulted to single-sided printing instead of double-sided?  Because most companies that manufacture printers also make huge profits selling paper. Again, profits before people and planet.

We won't begin to get to sustainable until it is people and planet before profits!!!

 

Earth Pope

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